Westgold unveils higher second dividend of FY24 on strong gold prices ahead of merger

Westgold Resources (ASX:WGX) has announced on Thursday it will pay shareholders a second 100% fully franked dividend for FY24.

The stock will commence trading ex-dividend on 11 July with FY24 to see a total of $10.6M in dividends paid out to holders at 2.25cps final dividend.

The second will be higher than the first at 1.25cps for a total $5.9M distribution versus 1cps for a total $4.7M distribution back in April of this year.

The company described the dividend payout as a result of “Westgold’s financial turnaround.” The ex-dividend date will fall before Westgold’s looming merger with Karora on the last day of July. Through that merger, Westgold hopes to create a combined company capable of producing 400Kozpa onshore.

In the background, record gold prices through FY2024 were instrumental in pushing Westgold to this position.

“Delivering safe and profitable ounces continues to fund our growth plans,” CEO Wayne Bramwell said.

“ost merger, the integration of the Karora assets and workforce will see Westgold 3.0 become a larger, unhedged, well-funded and globally investible Australian gold producer.”

Westgold has a market cap of $1.52B; 1Y returns are up 51.4%.

WGX last traded at $2.43.