Westgold Boosts Cash, Lifts Reserves and Reaffirms FY26 Guidance

About Westgold Resources Ltd

Westgold Resources Limited (ASX: WGX) is a Western Australia–based unhedged gold producer, operating across the Murchison and Southern Goldfields, two of the country’s most historically significant gold regions. Headquartered in Perth, the company owns four processing hubs with a combined milling capacity of around 6 million tonnes per annum, supported by multiple long-life underground mines including Bluebird–South Junction, Big Bell, Beta Hunt, and Starlight.

With a focus on safe, responsible, and profitable growth, Westgold continues to build scale through operational excellence, disciplined capital allocation, and strong exploration success. The company’s strategy centres on leveraging its extensive infrastructure base, strengthening its balance sheet, and positioning itself as a leading Australian mid-tier gold producer.

Quarterly Performance and Financial Position

For the quarter ended 30 September 2025, Westgold Resources produced 83,937 ounces of gold and sold 94,913 ounces, generating A$503 million in revenue. The company achieved an average realised gold price of A$5,296/oz, benefiting from its fully unhedged exposure to record spot market levels.

Westgold delivered an underlying cash build of A$180 million prior to A$60 million in growth investment and A$12 million in exploration expenditure, resulting in a closing treasury balance of A$472 million — an increase of A$108 million over the prior quarter. Operational cash flow totalled A$205 million, with investment focused on mine development at Bluebird–South Junction, Great Fingall, and site infrastructure upgrades across the group’s four processing hubs.

Operational Highlights

Safety performance at Westgold Resources continued to strengthen during the quarter, with the company’s Total Recordable Injury Frequency Rate (TRIFR) improving by 11% quarter-on-quarter to 5.04, reflecting the success of its proactive safety culture and workforce engagement programs. Quarterly production remained in line with expectations, as planned maintenance shutdowns temporarily reduced throughput ahead of a stronger performance anticipated in the second half of FY26. The Group All-In Sustaining Cost (AISC) averaged A$2,861/oz, slightly higher than the previous quarter due to one-off maintenance expenses and ore-purchase costs. The Murchison Operations delivered 53,140 ounces at an AISC of A$3,061/oz, driven by strong performance at Bluebird–South Junction and the commencement of paste-fill operations, while the Southern Goldfields contributed 30,797 ounces at an AISC of A$2,516/oz, supported by steady output and consistent grades from Beta Hunt and Higginsville. Key operational achievements included the first paste pour at Bluebird–South Junction, a milestone enabling full orebody extraction, and significant infrastructure upgrades at Beta Hunt, which are expected to lift mining rates and productivity in the December quarter.

Exploration and Growth Outlook

Westgold reported a significant uplift in resources and reserves during the quarter. The 2025 Mineral Resource and Ore Reserve update confirmed a 24% increase in total group Mineral Resources to 16.3 million ounces and a 5% rise in Ore Reserves to 3.5 million ounces, representing the second consecutive year of post-depletion growth.

The update extended Westgold’s Ore Reserve life to around 10 years, underpinned by robust exploration results across its Western Australian assets. The company recorded major gains at Bluebird–South Junction (up 35% to 1.3Moz) and Starlight (up 46% to 866koz), while the Beta Hunt Fletcher Zone delivered a maiden 2.3Moz resource.

Westgold plans to invest approximately A$50 million in exploration during FY26 to further expand its resource base and convert additional Mineral Resources into Ore Reserves.

Three-Year Outlook and Capital Management

In October 2025, Westgold outlined its Three-Year Outlook (3YO), providing clear visibility on production growth and cost trajectory through FY28. The plan targets annual gold production of approximately 470,000oz by FY28, with AISC forecast to fall to around A$2,500/oz by FY27, supported by higher grades and improved operating efficiencies.

This growth strategy is fully supported by the company’s existing asset portfolio and processing infrastructure. The plan remains conservative, excluding potential upside from emerging projects under evaluation.

The Board reaffirmed its focus on shareholder returns, declaring a 3 cents per share final dividend for FY25 (a 78% payout ratio) and approving a 5% on-market share buyback for FY26. Westgold also updated its dividend policy, doubling the minimum annual payout to 2 cents per share and establishing a minimum net cash threshold of A$150 million after dividends — demonstrating management’s confidence in the company’s strong cash generation capacity.

Corporate Developments

Westgold continued to streamline its portfolio, initiating the divestment of three non-core assets — Peak Hill, Mt Henry–Selene, and Chalice — together containing around 1.6 million ounces of resources. The transactions are expected to conclude by Q3 FY26, with proceeds strengthening the balance sheet and potentially supporting future ore-purchase arrangements.

The company remains debt-free following the repayment of its $200 million term loan and retains access to A$50 million in undrawn revolving credit. Its liquidity position of A$472 million provides ample flexibility to fund growth, exploration, and shareholder returns.

Conclusion

Westgold Resources’ first-quarter performance reaffirms its position as a financially strong, growth-focused Australian gold producer. Backed by a record cash build, expanding resource base, and disciplined cost management, the company remains well placed to deliver sustainable production growth and consistent shareholder value.

With clear visibility to 470,000oz annual output by FY28, continued investment in safety and efficiency, and a robust capital management framework, Westgold enters FY26 from a position of strength.