Westgold shares have cratered on the back of marginal improvements to the gold miner’s production and cost guidance for the current financial year.
Shares in the company tumbled on Wednesday by 8.7 per cent to $1.56 after it disclosed a slight uptick in expected output, from between 240,000 to 260,000 ounces per annum in financial year 2023 to between 245,000 and 265,000oz, and all-in sustaining costs, from between $1900 and $2100 per ounce to $1800 and $2000.
Those figures were described in an accompanying statement to the Australian Securities Exchange as having been “conservatively” set.
Outgoings are also expected to increase, with a more than doubling in growth capital from $60m to $130m underpinning investment in the company’s Cue operations, including its Great Fingall project and expansion of its Big Bell mine.
Exploration outlays are projected to grow only slightly, from $20m last financial year to $25m.
Westgold managing director Wayne Bramwell said the company would “continue to build balance sheet strength” as the price of gold is expected to strengthen in the coming months.
“The business is now structured to deliver safe and profitable ounces and critically, our FY24 growth ambitions are funded from our existing cash resources,” he said.
“Looking forward, prudent capital investment into our organic growth projects such as Great Fingall, the expansion of Big Bell and restart of Fender establishes a growth runway into FY25.”