West Wits Mining Pours First Gold, Secures $97M Finance, Expands Resources to 7.24Moz

First Gold Marks West Wits’ Shift to Production

After years of geological groundwork and feasibility studies, West Wits Mining Limited (ASX:WWI) poured its first gold at the Qala Shallows underground mine in March 2026, producing 227 ounces by the end of June. This milestone is more than symbolic; it signals the company's transition from developer to near-term gold producer in South Africa's Central Rand Goldfield, a region long thought exhausted.

The official opening of Qala Shallows in December 2025, attended by South African Minister Gwede Mantashe and the Australian High Commissioner, underscored the project's significance as the first new underground gold mine in South Africa in over 15 years. West Wits’ Executive Chairman Michael Quinert highlighted the achievement as proof that the ounces reported in resource statements are real and mineable, setting the stage for the next phase of development.

Resource Growth and Operational Progress

West Wits expanded its Witwatersrand Basin Project (WBP) Mineral Resource Estimate (MRE) by 2.2 million ounces to a total of 7.24 million ounces at 4.0 g/t gold. This increase was driven by a new prospecting right granted in December 2025 and a lowered cut-off grade reflecting higher gold prices. The update provides a longer potential mine life and underpins future production growth.

Operationally, the breakthrough of the 1 West Decline into historically developed, higher-grade stoping areas in May 2026 accelerated access to ore, potentially shaving about a year off development timelines and improving ramp-up grades. Underground development reached 544 metres during the year, supported by a growing fleet of Load-Haul-Dump units and drill rigs. Surface infrastructure improvements, including a new warehouse and stormwater management, were also well advanced.

Securing Institutional Finance to De-risk Ramp-Up

In a critical vote of confidence, West Wits closed a ZAR1.115 billion (~A$97 million) project finance package with Absa Bank and Nedbank Corporate and Investment Banking. The financing includes a ZAR875 million senior loan, a ZAR150 million working capital facility, and a ZAR90 million cost overrun facility, fully funding Qala Shallows through to steady-state production targeted around 70,000 ounces annually by the 2028/29 financial year.

The financial close allowed West Wits to repay its prior US$12.5 million Nebari bridge loan facility and transition to a longer-tenure, lower-cost institutional debt structure. As part of the deal, the company implemented a gold price hedging program covering 50% of planned production via put options at a strike price of ZAR57,750 per ounce, preserving exposure to gold price upside while mitigating downside risk during ramp-up.

Strategic Portfolio Rationalisation and Capital Structure Simplification

To sharpen its focus on the WBP, West Wits divested its non-core Mt Cecelia Project in Western Australia to Aventine Resources Limited, receiving A$2 million in equity plus a 1% net smelter royalty and milestone payments. This move frees management and capital to concentrate on South African operations and growth initiatives.

The company also consolidated its issued capital on a 10-for-1 basis, reducing shares on issue to approximately 435 million ordinary shares. Management described this as a simplification ahead of institutional engagement and financing closure.

Safety Incident and ESG Commitment

June 2026 saw a tragic mud-rush incident at Qala Shallows resulting in the death of a contractor’s employee. Operations in the affected area were paused during a regulatory investigation, which concluded with no adverse findings against West Wits and all restrictions lifted. The company reaffirmed its commitment to safety, emphasising that every underground worker must return home safely.

West Wits also expanded its workforce toward a steady-state target of about 1,100 employees and deepened community and skills development programs. Initiatives included a Portable Skills Program, internship schemes, and support for local food vendors operating on-site, reflecting a growing integration with the surrounding community.

Financial Performance and Outlook

West Wits reported a loss after tax of A$11.188 million for FY2026, reflecting ramp-up costs, increased financing expenses, and the early stage of production. Cash on hand stood at A$32.1 million at year-end, bolstered by equity raises totaling A$51.4 million during the year, including a strategic investment from Tribeca Investment Partners.

The company is progressing its Project 200 scoping study, aiming to explore scaling production to approximately 200,000 ounces per annum over a 35-year mine life. However, detailed results were withheld due to ASX compliance, noting a high proportion of inferred resources underpinning the target.

Grid power connection, expected to reduce reliance on diesel and cut costs, was delayed to early 2027, with interim diesel supplies secured to maintain uninterrupted operations.

Governance and Leadership

Leadership changes during the year included the appointment of Rudi Deysel as Managing Director, recognising his role in advancing Qala Shallows from concept to operation. The board remains chaired by Michael Quinert, with a mix of executive and non-executive directors experienced in mining and finance.

The auditor, William Buck Audit, issued an unqualified opinion on the financial statements and the remuneration report, highlighting key audit matters around financing arrangements, asset classification, and deconsolidation of Indonesian operations.

West Wits enters FY2027 with its production ramp-up underway, a strong finance package in place, and a clear strategy to build on its initial success at Qala Shallows.