WGX has released a scoping study on a potential expansion of its Fortnum operations. The study incorporates the extension of the Starlight underground along with several open pit developments. An increase in the process plant capacity from 0.9mtpa to 1.5mtpa and the additional ore feed is forecast to lift production to ~83kozpa over a ten-year period, at an average AISC of A$2,160/oz. Given the strong economics outlined in the scoping study, we have incorporated an expansion of Fortnum into our forecasts for the first time, with first ore assumed to occur in FY27. The expansion drives 4-9% upgrades to our group production forecasts for FY27-FY30. The increased output drives 2% upgrade to our ASX price target to A$5.10 and we reiterate our BUY rating on WGX.
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