March 2025 Quarterly Results

Canada NewsWire

PERTH, Western Australia, April 30, 2025

ASX Release

Westgold is an agile ASX200 Australian gold company with six operating underground mines and combined processing capacity of 6Mtpa across two of Western Australia's most prolific gold regions.

Financial values are reported in A$ unless otherwise specified

This announcement is authorised for release to the ASX by the Board.

PERTH, Western Australia, April 30, 2025 /CNW/ -

Record quarterly operational cash build

Westgold Resources Limited (ASX: WGX) (TSX: WGX) (Westgold or the Company) is pleased to report results for the period ending 31 March 2025 (Q3 FY25).

HIGHLIGHTS

   -- OPERATIONSSafety Performance Total Recordable Injury Frequency Rate 
      (TRIFR) of 6.27 / million hours -- an improvement of 13.5% 
 
   -- Gold production in Q3 FY25 of 80,107oz Au @ AISC of $2,829/oz, consistent 
      with the Q2 FY25 production of 80,886oz Au @ $2,703/oz 
 
   -- Gold sales of 78,398oz at an average price of A$4,630/oz, generating 
      revenue of A$363M 
 
   -- DRILLINGExciting drilling results returned at Fletcher, Bluebird-South 
      Junction and Nightfall - continue to demonstrate the quality of these 
      assets 
 
   -- CORPORATEDivestment of non-core Lakewood mill for $85M completed - 
      comprising $70M in cash and $15M in Black Cat Syndicate (ASX:BC8) scrip 
 
   -- FINANCEClosing cash, bullion, and liquid investments @ 31 March 2025 of 
      $232M, an $80M increase Q on Q, comprising: 
 
          -- Cash build of $107M from operations - before investing $74M in 
             growth and exploration 
 
          -- Additional $22M from corporate activities - comprising $25M in 
             proceeds from Lakewood divestment offset by a $3M investment in 
             ASX: NMG equity 
 
          -- $11M increase in bullion -- with a $13M increase in liquid 
             investments 
 
   -- Westgold remains 100% unhedged -- offering full exposure to escalating 
      gold price 
 
   -- Westgold remains on track to deliver FY25 production and cost guidance 

Westgold Managing Director and CEO Wayne Bramwell commented:

"Westgold continues to reconfigure the larger portfolio to be more productive and to boost free cash flows into FY26. It has taken two quarters in FY25 to stabilise the larger business and in Q3 we delivered a record $80M build in cash, bullion and liquid investments.

Strong treasury management is key to delivering our growth strategy. Being unhedged and with our growing cash balance and $250M in our undrawn corporate facility, Westgold has available liquidity of $480M -- a solid foundation from which to execute our growth plans.

As expected, production and cost results in Q3 FY25 were in line with in Q2 FY25 results. These will improve in Q4 FY25 with mining outputs improve at the Bluebird South-Junction mine and the infrastructure upgrades at the Beta Hunt mine due to complete mid-2025.

Production from the Southern Goldfields continues to increase due to improved head grade and recovery rates achieved for the quarter. Beta Hunt mine infrastructure upgrades continue with key projects expected to be complete during Q4, FY25.

In the Murchison, the slower than planned ramp up of Bluebird-South Junction required higher tonnages of low-grade stocks to be hauled to and processed at Meekatharra. This escalated the Murchison costs this quarter and with mining expected to commence in South Junction during Q4, FY25 costs should reduce.

With a view to lowering our costs in the Southern Goldfields, Westgold divested the non-core and high-cost Lakewood Mill near Kalgoorlie for $70M in cash and $15M in scrip. The sale simplifies our Southern Goldfields business and from April sees all Beta Hunt ore being processed at the larger, lower cost Higginsville processing plant. Optimisation of this plant is the next step, with a scoping study evaluating the expansion of the 1.6Mtpa Higginsville to 2.6Mtpa showcasing the value modest capital investment could deliver.

Drilling creates long term value in the portfolio and Westgold continues to invest in drilling. Results at the Nightfall Lode at Fortnum, Bluebird-South Junction and the Fletcher Zone at Beta Hunt, continue to show the quality of the mineral endowment we control and I encourage you to peruse our quarterly exploration report released today for more details.

After two quarters of integration, Q3 FY25 has delivered record quarter on quarter cash build for Westgold. Westgold is well funded and continues to focus on lifting our mine outputs and optimising our largest mines and mills for greater free cash flow and expanded margins into FY26."

Executive Summary

Cash Position as at 31 March 2025

Westgold closed the quarter with cash, bullion and liquid investments of $232M (see Figure 1) -- an increase of $80M from the prior quarter -- with the Company having built $107M in cash before investing cash of $63M in growth and $11M in exploration during the period.

This result was driven by an increase in realised gold price of $4,630/oz, consistent group gold production and operational cash costs, and the divestment of the non-core Lakewood Mill contributing an additional $25M.

Notes

   -- Westgold remains unhedged and fully exposed to the spot gold price. 
 
   -- Initial payments of $25M relating to the Lakewood Sale received in the 
      quarter. Remaining payments are expected to be received in June 2025 
      ($20M) and November 2025 ($25M). 
 
   -- Additional $3M of New Murchison Gold (ASX: NMG) shares purchased in the 
      quarter. 
 
   -- Closing investments exclude $15M received in Blackcat Syndicate scrip 
      during the quarter -- as this scrip consideration has a 12-month escrow 
      period. 

Group Production Highlights -- Q3 FY25

Westgold achieved consistent quarterly gold production in Q3 FY25, producing 80,107 ounces and generating $87M in net mine cashflow.

This included 42,906 ounces from the Murchison (Q2 FY25: 46,461oz) and 37,201 ounces from the Southern Goldfields (Q2 FY25: 34,425oz). Lower production in the Murchison quarter on quarter was predominantly offset by increased production from the Southern Goldfields. Reduced production from the Murchison was driven by lower Fortnum production, whilst the increase in the Southern Goldfields is attributed to improved grade at the Beta Hunt UG at Kambalda.

All-In Sustaining Cost (AISC) for the quarter was $227M (Q2 FY25: $219M), and on a per ounce basis was $2,829/oz (Q2 FY25: $2,703/oz). As illustrated in Figure 3 the monthly total AISC since post-acquisition of the Southern Goldfields assets (on 1 August 2024) has been relatively consistent, with the increase at the end of the quarter mainly relating to increased sustaining capital expenditure, increased stockpile consumption (predominantly at the Bluebird mill at Meekatharra) and additional haulage costs to transport ore from Fortnum to maintain consistent throughput at the Bluebird mill.

Capital growth projects continued to advance across the Group in line with the current strategy to ramp up production in the back end of FY25.

The Company sold 78,398oz of gold for the quarter achieving a record price of $4,630/oz, generating $363M in revenue. With Westgold free of any fixed forward sales contracts, the Company continues to offer shareholders full exposure to record spot gold prices. Westgold's operations generated $144M of mine operating cashflows with the achieved gold price $1,801/oz over AISC.

Capital expenditure during Q3 FY25 of $46M (Q2 FY25: $56M) includes $31M of investment in growth projects (Bluebird-South Junction and the Great Fingall development) and $15M in upgrading power, ventilation and paste infrastructure across the respective sites.

Investment in exploration and resource development of $11M (Q2 FY25: $9M) for the quarter continued focusing on Bluebird-South Junction and Starlight in the Murchison, and the Fletcher Zone and Western Flanks at Beta Hunt in the Southern Goldfields.

The net mine cash inflow for Q3 FY25 was $87M (refer Table 2 under Group Performance Metrics).

FY25 Guidance Maintained

Westgold's production in Q3 FY25 was in line with its expectations and the Company maintains its current production and cost guidance for FY25. Westgold envisages a substantial increase to gold production in Q4 FY25, predicated on the ramp up of Beta Hunt and Bluebird-South Junction.

The infrastructure projects at Beta Hunt, that to-date have limited the mine's ability to consistently deliver mining rates of 2Mtpa, are expected to be completed during Q4 FY25.

As demonstrated by the increased ore production at Bluebird-South Junction quarter on quarter, progress has been made in the ramp up of Bluebird-South Junction. Despite this, development into South Junction remains behind schedule. Whilst mining rates in Q4 FY25 are expected to be substantially greater than in Q3 FY25, where previously Westgold envisaged mining rates reaching 1.2Mtpa by the end of Q4 FY25, the Company now expects these rates to be reached in early FY26.

 
                       Current             Q3 FY25  YTD FY25 
                        FY25 Guidance       Actual   Actual 
Production (oz)        330,000 -- 350,000   80,107   238,362 
AISC (A$/oz)               2,400 -- 2,600    2,829     2,659 
Growth Capital (A$M)                  200       46       160 
Exploration (A$M)                      50       11        34 
 

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