Westgold Resources has announced its final dividend for the 2024–25 financial year (FY25), an enhanced dividend program for next year, and an on-market share buy-back program.
Westgold managing director and chief executive officer Wayne Bramwell said the announcement demonstrated the company’s upbeat outlook on the back of stellar end-of-year results.
“In conjunction with our $0.03 per share ($28.3 million) dividend announced today, the share buy-back is a clear signal of confidence from Westgold in the company’s ability to generate future cash flows and return capital to shareholders,” Bramwell said.
Bramwell said FY25 was transformational as the company integrated its Southern Goldfields assets, invested in key mine infrastructure across the group and delivered record gold production of 326,000 ounces (oz).
The Southern Goldfields, acquired in August 2024, contributed 129,000oz of gold production for Westgold.
“Our FY25 financial results reflect this growing scale, and while we have work to do in FY26 to deliver consistent operational outputs, we demonstrated the latent capability within Westgold’s portfolio,” he said.
“Against this backdrop, our stock remains materially undervalued. As part of an enhanced capital management program, a share buy-back rewards our shareholders by increasing their interest in a business that is poised to self-fund an increase in cash generation, gold production, market relevance, and value.”
Westgold’s FY26 dividend policy will increase the minimum dividend from $0.01 per share to $0.02 per share and increase the required minimum net cash balance from $100 million to $150 million (after the payment of any dividend).
The share buy-back program of up to 5 per cent of Westgold shares will be undertaken over the next 12 months.
Westgold’s FY25 results included a 90 per cent revenue increase to $1.36 billion, a 84 per cent increase in adjusted earnings before interest depreciation and amortisation (EBITDA) of $498 million, and a EBITDA margin of 36 per cent.
The company posted a net profit after tax (NPAT) decrease of 63 per cent to $35 million, attributed to one-off transaction costs. Its underlying free cashflow increased by 120 per cent to $224 million.
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Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
