Mid-tier goldminers Westgold Resources and Red 5 have both hit expected production targets after grappling with labour shortages and cost pressures during the period.
Mid-tier goldminers Westgold Resources and Red 5 have both hit expected production targets after grappling with labour shortages and cost pressures during the period.
Reporting for the three months to June, Westgold revealed it had produced 68,377 ounces of gold at an all-in sustaining cost of $1,780 per ounce.
The result was up 13 per cent from the 60,512 ounces produced in the March quarter at an AISC of $2,094 per ounce.
For the full financial year, the goldminer hit the top end of its guidance range of between 240,000 and 260,000 ounces after producing 257,116 ounces.
Group gold sales generated $181 million worth of revenue for the quarter, up from $159 million recorded in the third quarter.
“Westgold’s outstanding quarter four financial year 2023 results demonstrate what our business can deliver when our teams execute to plan,” managing director Wayne Bramwell said.
“Our momentum continues, and this was the second consecutive quarter where we built cash, evidencing our cost out and business improvement programmed are beginning to be effective.
“We delivered the full year guidance as stated and start financial year 2024 from a position of financial strength."
Gold mining peer Red 5 also hit the top end of its half year production targets after a difficult start to the financial year.
The West Perth-based miner produced 61,705 ounces of gold at an AISC of $1,690 per ounce, up from the 40,869 ounces produced in the March quarter at an AISC of $2,055 per ounce.
The miner also revealed it would be targeting band of between 195,000 ounces and 215,000 ounces at an AISC of between $1,850 and $2,100 per ounce for the 2024 financial year.
Red 5 achieved an operating cash flow of $50.6 million for the June quarter and ended the period with $45.9 million worth of cash and bullion, up from $23.4 million in the prior period.
The miner set its production guidance for the 2024 financial year to between 195,000 and 215 ounces of gold at an AISC of $1,850 to $2,100 per ounce.
“The June quarter has been a watershed period for Red 5, with the King of the Hills gold mine delivering strong results for the company, both operationally and financially and with a greatly improved safety performance,” Red 5 managing director Mark Williams said.
“We have seen fourth consecutive months of record production since March, underpinning production for the June quarter of 61,705 ounces, at a quarterly all-in sustaining cost off $1,690 per ounce.
“As a result, we have achieved the upper end of our production guidance and mid-range of cost guidance for the second half of FY2023.
