West Wits Faces Funding and Production Risks Despite Strong DFS and Milestones
West Wits Mining has reached a pivotal milestone with first underground ore production at its Qala Shallows project, supported by a robust updated feasibility study and full funding secured for initial gold production.
- First underground ore produced at Qala Shallows, marking operational transition
- Updated DFS shows US$500 million post-tax NPV and 81% IRR
- A$17.7 million equity placement and US$12.5 million loan facility secured
- 10% project buy-back increases ownership to 74%
- First gold pour targeted for Q1 2026
A Transformational Quarter for West Wits
West Wits Mining Limited has announced a landmark quarter as its Qala Shallows project in South Africa’s Witwatersrand Basin transitions from development to production. The company successfully completed a three-month mobilisation program culminating in the delivery of the first underground ore to surface in October 2025. This milestone signifies West Wits’ evolution into an operating gold producer within one of the world’s most prolific gold regions.
The operational ramp-up is underpinned by an updated Definitive Feasibility Study (DFS) that significantly enhances the project’s economic outlook. The revised study, incorporating all mineral resources, forecasts US$2.7 billion in revenue and nearly US$1 billion in free cash flow over the life of the mine. Notably, the post-tax net present value (NPV) at a 7.5% discount rate stands at US$500 million, with an internal rate of return (IRR) of 81%, reflecting an 88% uplift in free cash flow and a shortened payback period of just eight months from the end of peak funding.
Operational Progress and Infrastructure Development
During the quarter, West Wits commenced ore transfers to the Ezulwini Processing Plant under a toll-treatment agreement with Sibanye-Stillwater, with stockpiling ongoing ahead of processing and the first gold pour targeted for early 2026. The company commissioned key underground infrastructure, including a Load-Haul-Dump (LHD) unit and a double-boom drill rig, alongside critical surface infrastructure such as diesel power generation and water management systems. Night-shift operations have begun, supported by comprehensive safety measures including proximity detection and fire suppression systems.
Financial Strength and Corporate Developments
West Wits bolstered its financial position with a A$17.7 million equity placement, attracting strong institutional support, and executed a US$12.5 million loan facility with Nebari Natural Resources Credit Fund II LP. These funding sources, combined with existing capital, fully finance the company through to first gold production. Additionally, a strategic 10% project buy-back increased West Wits’ ownership in the Witwatersrand Basin Project to 74%, enhancing shareholder exposure to future cash flows.
Corporate governance was strengthened with the appointment of Rudi Deysel as Managing Director and Keith Middleton joining the Board, bringing valuable leadership and corporate finance expertise. The company has also actively engaged with investors globally through conferences and roadshows, expanding its institutional investor base ahead of production.
Community Engagement and Future Outlook
West Wits continues to foster strong community relations through local economic development initiatives, including enterprise development programs and youth learnerships aimed at creating sustainable employment opportunities near the mine. Looking ahead, the company is focused on ramping up underground development and commencing gold processing in Q1 2026, positioning itself as a new low-cost, long-life gold producer in the Witwatersrand Basin.
Bottom Line?
With first ore on surface and robust project economics, West Wits is poised to deliver on its promise of gold production in early 2026.
Questions in the middle?
- How will actual gold production volumes and grades compare to DFS projections during ramp-up?
- What are the conditions precedent for the Nebari loan facility drawdowns and their potential impact on funding timing?
- How might fluctuations in gold prices and operating costs affect the project’s financial resilience?
