Westgold Resources (WGX) Q1 2025 earnings summary

Executive summary

• Completed AUD 1.4 billion ($1.4B) merger with Karora Resources, doubling business scale, joining S&P/ASX 200, and listing on TSX, creating a +400kozpa gold producer.

• Achieved record Q1 FY25 gold production of 77,369oz at a record gold price of AUD 3,723/oz, with only two months of Southern Goldfields contribution.

• Maintained strong balance sheet and liquidity, with no debt drawn, fully unhedged, and closing cash, bullion, and liquid investments at AUD 103M post-merger.

• Workforce expanded to 2,100, integrating 600 new team members and advancing diversity and inclusion initiatives.

Financial highlights

• Q1 FY25 gold production: 77,369oz; normalized ~90koz for full quarter of Southern Goldfields.

• Achieved gold price: AUD 3,723/oz; Group AISC: AUD 2,422/oz (Q4 FY24: AUD 2,041/oz).

• Mine operating cashflow: AUD 101M; net mine cashflow: AUD 29M after AUD 58M capital investments.

• Closing cash, bullion, and liquid investments: AUD 103M post-merger; undrawn revolving facility of AUD 100M, increased to AUD 300M post-quarter.

• Merger-related one-off costs totaled AUD 153M, including cash consideration, change of control, and advisory fees.

Outlook and guidance

• FY25 production guidance reaffirmed at 400,000–420,000oz at AISC of AUD 2,000–2,300/oz, with ramp-up weighted to H2 FY25.

• AISC expected to improve quarter-on-quarter as integration and growth projects ramp up.

• Major expansions at Bluebird South Junction, Beta Hunt, and Great Fingall to drive H2 FY25 growth.

• Increased investment in growth capital (AUD 235M) and exploration (AUD 58M) for FY25.

• Production upside anticipated from third-party ore, Polar Star Lode, and Fletcher zone in H2.