Westgold remains on course

Perth-based Westgold Resources appears on track to meet its production guidance for the 2024 financial year, following a solid second quarter performance.

Interim data provided by Westgold to the market on Thursday revealed the company's cash, bullion and liquid assets grew by $21 million at the end of Q2 FY24, on the back of a $25 million increase during Q1.

This marks the fourth consecutive asset quarter build since Q2 FY23, and comes after a recent announcement that its subsidary, Big Bell Gold Operations, had received prosecution notice from the Department of Energy Mines Industry Regulation and Safety following a fatality at the Cue-based Big Bell mine in December 2020. 

Aside from being on course to reach its annual production guidance of between 245,000 and 265,000 ounces of gold, Westgold also yielded 59,238 ounces from its operations over the past quarter, at an average of $3,041/oz.

Westgold managing director Wayne Bramwell praised the company's flexibility throughout the period. 

"This is the fourth consecutive quarter of positive cash build and takes our closing cash and bullion to $238 million 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.”

The company's official quarterly update will be released later this month on January 31. 

Westgold Resources closed on Thursday at $2.03 a share, down 2.40 per cent.