UPDATE: Westgold Resources Ltd (ASX: WGX) is experiencing a significant surge of 6.3% today, with shares trading at $4.76, up from yesterday’s close of $4.48. This latest rise comes amid a remarkable 88.1% increase in share price over the last two months, as the S&P/ASX 200 Index (ASX: XJO) faces a minor decline of 0.3%.
Investors are reacting positively to Westgold’s newly announced three-year production outlook, highlighting a “high confidence plan” aimed at reducing costs and ramping up production. The company’s plans are notably conservative, omitting potential organic growth opportunities, such as the promising Fletcher Zone prospect at the Beta Hunt gold mine in Western Australia.
Management’s projections suggest that by FY 2028, Westgold’s gold production could leap to 470,000 ounces annually, a substantial increase from 326,000 ounces produced in FY 2025. This ambitious target is supported by the company’s operational assets, which include 56 million tonnes of Ore Reserves at an average grade of 1.93 g/t Au, translating to approximately 3.5 million ounces of gold.
Westgold’s CEO, Wayne Bramwell, articulated the company’s vision, stating, “
Westgold’s three-year outlook articulates a high confidence, executable plan that sees the business step up from 326koz of production in FY25 to more than 470koz by FY28.
” He emphasized that this growth is organic and fully funded, relying on realistic forecasts and cost assumptions.
The company also plans to enhance operating margins through increased mine outputs and improved mill feed grades, with all-in sustaining costs projected to decrease as production increases. Notably, Westgold expects to fully fund this growth plan using its existing balance sheet and forecasted cash flows, which adds to investor confidence.
This surge in Westgold’s share price, alongside the anticipated production increase, positions it as a compelling investment opportunity, especially as it currently offers an unfranked dividend yield of 0.7%.
As the market continues to react, investors are encouraged to monitor Westgold’s performance closely. The company’s strategic initiatives could reshape its future as a leading gold producer in Australia, creating excitement among shareholders and potential investors alike.
Stay tuned for further updates as this story develops.
