Mgmt continue to disappoint and the market is rightfully discounting the stock due to this. A 250koz pa producer in Aus should be valued much higher in current environment even if their AISC is not the greatest.
The cash generation historically has been poor as they have needed to develop numerous ore sources which requires large capital. With a couple of large high grade orebodies in Big Bell (CGO) and Starlight (Fortnum) I would expect the large development capex to slow and these two operations to be good cash generators for the company, MGO I’m not so sure about as they will likely have to continue to recycle cash to develop further ore sources.
Combine the above with the unwind of the gold prepay and hedges plus continued exploration success I think there’s decent upside here even if the POG stays stagnant...
WGX Price at posting:
$2.36 Sentiment: Buy Disclosure: Not Held
(20min delay)