Macquarie cuts production outlook for Australia's Westgold Resources

Westgold Resources

03/08/2023 06:39

** Macquarie trims its five-year production outlook for
Westgold Resources  WGX.AX  by about 15,000 ounces per annum
    ** Shares of co climb 2.88% at A$1.605
    ** Brokerage says outlook reflects co's comments on 'right
sizing' of Paddy's Flat and Starlight underground mines in
Western Australia
    ** The gold miner had forecast FY24 gold production between
245,000 - 265,000 oz, midpoint of which is lower than their
output of 257,116 oz in FY23  urn:newsml:reuters.com:*:nL4N39J0Z6
    ** However, brokerage says that while the FY24 midpoint
guidance reflects flat yearly production, it's a positive
indication that co's leaner operating model is working
    ** The broker now also expects production of 304 koz in
FY2025, after co said that organic growth projects are set to
'establish a growth runway into FY25'
    ** Brokerage retains its target price of A$2.00 per share,
sets "Outperform" rating
    ** Stock has risen ~78.3% this year, as of last close

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))