Restart Of Great Fingall High-Grade Mining Might Change The Case For Investing In Westgold Resources (ASX:WGX)

• Westgold Resources has commenced mining the first high-grade stopes at the historic Great Fingall underground mine near Cue, Western Australia, with initial ore grades of over 3g/t feeding into its Cue processing hub alongside output from the Big Bell mine.
• This restart of Great Fingall, once a major producer in the early 1900s, marks a shift from development to production and is intended to lift higher-grade ore supply, support operating margins, and potentially extend mine life through ongoing underground drilling.
• We’ll now examine how bringing Great Fingall’s high-grade ore into steady production could reshape Westgold’s investment narrative and risk profile.

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Westgold Resources Investment Narrative Recap

To own Westgold Resources, you need to believe it can convert its extensive WA asset base into higher-margin, consistently delivered ounces despite recent earnings volatility. Great Fingall’s move into its first high-grade stopes directly touches the key near term catalyst: improving grades and cash generation at the Cue hub. If Great Fingall’s ramp up tracks plan, it could support operating margins, but execution risk and any grade underperformance remain central concerns.

Alongside Great Fingall, Westgold’s plan to spin out the Reedy and Comet projects into Valiant Gold is relevant because it concentrates capital and management attention on higher grade core operations. That sharper focus may help the company progress its production guidance and major underground developments, but it also increases reliance on a smaller set of assets delivering on schedule and within budget.

Yet while Great Fingall’s early grades look encouraging, investors should be aware that...

Read the full narrative on Westgold Resources (it's free!)

Westgold Resources' narrative projects A$2.1 billion revenue and A$618.3 million earnings by 2028. This requires 15.0% yearly revenue growth and an earnings increase of about A$583.5 million from A$34.8 million today.

Uncover how Westgold Resources' forecasts yield a A$6.82 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Eight Simply Wall St Community valuations sit between A$3.60 and A$30.27 per share, showing very different views on Westgold’s worth. Set against the Great Fingall ramp up catalyst, this spread underlines how differently people weigh execution and grade risk, so it is worth exploring several of these perspectives in detail.

Explore 8 other fair value estimates on Westgold Resources - why the stock might be worth 42% less than the current price!

Build Your Own Westgold Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Westgold Resources research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Westgold Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Westgold Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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