Westgold Resources (ASX:WGX) management used its December 2025 quarterly call to highlight what it described as another “record quarter,” pointing to higher gold output, a record achieved gold price, and a stronger balance sheet after repaying outstanding borrowings.
Record quarter: cash build, production, and realized price
Managing Director and CEO Wayne Bramwell said the company generated an underlying cash build of A$365 million in the second quarter, doubling the A$180 million reported in the first quarter. Westgold’s treasury—defined on the call as cash, bullion, and liquid investments—increased by A$182 million during the quarter after accounting for several one-off items and investments.
The company closed the quarter with A$654 million in cash, bullion, and liquid investments.
Operationally, Westgold produced 111,000 ounces of gold at an all-in sustaining cost (AISC) of A$3,500 per ounce, while realizing a record achieved gold price of A$6,356 per ounce. Bramwell said the achieved price was “just shy of A$3,000 above our all-in sustaining costs.” He added that excluding the gold price-linked cost associated with the company’s ore purchase agreement (OPA), AISC for the quarter would have been A$2,945 per ounce.
Bramwell said the company elected to maximize volumes of purchased “soft high-grade ore” during the period, calling it a strategic decision to increase cash flow.
Three-year outlook and FY26 guidance reiterated
Bramwell reiterated Westgold’s three-year outlook to lift production from 326,000 ounces in FY25 to 470,000 ounces from FY28 at an AISC of around A$2,500 per ounce. He described the baseline plan as “high confidence” and “executable,” built around mine grade improvements and mill optimization to better match processing capacity with higher-grade ore sources.
He also confirmed the company’s FY26 guidance, stating Westgold expects to produce around 365,000 ounces (the midpoint) with AISC of A$2,600 to A$2,900 per ounce excluding OPA ore. In Q&A, management emphasized a conservative approach to third-party ore purchases given that Westgold does not control mining of that material.
Operational performance: Murchison outperformance and Southern Goldfields preparation
Chief Operating Officer Aaron Rankin said performance improved during the quarter, aided by the addition of oxide ore sourced under the OPA. He said Bluebird underground continued to ramp up “to plan,” while Fortnum benefited from strong underground performance and higher-grade ore in the Galaxy area. Rankin noted costs were “slightly up” due to the gold price-linked OPA and ramp-up preparatory work in the Southern Goldfields, including higher development rates.
In the Murchison region, Rankin said all three hubs “outperformed our plan and improved quarter on quarter,” with Meekatharra the standout. He said the team adapted quickly to available oxide blend material, increasing plant throughput by more than 30% and lifting recovery to 95%. Fortnum, he said, delivered stronger mining production, improved grade, and processing performance, resulting in a more than 6,000-ounce lift quarter on quarter and tracking ahead of plan for the year. Cue also improved, and Rankin highlighted the milestone of firing the first Great Fingal reef stope.
Rankin said the strong results generated A$196 million in net mine cash flow for the Murchison region. He added that the company had “cracked the code” on managing ground conditions at Bluebird and was delivering to plan.
For the Southern Goldfields, Rankin said production was steady as expected, but development—described as a leading indicator—was increasing month on month. He said mining production was rising, infrastructure was in place, stockpiles were building, and the business was set up for further increases in the third quarter.
Financial update: unhedged position and shareholder returns
Chief Financial Officer Tommy Heng said higher sales volume and margins drove stronger cash generation. He noted bullion sales rose 21% quarter on quarter and the company ended the quarter with A$49 million in closing bullion inventory. With a realized gold price of A$6,356 per ounce, Heng calculated a margin of A$2,856 per ounce.
Heng said Westgold remains fully unhedged and management does not “envisage” changing that stance anytime soon. He attributed the quarter-on-quarter AISC increase primarily to higher development at Beta Hunt to support growth, along with the ore purchase strategy.
On cash flow, Heng reiterated the A$182 million increase in cash, bullion, and liquid investments to A$654 million. Westgold invested A$48 million in non-sustaining capital and A$6 million in exploration and resource definition during the quarter.
Heng also outlined shareholder return initiatives, including a A$0.03 per share final dividend for FY25 and an upgraded dividend policy for FY26. He said the company launched a 5% on-market share buyback and paid A$28 million in dividends during the quarter while commencing buyback activity.
Portfolio actions: divestments and Valiant Gold demerger
Bramwell said Westgold has begun an asset divestment process to focus on “high-margin scalable assets.” During the quarter the company announced the sale of the Mt Henry and Selene project to Alicanto Minerals Limited for total consideration of A$64.6 million:
- A$15 million in cash
- A$19.6 million in Alicanto scrip
- Up to A$30 million in deferred consideration
Bramwell noted Alicanto’s scrip was “now almost triple the transaction issue price,” and said Westgold would retain exposure through a strategic shareholding. He added that the company continues to progress planned divestments of Peak Hill and Chalice, describing them as outside Westgold’s longer-term plan.
He also discussed a proposed demerger of the non-core Reedys and Comet assets into a new ASX listing called Valiant Gold. Bramwell said Valiant is expected to raise circa A$65 million to A$75 million in an IPO, including a A$20 million priority offer for eligible Westgold shareholders. Following the raise, Westgold expects to retain a 44% to 48% cornerstone equity position. Bramwell said the company is seeking an ore purchase agreement with Valiant to provide a “fast-track pathway to cash flow,” likening it to the company’s recent arrangement with New Murchison.
In Q&A, management said there are no current plans to pursue a U.S. market uplisting. Rankin said stockpiles at the end of the half at Beta Hunt and Southern Goldfields were about 150,000 tonnes. On Great Fingal, Rankin said production would be “patchy” for the remainder of FY26 with more consistent output expected in FY27 as new work areas open up. He also said Starlight’s Q2 grades were unusually strong and not expected to remain at that level, though the company expects performance to be above historical averages.
Bramwell closed by emphasizing the company’s focus on “consistent operational delivery,” defining success as delivering “over 100,000 ounces safely per quarter,” while reiterating that Westgold is debt-free, unhedged, and focused on building cash to preserve flexibility for shareholder returns and reinvestment.
About Westgold Resources (ASX:WGX)
Westgold Resources Limited engages in the exploration, operation, development, mining, and treatment of gold assets primarily in Western Australia. The company’s assets include Bryah Operations, Murchison Operations, Meekatharra Gold Operations, and Cue Gold Operations that comprise various mining titles covering 1,300 square kilometers in the Murchison region. Westgold Resources Limited is based in Perth, Australia.
