Westgold shares slide despite Q2 production rise
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More news: Shares in Westgold Resources slumped in early trading on the ASX after the gold miner reported a rise in gold production for the December quarter.
Westgold shares were down 6.5% to $2.74 by 10:40am AEDT, making it the third worst performing stock across the ASX 200 index.
The company reported output of 158,225 ounces for the first half of the financial year, leaving it requiring a steep increase in production during the second half to meet FY25 guidance of between 400,000 and 420,000 ounces.
Westgold reports Q2 production uplift, guidance on track
The news: Westgold Resources reported an increase in gold production for the second quarter, boosted by its merger with Canadian explorer Karora Resources in August.
The numbers: Westgold recorded production of 80,886 ounces of gold in Q2, up from 77,369 in the previous quarter. Total production for the first half was 158,225 ounces, with output expected to increase in the second half.
Westgold said it is tracking full-year production guidance of 400,000 to 420,000 ounces, nearly double its FY24 output of 227,000 ounces.
The context: The gold miner said that ramp up at its Bluebird and Beta-Hunt underground mines in Western Australia remains underway. At Bluebird-South Junction, efforts have been focused on increasing grade and consistency of mine production, it said.
At Beta Hunt mine, infrastructure upgrades for increasing mine outputs are being implemented and due for completion at the end of Q3 FY25.
Perth-based Westgold, which listed on the Toronto Stock Exchange in August following its merger with Karora, also noted that development at its WA-based Great Fingall mine remains on track, with first ore expected in the fourth quarter.
What they said: "Q2 FY25 saw Westgold continue to optimise its expanded, post-merger business," said Westgold managing director and CEO Wayne Bramwell.
"Production increased whilst we continued to heavily invest in the long-term capacity of our mines in the Murchison and Southern Goldfields."
The source: ASX announcement
