Up 88% since July, ASX 200 gold stock details 'high confidence' 3-year growth plan

The ASX 200 gold miner is under pressure today following another retrace in the record-setting gold price.

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Key points

  • The company has experienced significant share price gains this year, despite a recent dip spurred by a retracement in the gold price.
  • Westgold reported a 4.6% decline in gold production for September, with an all-in sustaining cost of $2,861 per ounce, while achieving record sales prices and a 24% increase in Mineral Resources.
  • Westgold detailed a 3-year outlook, aiming for increased production to 470,000 ounces by FY28, reduced costs, and highlighted their "high confidence organic growth plan".

S&P/ASX 200 Index (ASX: XJO) gold stock Westgold Resources Ltd (ASX: WGX) has been on a tear this year, with the share price really taking off at the end of July.

Like all gold producers, Westgold shares have been catching heady tailwinds amid the record-breaking gold price run.

And like most all ASX 200 gold stocks, Westgold shares have come under pressure today despite releasing a solid quarterly update, following another overnight retrace in the gold price.

Gold is currently trading for US$3,992.89 per ounce. This sees gold down 9.5% since last Tuesday. And with gold slipping overnight, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 5.6% and Westgold shares are down 7.7% today, trading for $4.80 apiece.

Still, investors who bought the gold miner on 31 July will be sitting on gains of 87.5% today.

Now, here's what the company reported for the three months to 30 September.

ASX 200 gold stock aiming for growth

The Westgold share price could be under some additional selling pressure with gold production slipping 4.6% from the June quarter to 83,937 ounces. The ASX 200 gold stock said this was due to scheduled process plant shutdowns across the group.

Westgold produced the gold for an all-in sustaining cost (AISC) of $2,861 per ounce. That's up 6.4% quarter on quarter, but in line with the miner's FY 2026 guidance.

Gold sales for the three months came in at 94,913 ounces. And Westgold achieved a record high average price of $5,296 per ounce, generating revenue of $503 million.

The ASX 200 gold stock had cash, bullion, and liquid investments of $472 million at 30 September, up $108 million from 30 June.

Westgold also detailed its "high confidence organic growth plan", which also sees costs fall.

The company provided FY 2026 guidance of 345-385koz at AISC of $2,600-$2,900/oz. And the FY 2027 outlook is for ~420koz at AISC of $2,456/oz, with the FY 2028 outlook for ~470koz at AISC of ~$2,499/oz.

What did management say?

Commenting on the ASX 200 gold stock's results over the quarter, Westgold CEO Wayne Bramwell said

The 2025 Reserves and Resources statement released during the quarter demonstrated the success of continued investment in growth projects and exploration, with our Mineral Resource Estimate increasing by 24% to 16.3Moz and Ore Reserves up 5% to 3.5Moz. This growth now underpins a 10-year Ore Reserve life and highlights the latent mineral potential that drilling can unlock from within our portfolio.

Looking ahead, Bramwell added:

In Q1 the Company released its first three-year outlook (3YO) to the market. The 3YO is a high confidence plan building from a FY26 production guidance mid-point of 365,000 ounces, growing organically to approximately 470,000 ounces of production by FY28.

Importantly, the 3YO is conservative by design, sees our cost profile fall and excludes multiple tangible opportunities currently being advanced to bring value forward in the outlook.

Westgold remains 100% unhedged.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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