The merger of Westgold Resources and Karora Resources has created a Western Australian based gold business that we believe boasts a clear pathway to grow production beyond 500kozpa. WGX’s key assets are the Murchison and Beta Hunt production centres, which account for ~80% of group production. The company boasts an impressive resource base totalling ~13moz, and we see scope for WGX to grow production beyond our base case, leveraging off this large resource base. WGX is trading on free cash flow yields of 14-19% for FY25 and FY26, rising to ~25% for FY26 and beyond at spot prices. We are resuming coverage on WGX with a BUY rating and set a A$4.30 price target.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
