Key Highlights

  • Revenue rose 79% to A$2,441 million, from A$1,360 million in FY25.
  • Gold production was 387,354 ounces, up 19 per cent and above the original guidance range.
  • Underlying net profit after tax climbed to A$480 million from A$87 million.
  • FY27 guidance is for 385,000 to 425,000 ounces at an All-In Sustaining Cost of A$2,980 to A$3,380 per ounce.

Westgold Resources Ltd (ASX:WGX) reported a record year of gold production that supported a debt-free balance sheet. How did Westgold Resources turn a record year of gold production into a Balance Sheet with no Debt and more than A$1 billion of cash, bullion and liquid investments? The short answer is a combination of higher output from its Western Australian Mining hubs, a gold price far above its costs, and tight control of spending. The more important question for shareholders is what the company does with that cash next, and Westgold has started to answer it through a revised Capital return policy and a growth strategy aimed at roughly 500,000 ounces a year by FY29.

What the FY26 result showed

Westgold reported results for the year ended 30 June 2026 on 28 August 2026. Revenue rose 79% to A$2,441 million, from A$1,360 million in FY25. Underlying EBITDA more than doubled to A$1,104 million, a 45% margin, while underlying net profit after tax climbed to A$480 million from A$87 million. Statutory profit was lower at A$443 million, partly because of a A$119 million loss on asset sales. Underlying Earnings Per Share were 50.9 cents.

Operationally, the company produced 387,354 ounces of gold, up 19% and above its original guidance range of 345,000 to 385,000 ounces. All-in sustaining cost (AISC), the industry measure that includes mining, processing, administration and sustaining capital, came in at A$2,841 per ounce, inside the guided A$2,600 to A$2,900 range. The achieved gold price averaged A$6,238 per ounce, which means the gap between price and cost was very wide by historical standards.

That gap explains the cash flow. Operating Cash Flow was A$964 million and free cash flow A$602 million. After repaying A$50 million of debt and paying A$76 million of stamp duty tied to the Karora acquisition, the closing treasury balance was A$939 million, up A$575 million over the year. The company reports no debt and no hedging, so it is fully exposed to the gold price in both directions.

The September quarter and FY27 guidance

The first quarter of FY27 indicates the momentum has continued. Westgold produced 98,393 ounces at an AISC of A$2,912 per ounce, selling about 99,900 ounces at an average A$6,029 per ounce for A$602 million of sales. That implies an AISC Margin of roughly A$3,117 per ounce. Operating mine cash flow was A$292 million, and after growth capital of A$111 million and exploration of A$24 million, the company says its underlying treasury build was A$251 million. Cash, bullion and liquid investments ended the quarter at A$1,040 million.

FY27 guidance is for 385,000 to 425,000 ounces at an AISC of A$2,980 to A$3,380 per ounce, and management says it is on track. It is worth noticing what that guidance implies. The midpoint of production is above FY26, but the cost range sits higher than the A$2,841 achieved last year. Investors should therefore not assume that the FY26 margin is simply repeated; the outcome will depend on grades, mining rates and the gold price actually received.

Ore Reserves rose 41% to 4.1 million ounces, and ore stockpiles increased 51% to 696,000 tonnes.

Where the gold comes from

Westgold is a mid-tier producer with operations in Western Australia, centred on the Murchison region around Meekatharra and Cue, together with the Fortnum hub and the Beta Hunt mine in the Southern Goldfields. Development also progressed at Beta Hunt during the year.

The company has also been simplifying its portfolio. It divested non-core assets, including the Peak Hill and Chalice Gold projects, and demerged Valiant Gold, which now trades separately on the ASX under the code VAL.

Capital returns and the growth strategy

Westgold declared a final Dividend of 10 cents per share, fully franked, costing about A$95 million. Together with about A$27 million of Buybacks during FY26, total returns for the year were about A$122 million. For FY27 the board approved a A$50 million on-market buyback under a new Shareholder Capital Return Policy, which sets a minimum annual return of 3 cents per share, of which at least 2 cents is a fully franked dividend. A minimum is not a ceiling, and the company has not committed to a particular payout beyond that floor.

Alongside returns, management is pursuing what it calls a "4-5-6" strategy, which targets a funded pathway to about 500,000 ounces a year by FY29, with expansion work planned at the Cue and Meekatharra hubs. Growth capital was A$111 million in the September quarter alone, and investing outflows for FY26 were about A$362 million across growth, development and exploration. This is a meaningful call on cash flow, but with more than A$1 billion on hand the program appears fundable without borrowing, on the company's own description.

Risks and what to watch

The main risks are straightforward. Gold prices can fall, and the company has no hedges to cushion a decline. Guided costs are higher in FY27, so cost inflation, labour availability in Western Australia and the timing of capital projects all matter. Expansion projects can also run late or over budget, so execution matters as much as the larger reserve base, which is an estimate rather than metal in the bank.

For the months ahead, the key items are the December quarter production and cost report, progress on the Cue and Meekatharra expansion studies and approvals, how quickly the FY27 buyback is executed, and the Interim Dividend decision.