The Westgold Resources Ltd (ASX: WGX) share price is in focus after the company reported record gold production of 111,418 ounces for the December 2025 quarter and a doubling of underlying cash build to $365 million compared to the previous quarter.
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What did Westgold Resources report?
- Record gold production of 111,418oz (up 33% quarter on quarter)
- All-in sustaining cost (AISC) of $3,500/oz; AISC excluding ore purchases: $2,945/oz
- Gold sales of 115,200oz at an average price of $6,356/oz, generating $732 million revenue
- Underlying quarterly cash build of $365 million before one-off outflows
- Closing cash, bullion, and investments of $654 million as at 31 December 2025
- Westgold remains debt free and fully unhedged
What else do investors need to know?
Westgold's quarterly results reflect a focus on maximising cash generation by processing higher volumes of third-party high-grade oxide ore. This decision supported record production and treasury growth but also increased overall costs for the period. Notably, gold price-linked royalties have had a greater impact across the industry, adding $12 million to Westgold's year-to-date costs.
During the quarter, Westgold advanced its strategy of portfolio optimisation, completing the divestment of non-core assets and progressing the planned spin-off of certain Murchison gold projects into the new ASX-listed Valiant Gold Limited. The company also maintained its FY26 production guidance of 345,000–385,000 ounces at an AISC of $2,600–$2,900/oz, excluding gold price-linked ore purchase costs.
What did Westgold Resources management say?
Managing Director & CEO Wayne Bramwell said:
In Q2, FY26 Westgold delivered record quarterly cash build of $365M and production of 111,418 ounces. Continued operational improvement from our assets continued and we had the opportunity to super charge our cash build by purchasing a higher volume of third-party ore. This third party ore delivered 22,317 ounces and monetising it further strengthened our balance sheet. These factors culminated in the Group closing the quarter with a treasury of $654M.
What's next for Westgold Resources?
Westgold says its 3-Year Outlook aims to boost annual gold production to around 470,000 ounces by FY28, while targeting a reduction in AISC to about $2,500/oz from FY27. The company is progressing its key growth projects at Bluebird–South Junction, Great Fingall, and Beta Hunt, which are expected to replace lower-grade stockpiles with higher-grade ore across its main processing hubs.
Westgold plans continued focus on operational improvements and value creation through the demerger of Valiant Gold and ongoing optimisation of its asset base. Cost guidance is maintained, with a conservative view on third-party ore production for the remainder of the year.
Westgold Resources share price snapshot
Over the past 12 months, Westgold Resources shares have risen 180%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
