Westgold Resources (ASX:WGX) still expects its recent gold acquisition, Karora Resources, to provide an expected second half boost in production, revenue and earnings after reporting a lift in September quarter production.
Westgold completed the takeover of Canadian-listed (but Australian) Karora Resources in August, for $1.2bn.
WGX said it produced 77,369 ounces of gold from its expanded portfolio, up from 52,795 ounces reported in the June quarter.
It achieved a record average sale price of $3,723 per ounce for the near 50% lift in production. The price is up from a $2,888 average for the September 2023 quarter.
The company said it is on track for FY25 production guidance of 400,000 to 420,000 ounces, nearly double its 2023-24 output of 227,000 ounces, thanks to the $1.2 billion Karora buy and its WA mining and processing operations.
The company said it remains on-track to achieve full-year production guidance. Production is back-ended in the second half of the financial year as Bluebird South-Junction expands to the 1.2 million tonnes per annum run rate, Beta Hunt reaches expected run rate of over 2 Mtpa and mining starts as expected at Great Fingall.
“Q1 FY25 delivered our highest quarterly gold production yet, with the results only reflecting two months’ production from our Southern Goldfields operations,” Westgold CEO Wayne Bramwell said in the short statement to the ASX.
The company explained "[f]or clarity, the merger with Karora Resources completed on 1 August 2024 and as such Westgold’s Q1, FY25 result reported here is based upon 3 months of production from the Murchison (52,889 ounces) but only two months of production from the Southern Goldfields operations (24,480 ounces)."
"If the pre-merger, July output of 13,988 oz from the Southern Goldfields was included in the full Q1, FY25 result, reported Group gold production would have been 91,357oz."
