Westgold Resources: Laid The Foundation For Robust Growth, And Shares Are Now Significantly Lower

Summary

• Westgold Resources Limited is rated a "Buy" due to its bright growth prospects following the merger with Karora Resources, doubling annual gold production.
• Despite higher costs in H1 FY 2025, robust profit and cash flow metrics, driven by rising gold prices and higher production, support the positive outlook.
• The stock is undervalued, trading below its 52-week midpoint, offering significant upside potential as costs normalize and gold production and prices increase.
• Goldman Sachs' bullish gold price forecast and Westgold's strong financial position further justify the "Buy" recommendation for long-term investors.

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A “Buy” Rating For Shares of Westgold Resources Limited

This analysis assumes that a “Buy” recommendation for U.S.-listed Westgold Resources Limited (OTCQX:WGXRF) shares has a very good chance of success, as this stock

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.