June and September quarter comparison.Highlight denotes best performer for each category.
Main points of interest:*Large rise in mining cost ($210)
*Increase in gold price for sold bullion ($58) yet still operationally decreasing net cash and equivalents balance for second straight quarter.
*Mine operating cashflow effected by large reductions in sales of bullion reserves for quarter.
*Processing cost $76 cheaper QoQ with 21,000 tons more ore also being processed in September quarter.
*Underground grades were still lower than expectation for quarter, especially at MGO. Report telegraphed that all UG grades are expected to continue to pick up over next quarter. FGO likely to improve with OP ore replacing low grade stockpiles.
Overall felt this quarter was let down by the UG ore grade, especially for MGO. The expectations were that grades were going to rise substantially with the Bluebird, South-Emu-Triton and Paddys flat U/G mines all gearing up during the quarter. The BOD actually highlighting management change at Paddys Flat would suggest WGX were not happy with the overall performance of that particular mine over the quarter. I hate to use the word hopeful in investing however it does still seem that there is good evidence of operational improvements in the company with hopefully(struggle to trust WGX word at times) plenty more upside to come in the December quarter.
I'm going back to a buy recommendation. Really seeing some encouraging tailwinds coming into view with the hopeful purchase of Dalgaranga processing plant causing re-rate, improving gold market price/sentiment and an overall stronger result operationally QoQ (albeit still disappointing from a net cash standpoint).
(20min delay)