Westgold Resources (ASX/TSX: WGX) has updated its FY25 production and cost guidance, adjusting expectations due to slower-than-planned ramp-ups at its Beta Hunt and Bluebird-South Junction mines. While the company remains focused on long-term sustainable growth, near-term output has been impacted by engineering constraints rather than resource availability.
Updated FY25 Guidance
| Metric | Previous FY25 Guidance | Updated FY25 Guidance | H1 FY25 Actual | H2 FY25 Guidance |
|---|---|---|---|---|
| Gold Production (oz) | 400,000 – 420,000 | 330,000 – 350,000 | 158,255 | 172,000 – 192,000 |
| AISC (A$/oz) | 2,000 – 2,300 | 2,400 – 2,600 | 2,562 | 2,400 – 2,600 |
| Growth Capital (A$M) | 235 | 200 | 114 | 86 |
| Exploration (A$M) | 50 | 50 | 23 | 27 |
What’s Behind the Guidance Revision?
- Beta Hunt – Overcoming Infrastructure Bottlenecks
- Required major ventilation, dewatering, and water supply upgrades.
- Investment in productivity enhancements should drive higher output in H2 FY25 and beyond.
- Bluebird-South Junction – Transitioning to a Larger Mining Method
- Shift to transverse stoping required additional ground support upgrades.
- Improvements should lead to higher production levels in H2 FY25.
Despite these challenges, CEO Wayne Bramwell remains confident:
“We are systematically deploying capital to establish long-term sustainable growth. With drilling and upgraded infrastructure, our largest mines will become larger, more productive, and lower cost over time.”
Looking Ahead
- H2 FY25 is expected to see improved production momentum, with Q4 FY25 run rates targeting +400kozpa.
- Capital spending prioritised towards Beta Hunt, Bluebird-South Junction, and Great Fingall to maximise return on investment.
- Free cash flow and shareholder returns remain the company’s top priorities, with a strong outlook heading into FY26 and beyond.
While short-term numbers have been adjusted, Westgold remains bullish on its long-term trajectory, focusing on scaling production, reducing costs, and driving higher profitability.
