Westgold Plans 44% Production Rise to 470koz and Cuts Costs to A$2,500/oz

Westgold’s 3-Year Outlook, A Conservative Growth Blueprint

Westgold Resources Limited has released a detailed three-year outlook (3YO) that sets a clear, achievable course for the company to increase its annual gold production from 326,000 ounces in FY25 to 470,000 ounces by FY28. This plan is underpinned by a robust portfolio of existing mining assets and processing infrastructure, with a strong emphasis on operational efficiency and cost control.

The 3YO is deliberately conservative, excluding several promising organic growth opportunities such as the Fletcher Zone at Beta Hunt, which remains under evaluation. Instead, the strategy focuses on maximising the utilisation of Westgold’s four processing hubs, Meekatharra, Higginsville, Cue, and Fortnum, collectively capable of processing around 6 million tonnes per annum.

Driving Production and Cost Efficiencies

Central to the plan is the expansion of the Higginsville processing hub from 1.6Mtpa to 2.6Mtpa by FY28, with a definitive feasibility study underway and construction expected to commence in FY27. This expansion, alongside incremental upgrades at other hubs, will support increased throughput and higher-grade ore feed, which together are projected to reduce Westgold’s all-in sustaining costs (AISC) to approximately A$2,500 per ounce by FY28, down from A$2,666/oz in FY25.

Mine outputs are set to rise through expansions at key underground operations such as Bluebird-South Junction and Beta Hunt, supplemented by new open pit programs in the Murchison region starting FY27. The company also benefits from an ore purchase agreement at Crown Prince, adding flexibility and volume to its feedstock.

Fully Funded Growth with Exploration Upside

Westgold’s balance sheet and forecast cash flows fully support the planned growth capital and exploration expenditure, with $150 million earmarked over the three years for exploration and resource definition. This investment aims to improve resource confidence and potentially extend mine life beyond the 3YO horizon.

While the 3YO excludes production from the emerging Fletcher Zone, ongoing drilling and resource definition work could unlock significant upside. Other opportunities include further expansions at Higginsville (potentially up to 4Mtpa), Fortnum mill expansion, and operational improvements targeting productivity gains.

Strategic Outlook and Market Implications

Westgold’s Managing Director Wayne Bramwell emphasises that this outlook provides a solid baseline for a larger, more profitable, and sustainable gold producer. The focus on organic growth, cost discipline, and infrastructure optimisation positions the company well to deliver consistent free cash flow and shareholder returns.

However, the plan’s conservative nature means investors should watch closely for developments in the Fletcher Zone and other exploration-led growth avenues that could materially enhance production and margins beyond the current forecast.