Westgold Resources meets FY23 production guidance

Company News

by Peter Milios

Westgold Resources Limited (ASX:WGX) has announced that the company has successfully met the top end of its full financial year (FY23) production guidance, producing 257,116 ounces of gold. Additionally, the company has continued to generate free cash flow from its operations in the fourth quarter, resulting in an increase in cash, bullion, and liquid assets.

Key highlights:
  • Westgold Resources achieved the top end of its full-year group production with 257,116 ounces of gold, meeting its guidance range of 240,000 to 260,000 ounces.
  • The company anticipates that its full-year group all-in sustaining cost (AISC) will fall within the mid-range of the guidance, ranging between $1,900 and $2,100 per ounce.
  • In the fourth quarter, Westgold Resources produced 68,377 ounces of gold, with record output from the Bluebird mill at Meekatharra.
  • The company saw a significant increase of $24 million in cash, bullion, and liquid assets in Q4, compared to $9 million in the previous quarter.
  • Westgold Resources closed FY23 with cash, bullion, and liquid assets amounting to $192 million, surpassing the FY22 closing position of $190 million.
Westgold Managing Director, Wayne Bramwell, expressed his satisfaction with the company's performance, stating, "Westgold has delivered safe and profitable ounces for its shareholders in FY23. Over the last 12 months, we have improved our operational discipline, built balance sheet strength, and invested in our future through exploration and resource development. This turnaround is evidenced by two consecutive quarters of cash flow generation."

Bramwell also highlighted Westgold's solid financial position as the company enters FY24, debt-free and capable of internally funding organic growth opportunities. These opportunities include the expansion of Big Bell and the commencement of the Great Fingall underground mine, a significant milestone for the company. Furthermore, the completion of fixed forward hedges in July positions Westgold to fully leverage the gold price from August, enhancing profitability in FY24.

Westgold Resources' strong operational performance and improved financial position showcase its commitment to delivering value to shareholders. The company's ability to meet production guidance and strengthen its cash position underscores its position as a leading gold producer in the industry.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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