On December 18, 2018, Westgold Resources announced that they have fully refurbished the Starlight underground mine at Fortnum and started development of its first virgin lodes.
The company has also announced that they have received a highly positive result from an ongoing drilling program beneath the current ore reserves in the northernmost down-plunge hole.
Westgold Resources Limited (ASX: WGX) is in the mining sector. The company explores iron oxide, copper, gold and silver deposits. The company was founded in 1987 and got listed in 2016.
The total Starlight ore system has shown an intercept of 78.26m at 5.23 g/t Au from 110.2 meters in diamond hole WGU 0089. Critically, the intercept includes down-plunge continuity of the key higher-grade zones that make up stopping areas with the mine. This intercept is an excellent start for the evaluation and development of the Starlight deep ore system. It has shown that the down-plunge continuity of the ore system is exciting and of high grade.
The company expects the release of further drilling results in the next quarterly report.
Westgold recently completed a share placement to raise a total of AUD 23.4 million. This involved issuing 26 million shares at a share price of 90 cents. The company plans to use the generated funds to finance the purchase of Australian Contract Mining Pty Ltd, underground mining contractor.
The company has also entered LOI to divest its non-core lithium loyalties at Buldania and Mt Marion to Silverstream SEZ at a price of AUD 15 million.
Quarterly Report: Quarterly gold output was steady at 64,037 ounces of which 61037 ounces was directly attributable to Westgold’s operations. Group gold operations EBITDA for the Quarter is $11.9 million. Group gold operations saw quarterly cash costs (C1) steady at A$1406/oz with the rolling twelve-month cash costs (C1) being A$1380/oz.
FY18 Financial Performance: The company generated consolidated revenues of $371.63 million in 2018, representing an upside of 21% over the $307.03 million recorded in the corresponding period in 2017. Consolidated Total cost of sales from continuing operations for the year is -$405.01 million, an increase of 39.6% over the -$290.1 million recorded in the corresponding period in 2017. The Group’s net loss after tax for the year stood at -$1.17 million, representing a downside of 92.6% over the prior year which was $15.8 million.
The company ended the year with $73.45 million in cash over the $67.14 million in the corresponding period in 2017.
Stock Performance: In the last six months, the share price of the company has shown a negative return of around 50 percent as at December 19, 2018, 12:49 PM AEST) and 22% percent down over the past one month. However, post the successful drilling results shared by the company, the shares of the company soared by 1.12%, with the closing price of $0.900 on 18th November. The shares are currently trading at $0.902.
The company has a market capitalization of $350.2 million and an earnings per share of -0.003 AUD .
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