Ann: Presentation - September Quarterly Overview, page-2

Ok.... so.. lots of quarterlies to read through... a few were simply outstanding, WGX was not one of them, but... it clearly explained exactly why they burnt through their cash. I only hold a small position, but.... CMM are basically the best operators... though perhaps it also shows how a good, simple low strip open pit, is a way to print profits...

In any case, WGX a reasonable quarterly production wise (especially compared to a few years ago!). They are currently tracking to beat guidance production wise, but of course, its only the 1st Q of FY2023. AISC was 0.3% above guidance. I am hopeful that this will be the highest Q for FY2023.
Particularly when the new gas power starts to reduce costs further.

In any case, WGX budgeted $60m for growth Capital and spent $21m
Exploration is $20m, they spent $7m. So total of $28m our of $80m. 35% of total. Hence, rest of the year will be less and this in turn should see WGX balance sheet slowly strengthen by early next year (yep, I expect another quarter of cash burn, but... less, perhaps $10m?)

I found this slide really interesting. IF... IF the trend continues and at best, then we are going to see an improvement of perhaps $3-4m per month, or... $27-36m over the next 3 quarters. That is a significant reduction in costs. Would have loved to have had October included, that would really show whether or not WGX new strategy is working. Hopefully we will see the AISC trend down even further.



I am intrigued that Bryah is the best performing plant for WGX. Its the smallest, yet... its AISC is a lot lower than the now combined 'Murchison' centre. I continue to feel that them combining the two plants production for reporting is a strategy to hide the costs of one of the two plants (my guess is Tuckabianna). I would have thought the MD would prefer to be fully transparent about it. He did not build either of the plants.....

Though in saying that.... this casts doubt on my above speculation. Tuckabianna is running at 1.35mtpa. Bluebird barely more... at 1.46mtpa. Well below its supposed 1.8mtpa. Have they reduced throughput due to closing the open pits... or... something is amiss? Even the recoveries are higher at Tuckabianna.



After re-reading the exploration results, there are some seriously good hits spread across their U/G deposits (plus the Bryah open pit).
Then you have the new initiative at Big Bell, to potentially expand the amount of tonnes with more operational flexibility (upwards of 100k per month, which of course, the previous management has promised for years....). This would see Big Bell spitting out 97k ounces a year (at 2.5g/t). It will basically fill one of their plants alone!

As others mention, Great Fingall drilling is expensive, but... if it pays off, then WGX will have another 50k ounces p.a U/G mine to bring into production. That is a serious amount of gold.

In the end, WGX already has a large amount of reserves (8.4 years currently). I expect they will be able to fully replace this years production with the drilling they are undertaking (hopefully $20m provides approx 250k in reserves replacement, which equates to $80 an ounce. That is seriously good value.

WGX has the gold. It is all about cost of production right now. The MD is def focused on it.