Macquarie lowers TP for Australia's Westgold Resources on production forecast cut

Westgold Resources

04/02/2025 24:19

** Macquarie cuts target price for Westgold Resources
 WGX.AX  by 14% to A$3.20
    ** WGX up 0.9% at A$2.28 after falling as much as 1.8%
earlier in the day
    ** Gold producer trims FY25 production forecast to between
330,000 and 350,000 ounces from 400,000 to 420,000 ounces
previously expected
    ** Macquarie says forecast below its estimate of 507,000
ounces
    ** Macquarie assumes slower ramp-up of Bluebird and Beta
Hunt mines, and softer grades at Big Bell, will carry over into
FY26 
    ** Macquarie, hence, cuts production estimate for FY26 by
10% and ~4% thereafter 
    ** "Despite our softened outlook we still anticipate a 32%
YoY production lift into FY26, noting WGX anticipates to produce
at '+400kzpa' in 4QFY25" - Macquarie
    ** Stock down 20.1% this year, as of last close

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com;))