Westgold Resources (ASX:WGX) reported what management called a “record half” in its first-half FY2026 results presentation, citing higher production, strong realized gold prices and the benefits of operating as an unhedged producer.
Record earnings and cash generation
Chief Financial Officer Tommy Heng said the company’s first-half outcomes reflected “years of disciplined effort,” including a strategy of remaining unhedged, investing in infrastructure, drilling and development, and upgrading equipment. He added that the company has been focused on improving operational consistency, growing production and managing cost pressures while benefiting from a more favorable gold price environment.
On a statutory basis, Westgold posted a profit of AUD 191 million, compared with a statutory loss of AUD 28 million a year earlier. Heng said the key reconciliation item was an accounting loss tied to the Mt Henry-Selene project being classified as “assets held for sale,” creating a preliminary AUD 178 million loss that he emphasized was “100% non-cash.” He said the accounting treatment also drove a positive adjustment to income tax expense of AUD 53 million.
Production mix and costs
Heng linked the record financial result with record production. He said production from Westgold’s mined ore totaled 170,000 ounces for the half at an all-in sustaining cost (AISC) of AUD 2,871 per ounce, generating AUD 570 million in net cash flow.
In addition, Westgold began processing ore purchased from New Murchison under an ore purchase agreement in September 2025. Over the half, the company produced 25,000 ounces from this purchased ore at an AISC of AUD 5,644 per ounce. Heng described these as “comparatively low-margin ounces,” but said the strategy still generated an additional AUD 15 million of net cash flow.
Heng also said the purchased ore did not displace Westgold’s own mined ore. Instead, he said blending soft oxide material with the company’s underground ore helped increase throughput at the Meekatharra mill and lower unit processing costs.
Combined group production for the half was 195,000 ounces at an AISC of AUD 3,225 per ounce, generating AUD 532 million of net cash flows from operations, Heng said.
Balance sheet, capital allocation and shareholder returns
Heng said Westgold delivered AUD 550 million of underlying “treasury build” for the half, lifting the closing treasury balance to AUD 654 million compared with AUD 152 million in the prior corresponding period. He added that the period-end cash balance was AUD 521 million.
He outlined several cash uses during the half, including growth and exploration spending of AUD 129 million, AUD 76 million in stamp duty related to the Karora transaction, and AUD 50 million of debt repayment, leaving the company “debt-free.” Heng also cited AUD 29 million paid for dividends and share buybacks, AUD 2 million related to a New Murchison capital raise, and AUD 26 million of cash inflows from the sale of the Lakewood Mill and a deposit from Alicanto tied to Mt Henry-Selene. After growth and one-off payments, he said treasury still increased by AUD 290 million during the half.
On shareholder returns, Heng said Westgold declared a AUD 0.03 per share final dividend for FY2025 but did not declare an interim dividend for first-half FY2026. He said the company upgraded its dividend policy for FY2026 and launched a 5% on-market share buyback program, describing it as a signal of confidence in the shares and a disciplined approach to capital management. Westgold paid AUD 28 million for the FY2025 dividend during the half and began the buyback, he said.
In the Q&A, Heng explained that the company wanted to pay a fully franked dividend, and said franking credits would “only materialize circa in the second half” due to the timing of tax filings.
Guidance and three-year outlook
Management said it maintained FY2026 production and cost guidance. Heng noted the company was keeping a conservative assumption for third-party ore purchases because it does not control mining from those sources. He said the company expected production “around” the guidance midpoint, with AISC between AUD 2,600 and AUD 2,900 excluding purchased ore.
Heng also reiterated a three-year outlook to grow production from 326,000 ounces in FY2025 to 470,000 ounces by FY2028, with AISC stepping down toward approximately AUD 2,500 per ounce. He described the plan as based on organic growth from existing operations and centered on mining and processing higher-grade ore while optimizing mills.
He cited operational milestones including:
- Beta Hunt infrastructure upgrades improving development rates to support a ramp-up toward 2 million tonnes per annum.
- Great Fingall firing its “first reef stope,” which he described as a milestone in the Cue Hub’s higher-grade transition.
- Starlight delivering high-grade stopes to improve feed quality through Fortnum.
Portfolio actions and upcoming catalysts
Managing Director and CEO Wayne Bramwell said Westgold made progress on “portfolio simplification” by bringing forward value from non-core and non-producing assets. He said that after the end of the reporting period, the company completed the sale of the Mt Henry-Selene project to Alicanto Minerals for total consideration of AUD 110 million, comprising AUD 15 million in cash, AUD 65 million in Alicanto shares and up to AUD 30 million in deferred consideration tied to performance criteria.
Bramwell also said Westgold was progressing planned divestments of Peak Hill and Chalice, which he described as outside the company’s three-year plan. He said the company is demerging its non-core Reedy and Comet assets in the Murchison into a new company, Valiant Gold, with a prospectus describing a AUD 65 million to AUD 75 million IPO and a AUD 20 million priority offer for eligible Westgold shareholders. He said Westgold expects to retain a 44% to 48% cornerstone equity position after the raise and to enter an ore purchase agreement with Valiant to provide a “fast-track pathway to cash flow.”
In the Q&A, Bramwell said drilling at Fletcher was continuing and that he expected a resource uplift “this year,” along with a “small reserve conversion,” supported by infill and extensional drilling. He also said the New Murchison ore purchase agreement was factored into FY2026 guidance, while other agreements, including with Valiant, were not included in 2027 or 2028 assumptions. On milling, Bramwell said Higginsville’s nameplate throughput is 1.6 million tonnes per annum but noted the site has run at 1.7 to 1.75 million tonnes per annum on days with higher blends of softer material, and he expected similar performance with Forrestania ore. He added that a Higginsville mill expansion proposal was with the board.
Bramwell said Westgold’s focus remains on safety, delivering full-year guidance and executing the three-year outlook, which he described as “the minimum bar” for the business as it continues to lift performance.
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.
