WGX was smacked over 12% on Monday after cutting its gold production for the full year. The ~17% downgrade in production and ~16% increase in all-sustaining costs/oz, to $A2,400-2,600 makes the drop in the share price appear reasonable. The downward revision in production was put down to disappointing ramp up from the Beta Hunt and Bluebird-South Junction underground mines. With gold posting all-time highs in January we aren’t keen to chase strength in the sector and would especially avoid stocks like WGX with operational issues – a break below $2 would not surprise.
MM is neutral towards WGX
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