A ‘transformational’ quarter for Westgold

Westgold Resources’ September quarter was defined by its $1.4 billion merger with Karora, but it wasn’t the only milestone welcomed by the gold miner.

On August 1 Westgold completed its merger with Karora that saw the companies transformed into a 400,000 ounce per year producer.

This firmly cemented Westgold as a mid-tier gold company, and one of Australia’s top five producers.

On August 6, Westgold commenced trading on the Toronto Stock Exchange and had joined the ranks of S&P’s ASX200 by September.

The operating results for this quarter mark a transition in scale for Westgold and include three months of gold production from the Murchison operations in Western Australia, but only two months’ production from the Southern Goldfields mines, which include the Beta Hunt and Higginsville mines.

The expanded business delivered a record 77,369oz at $2422/oz, generating $29 million in net mine cashflow.

“Our focus post-merger has been to rapidly identify, then address key risks and opportunities across the Southern Goldfields operations,” Westgold managing director Wayne Bramwell said.

“Early activities include deploying additional safety and operational management to supplement the site teams and expedite remedial maintenance and upgrades in basic mine infrastructure (water, ventilation, power).

“These changes have had immediate positive impact on mine outputs at both Beta Hunt and Higginsville late in the quarter and will see productivity improve as each area is addressed.”

Westgold is currently on track to achieve its 2024–25 financial year guidance, with the Bluebird – South Junction project, part of the Murchison operations, expected to ramp up to a run rate of over one million tonnes per year.

Beta Hunt currently delivers a run rate of over two million tonnes per year and mining is commencing at Great Fingall.

“Westgold now has an extensive, pipeline of projects with a landholding of more than 3200km2 across two of Australia’s most prolific gold regions,” Bramwell said.

“Drilling will unlock value and as planned we have rapidly mobilised additional drills to Beta Hunt and prioritised targets across Higginsville.”