Westgold Resources Limited (ASX:WGX) enters FY27 with record earnings, a debt-free Balance Sheet and a substantial growth program across its Western Australian operations. FY26 delivered higher gold production, Revenue and cash flow, while management’s three-year plan targets further production growth through Investment in larger mines and expanded processing infrastructure.

FY26 Production Reaches a Record

Westgold produced 387,354 ounces of gold in FY26, up 19% from the prior year.

The result exceeded the upper end of the company’s FY26 production guidance of 345,000 to 385,000 ounces.

Gold sales increased to 390,358 ounces, while the achieved gold price rose 42% to A$6,238 per ounce.

Higher production and gold prices drove the substantial increase in group revenue.

Revenue Rises to A$2.44 Billion

Revenue increased 79% to A$2.441 billion.

Underlying EBITDA more than doubled to A$1.104 billion from A$498 million.

The underlying EBITDA Margin improved to 45% from 37%.

Underlying NPAT increased 452% to A$480 million, compared with A$87 million in FY25.

The result reflected higher production, improved operating consistency and favourable gold prices.

AISC Increases Despite Higher Output

Group AISC was A$2,841 per ounce in FY26.

This compared with A$2,666 per ounce in FY25.

The increase shows that higher production did not translate into lower unit costs during the year.

Westgold’s FY27 investment program is partly intended to improve ore availability, mill utilisation and Operating Leverage so unit costs can decline over the medium term.

Cash Generation Expands

Operating Cash Flow increased 170% to A$964 million.

Free cash flow reached A$602 million, compared with A$5 million in FY25.

Westgold invested approximately A$362 million across growth, development and exploration activities during the year.

Despite this expenditure, treasury increased by A$575 million to A$939 million at 30 June 2026.

The group finished FY26 Debt free.

Westgold Remains Fully Unhedged

Westgold does not maintain a gold hedge book.

This means its realised gold prices remain exposed to prevailing market conditions rather than being fixed through forward contracts.

The structure provides full participation when gold prices rise, but also exposes Earnings and cash generation to lower prices.

Maintaining a substantial treasury balance provides some financial protection against that volatility.

Dividend and Buy-Back Return Capital

Westgold declared a fully franked final Dividend of 10 cents per share.

The dividend represents approximately A$95 million of Shareholder returns.

Combined with around A$27 million spent on share buy-backs during FY26, total shareholder returns reached approximately A$122 million.

The company has also approved a further A$50 million on-market buy-back for FY27.

FY27 Production Guidance Remains Near FY26 Levels

Westgold expects FY27 production of 385,000 to 425,000 ounces.

AISC guidance is A$2,980 to A$3,380 per ounce.

The production range incorporates ongoing investment and mine development across the portfolio.

FY27 therefore represents a heavy investment year rather than the full benefit period from the company’s expansion projects.

Management expects the financial benefits to become more visible as additional ore sources and processing capacity come online.

Growth Capital Peaks in FY27

Growth Capital Expenditure is expected to reach A$450 million to A$480 million during FY27.

A further A$50 million to A$75 million is planned for exploration and resource definition.

Management has described FY27 as the peak investment year within the current three-year outlook.

Capital requirements are expected to moderate in FY28 and FY29 as major projects progress toward completion.

Cue and Meekatharra Drive the Expansion

The three-year plan is focused heavily on Westgold’s Murchison operations.

At Cue, production growth from Great Fingall and Big Bell supports expansion of processing capacity.

The Meekatharra hub is also scheduled for expansion.

Across the group, installed processing capacity is expected to increase from approximately 5.8Mtpa in FY27 to more than 7Mtpa by FY29.

Higher mill utilisation is intended to support lower unit costs.

FY29 Production Target Moves Toward 500,000 Ounces

Westgold targets production of 460,000 to 510,000 ounces in FY29.

AISC is expected to decline to A$2,640 to A$3,000 per ounce on an FY27 real-cost basis.

The plan is supported by increased ore availability, investment in Westgold’s largest mines and additional processing capacity.

The outlook remains subject to mine development, grade delivery, project execution and operating conditions.

Fletcher Is Excluded From the Base Plan

The Fletcher Zone at Beta Hunt is not included in Westgold’s three-year production outlook.

Westgold has identified Fletcher as its largest organic growth opportunity beyond the current base case.

Internal conceptual studies indicate the zone could eventually contribute around 140,000 ounces per year.

Development remains subject to further studies, processing decisions and investment approval, so the potential contribution is not included in existing FY27–FY29 guidance.

Exploration Remains a Major Spending Priority

Westgold expects to invest more than A$150 million in exploration and resource definition over the three-year outlook.

Priority areas include Big Bell, Great Fingall, Meekatharra and Beta Hunt.

The objective is to convert resources into reserves, extend mine lives and create additional production options.

Ore reserves had increased to approximately 4.1 million ounces by FY26 despite Mining depletion and portfolio changes.

Key Risks and Areas to Watch

Gold prices remain the largest external earnings variable because Westgold is unhedged.

FY27 also carries substantial execution risk because growth capital is near its planned peak while several expansion projects progress simultaneously.

Higher AISC in FY27 means production growth alone may not immediately translate into higher margins.

Processing-hub delivery, ore availability, capital spending and progress at Fletcher will remain important indicators.