Westgold’s profit takes a hit despite record revenue

Westgold (ASX: WGX) posted a net profit after tax of $35m in FY25, down from FY24’s $95m, citing impacts from one-off transaction and admin costs.

Increased depreciation and amortisation resulting from the larger cost base and production from the Southern Goldfields and higher income tax year on year also contributed to the lower profit, according to Westgold.

The miner maintained its full exposure to the higher gold prices throughout the year, which when combined with record production delivered a record yearly revenue of $1.36b, an increase of 90%.

The incorporation of the Southern Goldfields, acquired in August 2024, contributed 129koz of gold and assisted in the delivery of a record 326koz of gold production for the group.

Westgold managing director and chief executive Wayne Bramwell says FY25 was transformative for the company and added the strategic Southern Goldfields assets to its portfolio.

“Through targeted investments in infrastructure and talent across the group, we doubled our operational scale and achieved record gold production of 326koz,” he said.

“One-off transaction costs impacted full year statutory profit, but record earnings before interest, taxes, depreciation, and amortisation (EBITDA) and free cash flow demonstrated the latent capacity of the expanded portfolio.

“Westgold finished the year with $364m in cash, bullion and liquid investments.

“Our balance sheet and confidence in our future cash flows, provides the opportunity to reward shareholders with a dividend in excess of our current policy and to initiate a share buy-back programme.”

Westgold’s stronger operational performance in FY25 resulted in underlying free cash flow of $224m.