Ann: December 2023 Quarterly Report, page-42

Hey EM,
As I understand it, it's not a throughput issue at the Bluebird, but due to the ore (hardness) and mix.
Though at this exact movement in time, they are not constrained by throughput due to Paddy being closed and a new drill program to prove up a solid 3 year LOM.

When WGX acquired the Bluebird plant, was actually able to process at rates as high as 3mtpa (From RDR a long time ago). RDR refurbished the plant as I understand in 2012-2013 (roughly).


I am not saying that the plant cannot be upgraded to have a higher throughput, but I would be surprised if that was a focus, when for now, they are focusing on grade and profitable ounces, not ounces for the sake of it.

Cheers for the reply @wassa, though I think due to the plants age (Bluebird and the types of ore they are processing, which is mainly hard) and multiple holders over the years, the initial throughput nameplate has changed. I also think you are perhaps focusing on the semantics of what I am saying (and what WGX is providing to the market), as in, WGX is IMHO, trying to explain to the market that the plants could produce at higher rates, with the right mix of ore, which I think makes sense, since they have plentiful stockpiles, particularly at Tuckabianna.

I take your point about the grades, but... I also want to really try and reiterate, that WGX focus has changed from the old days of ounces for ounces sake, and are instead slowly refining their main mines to become lower cost (this takes time). I mean 3 years ago, WGX just did not make money (yes, being hedge free is helping, but it is what it is, and other miners are not necessarily making better margins that WGX, yet have arguably better plants and projects). Also, WGX is without doubt a high cost producer, but with Great Fingall slowly coming online, this will somewhat change, plus when Bluebird U/G hits 750,000t p.a.

The MD has been on the record as basically saying WGX was close to going under back in 2020.... so yeah, the hedges rolling off helped, but so did the choice to close the open pits, enlarge the current U/G mines, focus on lower cost power generation and... not re-hedging. 3 of the 4 are under the control of WGX, which means, it's not all about the spot price.

Anyway, appreciate the discussion and differing view.