The Westgold Resources Ltd (ASX: WGX) share price is in focus as the company released its FY27 guidance and updated Three-Year Outlook, aiming to lift gold production to around 500,000 ounces by FY29 while lowering costs.
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What did Westgold Resources report?
- FY27 gold production guidance: 385,000–425,000 ounces at an All-In Sustaining Cost (AISC) of $2,980–$3,380 per ounce
- Growth capital investment planned at $450 million–$480 million in FY27
- Exploration and resource definition spend: $50 million–$75 million in FY27
- Three-year outlook (3YO): FY29 production targeted at 460,000–510,000 ounces at a reduced AISC of $2,640–$3,000/oz
- Group processing capacity expected to rise above 7 million tonnes per annum by FY29 through brownfield expansions
- Over $150 million planned investment into exploration and resource definition across the outlook period
What else do investors need to know?
Westgold's growth plan is fully funded and mainly driven by increased ore availability from the Murchison, brownfield expansions at the Cue and Meekatharra hubs, and development at the company's largest mines. The plan assumes higher production and improved mill utilisation, resulting in lower unit costs and stronger cash flows by FY29.
Importantly, the Fletcher Zone at Beta Hunt, seen as Westgold's largest organic growth opportunity, is excluded from this three-year base case while studies continue. Management indicates Fletcher could add around 140,000 ounces per year once developed, potentially pushing group production past 600,000 ounces annually.
The company's strategy also includes maintaining shareholder capital returns, with support for its dividends and broader capital return policy even through periods of elevated investment.
What did Westgold Resources management say?
Wayne Bramwell, Managing Director & CEO said:
Westgold's updated 3YO is a high confidence, executable organic growth plan lifting Group production towards 500,000 oz in FY29. This plan is fully funded with Group All-In Sustaining costs forecast to fall as the benefits of higher-grade ore availability and expansion of key Murchison mines and processing capacity to >7Mtpa are realised, delivering enhanced Group cashflow… Importantly, Westgold's growth is organic and not coming at the expense of shareholder returns. Our business is now more resilient and has the capacity to internally fund growth while continuing to support our Shareholder Capital Returns Policy, dividends and ongoing capital returns.
What's next for Westgold Resources?
Westgold plans to focus capital investment in the Murchison region, rolling out processing hub expansions at Cue and Meekatharra through FY27 and FY28. The group is aiming for steady production growth, improved mill utilisation and flexible production driven by higher confidence in ore reserves and enhanced mining fronts.
Looking further ahead, Westgold's ongoing exploration and development studies, especially in the Fletcher Zone at Beta Hunt, remain watch points for potential upside beyond the current outlook. The company expects 3YO capital spend to decline after the initial peak, with benefits flowing through higher production and free cash flow.
Westgold Resources share price snapshot
Over the past 12 months, Westgold Resources shares have risen 73%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.
