Westgold Posts $1.24B Revenue and $271M Pre-Tax Profit on Rising Gold Prices

Strong Financial Performance Amid Rising Gold Prices

Westgold Resources Limited has reported a remarkable half-year financial result for the period ended 31 December 2025, underpinned by a significant increase in gold prices and production volumes. The company recorded a record consolidated revenue of $1.24 billion, nearly doubling the previous corresponding period, driven by an achieved gold price of $5,877 per ounce, up from $3,910 per ounce. This surge in revenue translated into a profit before tax of $270.7 million and a net profit after tax of $190.7 million, a dramatic turnaround from a loss of $27.6 million in the prior year.

The strong earnings were supported by a 23% increase in gold production to 195,355 ounces, including contributions from the Ore Purchase Agreement. Westgold maintained a competitive operating margin of 35%, with an EBITDA of $436 million for the half-year. These results reflect the company’s operational resilience and ability to capitalise on favourable market conditions.

Debt-Free Status and Strategic Asset Rationalisation

Westgold’s balance sheet strengthened considerably during the period, with the company repaying $50 million of debt and emerging debt free by 31 December 2025. This deleveraging enhances financial flexibility and positions Westgold to fully benefit from future gold price appreciation without hedging constraints.

In line with its strategy to focus on core assets, Westgold divested the Mt Henry-Selene Gold Project near Norseman, Western Australia. The transaction, completed in February 2026, generated approximately $110 million in total consideration comprising $15 million in cash, a 19.9% strategic stake in Alicanto Minerals Limited via shares valued at around $65 million, and up to $30 million in deferred consideration contingent on project milestones. While the sale resulted in a non-cash loss of $178 million on assets held for sale, it delivered immediate cash inflows and retained upside exposure through the Alicanto shareholding.

Portfolio Simplification and Growth Initiatives

Westgold also incorporated Valiant Gold Resources Limited to facilitate the demerger of non-core assets, including the Reedy’s and Comet gold projects in the Murchison region. This move aims to unlock value from these holdings by creating a standalone ASX-listed entity with dedicated management and near-term cash flow prospects through ore purchase agreements with Westgold. The demerger is expected to simplify Westgold’s portfolio and sharpen its focus on larger, core operations while preserving exposure to exploration upside via retained equity in Valiant.

Capital investment remained robust, with $135.7 million spent on mine properties, development, and exploration, supporting growth projects such as Bluebird-South Junction and Great Fingall. The company’s total gold mineral resources increased by 24% year-on-year to 16.3 million ounces, and ore reserves grew by 5% to 3.5 million ounces, underpinning a reserve life of approximately 10 years at current milling capacity.

Commitment to ESG and Operational Safety

Westgold continues to prioritise environmental, social, and governance (ESG) initiatives, embedding respect for traditional lands and cultural heritage into its operations. The company is advancing climate governance and enhancing safety frameworks, including a refreshed Critical Risk Management system scheduled for implementation in the second half of FY26. While the Total Recordable Injury Frequency Rate increased slightly due to refined injury classification, Westgold is focused on targeted injury prevention and operational resilience.

Looking ahead, Westgold is well positioned to meet its full-year production guidance of 345,000 to 385,000 ounces, supported by strong cash flows and a streamlined asset base. The company’s strategic divestments and capital investments signal a disciplined approach to growth and value creation in a dynamic gold market.