Ann: Q3, FY24 Production Update, page-11

It is a bittersweet result no doubt about it! Was hoping to be wrong.
Yet even GORs announcement yesterday about having major issues (that could continue) did not cause the share price to drop, which I was surprised by considering I could not find any positives in their announcement (no positives in this announcement either, other than WB be honest and upfront with the market, as they could have easily waited until the quarterly). That being said, the share price today will take a hit, but.... crazily, with POG just shy of $3500 AUD, WGX margin will likely still be higher in the June Q than previous quarters. Even with the rise in AISC.

I think it would have helped to provide a rough figure for the non-sustaining capex sunk this quarter, to better explain the lower cash build, though I guess the reduced production explains most of it.

Like most producers in W.A, they have been hit with weather related issues at exactly the same time as the spot price has moved much higher, so... most of their production was sold into lower prices. Which is why their actual received cost is just 3% higher.

I am pleased that WB has come out with a warts and all update, though I cannot help but be disappointed that this was not done in Dec when they knew they would be shutting Paddy's Flats U/G (I did not realise that the total missed ounces would be as high as 27,000 for FY24). Yes, that is hindsight, but... the board should up their game a little more.

Also the reduction in guidance implies a very.... broad range for the June Q. Low case, 46,000 ounces. High case 56,000 ounces (which is still below what I had expected, and the company). Clearly the team at Great Fingall has been pushed too hard and.... perhaps their optimism for very early ounces just not quite achievable, hence the push back to the Sept Q for early ore. Perhaps they have also pushed too hard at Bluebird as well.

I do like that they clearly articulated that they missed approx 5,000 ounces, this would have seen them hit approx 57,000, which would still have required a herculean effort in the June Q. Add in Paddy and you get 32,000 missed ounces. I can see how they had still hoped to make the low end of guidance, but I guess this will be a hard lesson for WB.

I really do think WGX need to look at having an open pit source of ore for the Bluebird Mill, to build redundancy within the overall operations. Surely at $3500 POG, anything is better than stockpiles...

I still expect WGX to be able to produce 280k in FY25, but... WGX to work hard to prove to the market that this is indeed achievable.

I don't think there is any chance WGX makes a move on SPR in the near term (what a time for SPR to be where it is at though, no operational risk, yet able to benefit from sentiment on a higher POG, I suppose WGX benefits too, as otherwise the share price would fall further today).

Funny how I am being so harsh, when only 3-4 years ago, WGX would not make any money, in any quarter..!