Westgold Resources has revised its 2024–25 financial year (FY25) guidance as the company faced various challenges at two cornerstone mines.
Originally targeting 400,000–420,000 ounces (oz) of FY25 gold production, Westgold has now set its FY25 guidance at 330,000–350,000oz of gold production.
Major drivers of Westgold growth are the Beta Hunt and Bluebird-South Junction mines, with capital investment and resource drilling at both assets key to unlocking new scale and reducing group operating costs.
After merging with Karora Resources, Westgold targeted the simultaneous ramp-up of Beta Hunt to two million tonnes per annum (Mtpa) of throughput and Bluebird-South Junction to 1.2Mtpa.
The ramp ups of both assets was slower than planned during the first half (H1) of FY25, largely due to engineering issues.
Beta Hunt production was affected by significant upgrades needed for primary ventilation, mine pumping systems (dewatering) and clean water supply.
At Bluebird-South Junction, the transition to a larger tonnage, transverse stoping mining method in the South Junction lodes was slower than planned, affecting gold output as a result.
Westgold managing director and chief executive officer (CEO) Wayne Bramwell said the company was disappointed by the operational challenges the company faced.
“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,” he said.
“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 more than 400,000ozpa.”
Bramwell said free cash flow and shareholder returns are Westgold’s focus, with the company confident in delivering higher levels of safe and profitable production into FY26 onwards.
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