Westgold delivered a pretty encouraging June quarter with all three mines producing at AISC of less than $1500/oz and the annualised rate of production is 250koz at $1408/oz. The major development seems to be behind them. As Big Bell mine ramps up, we can see the company moving gradually towards 300koz pa and I think AISC will fall to around this current levels. Using this assumption say of 280koz at $1350/oz at the current stock price of $1.90, I think we are talking about EV/AISC adjusted production level of $3500/oz, placing it at the slightly below fair value range for a mid tier miner of this calibre. Most of WGX's peers are trading at slightly higher levels.
I bought more today just to line up for the ramp up.
WGX Price at posting:
$1.89 Sentiment: Buy Disclosure: Held
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