WGX Westgold Resources Limited

PERTH, Western Australia, February 3, 2025 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) (Westgold or the Company) provides this update to its FY25 Production, All-In Sustaining Cost (AISC) and Capital Guidance.

Westgold's corporate strategy is to systematically recalibrate the business for long term sustainable growth and higher levels of free cash generation. The Beta Hunt and Bluebird-South Junction mines are the major drivers of growth, with capital investment and resource drilling in both assets key to leveraging this new scale and to reducing Group operating costs.

Post merger, FY25 Production Guidance was predicated on the simultaneous ramp up of Beta Hunt to 2Mtpa and Bluebird-South Junction to 1.2Mtpa. During H1 FY25, the ramp ups of both assets were slower than planned, predominantly due to engineering, not mineral resource issues.

At Beta Hunt, production was adversely affected by the need to undertake significant upgrades of primary ventilation, mine pumping systems (dewatering) and clean water supply. Westgold's capital investment strategy is systematically removing these productivity constraints to deliver higher production in H2 FY25 and beyond.

At Bluebird-South Junction the transition to a much larger tonnage, transverse stoping mining method in the South Junction lodes was slower than planned as a result of upgrading the ground support regime. This upgrade will underpin higher levels of production from the South Junction lodes in H2 FY25.

As a result of these delays at Beta Hunt and Bluebird-South Junction, Westgold is revising its full year FY25 Production Guidance to 330-350koz, with AISC Guidance now adjusted to $2,400 - $2,600/oz. Growth capital for the full year has reduced to $200M with the prioritisation to  projects delivering the highest return on investment (Beta Hunt, Bluebird-South Junction and Great Fingall).

"Balancing short range targets with longer term shareholder returns is Westgold's objective. Optimisation of our expanded portfolio began in earnest in Q2 FY25 and disappointingly, engineering ramp up issues constrained outputs from the Beta Hunt and Bluebird-South Junction underground mines.

Both mines are now regaining momentum as Westgold rectifies areas of historic underinvestment across the Southern Goldfields and accelerates the expansion of our key Meekatharra mine. We are systematically deploying capital across our portfolio to establish long term sustainable growth, with drilling and upgraded infrastructure set to make our largest mines larger and more productive with lower operating costs.

Westgold's output will continue to improve across H2 FY25, with production in Q4 FY25 expected to reflect an annualised run rate of +400kozpa. Free cash flow and shareholder returns are our key performance indicators, and we are confident in the optionality our expanded portfolio now provides to deliver much higher levels of safe and profitable production into FY26 onwards."

ENDS

This announcement is authorised for release to the ASX by the Board.
Investor and media enquiries - GM Investor Relations and Communications
Kasun Liyanaarachchi     |     Email : investor.relations@westgold.com.au    |    Mobile +61 458 564 483

These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the Company's current annual report, half year report or most recent management discussion and analysis.

Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.

SOURCE Westgold Resources Limited