Westgold Resources Limited (ASX: WGX) Reports Record Q2 Gold Production
Westgold Resources Limited (ASX: WGX) has reported a record gold production of 80,886 ounces for the second quarter of FY25, showcasing a successful operational performance. The company’s increased net mine cash flow of A$45 million supports its capital needs for operational expansion and sustainability.
Safety and Environmental Performance
Westgold demonstrated an improved safety record, achieving a Total Recordable Injury Frequency Rate (TRIFR) of 6.85 per million hours worked, marking an improvement of approximately 7% quarter-on-quarter. The company reported no significant environmental incidents during the quarter, maintaining compliance with environmental regulations.
Financial Highlights
The strong production output contributed to a revenue of A$353 million, supported by an average achieved gold price of A$4,066 per ounce. Costs for the all-in sustaining cost (AISC) increased to A$2,703 per ounce, influenced by operational costs absorbed from the Southern Goldfields mine group. Westgold’s cash position at the end of December 2024 stood at A$152 million after drawing down A$50 million from its corporate facility.
Operational Updates
Seventeen drill rigs are actively employed across Westgold’s mining portfolio. Significant resource and reserve expansions include an increase at the Bluebird-South Junction to 1.4 million ounces of gold and an estimated reserve of 573,000 ounces. High-value intercepts, such as 6.60m at 41.84 g/t Au and 5.65m at 360.84 g/t Au from other drilling areas, demonstrate the potential for further resource growth.
Future Outlook and Strategic Plans
The company plans to maintain its unhedged position to fully leverage the rising gold prices. Upcoming capital expenditures are aimed at critical infrastructure upgrades, which are anticipated to drive production efficiency and mine outputs beyond 2 million tonnes per annum in the coming years.
Westgold remains committed to sustainable mining practices, investing in technological advancements and further exploration to solidify its market position.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.