UPDATE: Westgold Resources Ltd (ASX: WGX) is experiencing a significant surge today, with shares climbing 6.3% to $4.76 during morning trading. This marks an impressive 88.1% increase since market close on August 1, 2023, despite the broader S&P/ASX 200 Index falling 0.3%.
This surge follows the release of Westgold’s ambitious three-year production outlook, which aims to enhance production while reducing costs. The Western Australian gold miner’s stock has captivated investor interest, reflecting a growing confidence in its operational strategy.
According to the company, the “high confidence plan” outlines a roadmap for increasing gold production to 470,000 ounces per year by FY 2028, up from 326,000 ounces in FY 2025. This ambitious target is backed by Westgold’s comprehensive resource portfolio, which includes 56 million tonnes at 1.93 grams per tonne for a total of 3.5 million ounces of gold.
Westgold CEO Wayne Bramwell emphasized the company’s focus on organic growth, stating, “Westgold’s three-year outlook articulates a high confidence, executable plan that sees the business step up from 326koz of production in FY25 to more than 470koz by FY28.” Bramwell highlighted that this growth is not only ambitious but also fully funded through existing cash flows and balance sheet strength.
The company’s three-year production outlook excludes several organic growth opportunities, particularly the emerging Fletcher Zone at the Beta Hunt gold mine, where resource definition drilling is currently underway. This conservative yet promising approach is designed to maximize performance and drive costs down, suggesting a sustainable growth trajectory for the future.
Investors are also encouraged by the prospect of falling all-in sustaining costs (AISC), projecting a more profitable operational model. With the current momentum, Westgold’s share price reflects a robust market response to its strategic plans, coupled with favorable conditions in the gold market.
As Westgold continues to gain traction, the company trades with an unfranked 0.7% dividend yield, adding to its appeal among investors seeking growth in the mining sector.
Looking ahead, all eyes will be on Westgold as it implements its plans over the next three years. The mining sector is poised for potential volatility, and Westgold’s capacity to deliver on these ambitious targets could significantly impact its share price and investor confidence.
This news is developing, and investors should stay informed about Westgold’s progress as further updates are anticipated.
