Why Is Wiluna Mining Corporation (ASX:WMC) Stock Down 11.54% Today?

Sonal Goyal

22 October 2026 05:52 PM AEDT

Why Is Wiluna Mining Corporation (ASX:WMC) Stock Down 11.54% Today?

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Key Highlights

Wiluna Mining shares were down 11.54% at $0.575 during the 22 October 2026 session, against a 0.44% fall in the S&P/ASX 200.
Its pre-feasibility study, dated 16 February 2024, outlined a 9.5-year restart with 67,500 ounces of gold a year and A$73 million of growth capital.
The same announcement noted a strategic review inviting recapitalisation, funding or asset Acquisition proposals.

During the Trading session on 22 October 2026, shares in Wiluna Mining Corporation Limited (ASX:WMC) were down 11.54% at $0.575, in a market that was also softer: the S&P/ASX 200 stood at 8,792.20, down 0.44%, and the All Ordinaries stood at 8,916.20, down 0.45%. Wiluna is a gold company whose Western Australian operations were placed under a Deed of Company Arrangement. Its most recent announcement covered in this article is dated 16 February 2024, when it reported the outcomes of a pre-feasibility study on a potential restart of mining. That announcement is more than two years old and is described here as an earlier update rather than a driver of the day's movement.

About the Company

Wiluna Mining Corporation Limited, referred to in its announcements as Wiluna, WMC or the Company, trades on the Australian Securities Exchange under the code WMC. In the February 2024 announcement it was identified as subject to a Deed of Company Arrangement, with Deed Administrators in place. Its asset is the Wiluna gold operation, and the Wiluna Central Mine Area hosts the mineral resources referred to in the study.

Business Overview

The Wiluna operation combines open pit mining, underground mining and tailings retreatment. Processing infrastructure includes an existing carbon-in-leach circuit, a BIOX circuit designed to treat refractory sulphide ore, and the Wiltails repulping circuit, which was commissioned in October 2023 and contributes income. The announcement stated that more than $100 million had been invested in the recent past in underground accesses, extension drilling and a new flotation circuit.

Pre-Feasibility Study Economics Reported on 16 February 2024

In its announcement dated 16 February 2024, Wiluna reported a study authored by Mining One at the request of the Deed Administrators. The study supports a projected 9.5-year operation processing 750 thousand tonnes of ore a year and producing an average of 67,500 ounces of gold annually. Projected All-In Sustaining Cost was A$2,015 per ounce and C1 cost A$1,939 per ounce in the base case. Growth capital, including refurbishment of the BIOX facility, a tailings thickener and a camp upgrade, was estimated at $73 million.

At a base case gold price of A$2,880 an ounce, the study showed life-of-mine free Cash Flow of $364 million, a 5.5-year payback, a pre-tax NPV8 of $198.6 million and an IRR of 53%. At a spot case of A$3,084 an ounce, free cash flow was $488 million, payback 3.75 years, pre-tax NPV8 $282 million and IRR 112%.

Ore Reserves and Mineral Resources in the Study

The announcement also established new Ore Reserves. The underground reserve was 1.4 million tonnes at 4.2 g/t for 191,000 ounces of in-situ gold, classified as proved and probable. The open pit reserve was 3.2 million tonnes at 2.0 g/t for 201,000 ounces, all probable, and the tailings reserve was 22.9 million tonnes at 0.56 g/t, all probable. Total mineral resources at the Wiluna Central Mine Area, excluding tailings, stockpiles and satellite deposits, were 44.6 million tonnes at 3.69 g/t for 5.24 million ounces, as announced on 29 August 2023.

Strategic Review Announced in February 2024

The February 2024 announcement stated that the Deed Administrators would begin a strategic review, inviting parties interested in acquiring some or all of Wiluna's assets, providing funding or pursuing Recapitalisation options. The announcement did not set out the outcome of that process.

Related Sector Context

Gold developers and restart projects are generally assessed against the gold price, Capital requirements and the status of approvals. Refractory ore such as that at Wiluna requires specialised processing. The broader market was lower during the 22 October 2026 session, with the S&P/ASX 200 down 0.44% and the All Ordinaries down 0.45%, while Wiluna's 11.54% fall was considerably larger than either benchmark.

Risks to Weigh In

The February 2024 announcement identified several uncertainties. The production target included an additional 9% of inferred resource tonnage, and the announcement noted a low level of geological confidence in inferred resources and no certainty that further exploration would convert them or that the target would be realised. Further evaluation work and studies were stated to be required, and the study was prepared at pre-feasibility level. Tailings storage permitting and approvals were noted as carrying timing risk, and funding for the restart depended on a recapitalisation or other transaction.

Catalysts on Watch

The February 2024 announcement pointed to the strategic review as the next step, with expressions of interest directed to amicaa. The study also identified more definitive costings for capital items as further work.

Putting It Together

Wiluna Mining's shares were down 11.54% at $0.575 during the 22 October 2026 session, a larger move than the 0.44% decline in the S&P/ASX 200. The latest announcement reviewed here, dated 16 February 2024, set out a pre-feasibility study with a 9.5-year restart case, A$73 million of growth capital and a strategic review process. It describes the position as at that date.

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