Westgold swings to half-year loss on acquisitions, but revenue soars
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The news: Westgold Resources has swung to a half-year loss on the back of one-off acquisition costs, but strong gold prices also resulted in soaring revenue.
The numbers: The ASX and TSX-listed gold miner reported a $27.6 million net loss for the six months to December, down from a profit of $44 million a year ago. Revenue jumped 72% to $624 million, as production and realised prices jumped by nearly a third.
Shares in the company are up 2.4% to $2.53 in early trading on the ASX.
The context: Westgold said its operating margin remained competitive at 22% but its bottom line was impacted by one-off stamp duty and transaction costs related to its August 2024 takeover of Canada’s Karora Resources, as well as increased employee expenses. The miner slashed its full-year production guidance and hiked its costs forecast earlier this month, after slower-than-expected ramp-ups at its Beta Hunt and Bluebird-South Junction mines in Western Australia.
“This half year was a period of consolidation and strategic investment, with a focus on critical mine infrastructure and resource drilling. The next half is where this capital begins to generate a return and we start to see production growth and increased cash generation,” CEO Wayne Bramwell said.
The source: ASX
