Westgold Resources Limited (TSX: WGX) booked A$2.44 billion of revenue in the 12 months to June 30, up 79% year over year, with a gold price that ran well ahead of the company’s own production growth doing much of the work.
Underlying net profit after tax came in at A$480 million against A$87 million a year earlier, translating to underlying earnings of 50.9 cents a share versus the prior 9.7 cents. Statutory net profit was A$443 million, the difference largely a A$5 million loss on assets held for sale, minor exploration write-offs and the tax treatment of those items.
Underlying EBITDA more than doubled to A$1.10 billion and the EBITDA margin widened to 45% from 37%.
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The cash figures moved further than the earnings did. Operating cash flow rose to A$964 million from A$357 million, and free cash flow reached A$602 million against A$5 million in the prior year, absorbing roughly A$362 million of growth, development and exploration spending along the way.
Treasury closed the year at A$939 million, up from A$364 million. Westgold carries no debt and remains fully unhedged, which leaves the balance sheet exposed to the same gold price that drove the results.
Gold production totalled 387,354 ounces, a 19% increase, while sales of 390,358 ounces climbed 26% as bullion inventory was drawn down. That implies output near 98,900 ounces in the June quarter, ahead of the 93,145 ounces produced in the March quarter.
The realised gold price averaged A$6,238 an ounce, up 42%. All-in sustaining costs rose 7% to A$2,841 an ounce.
Production cleared the top of the company’s 345,000 to 385,000 ounce guidance range. Costs meanwhile landed near the upper end of the A$2,600 to A$2,900 an ounce guidance excluding ore purchase agreement costs, an outcome management had already flagged in the March quarter.
Managing director Wayne Bramwell said improved operating consistency and a favourable gold price “drove record earnings, cash flow and treasury growth, strengthening our capacity to invest, grow and return capital.”
Shareholder returns totalled about A$122 million through a fully franked dividend of 10 cents a share, up from 3 cents, and A$27 million of buybacks. A further A$50 million buyback has been approved for FY27, with production and cost guidance and an updated strategic outlook scheduled for September 9.
Westgold Resources last traded at $6.56 on the TSX.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
