The Westgold Resources Ltd (ASX: WGX) share price is in focus today after the miner announced it will expand its Cue processing hub from 1.4 million tonnes per annum (Mtpa) to 1.7Mtpa by FY28, aiming for a 21% boost in processing capacity and an expected gold production uplift of around 15,000 ounces per year.
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What did Westgold Resources report?
- Cue Hub Expansion Plan (CXP) to lift throughput from 1.4Mtpa to 1.7Mtpa by FY28
- Indicative capital cost of $22 million with a payback period of approximately 10 months
- Scoping study outlines total life-of-mine gold production of 1.1–1.3 million ounces at an all-in sustaining cost (AISC) of $2,916–$3,564/oz
- Estimated NPV uplift of ~$400 million at a gold price of $5,500/oz
- Project underpinned by growing underground production at Big Bell and Great Fingall
What else do investors need to know?
Westgold's expansion is described as "capital-light", focusing on boosting existing infrastructure rather than building a new plant. The plan includes upgrades to the milling circuit—like installing a higher-powered motor and improved pumping systems—to support increased throughput with minimal downtime.
Brownfields resource drilling and open pit optimisation are underway around Cue, with additional ore sources—including Big Bell South and Cuddingwarra—being assessed to further increase optionality. The company is also exploring opportunities for third-party ore supply via existing purchase agreements.
Westgold holds a strong liquidity position, with $939 million in cash, bullion, and liquid investments as of 30 June 2026, and an undrawn $600 million loan facility.
What did Westgold Resources management say?
Managing Director and CEO Wayne Bramwell said:
Bigger mines need bigger mills. Westgold's underground mine outputs are growing across all the Murchison operations and building ore stockpiles from FY27 onwards. In addition, open pit mining is now underway at Cue and Meekatharra, with this organic growth underpinning the incremental expansion of our Cue business. This simple upgrade and modest capital investment at the Cue hub reflects a deliberate shift towards processing hub optimisation and expansion, with lower operating costs and higher cashflow the objective.
What's next for Westgold Resources?
With the Cue Hub Expansion Plan now in motion, Westgold will advance detailed engineering and procurement to ensure timely installation of key components, such as the new mill motor expected for delivery in late FY27. Further drilling at Big Bell South and Cuddingwarra is ongoing, seeking to define additional ore resources to feed into the expanded hub.
The overall strategy aims to convert production growth into stronger free cash flow by leveraging and optimising existing assets. If drilling succeeds and new resources are proven up, the company will have increased flexibility in ore scheduling and potential to sustain high utilisation across the enlarged plant.
Westgold Resources share price snapshot
Over the past 12 months, Westgold Resources shares have risen 84%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.
