Westgold H1 FY26 slides: record A$314M profit on 195koz output

Westgold Resources Ltd (ASX:WGX, TSX:WGX) presented record-breaking financial results for the first half of fiscal year 2026 on February 26, 2026, showcasing the benefits of its strategy as an unhedged gold producer in a favorable pricing environment. The Australian mid-tier gold miner doubled its revenue to A$1,238 million while building its treasury balance to A$654 million, maintaining its debt-free status throughout the period. The company's underlying net profit after tax reached A$314 million, representing a remarkable 451% increase from A$57 million in the prior corresponding period, driven by the near-doubling of revenue combined with operational leverage that expanded underlying EBITDA by 173% to A$612 million. Westgold's production performance demonstrated operational consistency with 195,000 ounces of gold produced at a group all-in sustaining cost of A$3,225 per ounce. This comprised 170,000 ounces from Westgold's mined production at an AISC of A$2,871 per ounce, generating A$517 million in net cash flow, plus 25,000 ounces from ore purchase agreements at an AISC of A$5,644 per ounce. Production ramped significantly from Q1 to Q2, with Q1 delivering 83,937 ounces and Q2 producing 111,418 ounces, maintaining stable costs throughout the period. The company's treasury build of A$550 million brought the closing balance to A$654 million, up from A$152 million a year earlier, while maintaining its FY26 guidance of producing 345,000 to 385,000 ounces at an AISC of A$2,600 to A$2,900 per ounce. Looking ahead, Westgold outlined a three-year pathway to higher production and lower costs, projecting total production increasing from 365,000 ounces in FY25 to 470,000 ounces in FY28, while simultaneously reducing AISC from A$2,666 per ounce to A$2,499 per ounce. The company also announced strategic initiatives including a planned demerger of the Comet and Reedy's projects into Valiant Gold Limited through an IPO, while maintaining enhanced shareholder returns through an updated dividend policy and share buyback program.