Bells Gold Tracker 10 Jan 2019...

Bells Gold Tracker
10 Jan 2019
https://dpsi7pmz5b6vt.cloudfront.net/uploads/ckeditor/picture/7282/Gold_Tracker_190110.pdf
Westgold Target Price $1.85
WGX: Is continuing to ramp up its Central Murchison Gold Project, now targeting 300-320koz at an average AISC of A$1,300 – 1,350/oz in FY19 and over 350koz at average AISC of A$1,250 – 1,300/oz in FY20. A key milestone was hitting first ore at Big Bell, for modest early production in the December 2018 quarter ahead of full production in FY20. WGX’s gold output from Higginsville has been constrained by toll-milling commitments and production costs have remained high ahead of the planned commencement of mining at the Baloo deposit in the Polar Bear Gold Project from end CY18. The company’s contract mining division, ACM, has improved its productivity and financial performance after an adverse impact on WGX over the past year.

With strong performances in the established names and a positive outlook, we reckon the market will now increasingly be looking for value in the smaller names.