Westgold to increase production by 25%

Westgold (ASX: WGX) has delivered a high confidence plan that lifts annual gold production at its WA projects from 326koz to 470koz by FY28.

Underpinned by the company’s ore reserves of 56mt at 1.93g/t gold for 3.5moz of gold, the plan will see increased output from the company’s four existing processing hubs, currently operating at a 6mtpa capacity, fed from its operating mines and ore purchase agreement.

Westgold managing director and chief executive Wayne Bramwell says the outlook provides a baseline for a larger, more profitable and sustainable gold producer that is fully funded and organic.

“Westgold’s FY25 mineral resource estimate of 16.3moz and ore reserves of 3.5moz underwrites the [outlook],” he said.

“With our operations now being optimised on higher-grade mine outputs, consistent operational delivery will lower our all in sustaining cost, driving free cash flow and delivering higher returns to our shareholders.”

Westgold continues to explore growth opportunities across its tenures in the Murchison and Southern Goldfields regions, with expansion studies to increase mill capacity at its Higginsville Hub expected to commence shortly and expansion at Bluebird-South Junction continuing in FY26.

“The [outlook] is conservative by design. Additional growth can be delivered through mill optimisation, mine productivity improvements, systematic exploration and resource development, with our larger Beta Hunt and Bluebird-South Junction mines ripe for resource expansion.”