Westgold's Capex Outlook Triggers Downgrade by Ord Minnett
Dow Jones
9 hours ago
2303 GMT - Westgold Resources' production outlook was broadly in line with expectations, but the gold miner's capex plans weren't. Ord Minnett analyst Paul Kaner says the capital required to reach an output target of 500,000 oz. of gold by FY29 was 40% higher than the market had forecast. "The increase reflects ongoing cost inflation and additional non-mill expansion capital requirements across the portfolio, with the composition of the 500,000 oz production profile having evolved significantly over the past year," Ord Minnett says. It downgrades Westgold to "accumulate," from "buy," and cuts its target price by 11%, to A$6.50/share. Westgold ended Wednesday at A$6.18.
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