Westgold Resources shares fall as it plans to increase spending
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More news: Shares in Westgold Resources lowered on the ASX after it outlined plans for higher production in FY25. The gold miner also announced that it would double its exploration spend for the current fiscal year.
Westgold shares were down 3.7% to $2.78, having added more than 50% over the last 12 months.
Westgold production lifts on mine ramp up
The news: Westgold Resources has outlined significantly higher production in the current fiscal as it lifts production at a number of its projects in Western Australia.
The numbers: The gold miner expects FY25 production to be in the range of 400,000 to 420,000 ounces, nearly double its 227,000 ounces output in FY24.
All-in sustaining costs are likely to be $2,000 to $2,300 per ounce, from $2,100 to $2,300 an ounce in FY24. The company will double exploration spending to $50 million in FY25, with overall growth capital rising to $235 million from $157 million in the previous year.
The context: Westgold said its higher production will be backended by a ramp up in its South Junction, Big Bell Deeps and Great Fingall projects in the second half of the year, as well as the Beta Hunt mine reaching a 2 million tonnes per annum run rate.
The company said its total mineral resource estimate rose 60% from a year ago to 179 million tonnes as on 30 June.
Earlier this year, Westgold acquired Canada’s Karora Resources for $1.2 billion, with the combined entity also listed on the Toronto stock exchange.
What they said: Westgold chief executive Wayne Bramwell said: “FY25 sees a substantial step change in scale of operation for Westgold".
The sources: ASX announcement, ASX announcement
