WGX’s 1QFY25 production result was a record for the company at 77.4koz, however output was 8% lower than we had expected. We attribute the miss to variances in our ramp up profile for Bluebird/South Junction, which is more second half weighted than we had assumed. WGX’s cash and bullion balance declined to A$103m, which was materially lower than we had forecast. The weaker cash reflected vs our estimate reflected the softer production result and likely higher working capital outflows. We have made only minor changes to our FY25 production and earnings forecasts, pushing more gold into the second half of the year. We expect WGX’s cash generation to surge over the course of FY25 and reiterate our BUY rating and A$4.50 price target. Our TSX price target rises 2% to A$4.20.
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