HI David..
With 101 million shares in the float,WDO has a way to go ..It is a gold producer
,but at what cost...
Here are some numbers I pulled out of the last
financial report and although it is typically a struggling junior with some production,
it has a nice piece of gold bearing ore ,,..but it is 1200 meters down.. The grades are good..
but not enough tonnage but a
nice hotspot to shaft mine..but expensive.
While management struggles to bring it back,I would not put any money in it
and suggest you may want
to start backing out of your position on favourable spikes..
I picked out a few comments from management and it does not look great to me..
and I would be looking for a better investment if you can ease your money out.
You asked..
Portee
-- Production on track to meet or exceed guidance
o 13,700 ounces in 2(nd) quarter of 2013
o 28,300 ounces in 1(st) half of 2013
-- Eagle River production costs of $1,066/oz in the 1(st) half of
2013
-- Eagle River grades double to 11.3 gAu/tonne in 1(st) half of
2013
-- Mishi grades up 50% to 3.4 gAu/tonne in 1(st) half of 2013
-- Mining operations rationalized - high cost production suspended
-- Earnings flat, cash flow from operations covers capital
expenditures
-- 2(nd) half outlook bright with large, strong grade stockpiles
and exclusive focus on best margin operations
-- Drilling to accelerate at the Eagle River Mine in 2(nd) half of
2013
For the
first half of the year production was 28,268 ounces, slightly ahead of
last year. Production costs averaged $1,246 per ounce for the six
month period, including 7,613 ounces from Kiena at a cost of $1,735 per
ounce and 20,655 ounces at $1,066 per ounce from the Eagle River
Complex. With 100% focus on the Eagle River complex in the second half
of the year and improving mill throughput, we expect improved financial
performance.
811 Zone structure confirmed to depths of 1,200m highlighted by hole
Cash on hand 12 MIllion.
Market confidence in gold mining continues to decrease. Recent declines
of 25% in the gold price have been partially offset by declines in the
$Cdn/$US exchange rate.
Mine operating
profit ($000)
Mine operating
profit (loss) 817 (3,827) (2,489)
At June 30, 2013, the Company had working capital of $12.2 million compared to $13.9 million at December 31, 2012. During the first half of 2013, capital expenditures totaled $5.6 million compared to $3.0 million in 2012. Capital expenditures were concentrated in mine-site development, mine and mill infrastructure. Cash balances have declined since the beginning of the year, but we had gold on hand and have reduced our accounts payable by about $5 million since March 31, 2013.
That is a frightening dept to try to make any money at..
EXPENSIVE..
PORTEE
