Westgold Resources has paid its second shareholder dividend for the financial year after the company reported excellent fourth quarter production of 52,795 ounces of gold and additional cash of US$16 million.
The company – which today confirmed a dividend payout of 1.25 cents per share after reporting a yield of 1 cent earlier in the financial year – says its total production of 227,237 ounces of gold was near the upper end of its revised production guidance and helped increase its cash, bullion and liquid assets holdings to $263 million.
The financial results reflect Westgold’s six consecutive remarkable quarters of growth, totaling $104 million in revenue growth, with $71 million of that growth coming in the past fiscal year.
The Company’s investments over the past year are expected to result in increased production and improved margins in the second half of the current financial year. In addition, Westgold’s strong financial position is expected to enable a large pipeline of organic expansion, development and exploration opportunities, providing the Company with significant growth potential.
It is pleasing that the Company has achieved the upper end of our fiscal 2024 production guidance. Despite significant investments in our high-quality growth projects, the Company was able to increase its cash and gold holdings by $16 million in the fourth quarter of fiscal 2024, bringing our group total to $263 million.
More immediately, management has sought to highlight the strategic importance of the company’s impending $2.5 billion merger with Karora Resources, which is expected to be completed by the end of this month and is designed to position the newly expanded “Westgold 3.0” as one of Australia’s top five gold producers, with a production profile of more than 400,000 ounces per year.
The conversion would position the company as a unique player in the Australian gold industry: an unsecured, well-funded owner-operator with significant influence on the continued strong gold price.
Westgold remains unhedged following the settlement of its zero-cost collars at the end of the quarter, meaning the company is now fully exposed to fluctuations in the price of gold – a strategy that can boost profits when prices rise.
The Company remains optimistic about the future, expecting consistent dividend payouts and a clear capital management strategy. The integration of the Karora assets post-merger is expected to enhance Westgold’s operational capacity and financial stability, paving the way for sustainable growth and shareholder value creation.
Thanks to recent analyst upgrades and strong earnings, the company’s stock price rose 4.5 percent today to an intraday trading high of $2.54, with over $9 million worth of shares changing hands.
With a significant war chest, a growing production profile and numerous organic growth opportunities, Westgold appears set for another stellar financial year – particularly against the backdrop of a buoyant gold price that shows no signs of slowing down.
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