Conference call did not have anything that worried me.
The question about the future 300k p.a. target was carefully answered... closer to FY26, but... then reiterated that they are being very conservative.
I am going to base my expectation on 300k being an internal stretch target for FY25. Which I think is increasingly looking achievable, if they back up what they are saying in the quarterly in regards to a further expansion of Big Bell Deeps (on top of the current expansion) and.... opening another mining front at BlueBird U/G, which... would materially increase tonnes. Fortnum and it's main U/G operation is also a real swing operation, as if they can get it humming again, then 60k p.a should be achievable. Which if you couple that with the Murchison which is already operating soundly above 50k per quarter.... 300k p.a now the short/medium term goal, with... pure speculation on my part, 350k p.a by FY26-27.
Now the development is supposed to take 18 months, but... the company's announcement this week also stated that the development rate is hopefully very conservative, so.... that would bring forward the completion and access to virgin ore. Again, this excludes any ore they can source as they head back into the mine from remnants or other structures.
Let's take a look at Big Bell. They are already developing access for the Big Bell Deeps, which makes the FID a forgone conclusion, which is fine, because..........
They keep finding more gold... 45m at 4.53g/ = over 200g! Clearly, the amount of ore and grade are improving upon what their earlier internal estimates had been based on. Both below and adjacent to the planned development drive.
We are getting close to finally having an idea about what the Big Bell Deeps is actually going to be able to do.
Then you have Bluebird U/G which... continues to become a pillar of the companies production profile, both in size and mine life.
The mine is humming and will continue to ramp up in both tonnes and grade... Some of the hits they have recently had are going to enable some extremely profitable ounces to be produced in the coming years.
Paddy's flat is slowing down, BUT... becoming more profitable. With it would seem, lots of potential to become a small for longer mine.
Great Fingall development has started, but... the company is not resting on what they know they have, they are already starting to tie in the other opportunities that will slowly appear as they drive down into the mine. Even just 5-10k extra ounces will dramatically change the overall cost of the total investment.
Fender has started providing ore, even if it is only 17k in FY24 and looks to be about 28k p.a after that.
Finally, we have Fortnum and Starlight. The laggard, but.... showing signs of turning around already in October. Though I think it will take a while to turn back into it's former profitable self. The signs are good that they are going to be able to access more high grade ore.
In the conference call, a question was asked about how many U/G mines WGX would feel comfortable running. 6-7. Well... they have 6 now, so... at least 1 more is to come. Likely South Triton was the answer.
Exploration team finally being allowed to have some of the quarterly
As I read it, drilling at Great Fingall is over for now (very expensive compared to all the other drilling, except for maybe Big Bell Deeps).
This then allows them to focus on the many other targets.
I really do think WGX is showing that it's not just changed it's spots, it transformed.... into a professional, safe yet profitable U/G miner.
Looking forward to seeing what all the drilling finds in the months ahead.
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