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Improved gold price adds to Westgold bottom line

Updated: May 2

Westgold Resources’ Tuckabianna hybrid power facility is up and running. Credit: File

Westgold Resources has recorded its third consecutive quarter of cash build with a strong gold price helping it add $25 million in cash, bullion and liquid assets to its books to close with $217 million.

According to its latest quarterly report, the company produced 63,104 ounces at an all-in sustaining cost (AISC) of $1935 per ounce while realising an average gold price of $2888 over the three-month period.

Management says its Bluebird and Big Bell mines continue to perform with both achieving their quarterly production targets while generating net cash flow.

Westgold sold a total of 62,120 ounces of gold for the quarter at the previously stated gold price of $2888 per ounce to generate $179 million in revenue. With the achieved gold price coming in at $953 per ounce above the AISC, the company’s operations delivered $60 million in mine operating cashflow.

A total of 10 rigs are currently operating across its Murchison and Bryah operating centres in Western Australia, continuing an aggressive exploration campaign that recently produced figures including 15.98m at 12.26 grams per tonne gold from 129m at Bluebird, 12.91m going 12.47g/t gold from 78m at Paddy’s Flat and 45m grading 4.53g/t gold from 586m from Big Bell Deeps.

Our treasury is strong and we are fully funded to deliver our corporate objectives through operational cash flows in FY24. Drilling continues in earnest across our assets and Westgold continues to invest in its high value internal growth projects, with the development of Great Fingall commencing in October. Westgold Resources managing director Wayne Bramwell

Just last month, Westgold revealed plans to hit the new financial year with a $25 million exploration program on the back of showing it had grown its group mineral resource by 311,000 ounces in the previous period. The company says it finished the period with a total mineral resource of 107 million tonnes at 2.39 grams per tonne gold for 8.3 million ounces and has also confirmed total ore reserves of 23 million tonnes at 2.68g/t gold for 2 million ounces – a 6 per cent increase in ore reserve grade and a 7 per cent hike in its mineral resource grade.

The first of Westgold’s four hybrid power stations is also officially up and running at its Tuckabianna site, 20km east of Cue, replacing its existing diesel-powered facility. The hybrid facility includes a 6MW solar farm fitted with 11,088 photovoltaic panels, a battery energy storage system with 2.4MW capacity and a 9.5MW gas-fuelled power station for a total of 17.9MW. An additional two more hybrid power facilities were energised over the past month.

The company says the planned 82MW, four-plant facility is expected to reduce its annual diesel fuel consumption by 38 million litres and lower annual carbon dioxide equivalent emissions by about 57,000 tonnes. It expects its AISC to reduce by some $60 per ounce due to the lower cost of energy provided by the new hybrid power facilities.

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