WGX has executed an Ore Purchase Agreement (OPA) with New Murchison Gold (NMG AU, SPEC BUY, A$0.031 Price Target). Under the terms of the OPA, WGX will purchase 30-50kt of ore per month from NMG’s Crown Prince mine to provide additional feed to the Bluebird process plant. Importantly, the Crown Prince ore is forecast to be delivered with an average grade of 3.6g/t, higher than the bulk of the ore feed for Bluebird. Incorporating the OPA into our base case drives 5% upgrades to our gold production forecasts for WGX for FY26-FY28, lifting group output to over 500kozpa for those years. The improved production outlook drives ~7% upgrades to our earnings forecasts for FY26-FY28. The improved earnings outlook combined with the recent rise in spot gold prices drives 9% and 10% upgrades to our ASX and TSX price targets to A$5.00 and C$4.60, respectively.
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