WGX’s underlying Ebitda in the 1HFY25 was in line with our forecasts, as was free cash flow and cash balances, which had been released with the 2QFY25 production result in January. Reported earnings was impacted by several one-off costs relating to the Karora Resources merger, and also higher depreciation charges. This resulted in WGX reported a net loss of A$27.6m, which was unexpected vs our estimates. There has been no change to guidance ranges, which were recently reduced, and our forecasts remain within the respective ranges for production and AISC. Delivering into these guidance ranges, which implies strong production growth in the 4QFY25, presents a key catalyst for WGX and we reiterate our BUY rating and A$5.90 and C$5.30 price targets.
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