Westgold Resources (WGX) Q4 2024 earnings summary

Executive summary

• Achieved six consecutive quarters of cash and bullion build, closing Q4 FY24 with AUD 263 million, up AUD 16 million from Q3, and totaling over AUD 71 million for FY24.

• Declared a fully franked final dividend of AUD 0.0125 per share for FY24, totaling AUD 0.0225 per share or AUD 10.6 million for the year.

• Merger with Karora Resources to create a +400,000 oz Australian gold producer is set to complete on 1 August 2024, positioning the company as a major unhedged gold producer.

• Maintained a clear strategy focused on safe, profitable ounces and improved safety performance, with TRIFR down 18% year-over-year to 6.85 per million hours worked.

Financial highlights

• FY24 gold production reached 227,237 oz at an AISC of AUD 2,164/oz, meeting the top end of guidance and the lower end of cost guidance.

• Q4 FY24 gold production was 52,795 oz at an AISC of AUD 2,041/oz, a 17% reduction from the previous quarter.

• Q4 revenue was AUD 205 million from 58,575 oz gold sold at an achieved price of AUD 3,493/oz.

• Operating cash flows generated a closing cash, bullion, and liquids position of AUD 263 million, with the company remaining debt-free and an undrawn AUD 100 million facility.

• Growth capital expenditure for FY24 was AUD 157 million, exceeding guidance due to accelerated development at key mines.

Outlook and guidance

• FY24 actuals met or exceeded production and cost guidance, with business momentum expected to continue in FY25.

• The merger with Karora is expected to significantly increase production scale and free cash generation, targeting over 400,000 oz of gold annually.

• Ongoing exploration and development to support organic growth and resource expansion, with a focus on cost-effective resource growth.