Westgold shares plunge on hefty guidance changes
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More news: Westgold Resources shares tanked in early trading on the ASX after the gold miner lowered its production guidance and increased its costs forecast for the 2025 financial year.
Westgold shares were down 13.6% at $2.23 by 11am AEDT, making it the worst performing ASX 200 company.
The stock has lost more than 20% over the last month, with its second-quarter result failing to impress investors in January.
Westgold cuts guidance on lower output at Beta Hunt, Bluebird mines
The news: Gold miner Westgold Resources has slashed its full-year production guidance and hiked its costs forecast, after slower-than-expected ramp ups at its Beta Hunt and Bluebird-South Junction mines in Western Australia.
The numbers: Westgold, which reiterated its guidance last month, now expects full-year production of between 330,000 and 350,000 ounces, down from a range of 400,000 to 420,000 ounces.
All-in sustaining costs are forecast to be between $2,400 and $2,600, up from the previous guidance of $2,000 to $2,300.
Growth capital guidance for the year has also reduced from $235 million to $200 million.
The context: Westgold said that its FY25 guidance was predicated on the simultaneous ramp up of its Beta Hunt and Bluebird-South Junction mines. However, both ramp ups were slower than planned during the first half of the year, the miner said, predominantly due to engineering issues.
What they said: "Optimisation of our expanded portfolio began in earnest in Q2 FY25 and disappointingly, engineering ramp up issues constrained outputs from the Beta Hunt and Bluebird-South Junction underground mines," said Westgold managing director and CEO Wayne Bramwell.
"Both mines are now regaining momentum as Westgold rectifies areas of historic underinvestment across the Southern Goldfields and accelerates the expansion of our key Meekatharra mine."
The source: ASX announcement
