Evening Wassa, Cheers for the reply. While I agree, the lack of hedging is helping a lot, that ignores the operational turnaround they have achieved at their two largest processing plants and all but 1 of their 6 underground operations since WB has taken the helm.
WGX has changed from being a 'more ounces no matter what' to... what is the best way to produce profitably strategy, and it's working. They have focused heavily on getting more ounces out of the current operations. Makes perfect sense, especially since the likes of Bluebird and Big Bell have a lot of ounces. It's just economies of scale.
I think this is the clearest plan they have ever had. Before this... there was no real plan at all. The old MD literally just made decisions on the run etc. Great Fingall makes RMSs Hill 50 study look like an ugly second cousin.
RMSs plan has 8 years of production, but... only 4 years above 20k. The total cost is projected to be $170m! Double Great Fingall. Making the low AISC a joke of a number... more like add $850 ($2050 AUD AIC overall) to the AISC which puts it well above Great Fingalls AIC of $1800. Yet Great Fingall has double the amount of ounces in the mine plan too.
I guess what I am trying to say, is that WGX investing in it's internal projects, makes good business sense. An AIC of $1800 AUD is very low and will bring WGX average AIC down significantly.
Can I ask how you came to the figures regarding Fender and why it seems high? Turning Fender back on makes sense now that they are seeing less issues with Staffing. I mean, SLR basically shut it's Mount Monger mining operations down for 2 years, while COVID was an issue.
I most definitely think WGX could catchup, BUT.... as I try to always be honest, it's going to be very hard with Penny's ore being such high grade. I don't think WGX is lagging RMS, RMS is just in a different league until WGX investments in Great Fingall, Bluebird and Big Bell kick into high gear.
That being said... at some point the market must penalize RMS for it's reduced production profile when it finally admits that they will shut Edna May and be back to a single plant operation. RMS can have 10+ spokes..... to feed Mt Magnet, but... it cannot change that they will likely only have 1 processing plant by mid FY2025. While Enda shuts down... WGXs new and currently expanding U/G mines will be hitting their straps. 300k+ p.a at a respectable AISC/AIC is hopefully going to change investors views on WGX over time.
WGX Price at posting:
$1.94 Sentiment: Hold Disclosure: Held
(20min delay)