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Westgold Resources (ASX:WGX) has traded up as much as 2.4% today – a 6c gain on its mid-$2.50s share price – after the gold explorer nearly doubled its half-year revenues following soaring gold prices in the last twelve months.
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Through works at Murchison and Southern Goldfields gold mines in the most recent quarter to December, Westgold produced 80,886oz; a lift on the quarter before.
This bump-up was helped somewhat by Q2 being Westgold’s first full quarter of Southern Goldfields stewardship. That region specifically chipped in as much as 34,435 ounces.
Also adding to the docket was Westgold’s Karora Resources acquisition; that deal was wrapped up several months into the period reported. Karora’s merger made Westgold “one of Australia’s top five gold miners,” the company explained.
The heavier dig hauls then combined well with one of the key factors Westgold pointed out in its half-year report: The rising gold price. As recently as today, the safe haven metal has continued to reset its high watermarks, all of which led to the Western Australian gold explorer raking in $345 million in revenue.
In the coffers, Westgold still carries $152M in cash, bullion, and liquid investments.
And – good news for investors, because the $1.4B company saw this period as a preamble.
“This half-year was a period of consolidation and strategic investment,” Westgold managing director and CEO Wayne Brambell said after the release today.
“[The company now has] a focus on critical mine infrastructure and resource drilling, paving the way for long-term success.” He then heralded future plans, saying, “The next half is where this capital begins to generate a return.”
That, Mr Brambell explained, will include more growth in production across its Murchison and Southern Goldfields spearheads as well as increased cash generation.
All this comes as good news for the explorer considering its turbulent recent months.
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Of the biggest note was the company’s lower production forecasts in early February, mainly due to “engineering ramp-up issues” at the Beta Hunt and Bluebird-South Junction underground mines in the Archaean belt.
Earlier, the WA explorer had faced issues with its Karora takeover when rival Ramelius Resources (ASX:RMS) called the move “hypothetical and misleading.”
It’s not clear skies for Westgold just yet either, strong half-year report or no, with the cost of sales rising dramatically as 2025 gets underway properly.
For now, though, the company is spruiking “long-term sustainability and profitability.”
Westgold traded 2.4% higher through Friday to sell at $2.53 a share.
For anyone who wants to jot it down too, gold bullion is at US$2,935 today.
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