Westgold Resources and Capricorn Metals have each achieved a financial record for the March 2025 quarter, while maintaining solid gold production levels.
Westgold Resources
Westgold Resources has delivered a record $80 million quarter-on-quarter (QOQ) cash build amid historically high gold prices.
The company closed the March quarter with $232 million in cash, bullion and investments.
The result comprises $107 million in operational cash build (before $74 million was invested in growth and exploration), $22 million from corporate activities such as selling the Lakewood processing facility, and an $11 million increase in bullion.
Westgold the outcome was driven by an increased realised gold price of $4630 per ounce (oz), consistent gold production from its operations, and operational cash costs.
“Westgold continues to reconfigure the larger portfolio to be more productive and to boost free cash flows into FY26 (the 2025–26 financial year),” Westgold managing director and chief executive officer Wayne Bramwell said.
“It has taken two quarters in FY25 to stabilise the larger business and in (the March quarter) we delivered a record $80 million build in cash, bullion and liquid investments.
“Strong treasury management is key to delivering our growth strategy. Being unhedged and with our growing cash balance and $250 million in our undrawn corporate facility, Westgold has available liquidity of approximately $480 million – a solid foundation from which to execute our growth plans.”
Westgold produced 80,107oz and generated $87 million in net mine cashflow during the quarter.
The Murchison operations produced 42,906oz and the Southern Goldfields operations produced 37,201oz. The decreased QOQ production from Murchison was primarily offset by the increased production from Southern Goldfields.
“As expected, production and cost results in (the March quarter) were in line with (the December quarter) results,” Bramwell said.
“These will improve in (the June 2025 quarter) with mining outputs improv(ing) at the Bluebird South-Junction mine and the infrastructure upgrades at the Beta Hunt mine due to (be completed in) mid-2025.
“Production from the Southern Goldfields continues to increase due to improved head grade and recovery rates achieved for the quarter. Beta Hunt mine infrastructure upgrades continue with key projects expected to be complete during (the June quarter).
“In the Murchison, the slower than planned ramp up of Bluebird-South Junction required higher tonnages of low-grade stocks to be hauled to and processed at Meekatharra. This escalated the Murchison costs this quarter and with mining expected to commence in South Junction during (the June quarter), costs should reduce.”
Following the sale of Lakewood, all ore from the Beta Hunt mine will now be processed at the Higginsville processing plant. Westgold is currently evaluating expanding Higginsville’s annual capacity from 1.6 million tonnes per annum (Mtpa) to 2.6Mtpa.
The company is also investing more in drilling to create long-term value in its portfolio.
“Westgold is well funded and continues to focus on lifting our mine outputs and optimising our largest mines and mills for greater free cash flow and expanded margins into FY26,” Bramwell said.
Capricorn Metals
Capricorn Metals has generated a record $80.8 million in quarterly cash flow from its Karlawinda gold operation in Western Australia.
As of March 31, Capricorn’s cash and gold on hand equalled $404.6 million, representing a $57.6 million cash build for the quarter.
Karlawinda produced 30,599oz at an all-in sustaining cost (AISC) of $1390/oz, bringing the operation’s year-to-date gold production to 84,860oz at an AISC of $1490/oz, a result in line with Capricorn’s FY25 production guidance of 110,000–120,000oz at an AISC of $1370–$1470/oz.
“Gold production for the quarter was driven by a sustained emphasis on total material movement from the Bibra open pit, allowing the budgeted pit face positions to be met for the fourth consecutive quarter,” Capricorn said.
“This effort has delivered the steady increase in gold production quarter on quarter, aligning with expectations for a robust second half of FY25. Further, the efficient mining performance in the main pit enabled the expediting of pre-stripping operations ahead of schedule at the Southern Corridor extension, part of the Karlawinda expansion project.”
Capricorn sold 28,340oz at an average gold price of $4603/oz, generating $130.4 million in revenue.
The company mined 3.8 million bank cubic metres at Karlawinda during the quarter, a 22 per cent increase from the previous quarter.
“The sustained emphasis on total material movement from the Bibra open pit continued to facilitate the achievement of the budgeted pit face positions,” Capricorn said.
“A total of 1.9 million tonnes (Mt) of ore was mined during the quarter, with ore stocks increasing to 6.7 million tonnes.”
A total of 1Mt of ore was processed at the Karlawinda processing plant at an improved head grade of 1.02 grams per tonne.
“Gold recovery continued at a stabilised rate of 91.7 per cent following the successful installation and commissioning of the liquid oxygen and lead nitrate facilities,” Capricorn said.
At the Mt Gibson gold project in WA, the installation of the 400-room accommodation village for operations has been completed and handed over for the upcoming construction phase.
Capricorn has spent $34.5 million to date on these early construction works.
“Evaluation work for mining services and power supply contracts continued in the quarter, assessing influence of the increased ore reserve estimate, and is nearing completion,” Capricorn said.
“The process plant design scope was advanced, achieving approximately 30 per cent progress in the quarter, with site layouts finalised and long lead items such as the ball mill committed.
“Capricorn’s strategy is to continue to expedite the accommodation village construction, project design and long lead purchasing in parallel with progressive receipt of development and environmental permits where it is expected to be advantageous to the ultimate development schedule and cost to do so.”
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