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| | Corporate Profile: Western Goldfields Inc
Publisher: Kaiser Research Online
Author: Copyright 2013 John A Kaiser
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Western Goldfields Inc (WGI-T)
| Western Goldfields operates the Mesquite Mine in southeastern California that it acquired from Newmont in 2003 after Newmont after production was suspended due to low metals prices. The company is led by CEO Ray Threlkeld and Chairman Randall Oliphant, and in 2008 produced 110,000 gold ounces at cash costs of $508 per ounce. The company has announced a mine plan with forecast total output of 700,000 gold ounces at cash costs of $420 per ounce from 2009 through 2012, and for 2009 has forecast production of 140,000-155,000 ounces. Overall mine life at Mesquite, which has measured and indicated resources of 3.87 million gold ounces, is planned for 14 years. On March 4, 2009, WGI announced a merger by plan of arrangement on a 1:1 share basis (plus .01cent) with New Gold, a transaction that, at the time of announcement, valued Western Goldfields at $314.5 million. Upon closing, on June 4, 2009, Western Goldfields final price of $3.02 per share amounted to $448 million on a fully diluted basis, or $100 per gold ounce. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
Western Goldfields Project Valuations
| Company | Project | Country | Stage | IPV $
MM |
$100 | UPV
$500 |
$2000 | Target Metals | Deposit Style |
| Key Company Projects |
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Western Goldfields Inc (WGI-T) | Mesquite |  | United States | Production |
$448 | | |
| Gold | Oxide |
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