Westgold has announced its preliminary production results for the third quarter of the 2023–24 financial year (Q3, FY24).
A total of 52,100 ounces of gold was produced from Westgold’s operations in Q3, achieving an average gold price of $3137 per ounce.
While the operational pause and weather events at Paddy’s Flat underground (part of the Meekatharra operation in Western Australia) did impact production for the gold miner, Westgold’s cash and bullion increased by $9 million, taking the company to $247 million for the quarter.
“Westgold has now delivered five consecutive quarters of cash build, adding $9 million to our treasury in a very trying quarter,” Westgold managing director and chief executive officer Wayne Bramwell said.
“Several factors negatively impacted our physical outputs but corporately our prime driver is free cash flow – not maximising total production at all costs.
“We remain focussed on recovering lost ounces in FY24 but remain unremorseful in pausing mines that cannot deliver the returns our shareholders expect.”
Westgold is currently weighing up the pros and cons associated with starting mining early at the Great Fingall mine in WA, and will complete an evaluation of the operational risk and cost.
“The operational and weather issues encountered during Q3 increase pressure to prematurely commence mining at the Great Fingall mine in Q4, FY24 but rushing the mining execution without the requisite data escalates operational risk and cost,” Bramwell said.
“This is not our preferred operating model and as such, Westgold will systematically complete its evaluation on the early mining of shallow flat structures at Great Fingall with a view to commence mining in Q1, FY25.
“Positively, our Starlight mine continues to exceed expectations, our drilling at Bluebird-South Junction continues to expand the mine footprint and with 12 drills operating we continue to focus on reserve growth across our portfolio of assets.”
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