Gold, News, Project approval, Quarterly and half yearly results, Westgold Resources

Westgold aiming bigger next year

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Westgold Resources has released its guidance for the 2024 financial year, hoping to mine more gold at a lower operating cost.

After delivering on production guidance for 2023, Westgold has set itself the goal of producing between 245,000 to 265,000 ounces of gold for next year. This is a 5,000 ounce increase on 2023.

The company has also decreased its projected al-in sustaining costs to $1800 to $2000 per ounce.

“Westgold delivered its guidance in financial year 2023, hitting the top end of production guidance and mid-point of costs. This was achieved while undertaking an organisational transformation which has placed the company in a position to build cash and enhance profitability on a sustainable basis.”

Westgold is set to increase its growth capital to $130 million for the 2024 financial year, $60 million of which will be invested towards new growth opportunities at the company’s operations.

Thirty million will go to developing the Great Fingall decline. At steady state, Westgold expects Great Fingall to produce between 300 to 450 thousand tonnes of ore at four to six grams per tonne of gold.

The Big Bell expansion will receive $24 million in capital funding for mine development, ventilation and development of a surface located paste plant. A feasibility study and final investment decision is expected in the first quarter of 2024.

Westgold has allocated $6 million to the restart of Fender, which it expects to produce around 330 thousand tonnes per annum at 2.7 grams of gold per tonne.

“The business is now structured to deliver safe and profitable ounces and critically, our financial year 2024 growth ambitions are funded from our existing cash resources. Looking forward, prudent capital investment into our organic growth projects such as Great Fingall, the expansion of Big Bell and restart of Fender establishes a growth runway into financial year 2025.”

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