Westgold Resources has announced a 59,238-ounce (oz) production from preliminary results for the second quarter of the 2023-24 financial year (FY24).
The gold miner achieved a sale price of $3041/oz, adding $21 million cash, bullion, and liquid assets for the quarter.
With the first quarter generating $217 million, the latest cash boost brings the total for the first half of FY24 to $238 million.
Westgold managing director Wayne Bramwell said the company remains debt free, unhedged and on track to deliver its FY24 production guidance of 245,000–265,000 ounces.
“This is the fourth consecutive quarter of positive cash build and takes our closing cash and bullion to $238M for the half year,” he said.
“In what was a challenging quarter, these results depict the inherent operational flexibility Westgold has within its portfolio of assets.
“Weaker outputs from Paddy’s Flat at Meekatharra, our smallest mine, were offset by stronger outputs from the resurgent Starlight underground mine at Bryah.
“Even with intermittent COVID-19 cases affecting productivity across the group, our teams delivered.”
In November 2023 Westgold welcomed a funding boost via $100 million from a secured syndicated facility agreement.
The agreement resulted in a revolving corporate facility (RCF) with ING Australia and French financial services company Société Générale.
The RCF is to be used for general corporate purposes and has a three-year term, ending in November 2026.
“With a strong balance sheet and growing cash flows from our operations, this new corporate facility provides an additional $100m in additional firepower to move quickly on opportunities we see emerging,” Bramwell said.
The company also commenced decline development at its Great Fingall gold mine in late October 2023, with first ore anticipated in the first half of 2025.
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