Westgold Resources (ASX: WGX) has delivered its second shareholder dividend for the financial year after reporting a stellar fourth quarter production of 52,795 gold ounces and $16 million of additional cash in the bag.
The company – which today confirmed the 1.25c a share dividend on the back of a 1c return earlier in the financial year – says its total of 227,237 gold ounces was near the top end of its revised production guidance and helped boost its cash, bullion and liquid investments holdings to $263 million.
The financial results give Westgold a remarkable six consecutive quarters of growth, accumulating to a total increase of $104 million, with $71 million of that growth occurring in the past financial year.
It is understood that investments made by the company in the past year are expected to start delivering increased production and improved margins in the latter half of the current financial year. Additionally, Westgold’s strong financial position is expected to support an extensive pipeline of organic expansion, development and exploration opportunities, offering it significant growth potential.
It is pleasing the business achieved the top end of our FY24 production guidance. Even with substantial investments into our high-value growth projects, the company increased its cash and bullion position by $16 million in Q4 FY24, bringing our Group total to $263 million.
Westgold Resources Managing Director and CEO Wayne Bramwell
On the more immediate front, management has sought to highlight the strategic importance of the company’s upcoming $2.5 billion merger with Karora Resources, which is expected to be completed by the end of this month. It is set to position the newly-expanded “Westgold 3.0” as one of Australia’s top five gold producers, with a production profile more than 400,000 ounces annually.
The transformation would position the company as a unique player in the Australian gold industry, as an unhedged, well-funded owner-operator, with substantial leverage to a gold price that remains strong.
Westgold remains unhedged following the conclusion of its zero-cost collars at the end of the quarter, which means the company is now fully exposed to movements in the gold price – a strategy that can enhance profits when prices rise.
It remains optimistic about the future, which it expects will deliver consistent dividend payouts and a clear capital management strategy. The integration of the Karora assets post-merger is expected to enhance Westgold’s operational capacity and financial stability, paving the way for sustainable growth and shareholder value creation.
Recent analyst upgrades and a strong result today helped the company’s share price leap 4.5 per cent to an intraday trading high of $2.54, with more than $9 million worth of stock changing hands.
With a substantial war chest, a burgeoning production profile and plenty of organic growth opportunities, Westgold appears set for another outstanding financial year – especially in the context of a buoyant gold price that is showing no sign of abating.
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