## Westgold Resources Reports Record Gold Production and $1.4B Merger Boost
Westgold Resources Limited, an agile Australian gold company, has announced impressive results for the first quarter of fiscal year 2025 (Q1 FY25), showcasing the impact of its transformative $1.4 billion merger with Karora Resources. The deal, finalized on August 1st, has propelled Westgold into the top five Australian gold producers, marking a significant milestone for the company. Reflecting this new stature, Westgold has joined the S&P/ASX 200 and commenced trading on the Toronto Stock Exchange.
This quarter saw Westgold achieve a record gold production of 77,369 ounces, generating a net mine cash flow of $29 million. This represents a substantial increase from the previous quarter and sets a new high for the company’s quarterly gold production. Notably, this impressive performance encompasses three months of gold production from the Murchison operations and only two months from the newly integrated Southern Goldfields operations, highlighting the substantial contribution of the Karora acquisition.
Despite the transitional nature of the quarter, Westgold remains on track to meet its FY25 guidance of 400,000 to 420,000 ounces of gold produced at an All-In Sustaining Cost (AISC) of $2,000 to $2,300 per ounce. The company attributes the elevated costs in Q1 FY25 to the integration process, particularly the impact on production from the Southern Goldfields. However, Westgold is actively addressing these challenges through strategic initiatives like deploying additional safety and operational management resources, expediting remedial maintenance and upgrades, and systematically implementing a 100-day integration plan. These efforts are already yielding positive results, with increased mine outputs at both Beta Hunt and Higginsville observed late in the quarter.
Westgold’s commitment to exploration and resource development continues to drive value. The company currently operates 17 drill rigs across its portfolio, focusing on expanding reserves and unlocking the potential of its extensive landholding of more than 3,200 square kilometers. The company has achieved significant progress at Bluebird – South Junction, where the ore reserve has increased by 233% to 3.0Mt @ 2.8g/t Au for 277koz. This, combined with an updated Group Mineral Resource Estimate (13.2Moz Au) and Ore Reserve (3.3Moz Au), underscores Westgold’s impressive growth trajectory. Furthermore, encouraging drill results from both the Murchison and Southern Goldfields, including 19.00m @ 13.44g/t Au from 24SJDD028 at South Junction and 4.00m @ 22.45g/t Au in hole WF440N1-01AR at Beta Hunt Fletcher Zone, further strengthen the company’s positive outlook.
Westgold’s financial performance reflects its commitment to sustainable growth. The company closed the quarter with cash, bullion, and liquid investments totaling $103 million, a notable achievement considering the substantial cash component and one-off costs associated with the Karora merger. This demonstrates Westgold’s strong financial position and its ability to fund future growth initiatives without resorting to capital raises or debt drawdowns. Notably, Westgold remains 100% unhedged, offering full exposure to the escalating gold price and positioning the company to capitalize on market fluctuations.
Westgold Managing Director and CEO Wayne Bramwell expressed his satisfaction with the company’s Q1 FY25 performance: “Q1 FY25 represents both a transformational and a transitional period for Westgold. The merger with Karora Resources has transformed Westgold into a 400,000+ ozpa, top five Australian gold producer. Our focus post-merger has been to rapidly identify, then address key risks and opportunities across the Southern Goldfields operations. We are confident in higher mine outputs and reduced costs across the business as these programmes are systematically rolled out and synergies delivered.”
The success of the Karora merger and the record gold production in Q1 FY25 mark a pivotal period for Westgold. The company is poised for continued growth, driven by its expanded portfolio, commitment to exploration and resource development, and strong financial foundation. With a clear vision and strategy to sustainably produce +500,000 ozpa from FY26/27, Westgold is well-positioned to capitalize on the current market dynamics and cement its position as a leading Australian gold producer.
