Ramp-Up Delays at Bluebird-South Junction Cloud Westgold’s Near-Term Outlook

Operational Highlights and Financial Strength

Westgold Resources Limited has delivered a standout operational cash build in the March 2025 quarter, adding A$80 million to its cash, bullion, and liquid investments, closing the period with a robust A$232 million. This record quarterly increase underscores the company’s successful integration and optimisation efforts following its recent portfolio expansion.

Gold production remained consistent with the prior quarter, at 80,107 ounces, albeit with a modest rise in all-in sustaining costs (AISC) to A$2,829 per ounce from A$2,703. The company achieved a record realised gold price of A$4,630 per ounce, generating revenue of A$363 million and reinforcing its strong cash flow position.

Strategic Divestment and Cost Optimisation

In a significant corporate move, Westgold completed the divestment of its non-core Lakewood mill near Kalgoorlie for A$85 million, comprising A$70 million in cash and A$15 million in Black Cat Syndicate shares. This transaction aligns with Westgold’s strategy to streamline its Southern Goldfields operations, focusing on larger, lower-cost assets. Post-divestment, all Beta Hunt ore will be processed at the larger Higginsville plant, which is currently undergoing a scoping study for expansion to 2.6Mtpa, promising further cost reductions and production growth.

Mine Ramp-Ups and Project Progress

Operationally, Westgold is navigating some challenges with the ramp-up at Bluebird-South Junction, which remains behind schedule due to ground conditions and development constraints. However, mining outputs are expected to increase substantially in Q4 FY25 and early FY26 as access improves and infrastructure upgrades complete. Similarly, Beta Hunt’s infrastructure projects, including ventilation and water management upgrades, are on track for completion by mid-2025, which should enable the mine to reach its targeted throughput of approximately 2Mtpa.

Other assets such as Big Bell are transitioning to remnant ore production, with rehabilitation efforts ongoing to unlock these resources. The Great Fingall project is progressing well, with first ore expected in the first half of FY26, potentially accelerating production timelines.

Exploration and Safety Advances

Westgold continues to invest in exploration, with A$11 million spent in the quarter yielding encouraging drilling results at Fletcher, Bluebird-South Junction, and Nightfall, highlighting the quality of its mineral endowment. Safety performance improved notably, with a 13.5% reduction in the Total Recordable Injury Frequency Rate and no lost time injuries recorded, reflecting the company’s commitment to workforce wellbeing.

Environmental compliance remains strong, with no significant incidents reported and key permits secured for new infrastructure projects, including a new LNG power station at Great Fingall and tailings storage facilities.

Financial Outlook and Market Position

Westgold remains fully unhedged, providing shareholders with full exposure to the rising gold price. The company’s liquidity position is further bolstered by an undrawn A$250 million corporate facility, offering a total available liquidity of approximately A$480 million. This financial flexibility underpins Westgold’s growth ambitions as it targets increased production and improved margins in FY26.

Management maintains FY25 production and cost guidance, anticipating a strong finish to the year driven by operational improvements and project completions. The company’s focus on optimising its asset base and realising synergies from recent acquisitions positions it well to capitalise on favourable market conditions.