Hey Wassa,without a doubt, WGX is still a high cost producer,...

Hey Wassa,
without a doubt, WGX is still a high cost producer, especially when compared to SLR and RMS.
Though Wayne is doing all he can to slowly turn the 'WGX' supertanker towards a lower cost, longer live production profile.
I also agree that the grades are lower than SLR/RMS, though, that is part and parcel of the U/G LHOS methods which suit bulk mining, versus the narrower vein mining of RMS/SLR.

As WGX bring Bluebird closer to 750kt p.a, costs will decrease.
Big Bell will continue to grow over the next few years and the deeper higher grade ore mixes with the bulk mined ore (which again, should see costs reduce).
Great Fingall is hopefully going to be a central pillar with it's $1800 AISC, though at 45-50k p.a, it can only do so much.

The lower recoveries at BlueBird and Tuckabianna are a clear issue. Using the low grade stockpiles clearly hurts the recovery rates. If they could just get rates closer to 90%, then costs would decreases by a commensurate amount (3-5%).

As you say, WGX is leveraged to a higher gold price, particularly whist it is entering a higher non-sustaining capex period.

I think with the closure of Paddy's WGX guidance is going to be a close thing. They produced 122k in the first half of FY24, but have lost Paddy's which was adding perhaps 7-8k per Q. So... whilst they do still believe they will meet guidance (Fender, early ore from Great Fingal), I am largely expecting them at best hit the very bottom of guidance. Though if POG does move higher, then... all things being equal, it will be 'somewhat forgiven'.




To date they have spent approx $45, so a further $85 over the next 2 quarters, or $42.5m. Which at spot, will see them perhaps add $5-10m. Still a great outcome if they achieve it IMHO, as the days where WGX keep having $$ just disappear out the door was the norm.

In the near term, WGX is going to keep being high cost. Which, I think shows they really do need to find a way of bringing in more ore to Bluebird (does not even need to be high margin), just... slightly higher grade and higher recovery than the stockpiles.



As for WGX future performance, it's an interesting race to watch. SLR have their hands full and at least are moving on their growth projects.
RMS is... sitting and running down Edna May. Sure, the MGV ore is going to be nice, to help distract from Edna Closing, but... WGX is for me, investing in all the right ways towards a sustainable 300k p.a versus SLR which is/has buying RED and it's Sugar overseas.
Whilst RMS is still at the starting line, as it has made it abundantly clear that Rebecca/Bombora project is a verrrrry slow burning project.

If RED can make money of 2g/t U/G, WGX can do it at 2.5g/t (though REDs plant is... a big advantage). If only WGX owned a splendid new plant near it's biggest U/G mine...