Westgold Revises FY25 Production Guidance Amid Engineering Delays

Westgold Adjusts FY25 Outlook

Westgold Resources Limited (ASX: WGX) has updated its FY25 production guidance, revising down its expected gold output to between 330,000 and 350,000 ounces. This marks a notable reduction from the post-merger forecast of 400,000 to 420,000 ounces, reflecting slower-than-anticipated ramp-ups at its flagship Beta Hunt and Bluebird-South Junction mines.

The company attributes the delays primarily to engineering challenges rather than mineral resource issues. At Beta Hunt, critical upgrades to primary ventilation, mine pumping systems, and clean water supply infrastructure have constrained production. Meanwhile, Bluebird-South Junction’s transition to a larger-scale transverse stoping mining method required enhancements to ground support, slowing progress.

Cost and Capital Revisions

Alongside the production downgrade, Westgold has adjusted its all-in sustaining cost (AISC) guidance upward to between A$2,400 and A$2,600 per ounce, up from the previous range of A$2,000 to A$2,300. Growth capital expenditure has been trimmed to A$200 million for the full year, down from A$235 million, with a sharper focus on projects promising the highest returns, including Beta Hunt, Bluebird-South Junction, and Great Fingall.

Exploration budgets remain steady at A$50 million, underscoring the company’s commitment to resource development despite near-term operational setbacks.

Strategic Focus on Sustainable Growth

Westgold’s Managing Director and CEO Wayne Bramwell emphasised the company’s long-term strategy to recalibrate its portfolio for sustainable growth and enhanced free cash flow generation. He acknowledged the engineering ramp-up issues but expressed confidence that these are being addressed systematically.

“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,” Bramwell said. He highlighted that capital deployment is prioritised to expand the largest mines and reduce operating costs, setting the stage for improved production in the second half of FY25.

Westgold anticipates that production in Q4 FY25 will reflect an annualised run rate exceeding 400,000 ounces, signalling a return to the scale envisaged post-merger. The company also reiterated its focus on free cash flow and shareholder returns as key performance indicators moving forward.

Looking Ahead

While the revised guidance represents a short-term setback, Westgold’s strategic investments in infrastructure and resource drilling could unlock significant operational leverage in FY26 and beyond. The market will be watching closely to see how effectively the company manages these engineering challenges and whether the anticipated production ramp-up materialises as planned.