Westgold Resources has ridden the wave of a higher achieved gold price during the first half of the 2024 financial year, recording a net profit after tax of $43.78 million, up from a $11.14 million loss during the prior corresponding period.
Westgold Resources has ridden the wave of a higher achieved gold price during the first half of the 2024 financial year, recording a net profit after tax of $43.78 million, up from a $11.14 million loss during the prior corresponding period.
This favourable outcome was achieved despite the goldminer telling the market on January 31 it had been impacted by cost pressures due to the labour market throughout the second quarter of 2024.
Westgold generated $363 million in revenue, up 15 per cent from the first half of 2023. This was aided by a higher achieved gold price of $2,963 per ounce, as from August last year the company said it was free of fixed forward contracts.
Despite the increase, a 5 per cent reduction in gold production - from 128,228 to 122,342oz - offset some of this gain, due to lower mined grades and COVID-19-related absenteeism impacting Westgold's Bluebird and Paddy's Flat operations.
During its December 2023 quarterly report, the goldminer said it remained on track to hit its annual production guidance of 245,000-265,000oz. Mine management changes, coupled with increased personnel at Bluebird, were likely to enhance third quarter productivity, it said.
The company's earnings before interest, tax, depreciation and amortisation also grew by 132 per cent, from $63 million to $146 million, while the board has declared an interim dividend of 1 cent per share, unfranked, which will be paid on April 12.
"Looking forward, we see opportunity to continuously improve in all areas of our business," managing director and chief executive officer Wayne Bramwell said.
"Safety, productivity and profitability are essential to building a sustainable business and with a clear focus, we look to second half of the 2024 financial year with confidence.”
Late last year, Westgold told the market its subsidiary Big Bell Gold Operations had received a prosecution notice from the Department of Energy Mines Industry Regulation and Safety, in relation to a workplace fatality in 2020 at its Big Bell mine, located near Cue the Mid West.
Mr Bramwell said the tragedy had affected everyone within the business, which had spearheaded a transformation of the organisation's safety culture.
Westgold last traded at $1.88 per share, up 2 per cent, as of 9.57am AWST.
