S&P/ASX 300 Index (ASX: XKO) gold stock Westgold Resources Ltd (ASX: WGX) is charging higher today.
Westgold shares closed on Friday trading for $2.88. In morning trade on Monday, shares are changing hands for $2.96 apiece, up 2.8%.
For some context, the ASX 300 is up 0.4% at this same time.
This outperformance comes after Westgold boosted its FY 2025 production guidance while forecasting lower all-in sustaining costs (AISC).
Here's what we know.
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ASX 300 gold stock soars on production growth
Investors are bidding up the ASX 300 gold stock after the miner increased its FY 2025 production guidance to a range of 400,000 to 420,000 ounces of gold.
In FY 2024, Westgold produced 227,237 ounces of gold, meeting its guidance for the year of 220,000 to 235,000 ounces.
Even if Westgold comes in at the lower end of its revised FY 2025 guidance, this would represent a 75% year on year increase in gold production.
The miner expects stronger production in the second half of the year, with its South Junction, Big Bell Deeps, and Great Fingall projects expected to commence production ramp-up. Management expects Beta Hunt to reach a 2Mtpa run rate.
Also likely boosting the ASX 300 gold stock today is its forecast of lower costs.
Westgold reduced its AISC guidance for FY 2025 to the range of AU$2,000 to AU$2,300 per ounce. FY 2024 AISC guidance was in the range of AU$2,100 to AU$2,300 per ounce, with the actual costs coming in at AU$2,178 per ounce over the financial year.
Costs are expected to be higher in the first half than the second half as its Murchison and Southern Goldfields assets begin to deliver increased outputs.
Westgold's growth capital guidance for FY 2025 is $235 million. The miner anticipates a peak investment year for growth capex as it aims to complete key growth projects, including Great Fingall, Big Bell, South Junction, and the Beta Hunt mine.
Westgold will also invest $50 million in exploration in FY 2025.
What did management say?
Commenting on the revised guidance lifting the ASX 300 gold stock today, CEO Wayne Bramwell said, "FY 2025 sees a substantial step change in scale of operation for Westgold."
Bramwell added:
Integrating and optimising the Southern Goldfields assets will be the focus in H1, FY25 with Beta Hunt beginning to deliver increased output in H2. Murchison production lifts in H2 also as Bluebird-South Junction's run rate hits 1.2Mtpa and our Great Fingall mine comes online in Q3/Q4.
Growth capital into our largest and highest-grade mines establishes a business capable of delivering significantly higher outputs in FY26. Exploration investment in FY25 extends the lives of those mines.
With today's intraday Westgold share price gains factored in, the ASX 300 gold stock is up 62% in a year.
