How Did Westgold Double Its Cash Build Amid Record Gold Production?

Record Production and Cash Flow Surge

Westgold Resources Limited has delivered a standout performance in the December 2025 quarter, posting a record group gold production of 111,418 ounces; a 33% increase from the previous quarter. This surge was largely driven by operational improvements in the Murchison region, notably higher grades at Fortnum and increased throughput at the Meekatharra processing hub, bolstered by a higher volume of third-party ore purchased under an Ore Purchase Agreement (OPA) with New Murchison Gold.

The company achieved a record average realised gold price of A$6,356 per ounce, generating revenue of A$732 million. These factors combined to double Westgold’s underlying cash build to a record A$365 million for the quarter, before accounting for outflows such as stamp duty on the Karora transaction, debt repayments, growth investments, dividends, and exploration expenditure.

Financial Strength and Strategic Moves

Westgold closed the quarter with a robust treasury position of A$654 million in cash, bullion, and liquid investments, marking a $182 million increase quarter-on-quarter. Importantly, the company is now completely debt free after repaying $50 million during the period, and remains unhedged, fully exposed to the spot gold price.

Strategically, Westgold continues to optimise its portfolio by divesting non-core assets, including the recent sale of the Mt Henry-Selene project for $64.6 million. The company is also progressing the planned demerger and IPO of its Reedy’s and Comet assets into a new ASX-listed entity, Valiant Gold Limited, aiming to unlock shareholder value and sharpen focus on core operations.

Operational Costs and Outlook

While production and cash flow soared, all-in sustaining costs (AISC) rose to A$3,500 per ounce, primarily due to the higher unit costs of processing third-party oxide ore and increased gold price-linked royalties. Excluding the OPA ore, AISC stood at a more moderate A$2,945 per ounce. Westgold maintains its FY26 production guidance of 345,000 to 385,000 ounces and cost guidance of A$2,600 to A$2,900 per ounce, excluding OPA costs.

Looking ahead, Westgold’s three-year outlook outlines a clear pathway to increase annual production to approximately 470,000 ounces by FY28 while structurally lowering costs to around A$2,500 per ounce. Key growth projects such as Bluebird–South Junction, Great Fingall, and Beta Hunt are advancing as planned, alongside ongoing exploration and capital investments.

Safety and Governance Focus

On the safety front, the company reported an increase in its Total Recordable Injury Frequency Rate (TRIFR) to 9.32 injuries per million hours worked, driven mainly by hand and finger injuries. Westgold has responded with targeted safety education and a refreshed Critical Risk Management framework to enhance frontline risk awareness and injury prevention.