Ann: Non-Cash Impairment for FY22, page-2

I like the new version of WGX.
WGX of old would have waited till the annual report to drop this announcement.
An impairment cost was obvious but the amount is a surprise.
175m to 200m takes a chunk out of the companies equity (est 50 million).
Crazily WGX is still probably trading under book value, even after the write-offs.

They currently have 90 million more cash than the previous half and will now wipe off at least 60 million from their 83 million tax liability.



For the first time in ages I can actually say that I think WGX is looking much stronger going into FY 2023.

Hedge book average price improving (only $120 below current spot).
Head grades moving in the right direction.
Planned capex payback greatly improved (bad old days of the Big Bell CAPEX money-pit behind them).
WGX's most consistently profitable mining region in Bryah has increased it's processing throughput by 100,000tpa.
Strong net cash position.
Costs are actively being managed finally (installing of on demand ventilation systems in UG mines, converting plants from diesel to gas/solar power, writing off non cashflow producing assets, reducing lease expenses, reducing contractor employees, disposing of old OP mining fleet/focusing primarily on UG ore).
Communication with it's SH is improving.
Management team looks more efficiently structured.
Improvement in exploration drilling with more focus on extensional drilling at higher grade targets closer to mills.
Operations look more efficiently structured now stopping OP mining.

I only have a small position in WGX but will be using any weakness in SP tomorrow to buy a few more.

DYOR
GLTAH