Westgold builds cash despite softer production
Westgold Resources (ASX: WGX) reported strong cash generation in Q3 FY26, bolstered by a rising gold price, while maintaining full-year production guidance.The company produced 93,145oz of gold during the quarter, bringing year-to-date output to 288,500oz, with production impacted by lower head grades and reduced contribution from ore purchase agreements compared to the previous quarter.Westgold maintains its FY26 production guidance of 345,000-385,000oz, with operations expected to strengthen in the June quarter following improved mining conditions.All-in sustaining costs were $2931/oz excluding ore purchase agreements while AISC including ore purchase agreements fell to $3338/oz from $3466/oz. Full-year costs are expected to land towards the upper end of guidance, reflecting inflationary pressures and operational decisions aimed at maximising cash flow.A key highlight of the quarter was Westgold’s cash performance, with the company delivering an underlying cash build of $285m and closing the period with $856m in cash, bullion and liquid investments, up $202m quarter-on-quarter.Operationally, performance across the portfolio was mixed. Lower production reflected reduced grades from the Starlight mine, lower ore purchase volumes in the Murchison and temporary ventilation constraints at Beta Hunt which have since been addressed.Mining productivity improved across several operations, with underground equipment performance lifting and stockpiles building across the Murchison hubs, positioning the company for stronger output in the June quarter.Westgold continued to advance growth initiatives during the period, including approving a final investment decision for the Higginsville expansion, which will increase processing capacity to 2.6mtpa.The company is also progressing Bluebird-South Junction and Beta Hunt as cornerstone assets for future growth.Westgold strengthened its balance sheet, establishing a $600m unsecured credit facility, while remaining debt free and unhedged retaining full exposure to the gold price.