Ann: September 2023 Quarterly Report, page-2

Hmmm... damn... WGX has finally let the Geo's do the talking!
So so so much more detail on all the exploration being undertaken across the suite of assets they have, plus... putting context on what the results mean and in simple terms... WGX is going to be producing more gold, for longer. Particularly at Bluebird U/G and Big Bell Deeps (let alone if they decide to restart other operations).

Fortnum is the only blight on what I feel is possibly the best laid out quarterly I have read to date.
It's clear, open and does not hide anything that I can see (good or bad).

10 rigs spinning and spitting out a huge number of results, particularly, results that are basically adding directly to the mine plan across a number of operations (versus simply results that would add to production in 5+ years in undeveloped assets).

Not so long ago, the last sentence could not be backed up... now it is. Pretty simple really.



WGX looks to be tracking costs and guidance well, even with the larger non-sustaining capex about to rise.



Out of the $155m for Growth/exploration, they spent $31m or 20%, if you spread the other 80% across the 3 quarters, I roughly get $41m per quarter.
If WGX is able to sell at spot of even just last quarter's price of $2888, I still think WGX will come through the year ahead by perhaps $60-90m (the spot price is a huge driver...). That is before a dividend, but... at $0.01, that only costs the company $4.7m. Pretty sure they can bump that up a little and still have very little affect on it's cash position.

I guess the other two hybrid power facilities receive less fanfare as they are turned on.



There are signs of cost escalation, but.... for WGX I believe they will be able to more than mitigate this with increased production and lack of hedging.



Unlike some producers with are more likely to just track their current production rates.

I feel like I need to highlight just how profitable the Murchison operations are... If Starlight was running like it used to, the groups AISC could have even been below $1800 AUD. Hopefully in the coming quarters as they further 'right size' the Fortnums main U/G mine, Starlight, such an outcome might occur (perhaps it will anyway if Big Bill gets back into the higher grade parts of the mine, plus no large mill downtime too).


I think I need an entire evening to really read through the exploration activities and results.

Would be interesting to hear from others about any negatives that I might have missed so far?