Westgold Reports Q1 Production of 83,937oz at $2,861 AISC, Resources Up 24%
Westgold Resources kicked off FY26 with strong production and a $180 million underlying cash build, underpinned by a 24% rise in mineral resources and a confident three-year outlook targeting nearly 470,000 ounces of gold by FY28.
- Q1 FY26 gold production of 83,937 ounces at AISC of $2,861/oz
- Underlying cash build of $180 million before growth and exploration spend
- Mineral resources increased 24% to 16.3 million ounces; ore reserves up 5% to 3.5 million ounces
- Three-year outlook targets organic growth to ~470,000 ounces by FY28 with reduced costs
- Declared 3 cents per share final dividend for FY25 and launched 5% on-market share buyback
Strong Start to FY26 with Operational and Financial Momentum
Westgold Resources Limited has reported a robust first quarter for FY26, delivering gold production of 83,937 ounces at an all-in sustaining cost (AISC) of $2,861 per ounce, aligning well with its full-year guidance. The company’s operational discipline was matched by a significant underlying cash build of $180 million before investments in growth and exploration, culminating in a closing cash, bullion, and liquid investments balance of $472 million; a $108 million increase quarter-on-quarter.
Resource Growth Supports Long-Term Production Outlook
Westgold’s latest Mineral Resource Estimate surged 24% to 16.3 million ounces, while Ore Reserves grew 5% to 3.5 million ounces, driven by exploration success at key assets including Beta Hunt, Bluebird–South Junction, and Starlight. This resource expansion underpins a 10-year reserve life, providing a solid foundation for the company’s strategic growth ambitions.
Three-Year Outlook Targets Organic Growth and Cost Efficiency
In a market-first, Westgold released a detailed three-year outlook projecting organic growth from a FY26 midpoint production of 365,000 ounces to approximately 470,000 ounces by FY28. This plan anticipates a reduction in AISC to around $2,500 per ounce from FY27 onwards, reflecting operational improvements and capital discipline. Notably, the outlook is conservative, excluding several tangible upside opportunities currently being advanced.
Capital Management and Shareholder Returns
Demonstrating confidence in its cash flow and growth trajectory, Westgold declared a final dividend of 3 cents per share for FY25 and initiated a 5% on-market share buyback program for FY26. The company also commenced divestment of non-core assets, including Peak Hill, Mt Henry-Selene, and Chalice, aiming to crystallize value and potentially secure new ore purchase agreements to feed its processing hubs.
Safety and Operational Highlights
Safety performance improved with an 11% reduction in the Total Recordable Injury Frequency Rate (TRIFR), underscoring Westgold’s commitment to a safe working environment. Operationally, the company navigated scheduled plant maintenance and ore delivery agreements without compromising production targets, maintaining a steady path toward its FY26 guidance.
Bottom Line?
Westgold’s strong cash position and resource growth set the stage for a transformative three years, but execution on cost control and divestments will be key to sustaining momentum.
Questions in the middle?
- How will Westgold balance capital allocation between organic growth and shareholder returns amid fluctuating gold prices?
- What impact will the divestment of non-core assets have on operational flexibility and future ore supply?
- Can Westgold sustain its safety improvements while ramping up production and reducing costs as planned?
