While the results were disappointing, I think the market might have overreacted. Let’s break it down: even if they only produce 350K ounces of gold this financial year—50K less than planned—that’s about $200M in lost revenue.However, today’s share price drop wiped out roughly $300M in value. The market seems to be discounting more than just the shortfall.
It's worth noting that the 50K ounces are still in their ore reserves, ready to be mined later. And if gold prices surge—say to $10K/ounce (not unrealistic given recent geopolitical and economic comments, including from Trump)—delayed production might even turn out to be advantageous.On a positive note, the company has already taken steps to address the challenges by bringing in a new COO. Let’s hope these operational changes set them up for a stronger FY26.
WGX Price at posting:
$2.53 Sentiment: Buy Disclosure: Held
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