News, Quarterly and half yearly results, Regis Resources, Westgold Resources

Westgold Resources achieves record quarterly production

Westgold Resources has reported record gold production of 80,886 ounces in the second quarter (Q2) of the 2024-2025 financial year (FY25), while Regis Resources is debt free in the first time in 15 years.

The quarter generated $45 million in net mine cash flow, funding operational and growth capital requirements.

“Q2 FY25 was the first full quarter of Westgold stewardship of the Southern Goldfields assets,” Westgold Resources managing director and chief executive officer Wayne Bramwell said.

“Outputs continue to lift with a record group gold production of 80,886oz – increasing net mine cash flows to $45 million and funding the company’s operational and growth capital requirements.”

“Westgold also drew down $50 million from the corporate facility during the period to balance the working capital requirements of our much larger business.”

The company also advanced critical infrastructure projects, including the Beta Hunt and Bluebird-South Junction mines, to drive higher mine productivity.

Drilling across its operations has highlighted impressive results, such as 68m at 5.48 grams per tonne (g/t) gold at South Junction and 6.6m at 41.84g/t gold at Beta Hunt Fletcher Zone.

“Seventeen drill rigs are operational today,” Bramwell said. “At South Junction, intersections such as 68m at 5.48g/t Au highlight the quality and thickness of the mineral endowment.”

Westgold bolstered its balance sheet with an additional $200 million corporate facility, bringing total facilities to $300 million without mandatory hedging. This, combined with closing cash, bullion, and investments of $152 million, positions the company for growth.

“Our capital investments are focused on higher mine productivity and lowering all-in sustaining costs, with the group’s Q4 FY25 exit run rate the measure of our success,” Bramwell said.

Regis Resources now debt-free and unhedged

Regis also had a strong performance in the second quarter of the 2024-2025 financial year, achieving gold production of 101,294 ounces at an all-in sustaining cost (AISC) of $2317 per ounce (oz).

The company generated $482 million from gold sales and achieved record cash and bullion build of $149 million.

“Off the back of this financial strength, we repaid our $300 million term loan facility ahead of schedule and are finalising the establishment of a revolving credit facility,” Regis Resources managing director Jim Beyer said.

For the first time in nearly 15 years, Regis is now debt-free and unhedged, allowing full exposure to strong gold prices averaging $4,076/oz during the quarter.

“Our FY25 production and cost guidance is maintained, and with the gold price well over $4,000/oz, we have the clear potential to continue strengthening our balance sheet and pursuing growth,” Beyer said.

“It is worthy to note that for the first time since Regis commenced production, nearly 15 years ago, we are now debt free and unhedged.”

“This quarter demonstrates the strong fundamentals and significant leverage to spot gold prices embedded within our business,” Beyer said.

He also said the company’s assets continue to perform in line its expectations, and that they are in a solid position for the remainder of FY25 and beyond.

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