Westgold's Q3 FY24 Production Report: Strategic Growth Amid Operational Challenges

Westgold has released its preliminary production figures for the third quarter of the 2023–24 financial year (Q3, FY24).

During this period, Westgold's operations yielded a total of 52,100 ounces of gold, with an average gold price of $3137 per ounce.

Despite facing challenges such as operational pauses and adverse weather conditions at Paddy’s Flat underground, a component of the Meekatharra operation in Western Australia, the gold miner managed to increase its cash and bullion reserves by $9 million. This brings the company's total to $247 million for the quarter.

Wayne Bramwell, the managing director and chief executive officer of Westgold, noted the company's achievement of five consecutive quarters of cash accumulation, adding $9 million to their treasury amidst a challenging quarter.

"While various factors impacted our physical outputs, our primary focus remains on generating free cash flow rather than maximizing production volume at any cost," Bramwell stated. "We are committed to recovering lost ounces in FY24 but are willing to halt operations in mines that fail to meet our shareholders' expectations in terms of returns."

Currently, Westgold is evaluating the feasibility of initiating mining operations ahead of schedule at the Great Fingall mine in WA, weighing the associated pros and cons. Bramwell emphasized the importance of conducting a thorough evaluation of operational risks and costs before making any decisions.

"The challenges faced during Q3 have heightened the pressure to commence mining prematurely at the Great Fingall mine in Q4, FY24. However, rushing into mining without adequate data poses significant operational risks and cost escalations," Bramwell explained. "Therefore, Westgold intends to systematically complete its assessment of early mining activities at Great Fingall, aiming to commence mining in Q1, FY25."

On a positive note, Bramwell highlighted the success of the Starlight mine, which has surpassed expectations, as well as the ongoing expansion of the Bluebird-South Junction mine footprint through drilling activities. With 12 drills in operation, Westgold remains focused on enhancing reserve growth across its asset portfolio.