Westgold Resources Revises FY25 Guidance Amid Operational Challenges

Westgold Resources

Westgold Resources has adjusted its 2024–25 financial year (FY25) production guidance due to operational challenges at its Beta Hunt and Bluebird-South Junction mines. Initially targeting a gold output of 400,000–420,000 ounces (oz), the company has now revised its FY25 guidance to 330,000–350,000oz.

Key Challenges and Production Delays

The Beta Hunt and Bluebird-South Junction mines are central to Westgold’s growth strategy, with ongoing capital investment and resource drilling aimed at optimizing production and lowering operating costs. Following its merger with Karora Resources, Westgold set ambitious ramp-up targets: Beta Hunt to two million tonnes per annum (Mtpa) and Bluebird-South Junction to 1.2Mtpa. However, both sites faced engineering setbacks during the first half (H1) of FY25, delaying progress.

At Beta Hunt, production was impacted by essential upgrades to primary ventilation, mine pumping (dewatering), and clean water supply systems. Meanwhile, at Bluebird-South Junction, the transition to a larger tonnage transverse stoping method in the South Junction lodes progressed slower than expected, leading to a temporary reduction in gold output.

Strategic Recovery and Future Outlook

Westgold’s managing director and CEO, Wayne Bramwell, acknowledged the difficulties but emphasized the company’s recovery efforts. “Optimisation of our expanded portfolio began in earnest in Q2 FY25, and disappointingly, engineering ramp-up issues constrained outputs from the Beta Hunt and Bluebird-South Junction underground mines,” Bramwell stated.

Despite these setbacks, the company is accelerating its investment across the Southern Goldfields and Meekatharra mine, aiming for long-term sustainable growth. Strategic drilling and infrastructure upgrades are expected to enhance productivity and reduce operating costs.

Westgold anticipates improved output in the second half (H2) of FY25, with production in Q4 FY25 projected to reach an annualized run rate exceeding 400,000oz per annum. The company remains focused on increasing free cash flow and delivering enhanced shareholder returns as it positions itself for stronger performance in FY26 and beyond.