Westgold Resources Ltd (ASX: WGX) shares are out of favour with investors on Wednesday.
In morning trade, the ASX 100 gold stock is down 1.5% to $5.99.
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Why is this ASX 100 gold stock falling?
Investors have been selling the gold miner's shares following the release of its third-quarter update.
For the three months ended 31 March, Westgold reported production of 93,145 ounces of gold. This was down 16.4% quarter-on-quarter from 111,418 ounces. This means that production now totals 288,500 ounces financial year to date.
Management advised that its weaker production in the third quarter was driven predominantly by lower head grades from the Starlight mine and the New Murchison ore purchase agreement (OPA) in the Murchison and from Beta Hunt in the Southern Goldfields.
Nevertheless, the ASX 100 gold stock has reaffirmed its production guidance for the full year. It continues to expect production of 345,000 ounces to 385,000 ounces for FY 2026.
Sales and costs
Westgold reported gold sales of 69,900 ounces at an average price of A$7,080 per ounce. This generated revenue of A$495 million.
Excluding gold production from ore purchased under the OPA, the ASX 100 gold stock's all-in sustaining cost (AISC) was A$2,931 per ounce in the first quarter. This was in-line with the prior quarter.
The company's AISC inclusive of the OPA was A$3,338 per ounce, down from A$3,466 per ounce. Management advised that this was driven by lower OPA costs quarter-on-quarter.
This underpinned an underlying cash build of A$285 million, before investments in growth (-A$81 million), share buybacks (-A$3 million), proceeds from asset sales (+A$14 million), and exploration (-A$13 million).
At the end of the quarter, the ASX 100 gold stock had a cash, bullion, and liquid investments balance of A$856 million. It remains 100% debt free and unhedged.
Management commentary
Westgold's managing director and CEO, Wayne Bramwell, was pleased with the quarter but flagged that costs are now expected to be at the high-end of its guidance range in FY 2026. He said:
Westgold delivered another strong quarter in Q3 FY26, with cash generation lifting treasury to $856M. Underlying quarterly cash build of $285M underpins a business that is continually building strength to internally fund growth and return capital to shareholders.
FY26 production guidance has been maintained. While full year costs are expected to finish toward the top end of guidance, this reflects both broader industry inflationary pressures and deliberate operational decisions taken to maximise cashflow.
