Highlights

  • Westgold has received a buy rating from Canaccord Genuity with a target price of AUD 7.80.
  • Macquarie Research has issued an outperform rating on the company with a target price of AUD 7.40.
  • The company reported an underlying cash build of AUD 180 million in Q1 FY26 supported by ongoing operations across Western Australia.

Westgold Resources Limited (ASX:WGX) has drawn attention from the analyst community, might be on the back of its operational and financial update for the quarter ended 30 September 2025. Canaccord Genuity has issued a buy rating with a target price of AUD 7.80, while Macquarie Research has assigned an outperform rating with a target price of AUD 7.40.

Quarterly Performance Supports Strategic Ambitions

Westgold, an unhedged ASX200 gold producer with operations spanning the Murchison and Southern Goldfields regions, continued to advance its vision of becoming Australia’s leading gold company. For Q1 FY26, the company reported an underlying cash build of AUD 180 million before growth and exploration investments. Revenue for the period reached AUD 503 million, supported by gold sales of 94,913 ounces at an average price of AUD 5,296 per ounce.

Operations remained aligned with FY26 expectations, delivering group production of 83,937 ounces at an all-in sustaining cost of AUD 2,861 per ounce. Safety performance improved during the period, reflected in a Total Recordable Injury Frequency Rate of 5.04 per million hours.

Three-Year Outlook Anchored in Organic Growth

Westgold has outlined a detailed three-year outlook that signals a pathway toward increasing annual gold production to approximately 470,000 ounces by FY28. The company aims to progressively reduce its cost profile, with AISC projected at AUD 2,456 per ounce in FY27 and stabilising around AUD 2,500 per ounce in FY28.

The FY26 guidance, first released in August 2025, forecasts production in the range of 345,000 to 385,000 ounces at an AISC between AUD 2,600 and AUD 2,900 per ounce. Non-sustaining capital expenditure for the year is estimated at AUD 270 million, directed largely toward growth initiatives and upgrades across mining and processing facilities. The exploration and resource definition budget is set at AUD 50 million.

Reserves, Resources and Treasury Position Strengthen

The company reported a 24% increase in its Group Mineral Resource Estimate to 16.3 million ounces, while Ore Reserves rose 5% to 3.5 million ounces. These updates reflect additions across several sites including Beta Hunt, Bluebird–South Junction and Starlight, extending the estimated reserve life to ten years.

Westgold closed the quarter with AUD 472 million in cash, bullion and liquid investments, marking a quarter-on-quarter increase of AUD 108 million. The company also declared a final dividend of 3 cents per share for FY25 and launched a 5% on-market share buyback program for FY26.