Westgold Resources and Capricorn Metals have released their December 2023 quarter (Q2 FY24) reports, where both companies demonstrated strong financial performances despite some production setbacks.
Westgold
The Western Australian gold miner previously announced that it had produced 59,238 ounces (oz) during the quarter, a six per cent decrease from the previous quarter, at an all-in sustaining cost (AISC) of $2245/oz.
Westgold has cited lower production from an increase in COVID related absenteeism, planned downtime at the Bluebird processing hub, unplanned downtime at the Tuckabianna processing hub, lower mined grade at the Bluebird underground and reduced tonnage and mine grade at the smaller Paddy’s Flat mine as the reasons for the production decrease and cost per ounce increase.
Despite the gold production setbacks, Westgold saw a 12 per cent quarter-on-quarter reduction of total recordable injury frequency rate (TRIFR) to 7.75 per million hours worked.
The company also added $21 million in cash and bullion, closing the quarter with $238 million.
“Q2 FY24 was the fourth consecutive quarter of cash build for Westgold and shows improving consistency in financial outputs,” Westgold managing director Wayne Bramwell said.
“Adding $21 million to our treasury, while commencing the Great Fingall and Fender underground mines and continuing the investment in our people and exploration is a remarkable effort.
“Going forward it highlights the inherent optionality within Westgold’s portfolio whereby Paddy’s Flat can transition to an exploration phase and its production can be replaced by the new Fender mine coming online.”
Capricorn
The WA gold miner previously announced that it had produced 30,399oz at its Karlawinda gold project (KGP) during the quarter, a notable increase from the 29,700oz produced in the previous quarter.
Like Westgold, Capricorn saw its Q2 AISC increased to $1333/oz from the previous quarter’s $1315/oz. Its operations continued to generate strong cash flow with $41.8 million recorded, an increase from Q1’s $38.4 million.
“Cash and gold on hand at quarter end of $160.1 million (reflects) cash build of $26.5 million after spending $7.9 million on exploration and Mount Gibson feasibility studies and $1.7 million on accommodation units for Mount Gibson,” the company said.
“Gold sales of 36,061 ounces at an average price of $3,042 per ounce generated $109.7 million in revenue with a further 1033 ounces of gold on hand at the end of the quarter valued at $3.1 million.”
Exploration wise, Capricorn completed a further 12,226 metres of reverse circulation resource definition and extensional drilling was completed at Mount Gibson, with assays received from 57 resource definition holes spanning 10,136m.
The gold producer announced in December that it had ordered 400 accommodation units and associated infrastructure buildings required for Mount Gibson, following Capricorn receiving regulatory approval to construct a new camp for the proposed mining operations.
The new units are currently being delivered to site, with the majority to be delivered during the March 2024 quarter.
“This is the first major commitment in Capricorn’s strategy to expedite project design and long lead purchasing in parallel with progressive receipt of development and environmental permits where it is expected to be advantageous to the ultimate development timeframe to do so,” Capricorn said.
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