Production guidance for FY22 is in line with Macquarie’s estimates while costs are ahead of expectations. As a result of lifting long-term cost forecasts at all three operations the broker lowers the target to $2.30 from $2.50.
Big Bell is the main component in the broker’s expectations for improved cash flow over the longer term. Outperform maintained.
Sector: Materials.
Target price is $2.30.Current Price is $1.72. Difference: $0.58 – (brackets indicate current price is over target). If WGX meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
