WGX has entered into a binding agreement to sell the Lakewood process plant for $85m. A study to expand Higginsville to 2.6-4.0mtpa is nearing completion and will more than replace the ~1.2mtpa capacity at Lakewood. We have reprofiled our production outlook for the Southern Goldfields to match the expected change in mill capacity, reducing production in FY25-FY27 but increasing output for FY28 and beyond. Importantly, the Higginsville mill operates at a lower cost than Lakewood and enhances WGX’s AISC outlook in the medium-term. We are reiterating our BUY rating on WGX, leaving our ASX and TSX price targets unchanged at A$5.80 and C$5.20, respectively.
To access the full report please log in under the Research Portal at the bottom of this page.
Argonaut’s Research Portal allows you to access Argonaut’s wealth of Research, as well as view descriptions of the Morning Note, Companies covered and the Team.
If you would like to access our research please contact us to create an account.
