Westgold Resources has continued to pile up the cash, revealing some impressive financial metrics in its half-yearly report, including an EBITDA of $146 million – a jump of 132 per cent from last year’s corresponding period.
The company this week reported record revenue of $363 million, up 15 per cent, as it celebrated its fourth consecutive quarter of positive cash flow on the back of strong gold prices.
Westgold’s first-half financials also show a massive 500 per cent leap in net after-tax profit to $44 million. The period saw the company produce 122,342 ounces of gold and it sold 122,081 ounces of them at an average price of $2963 per ounce.
The company’s bulging revenue numbers reflect an 18 per cent increase, or $529 per ounce, in its achieved gold price.
Management had previously revealed in its December quarterly report that it had increased its cash and bullion holdings by 32 per cent to $238 million. And in a milestone move following its string of positive quarters, it will next month make its first interim unfranked dividend payment of 1c per share.
The Board today has determined to pay our first dividend under the new dividend policy. This reflects growing confidence in the business and marks another milestone in Westgold’s transformation. Our mines and our people have now delivered four consecutive quarters of positive cashflow and this lays the foundations to consistently and safely deliver value to our shareholders. Westgold Resources managing director and chief executive officer Wayne Bramwell
The company says its record revenue coincides with the close-out of its hedge book, while its surging EBIDTA is the result of enhanced revenue and attention to cost management.
Westgold had a busy end to last year, completing the construction of its hybrid power stations and solar farms, while also undertaking life-of-mine resource extension drilling and kicking off its Fender and Great Fingall underground mine declines.
It is currently operating three processing plants – at Fortnum, Bluebird and Tuckabianna – while running four mines at Starlight, Bluebird, Big Bell and Fender. The Great Fingall underground development is also in train at Cue, just a stone’s throw from the Tuckabianna mill.
To continue feeding its mills, Westgold has its foot on 1300 square kilometres of prospective exploration ground in one of Western Australia’s most renowned gold-producing belts and already has a total combined mineral resource of 8.3 million ounces, with 2.03 million ounces as ore reserves.
The company says its focus on the second half of the year will be directed to building its free cash position, increasing the mine life of its operations and advancing exploration and resource development.
Meanwhile, it says it will seek to implement other efficiencies, including through new technologies, and is keeping its eye out for new relevant opportunities. And the market will be watching closely to see if Westgold’s golden recent run can continue.
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