Westgold Sets Sights on 385koz Production with $270M Growth Capex in FY26
Westgold Resources projects a rise in gold production to 345-385koz in FY26, backed by significant capital investment and operational improvements aimed at boosting free cash flow.
- FY26 production guidance raised to 345-385koz
- All-in sustaining costs forecast between A$2,600 and A$2,900 per ounce
- Non-sustaining capital expenditure of A$270 million focused on Bluebird-South Junction and Great Fingall
- Exploration and resource definition budget set at A$50 million
- Production weighted to second half of FY26 due to mine ramp-ups
Westgold’s FY26 Ambitions
Westgold Resources Limited has unveiled its FY26 guidance, signalling a confident step forward with an expected increase in group gold production to between 345,000 and 385,000 ounces. This marks a modest uplift from FY25’s 326,384 ounces, underpinned by strategic investments and operational enhancements across its portfolio.
Central to this growth is a forecasted all-in sustaining cost (AISC) range of A$2,600 to A$2,900 per ounce, reflecting the company’s focus on cost discipline even as it scales production. Westgold’s Managing Director Wayne Bramwell emphasised the company’s commitment to optimising its largest mines and mills to drive consistent delivery and improved free cash flow.
Capital Investment and Operational Focus
Westgold plans a substantial non-sustaining capital expenditure of A$270 million, primarily allocated to growth projects at the Bluebird-South Junction and Great Fingall mines. These investments are aimed at expanding underground development and infrastructure upgrades, including ventilation and power enhancements at the Fortnum Processing Hub.
The company’s production profile is expected to be back-end weighted, with mine ramp-ups at Bluebird-South Junction and Great Fingall driving higher output in the second half of FY26. Additionally, processing of purchased third-party ore is anticipated to contribute between 15,000 and 30,000 ounces, providing operational flexibility.
Exploration and Resource Definition
Exploration remains a key pillar of Westgold’s growth strategy, with a planned investment of A$50 million split evenly between exploration drilling and resource definition. The company targets approximately 100 kilometres of drilling across both its Murchison and Southern Goldfields packages, focusing on areas such as Bluebird-South Junction and Beta Hunt.
With 17 underground drill rigs currently active and additional surface rigs operated by third parties, Westgold is positioning itself to sustain its resource base and support future production growth.
Financial Strength and Outlook
Westgold closed FY25 with a robust balance sheet, boasting a record A$364 million in cash, bullion, and investments. This financial strength provides a solid foundation for the company’s growth ambitions and its commitment to delivering enhanced shareholder returns.
The company plans to release a multi-year outlook in September, following the publication of its FY25 Mineral Resource Estimate and Ore Reserve. This forthcoming update will likely provide further clarity on Westgold’s medium-term production and development trajectory.
Bottom Line?
Westgold’s FY26 guidance underscores a disciplined growth path, balancing capital investment with operational efficiency to enhance shareholder value.
Questions in the middle?
- How will the timing of mine ramp-ups impact quarterly production and cash flow in FY26?
- What are the risks associated with reliance on third-party ore processing for production targets?
- How might fluctuations in the gold price affect Westgold’s planned capital allocation and cost guidance?
