Half-year results glitter for Westgold

Westgold (ASX: WGX) is positioning itself as an Australian gold titan, with promising half-year results including gold production of 158,255oz with all-in sustaining costs of $2,562poz.

These results follow the company’s merger with Karora and subsequent inclusion in the ASX200 and dual listing on the ASX and TSX.

Westgold says its 29.4% increase in gold production from H1FY24 was a result of the Karora acquisition. Combined with higher achieved gold prices, this increased production contributed to a record half year revenue of $624m.

Westgold managing director and chief executive Wayne Bramwell says the post-merger results solidify the company’s position as one of Australia’s top five gold mining companies.

“This half-year was a period of consolidation and strategic investment, with a focus on critical mine infrastructure and resource drilling, paving the way for long-term success,” he said.

“The next half is where this capital begins to generate a return and we start to see production growth and increased cash generation.”

Westgold’s operations delivered $125m of operating cashflows inclusive of one-off $39m in operating cash used for change of control payments and acquisition related charges for Karora.

Excluding acquisition-related payments, Westgold generated $165m from its operations.

FY25 represents a critical year for investment into Westgold’s assets as the company invested $257m in acquisitions, mine development, property, plant, equipment and exploration, representing a 150% growth in investing activity compared to H1FY24.

The company hopes to build a robust asset base that can deliver consistent production, ensuring long-term sustainability and profitability with this investment.