WGE Holdings Corp (OTCMKTS:WGEE) completed the acquisition of a gold production platform in July, setting the stage for what is expected to be a stellar year on revenues and profitability. The acquisition has already provided the company with a unique opportunity as it continues to bolster its portfolio with unique assets in the gold mining business.
Soaring Revenues and Profits
The announcement of better than expected second quarter earnings on August 16, 2016 all but reaffirmed the fact that the company is on an impressive at the back of growing gold mining business. Revenue in the quarter came in at $1,020,000 from lows of $279,000 the preceding period. Net profit came in at $422,000 compared to $65,000 reported in the preceding quarter.
The better than expected results came on increased investments in gold production in South East Asia. Continued increase in revenue and profits is expected going forward, on the ramping up of production at all existing facilities.
Indonesia and Philippines Gold Mining Site
WGE HOLDINGS CORP (OTCMKTS:WGEE) was a big mover in the market on August 26, 2016, after confirming the acquisition of additional Indonesian mining site. Based in the west of Sulawesi Province, the mining site now has a reserve area of up to 10 hectares that the company plans to operate in conjunction with its other mining properties.
Backed by long-term leases and extraction rates of between 2-5 grams per ton the mine should be able to produce revenues in the excess of $500,000 a month. By utilizing heap leach technology, WGE Holdings remains confident of production levels reaching 2.5kg a month, once commercial production begins in October.
WGE Holdings has also confirmed the signing of a purchase agreement for the acquisition of 65% interest in deep shaft mining operation in Luzon, Philippines. In a media, briefing on August 29, 2016, the company confirmed that it retains the option of acquiring the remaining interest over the next five years.
Initial production of gold at the Luzon mine could reach 9kg per month providing the company an additional $400,000 in revenues based on current prices.
WGE Holdings is aggressively pursuing investment opportunities in Asia where it hopes to register an exciting period of growth as well as high returns for investors. The company currently operates two independent gold facilities in the region with a total reserve area of 60 hectares. Monthly production capacity currently stands at 15kg made up of 99% pure gold.
WGE HOLDINGS CORP (OTCMKTS:WGEE) has however warned that uncertainties in the global economy could weigh in on gold prices, which have rallied by 25% over the last six months. Such a move could significantly weigh in on the upward momentum hurting revenues and returns.