Even speculators take small breaks from time to time Agree with your thoughts @BeaBaggage
Nice to come back and see my workhorse.... well... working
I think this paragraph sums up, not just Fortnum, but all of WGX assets (to varying degrees) and when Cookie acquired them all for peanuts, then mined them without any real thought about the long term, he brought forward production at the cost of enabling long term LOM plans to be secured across the portfolio.
The announcement today is truly an exceptional result, though I think the huge increase in the Starlight MRE is somewhat lost by the plant study update. Not so long ago, Starlight had a 2-3 year LOM plan.... now, it's looking closer to 10, with production potentially increasing by 30% over past years. To be clear, all the MRE is within 4kms of the plant, so WGX is not being coy about the exploration potential over the longer term... it's just under drilled like 99% of WGX tenements.
The MRE update is not just due to exploration though, as it's also about plant scale, costings, mining methods etc. Suffice to say, that this study does is show that WGX portfolio has growth in almost all of it's production centres. Bluebird plant is currently having a study contemplating an upgrade to 2.5mtpa (I am confident it will proceed). Higginsville plant has just got a study going to also contemplate being upgraded to 2.5mtpa (again, I am confident it will go ahead). Fortnum will now also see an upgrade. Only Tuckabianna and Lakewood are unlikely to see any expansion, but.... if I can be harsh, neither are the core engines for growth at WGX.
What this study does if help build the runway to 500k+ p.a for WGX (these are my estimates) Fortnum - 25k+ Bluebird - 40k+ Higginsville - 40k+
i.e.. 100k+ p.a. for the greater WGX profile. All within the next 2 years (though I am hopeful that WGX will also lock in extra ounces with their ore purchase with OAU). WGX is also brining online 3 major new mines - Great Fingal, Big Bell Deeps and Bluebird Complex (not a new mine.. but new mining fronts).
Nice to see some recognition from the market today, though it will be interesting to hear what WGX discusses tomorrow in the call.
WGX Price at posting:
$3.15 Sentiment: Hold Disclosure: Held
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