WGX - Westgold Resources

[travwj]

Haven't really followed WGX for a while, but has been on a up trend from the start of the year and looking like it will test resistance at $2.57, and potentially new highs. It will be interesting to see how this goes. I don't hold any of this stock.

Trav

 

[travwj]

Having a look from my post above WGX tested resistance at $2.50ish and failed to push through. It is back down at $2.00 and appears to be holding up as support, but is being tested.
Do not hold any WGX

 

[Trav.]

- WGX up 7.1 % on Friday 21/2 to close $2.40, setting up opportunity for run at ATH $ 2.64
- also new hedging structure announced 18/2

Chart showing some significant areas signs of positive trend returning

 

[debtfree]

It does look promising @Trav. I was looking through some weekly charts for Peter's Bullish bars in a up trend. I've added a weekly view, I hope you don't mind.

 

[Trav.]

@debtfree all good mate, more the merrier as sometimes i swear that i can hear an echo in this place.

I tend to focus on daily charts so always good to take a step back and look at the bigger picture .

 

[Trav.]

Half yearly Reporting....some good news for WGX but that AISC across the 3 operations is high

 

[Boggo]

Hasn't been much on this lately. This weekly EW pattern has got my attention.
(Disc - I do hold).

(click to expand)

 

[Dona Ferentes]

Underground worker dies after incident at Westgold Resources Limited's Big Bell mine

Underground worker dies after incident at WA gold mine

The worker was airlifted to Perth with critical injuries but died in hospital. Westgold Resources Limited says a full investigation is underway.

www.abc.net.au

 

[Trav.]

WGX has popped up on my scan again, and I have not entered for the second week in a row. Why - well I have exposure to gold in other companies and maybe I should move over here instead ?

Daily below

And who can argue with the following slide - All arrows pointing up! ?

 

[finicky]

Something turned me off Westgold when I looked at it once but can't remember what. Never considered it since for a buy. This H1 report looks quite appealing - on the surface anyway.

 

[peter2]

Hi @peter2

I would love to know the reasoning behind the entry in WGX this week.

Westgold and I have some recent history. I've lost money in the last year trading WGX shares. I've noticed that the price swings wildly and can be volatile. Time it right and there's a good reward possible. Time it wrong or hold on too long and the losses can get big quickly. Last time I bought a little late and held on too long. Ouch.

However I did notice that WGX outperforms POG when it rises. The POG started to go up last Friday and WGX appeared in my high volume bullish bar scan Tues pm. If the POG continues higher I knew that WGX would rally as well. Bought some, but only a little for the spec portfolio.

This trade looks likely to fail as the POG drifted lower Thurs and was sold off harder Friday. Gold producers need the POG to rally to provide good RR opportunities. So far, gold has not rallied strongly.

I'm much more comfortable trading the POG itself rather than gold producers. Perhaps after this loss I'll stick to that.

 

[chips88]

Great thanks @peter2 for clearing that up

 

[Dona Ferentes]

There is a new company coming up for IPO on the WGR ticker (went to SEARCH for WGR and got WGX)

Western Gold Resources Limited -

Listing date	19 July 2021 #
Company contact details	https://westerngoldresources.com.au/

Security code

WGR

 

[Sean K]

Significant break up from WGX. Followed the same path as all other goldies since the bottom but the rest stalled then consolidated and have yet to break through some common resistance. WGX has been the exception*. Breaking up through 2 bucks very good.

*edit: NST also seems to be breaking up.

 

[divs4ever]

OPERATIONAL UPDATE
Westgold Resources Limited [Westgold or the Company] wishes to provide an update as to the impact of COVID19 on its operations due to the increasing case numbers across Western Australia.
The December Quarterly report [ASX - 27 January 2022] detailed the growing impacts that COVID-19 was having
on staff numbers and operating costs. During the March Quarter [Q3, FY22] the Company has seen many of
these factors intensify with an increase of positive COVID-19 cases within our workforce. There is a multiplier
effect due to the necessary quarantine of non-positive close contacts and this requirement has significantly
depleted shift attendance across some operating sites and has affected production.
Chief Executive Officer, Debbie Fullarton commented:
“COVID-19 cases continue to increase across Western Australia and we are experiencing a similar
trend across our operating sites.
We however continue to proactively manage the situation as the health of our workforce and the
communities we work within is paramount. All our mines remain operational, but production is
expected to be affected this quarter due to availability of front-line operating staff.
The Westgold workforce is resilient and though stretched, will continue to manage the ongoing
challenges imposed directly or indirectly by COVID-19.”
Prior to the state borders opening, Westgold extended its COVID-19 Management System to include RAT testing
of all personnel prior to departure from Perth to our regional sites and established PCR testing capability within
our operations. Additional site-based protocols such as specialist cleaning, catering restrictions and strict
recreation controls were also implemented. Isolating COVID-19 from our Murchison and Bryah communities has
been a priority for the Company with non-essential site travel curtailed and head office staff encouraged to work
from home.
Despite these controls, and in accordance with WA Government guidelines, we have recently been impacted by
new cases of COVID-19 across all sites resulting in the necessity for an increasing number of personnel requiring
isolation for 7 days within our camps. As a result, since late February the operations have lost approximately
3,860 hours related to positive test results and or precautionary isolation requirements– with most of this lost
time attributed to the past 3 weeks.
The 3,860 hours represents 320 shifts lost of front-line operational workers within a period of approximately 30
days. Resultantly, we anticipate an impact on overall production this quarter of ≈3% to 4%.

===================================================================================================

( DYOR )

i hold WGX ( courtesy of the MLX demerger ) but did add a parcel in June 2021 ( @ $1.90 )

i get a bad smell here ( and i LOVE blue-vein cheese )

please be careful

 

[Telamelo]

I loaded up on Goldie WGX getting "cheap as chips" down here @ $1.75 imo (remembering $100M placement to sophisticated investors done at $2.10)... trading at a significant discount to placement so minimal downside risk around current levels imho (not investment advice per say).

DYOR .. Cheers tela

 

[peter2]

While there is some merit in thinking the spp price should provide some support, we should be wary that it may not. Once price trades below a recent spp price then there's going to be more supply as nervous holders get out.

I've often relied on the support levels provided by spp's when I've been caught by the sudden news of a cap raise. I've always sold when the support fails. Clearly there's unforeseen problems that hinder the company's plans for the new capital.

 

[Telamelo]

While there is some merit in thinking the spp price should provide some support, we should be wary that it may not. Once price trades below a recent spp price then there's going to be more supply as nervous holders get out.

I've often relied on the support levels provided by spp's when I've been caught by the sudden news of a cap raise. I've always sold when the support fails. Clearly there's unforeseen problems that hinder the company's plans for the new capital.

Thanks @peter2 for your reply as you made some valid points that I agree with & appreciate.

I guess I threw some caution to the wind in trying to catch a falling knife so to speak (not ideal as I usually avoid trading like this but re-directed 70% profit from OGC into WGX) - how low will share price fall too? is anyone's guess as agree the technical chart doesn't bode well at the moment (my backup plan is to average down again @ $1.50 if it gets that low).

https://www.marketindex.com.au/news/do-insto-investors-expect-a-turnaround-in-westgold

Cheers tela

 

[divs4ever]

about $1.50 would have me thinking about adding more also , but am guessing some other second tier miners would catch my attention also ( RMS and RRL for two , some chance of some extra AGG , )

 

[Telamelo]

I

about $1.50 would have me thinking about adding more also , but am guessing some other second tier miners would catch my attention also ( RMS and RRL for two , some chance of some extra AGG , )

WGX almost got down to $1.50 (nudged $1.535 yesterday).. quarterly report out tomorrow expected to disappoint due to covid impact on WA Gold miner's so maybe a chance tomorrow to buy more below $1.50 (I need too so as to average down).

Cheers tela

P.S. On a sidenote, added more Goldie's TUL & GOR today...