This report is an updated version of the report published on 15 August 2025 at 3:58 PM AEST.

Westgold Resources Ltd (ASX: WGX)

Westgold Resources Limited (ASX: WGX) operates an integrated portfolio of underground and open pit gold mines, along with processing facilities, primarily located in Western Australia's Murchison and Southern Goldfields. Westgold’s operations include significant assets such as Beta Hunt, Bluebird-South Junction, Big Bell, and Starlight, complemented by infrastructure and ongoing exploration programs.

Recommendation Rationale – SELL at AUD 3.080

• Technical Standpoint: WGX’s share price has surpassed the R1 level recommended on 6 August 2025. This upward movement raises the likelihood of a near-term pullback as profit-taking sets in, increasing the risk of short-term consolidation or downside retracement.
• Overvalued Multiples: On a forward 12-month – key valuation multiples (EV/EBITDA, Price/Earnings, and Price/Cash Flow) are higher than average of the Basic Materials’ sector.
• Production Miss Against Guidance: FY25 gold production of 326,384oz fell short of the company’s guidance range of 330–350koz, highlighting execution challenges despite being a record annual output.
• Cost Overruns Persist: Group AISC for FY25 stood at AUD 2,666/oz, exceeding the guidance range of AUD 2,400–AUD 2,600/oz. Even in Q4 FY25, costs remained elevated at AUD 2,688/oz, despite improved production efficiency from Q3.

WGX Daily Chart

(Source: REFINITIV; Analysis by Kalkine Group)

Valuation Methodology: Price/Cash Flow Multiple Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the FY26 production guidance of 345-385 koz, full exposure to gold upside, and growth prospects with Bluebird-South Junction, Beta Hunt, and Great Fingall projects. For conducting the valuation, the following peers are included: Kingsgate Consolidated Ltd (ASX: KCN), Alkane Resources Ltd (ASX: ALK), and Brightstar Resources Ltd (ASX: BTR).

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 3.080, as of 15 August 2025 at 3:30 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 15 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.