Westgold Advances Higginsville Expansion Amid Strong Q3 Cash Build

Strong Cash Generation Supports Growth and Capital Returns

Westgold Resources (ASX:WGX) reported a solid Q3 FY26 with gold production of 93,145 ounces, bringing the year-to-date total to 288,500 ounces and maintaining full-year guidance of 345,000 to 385,000 ounces. The company achieved a record average gold price of A$7,080 per ounce, generating A$495 million in revenue and underpinning an underlying quarterly cash build of A$285 million. This boosted Westgold’s treasury position to A$856 million, including cash, bullion, and liquid investments, a significant increase of A$202 million quarter-on-quarter.

Westgold’s unhedged position leaves it fully exposed to the spot gold price, which has been a tailwind this quarter. The company’s strong cash flow generation, before investments in growth and exploration, reflects operational efficiencies and a competitive All-In Sustaining Cost (AISC) margin of A$3,742 per ounce. The AISC excluding ore purchase agreements (OPA) held steady at A$2,931 per ounce, while including OPA it was A$3,338 per ounce.

Importantly, Westgold remains 100% debt free and recently secured a new A$600 million unsecured revolving credit facility, increasing total liquidity to approximately A$1.45 billion. This facility, provided by a syndicate of Tier 1 lenders, offers flexibility to fund growth initiatives and manage market volatility without mandatory hedging or amortisation requirements. The new credit facility builds on the company’s financial resilience, as previously reported in its $600M unsecured revolving credit facility.

Operational Highlights: Bluebird-South Junction and Beta Hunt Drive Growth

Operationally, the Murchison and Southern Goldfields hubs continue to underpin Westgold’s growth. At Bluebird–South Junction in the Murchison, mining and development rates improved quarter-on-quarter, with mining outputs approaching an annualised 800ktpa and on track to reach 1.0–1.2Mtpa by the end of FY26. The mine benefits from enhanced ground control and paste fill performance, opening additional working areas.

Beta Hunt in the Southern Goldfields faced temporary ventilation constraints during March, impacting mining rates and grades. However, the ventilation fans have since been repaired, and the mine is ramping back up towards a targeted 2.0Mtpa mining rate by quarter-end. Development rates at Beta Hunt increased by 25%, supporting the ramp-up and stockpile rebuilding. This operational resilience was demonstrated by supplementing ore production with stockpiles at the Higginsville processing hub, maintaining steady gold output despite underground challenges.

Westgold’s strategy to transition from mine-constrained to mill-constrained operations is further supported by the recommencement of open pit mining in the Murchison three months ahead of schedule. This program will improve ore blend and mill utilisation over time, although no material production is expected from open pits in FY26. The company is also advancing resource definition and extensional drilling at key targets such as Bluebird-South Junction, Starlight, and Beta Hunt’s Fletcher Zone, with 23 drill rigs active across the portfolio.

Higginsville Expansion Plan Approved to Boost Capacity and Cut Costs

Westgold’s Board approved the Final Investment Decision for the Higginsville Expansion Plan (HXP), a $145 million project to increase processing capacity from 1.6Mtpa to 2.6Mtpa at the Southern Goldfields hub. This expansion is expected to lift regional gold production by approximately 60,000 ounces annually at steady state and reduce processing costs by about 24% to ~$34 per tonne, enhancing margins and cash flow. The expanded flowsheet includes a new primary crusher, a 5.8MW SAG mill, pebble crusher, and additional leach capacity, with design flexibility for a future expansion to 4.0Mtpa with minimal additional capital.

Early Q4 investments include securing long-lead items such as the SAG mill and crushers, with the tender process for the engineering, procurement, and construction (EPC) phase underway. Production ramp-up to 2.6Mtpa is expected by mid-FY28 following a staged construction schedule designed to minimise disruption. The HXP aligns with Westgold’s 3-Year Outlook and growth strategy, leveraging a predominantly Measured and Indicated Mineral Resource base, and supports increasing mining rates at Beta Hunt.

Portfolio Simplification Unlocks Immediate and Deferred Value

Continuing its focus on core assets, Westgold completed the divestment of the Mt Henry–Selene Gold Project to Alicanto Minerals and spun out its Reedy and Comet assets through the ASX listing of Valiant Gold Limited. These transactions delivered approximately A$140 million of immediate value and up to A$30 million of deferred value for shareholders, while retaining exposure through strategic equity stakes. This move is consistent with Westgold’s strategy to optimise its portfolio and unlock value from non-core holdings, as detailed in the company’s recent Reedy and Comet Projects spin-off.

Westgold is also progressing the planned divestment of its Peak Hill and Chalice gold assets, further streamlining its portfolio to concentrate on high-quality, cash-generative operations.

Safety and Sustainability Remain Priorities

Safety performance improved in Q3 FY26, with no Lost Time Injuries reported and a Lost Time Injury Frequency Rate (LTIFR) of 1.29 per million hours worked. The Total Recordable Injury Frequency Rate (TRIFR) was 11.8. There were no significant environmental non-compliance events during the quarter, reflecting ongoing commitment to responsible mining practices.

Westgold also reported no diesel supply disruptions, maintaining moderate exposure to diesel costs thanks to investments in hybrid solar, gas, and battery power infrastructure at its Murchison hubs. While diesel prices had no material impact in Q3, the company forecasts potential elevated costs in Q4 should current conditions persist, potentially adding around A$13 million to AISC.