Westgold Declares 3cps Final Dividend, Approves 5% Buy-Back Program
Westgold Resources has declared a strong final dividend for FY25 and unveiled an enhanced dividend policy alongside a significant share buy-back program, signaling robust confidence in its growth and cash flow outlook.
- Declared 3 cents per share final dividend for FY25 with 78% payout ratio
- Doubled minimum FY26 dividend to 2 cents per share
- Approved on-market share buy-back of up to 5% of shares over 12 months
- Record gold production of 326,000 ounces in FY25
- Capital management strategy reflects confidence in future cash flow and intrinsic value
Strong FY25 Performance Sets Stage
Westgold Resources Limited has closed FY25 on a high note, declaring a final dividend of 3 cents per share, representing a substantial 78% payout ratio. This dividend, amounting to $28.3 million, reflects the company’s solid financial footing following a transformational year marked by the integration of the Southern Goldfields assets and record gold production of 326,000 ounces.
Managing Director Wayne Bramwell highlighted that FY25 was a pivotal period for Westgold, with investments in mine infrastructure and operational scale positioning the company for future growth. The dividend payout underscores the company’s ability to generate strong cash flows despite ongoing operational challenges.
Enhanced Dividend Policy for FY26
Looking ahead, Westgold has doubled its minimum dividend commitment for FY26 from 1 cent to 2 cents per share, signaling a more shareholder-friendly approach. This enhancement is coupled with an increased minimum net cash balance requirement of $150 million, up from $100 million, ensuring a robust financial buffer after dividend payments.
The revised policy reflects Westgold’s confidence in sustaining cash flow generation and delivering consistent returns, while balancing the need for ongoing investment in growth and exploration activities.
Share Buy-Back Program Signals Confidence
Complementing the dividend announcement, Westgold’s Board has approved an on-market share buy-back program of up to 5% of its ordinary shares over the next 12 months. This move is a clear signal of management’s belief that the company’s shares are undervalued and that intrinsic value remains strong within its portfolio.
The buy-back will be executed at the company’s discretion, subject to market conditions and prevailing share prices, and is designed to enhance shareholder value by increasing the ownership stake of remaining shareholders. The program complies with both Australian and Canadian securities laws, reflecting Westgold’s dual listing status.
Strategic Capital Management in a Competitive Market
Westgold’s capital management initiatives come at a time when the gold mining sector faces volatility from commodity price fluctuations and operational risks. By committing to both a higher dividend floor and a share buy-back, Westgold is positioning itself as a confident player with a clear strategy to reward shareholders while maintaining flexibility for future growth.
Investors will be watching closely to see how these initiatives translate into market performance and whether Westgold can sustain its operational momentum into FY26 and beyond.
Bottom Line?
Westgold’s bold capital return strategy sets the tone for a confident FY26, but execution risks remain.
Questions in the middle?
- How will Westgold balance increased dividends with funding for growth projects?
- What market conditions will influence the timing and scale of the share buy-back?
- Can Westgold sustain or improve operational consistency to support enhanced shareholder returns?
