Westgold output falls to 98,393 ounces as costs rise and production from its own ore grows
Key Facts
Westgold Resources reported a decline in total gold production to 98,393 ounces in the first quarter of fiscal 2027, from 98,854 ounces in the previous quarter, alongside higher production costs. The company said in its quarterly results that production excluding ore purchase agreements rose 5% from the previous quarter in the period ended September 30, 2026. All-in sustaining costs per ounce, excluding those agreements, rose to A$2,912 from A$2,802. Growth in production from the company's own ore was thus accompanied by a higher cost per ounce, while total gold output, which includes purchased ore, declined. Management maintained its assessment that the company was on track to meet production guidance for the current fiscal year, despite the decline in quarterly total output.
On mining operations, Westgold attributed higher ore volumes mined to improved operating rates at Great Fingall and Starlight, alongside the Murchison open pits and Beta Hunt. The improvement coincided with a 51% increase in ore stockpiles during the quarter to 696 thousand tonnes at the end of the reporting period. The company said the larger stockpile supported continued operations during maintenance work and rainfall in the first quarter of the new fiscal year. The increase in ore volumes mined covered underground and open-pit operations, according to the sites the company identified in explaining its operating performance. The buildup of ore available for processing accompanied growth in gold production from the company's own ore, while total output, including ore purchase agreements, did not increase.
On the financial side, mine operations generated operating cash flow of A$292 million in the first quarter of fiscal 2027, according to the quarterly results. Cash, bullion and liquid investments reached A$1,040 million at the end of the period, a balance the company included in its treasury holdings. Westgold also reported underlying treasury growth of A$251 million during the quarter, according to the measure it uses to present this aspect of its financial performance. That growth is calculated before share buybacks, growth and exploration expenditure, and exceptional cash flows. Mine cash generation came in the same period as the increase in costs per ounce excluding ore purchase agreements, while the company continued spending on its operations and projects.
Non-sustaining capital expenditure totalled A$111 million during the quarter, according to Westgold's operating and financial update for the period ended September. The company also spent A$24 million on exploration and resource definition as part of expenditure associated with mining and gold production. In its disclosure on Beta Hunt, the company outlined infrastructure investments aimed at addressing operational bottlenecks at the site. The work included ventilation and dewatering, areas Westgold identified within the mine's investment programme. It also extended to water supply and power distribution, as part of upgrades the company linked to enabling Beta Hunt to reach the mining rate reported in September.
The quarterly results follow fiscal 2026, when Westgold recorded revenue of A$2,441 million, compared with A$1,360 million in fiscal 2025. The company said in its annual results that this represented a 79% increase in revenue from the previous year. Annual underlying net profit rose to A$480 million from A$87 million in the comparative period. Profit growth was 452%, according to the annual disclosure, which presented financial results preceding the start of the current fiscal year. Westgold confirmed in the same disclosure that it was "debt-free and fully unhedged for gold", alongside announcing the annual increases in revenue and underlying net profit.
At Beta Hunt, the mining rate reached a record annualised level of 2 million tonnes in September 2026, according to the company's disclosure on infrastructure investments at the site. That rate reflects mining performance in that month, which closed the first quarter of fiscal 2027. For the following period, Westgold said it aimed to maintain a steady mining rate at that level from the second quarter of the same fiscal year. At group level, the company maintained annual gold production guidance of 385–425 thousand ounces for fiscal 2027. Management said it remained on track to achieve that range, while its stated operating objective for Beta Hunt was to sustain the rate the mine had reached as it moved into the second quarter.