Westgold Resources (WGX) H2 2024 earnings summary

Executive summary

• Achieved AUD 95 million statutory profit in FY 2024, marking a return to meaningful profitability and significant cultural improvements focused on safety, operational excellence, and shareholder returns.

• Completed merger with Karora Resources, creating a top five Australian gold producer with two strategic footprints and a production profile exceeding 400,000 ounces per annum.

• Declared total dividends of AUD 0.0225 (2.25 cents) per share for FY 2024, reflecting improved financial performance and a strong commitment to shareholder returns.

• Maintained a strong safety record with a substantial reduction in Total Injury Frequency Rate (TRIFR) to 6.9.

Financial highlights

• Revenue increased 9% year-over-year to AUD 716 million, driven by higher spot gold prices and increased exposure to spot sales, despite lower production due to the pause at Paddy's Flat.

• EBITDA rose 62% to AUD 271 million, and NPAT surged 852% to AUD 95 million compared to FY 2023.

• Free cash flow reached AUD 86 million, up 760% year-over-year, with net assets at AUD 692 million and cash, bullion, and liquid assets at AUD 263 million.

• Achieved the top end of adjusted FY 2024 production guidance (227,237 oz) and the bottom end of cost guidance (AISC just over AUD 2,000/oz or AUD 2,178/oz).

• Remained debt-free with an undrawn AUD 100 million corporate facility and six consecutive quarters of cash, bullion, and liquids build, totaling a AUD 71 million increase in FY 2024.

Outlook and guidance

• FY 2025 guidance to be released after updated reserve and resource statement in September; only FY 2025 guidance will be provided at this stage.

• Positioned among Australia’s top 5 gold producers with over 400,000 ozpa production capacity post-merger.

• Organic growth pipeline includes early production from expanded Bluebird South Junction, first ore from Great Fingall, and the Long Hole open stope mine at Big Bell.

• Beta Hunt mine targeting 2 million tons per annum, with potential to reach 2.5 million tons as drilling progresses.

• Fully unhedged gold producer, providing full exposure to spot gold prices.