Westgold Resources (WGX) Q2 2025 earnings summary

Executive summary

• Completed $1.4B merger with Karora Resources on August 1, doubling business scale and expanding asset base, with first full quarter of stewardship over Southern Goldfields assets.

• Achieved record gold production of 80,886oz in Q2 FY25, though 10,000oz below target due to integration challenges, at a record achieved gold price of $4,066/oz.

• Net mine cash flow reached $45M, reinvested into mine expansions, infrastructure, and productivity-enhancing projects.

• Realized $28M in pre-tax synergies from merger, with further opportunities identified.

• Safety performance improved, with TRIFR down to 6.85/million hours and no lost-time injuries.

Financial highlights

• Q2 FY25 gold production: 80,886oz, up from 77,369oz in Q1 FY25; gold sales of 86,879oz at $4,066/oz, generating $353M in revenue.

• All-in sustaining cost (AISC) for Q2 FY25: $2,703/oz, higher quarter-on-quarter due to integration and lower production.

• Group mine operating cashflow reached $110M, with net mine cashflow of $45M after $56M in capital expenditure.

• Closed the quarter with $152M in cash, bullion, and listed investments; total liquidity at $402M.

• Paid $6M in dividends and incurred $13M in Karora advisory costs.

Outlook and guidance

• FY25 production guidance: 400,000–420,000oz; outputs expected to increase in H2 FY25 as integration and infrastructure upgrades progress.

• FY25 AISC guidance: $2,000–$2,300/oz; cost reduction program underway post-merger.

• Bluebird–South Junction and Beta Hunt expansions expected to drive higher output and lower AISC in H2 FY25, targeting >2Mtpa and 1.2Mtpa, respectively.

• Fortnum expansion scoping study outlines a 10-year mine plan, with FID targeted within 12 months.

• Ore purchase agreement with New Murchison Gold to increase Murchison production from mid-2025.