Agree Joel, though.... the sale which clearly seems to be a forgone conclusion, shows a real lack of strategic planning by Karora... they bought Lakewood so that they did not have to upgrade the Higginsville plant, but now... WGX are having to sell Lakewood, to fund the expansion of Higginsville!
As you say, they will likely have to undertake a major expansion at Higginsville, to ensure that all of Beta Hunt can be processed, plus the other small ore sources nearby. Even if WGX put the pedal to the metal, so to speak, this means Higginsville won't be producing at 3mpta until perhaps the mid/late 2026.
I suppose if Beta is not capable of producing at more than 1.6mtpa (the current Higginsville plant rates), then so be it.
As I continue to stew over WGX position, it just seems that Karora cam with a lot more complications than first thought.... Either way, WGX likely needs the sale just to bolster their balance sheet, as the recent financials show WGX is suffering a major hangover from the Karora acquisition. (and as you say, pay for some of the expansion at Higginsville, or.... at Fortnum, which will be first...?)
Great presentation regarding the exploration upside at WGX, though for now, it's going to be blunted due to WGX operational challenges.
WGX Price at posting:
$2.51 Sentiment: Hold Disclosure: Held
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(and as you say, pay for some of the expansion at Higginsville, or.... at Fortnum, which will be first...?)
(20min delay)