Westgold Resources (WGX) H2 2024 earnings summary

Executive summary

• Achieved a statutory profit of $95M in FY24, marking an 852% year-over-year increase and a return to meaningful profitability, supported by operational improvements and higher gold prices.

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

• Declared total dividends of 2.25cps for FY24, reflecting a 12% free cash flow payout ratio and strong commitment to shareholder returns.

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

• Free cash flow increased 760% to $86M after significant growth capex and exploration investments.

Financial highlights

• Revenue rose 9% year-over-year to $716M, driven by a 23% increase in achieved gold price and reduced hedging, despite an 11% drop in gold sales volume.

• EBITDA climbed 62% to $271M, with NPAT reaching $95M, and free cash flow up 760% to $86M.

• Operating cash flow for the year was $352M, with cash, bullion, and liquid assets growing by $71M to $263M.

• Achieved the top end of adjusted FY24 production guidance (227,000–227,691 oz) and the lower end of cost guidance (AISC just over $2,000/oz or $2,178/oz).

• Remained debt-free with an undrawn $100M corporate facility and net assets at $692M.

Outlook and guidance

• FY25 guidance to be released after updated reserve and resource statement in September; only FY25 guidance will be provided at this stage.

• Organic growth pipeline includes expanded Bluebird South Junction, first ore from Great Fingall, and scaling up Beta Hunt to 2–2.5Mtpa.

• Plans to intensify drilling at Higginsville and unlock value in H2 FY25.

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

• Positioned among Australia’s top 5 gold producers with robust growth prospects post-merger.