Westgold Resources Down On September Quarter Report

  • Oct 25, 2018 AEDT
  • Team Kalkine
Westgold Resources Down On September Quarter Report

Westgold Resources Limited (ASX: WGX) has today released its Quarterly Activities Report for the three months ended 30 September 2018.

September 2018 quarter results have shown steady gold output at 61,037 ounces lower than 61,461 ounces in June quarter while AISC was maintained at 1,552 per ounce. Group’s gold operations generated EBITDA of $11.9 million for the quarter and cash costs (C1) was steady at A$1,406 per ounce with the rolling twelve-month cash costs being A$1,380 per ounce.

Westgold’s Meekatharra Gold Operations located in Western Australia had a steady gold output of 25,298 ounces in-line with the previous quarter. However, its cash costs reduced by 13% to $1,188 per ounce and AISC reduced to $1,389 per ounce on the back of improved productivity and unit costs achieved by the contract mining unit.  

Tuckabianna Processing Plant at Cue Gold Operations (CGO) flags the second full quarter of gold output delivering 40% improvement to 12,557 ounces as plant capacity reached target levels. The management advised that Big Bell mine remains on track to ensure ore production gets commenced at a modest level during the next quarter, i.e. December 2018. Drilling at Big Bell has outlined a new ore position to the south of the caving operation, stated Westgold.

At Fortnum Gold Project quarterly ore production increased 30% to 101,806 tonnes due to stoping of remnant ore positions within the Twilight and Starlight lodes. The FGP gold output increased marginally to 13,394 ounces during the quarter fifth time in a row. Cash operating costs (C1) for the quarter were $1,312 per ounce compared with the rolling twelve-month average of $1,309 per ounce

But higher unit costs from Higginsville Gold Operations has become the bottleneck for the Westgold’s operations. Cash operating costs for the quarter at HGO were $1,773 per ounce taking the rolling twelve-month average to $1,638 per ounce. The company told that this increased cost reflects the low margin and higher costs of the Mt Henry open pit ores.

Meanwhile HGO’s gold output for the quarter totaled 13,189 ounces out of which 3,400 ounces was reported to be attributable to toll processing which consumed 40% of plant capacity.

Westgold’s recently acquired underground mine Australian Contract Mining has generated an EBITDA of $3.6 million for the quarter from its internal and external contracts.

The divestment in South Kalgoorlie Operations  at the end of the March Quarter 2018 has reduced expected forward gold output by approximately 15,000 ounces per quarter. As at 30 September 2018, gold hedging stood at 61,818 ounces at an average price of $1,737 per ounce.

In today’s trade Westgold arrowed down 4.348% to close at $0.990 on 25 October 2018. Moreover, WGX has witnessed 45.24% decline over the past one year.


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