This article first appeared on GuruFocus.

Revenue: $1.2 billion. Underlying EBITDA: $612 million, up from $224 million. Underlying Net Profit Before Tax: $447 million, up from $89 million. Underlying Net Profit After Tax: $314 million, up from $57 million. Statutory Profit: $191 million, compared to a statutory loss of $28 million in the prior period. Gold Production: 195,000 ounces at an all-in sustaining cost of $3,225 per ounce. Net Cash Flow from Operations: $532 million. Closing Treasury Balance: $654 million, up from $152 million in H1FY25. Cash and Treasury Growth: Ended the period with $521 million in cash, treasury grew by $290.5 million. Income Tax Expense: $133 million for the half. Dividend: $0.03 per share final dividend for FY25. Share Buyback Program: 5% on-market share buyback launched.

Warning! GuruFocus has detected 9 Warning Signs with WGXRF. Is WGXRF fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 26, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Westgold Resources Ltd (WGXRF) reported a record financial performance for the first half of 2026, with revenues effectively doubling compared to the previous year. The company achieved a significant increase in underlying EBITDA, rising to $612 million from $224 million, and a substantial uplift in net profit before tax to $447 million from $89 million. Westgold Resources Ltd (WGXRF) successfully strengthened its balance sheet, ending the period with a closing treasury balance of $654 million, up from $152 million in H1FY25. The company maintained its production and cost guidance for FY26, with a clear path to grow production from 326,000 ounces in FY25 to 470,000 ounces by FY28. Westgold Resources Ltd (WGXRF) demonstrated its commitment to shareholder returns by declaring a $0.03 per share final dividend for FY25 and launching a 5% on-market share buyback program.

Negative Points

Despite the strong financial performance, Westgold Resources Ltd (WGXRF) did not declare an interim dividend for H1FY26, citing the timing of franking credits as the reason. The company reported a one-off accounting loss of $178 million on the sale of the Mount Henry Selim project, which impacted the statutory profit. Westgold Resources Ltd (WGXRF) faced high all-in sustaining costs of $3,225 per ounce for the half, which could pressure margins if gold prices fluctuate. The company has not factored in potential production from new ore purchase agreements into its FY26 guidance, indicating a conservative approach that may limit upside potential. Westgold Resources Ltd (WGXRF) is still in the process of building its franking credits, which affects its ability to pay fully franked dividends in the short term.

Story Continues

Q & A Highlights

Q: What is the reasoning behind not paying a dividend for H1FY26, noting the minimum dividend policy? A: We aim to pay a fully franked dividend. Due to the timing of tax returns, franking credits will materialize in the second half, allowing us to pay a fully franked dividend then.

Q: Should we still expect Fletcher reserve and resource updates in the coming months? A: Yes, we are continuing to drill Fletcher, and expect a resource uplift this year along with a small reserve conversion.

Q: Can you provide some color on the timing of integrating ore purchase agreements and the impacts to FY26 production and cost guidance? A: The NMG ore purchase agreement was factored into our FY26 guidance. Other agreements, like with Valiant, have not been factored in for FY27 and FY28.

Q: How far above nameplate could you run Higginsville Mill given the blending of soft ore? A: With a high blend of soft ore, Higginsville Mill has achieved 1.75 million tons per annum, above its 1.6 million tons nameplate capacity.

Q: When does the mill expansion at Higginsville proceed, and what is the grams per ton from Beta Hunt and Great Fingal you are targeting? A: The expansion proposal is with the board. We use 2.4 g/t for Beta Hunt and 4 g/t for Great Fingal in our plans, though actual results often exceed these figures.

Q: How quickly could you bring deposits like Larkin and A Zone into development? A: We are already mining in these zones. Opportunities at Beta Hunt, Western Flanks, A Zone, Fletcher, Mason, and Larkin are being actively explored or mined.

Q: With the ore purchases, why have you not upgraded guidance? A: The existing FY26 guidance includes NMG ore purchases. We will remain conservative and not include Valiant's production until it starts delivering.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

View Comments