Westgold Resources Limited

Good morning, everybody, and welcome to Westgold's Q3 FY26 quarterly webinar. Your first speaker for today's call is Wayne Bramwell, CEO and Managing Director. Over to you, Wayne.

Thank you, and hello, everyone. Welcome to Westgold's March 2026 quarterly results call. Joining me today is Aaron Rankin, our Chief Operating Officer, and Tommy Heng, our Chief Financial Officer. I'll begin with a high-level overview of the quarter in the broader business context. before handing to Aaron and Tommy to cover operations and financials in more detail. Then we'll open up the line for Q&A. Let's start with the highlights. Slides 4 and 5 represent the Q3 numbers. Q3 delivered continued cash generation, solid production delivery and further balance sheet strength. Westgold produced 93,145 ounces of gold during the quarter at an all-in sustaining cost of $2,931 per ounce, excluding the all-purchase agreement. With the all-purchase agreement, all-in sustaining costs rose to $3,338 per ounce. Importantly, the business delivered an underlying cash build of $285 million for full growth capital, exploration spend and one-off items. This translated to a $202 million increase in Treasury, closing the quarter with $156 million in cash, bullion and liquid investments. These outcomes reflect a business that is now starting to operate with scale, resilience and growing financial flexibility, and importantly, do so while remaining unhedged and fully exposed to the gold price. Now let's turn to what's driving that momentum. Slide number six. the waterfall. This slide highlights the momentum that has been building steadily across Westgold's business. Year to date in FY26, we've generated $492 million in treasury growth, reflecting consistent operating performance, strong margins and disciplined capital allocation. What's important here is that this momentum isn't just gold price driven. It's underpinned by deliberate operational improvements, portfolio simplification and a disciplined approach to investment, all of which are strengthening margins and balance sheet capacity. This financial strength gives us flexibility, flexibility to fund organic growth, absorb volatility and continue returning capital to shareholders. Slide number seven, guidance. Turning to guidance, we remain on track to deliver FY26 production of 345,000 to 385,000 ounces. with costs expected to finish towards the top end of cost guidance. We're reflecting both broader inflationary pressures and deliberate operational decisions taken to maximise free cash flow. With 289,000 ounces produced at the end of Q3 and key constraints now largely addressed at our major underground operations, we are well positioned heading into Q4. Slide 8, our three-year outlook. Our three-year outlook continues to provide a clear and executable pathway, growing production to 470,000 ounces by FY28, while structurally reducing our cost base. It is essentially a mine mill optimisation strategy that will see us invest sensibly in our mines and mills to allow us to maximise and better match our milling capacity with higher grade ore sources. replacing lower grade sources to produce more gold at a higher margin. This remains a conservative baseline, is fully funded and is based on our existing assets. It excludes material upside opportunities that we are actively progressing across both regions, such as the Murchison Open Pit Program that we started ahead of schedule this quarter. With that context, I'll now hand over to Aaron to take you through the operational performance in more detail. Thanks Wayne and hello to everyone on the call. Slide 10. As we guided the market, Q3 was a softer quarter following a particularly strong Q2 performance. Grades normalised this quarter, reflecting mining sequence at Starlight, which materially outperformed in Q2. As expected, we processed lower tonnes and grades from the NMG OPA, which contributed to the lower production. At Beta Hunt, Ventilation constraints emerged during the quarter. However, this did not have a material impact on Tier 3 production outcomes due to the availability of stockpiled ore. Regarding costs, the AISC, excluding the OPA, was consistent quarter on quarter. Our cost discipline is increasingly evident against the backdrop of increasing inflationary pressures. From Q3, the OPA is based on the full margin to the gold price. This performance has allowed us to take advantage of the higher gold price environment, which has driven an uplift in realised prices and a corresponding expansion in AISC margins. Slide 11. Turning to mining and processing performance in Q3. I'll step through the key drivers behind tons, grade and throughput. As previously mentioned at Beta Hunt, ventilation constraints emerged during the quarter, following a bearing and drive shaft failure in both primary ventilation fans post-commissioning. This created a temporary ventilation restriction which required mining to be focused in lower grade upper areas of the mine. As a result, waste mines' tons and grades at Beta Hunt were impacted during Q3. Pleasingly, development rates continued to improve quarter on quarter at Beta Hunt, despite the ventilation impacts. Importantly, the ventilation constraints did not materially affect gold production. The stockpiles across the Higginsville hub were utilised to maintain mill feed. Since quarter end, the fans have been repaired and ramped up to a level where ventilation is no longer a constraint. Further engineering work is underway to address what has been identified as an underlying design fault. Total mine tons were lower in Q3, reflecting the beta hunt constraints and the absence of late cow and open pits, which concluded in Q2 and contributed strongly to mine tons in that quarter. This was more than offset by continued strong performance across the Murchison operations, where all mines delivered solid quarter-on-quarter tons growth. In particular Bluebird South Junction continued to ramp up during the quarter achieving an annualised mining rate of close to 800,000 tonnes per annum in Q3 and remains on track to reach the targeted 1 to 1.2 million tonnes per annum run rate by the end of Q4. Grades were also lower quarter on quarter, driven by the normalisation of stalite grades following its outperformance in Q2, lower grades mined at Beta Hunt during the ventilation restriction, and softer grades from Two Boys. All process was lower, primarily due to planned maintenance downtime across all mills during the quarter. This was partially offset by increased processing of soft oxide material at Mekatara. Finally, milk grades were impacted by the combination of lower mine grades and reduced OPA tums and grade during the quarter. Slide 12 shows gold production via HUB. with movements broadly reflecting the grade and mining drivers discussed on the prior slide. At Fortnum, the quarter-on-quarter decline primarily reflects the normalisation of starlight grades following strong outperformance in Q2. The Megathara hub saw lower grade and production, driven mainly by reduced OPA tons and grade, partially offset by improved underground performance at Bluebird South Junction. Production at the Q hub was broadly consistent quarter-on-quarter. We expect a stronger performance in Q4 following the completion of ventilation upgrades at Big Bell, which address vent restrictions that constrain output in Q2 and Q3. Finally, the Higginsville hub delivered slightly lower grades with Beta Hunt Mine Door supplemented by stockpile consumption, which helps support overall production levels during the quarter. With that, I'll hand over to Tommy.

Thanks Aaron, and hello to everyone on the call today. Slide 40. highlights the strength of cash generation from operations during the quarter, the key to a successful and sustainable business. Gold sales were lower in Q3, driven primarily by sales timing. We had 3,000 kilo ounces in inventories at the end of the quarter, valued at $225 million. We've since lowered this balance in Q4. Importantly, realized gold prices remain strong, reflecting our unhedged position and full exposure to the rising gold price environment. On the cost side, Performance remained largely consistent quarter on quarter, underscoring continued cost discipline across the business. Looking forward, we have a clear pathway to structurally lower costs over the three-year outlook. This is underpinned by higher milled grades, reduced long-distance haulage of lower-grade material, and sensible upgrades to milling infrastructure to improve efficiency. Strong margins have translated into meaningful uplifts in net mine cash flow over the past two quarters, supporting a growing treasury balance. During the coil, we have upsized our revolving credit facility to $600 million. This was executed from a position of strength allowing us to secure attractive terms, including the debt being unsecured with no requirements to hedge and available for general corporate purposes. As a result, when combined with our closing treasury position of $856 million, our total available liquidity now stands at $1.45 billion, providing significant balance sheet capacity and strategic flexibility. I'll speak to our cash flow on the following slide. Slide 15. During Q3, we delivered a treasury balance of $202 million, closing the period with cash, bullion and listed investments of $856 million. This outcome reflects strong underlying operational cash flows supported by higher margins and ongoing cost discipline. Underlying cash build was $285 million before $3 million in capital returns through share buybacks, $94 million growth and exploration spend, and $14 million in one-off cash inflows from the sale of Mont Henry Serene. We have built franking credits this quarter with $34 million in cash tax payments comprising a true-up of FY25 tax and insolvency for FY26. During the quarter, we also had growth in our listed investments balance with both our holdings in Cali Metals and Black Cat Syndicate coming out of ASCO. All up, we finished the quarter in a strong position. Our balance sheet is exceptionally healthy, ensuring we are well funded to execute our growth strategy. Slide 16. Before I hand back to Wayne to wrap up, I'd like to touch briefly on shareholder returns. Westfield continues to deliver on its commitment to returning capital to shareholders. We declared a 3 cents per share final dividend for FY25 and upgraded our dividend policy for FY26 to reflect our growing confidence in the business and its cash generating capacity. In addition, we launched an on-market share buyback program, a clear signal of our belief in the underlying value of the company and our disciplined approach to capital management. Since inception, we have progressively acquired $4.3 million of shares on market outside blackout periods. These initiatives are underpinned by strong cash generation with a continued growth in treasury and liquidity, resulting in building a robust balance sheet. As mentioned in the prior slide, during the quarter, we paid $34 million in tax, further strengthening our franking credit position for future fully franked dividends to shareholders. Together, this balance sheet strength and capital discipline positions us well to continue rewarding shareholders while maintaining flexibility to invest in growth and optimization across the portfolio. With that, I'll hand back to Wayne.

Impressive balance sheet, Tommy. Many thanks. Slide 18. 23 Jewel Rigs. I'd like to touch briefly on expiration. Our exploration guidance for FY26 is $50 million, and I'm pleased to see we are on track to deliver this, supported by 23 drill rigs operating across our two regions. At Beta Hunt in the Southern Goldfields, we have eight rigs currently drilling, with the majority of this work focused on reserve and resource upgrades that will coincide with our group resources and reserves update, which we typically release in September. At Bluebird South Junction, Drilling continues to focus on extensions and definition across South Junction and Polar Start, supporting our confidence in the longevity and quality of this corn line which continues to grow. We are also running a surface drill program at Cutting Warra near Kew to define extensions to the Murchison Open Pit program. This program commenced around three months earlier than planned, which is a credit to the tireless efforts of our team and our open pit contractor, Big Yellow. While the open pits will not contribute substantial ounces in this financial year, they are strategically important. They secure approximate higher grade ore supply for both the Mekithara and Kew hubs, improving optionality, flexibility and feed quality across the Murchison over the next three years from FY27. Slide 19, organic growth. During Q3, the board approved the final investment decision for the Higginsville expansion, confirming the technical and financial robustness of the project. The expansion will lift Higginsville mill capacity from 1.6 million tonnes to a nominal 2.6 million tonnes per annum and materially improve margins through lowering our unit processing costs. In addition, the expansion has been designed to be easily expandable to 4 million tonnes per annum with an oversized crushing and grinding circuit. Following board approval, we moved quickly in early Q4, investing 16 million to secure long lead items critical to the project. This includes the sag mill, primary crusher, pebble crusher, classification screens, apron feeders and the tailing thickener. In parallel, we have commenced the EPC tender process which is expected to run for around 10 weeks with contract award anticipated shortly after. Slide 20, simplifying the portfolio. Slide 20 highlights the continued execution of our portfolio simplification strategy during the quarter. During Q3, Westall completed the divestment of the Mount Henry Selene Gold project to Alacanto Minerals and executed the spin-out of the Reedy and Comet assets into the newly ASX-listed Valiant Gold. Collectively, these transactions delivered approximately $140 million of immediate value to our shareholders, with up to a further $30 million in deferred value. These outcomes are consistent with our deliberate strategy to focus capital and management attention on our core, high margin operating assets, while unlocking value from non-core holdings that sit outside our long term plans. we've retained exposure to future upside through strategic equity positions, participating alongside Alicanto at Mount Henry Saleen and through our Cornerstone shareholding in Valiant. We continue to progress divestment processes for Pekill and Chalice, both of which remain non-core to Westgold's operating strategy and can unlock further value for our shareholders. Slide 21, our value proposition. To close, Westgold is executing clearly against its strategy. Operational performance remains disciplined with short-term variability managed through balance sheet strength and cost control. At the same time, we are investing through the cycle, simplifying the portfolio, advancing growth projects and expanding our processing capacity to support higher margins and stronger cash generation. We are on track for guidance. and expecting a solid Q4 with our key growth assets Bluebird South Junction and Beta Hunt remaining on track to deliver their targeted runner rates by the end of this financial year. We are a large unhedged gold producer across two regions of WA. We have long life assets and continue to extend mine lives by drilling. Importantly, we are funded to deliver our three year outlook. Our balance sheet continues to strengthen with cash flow generation growing. Lastly, we are increasing shareholder returns with a dividend and buyback program in place. In closing, Q3 was steady as you go. No fanfare, just cash build. I will now open the call up to questions. Thank you.

Thanks, Wayne. We've got a number of questions through already, so we'll hop onto those. If you would like to ask a question as well, please enter your question into the chat in the meantime. I'll start here with a question from Al Harvey. Thanks, Al, for your questions. And Al asks, it's not already covered, which we can talk about it some more. He's inquiring about the increase in bullion in the quarter. Was there an operational reason for this? Or is this an active management decision? Why was that not converted to cash? I'll let Wayne respond to that one.

Thanks for the question, Al. To answer your question, it was an active management decision. I mean, we hold bullion when the gold price is dropping and we sell into the gold price as it goes up. The balance sheet is so strong now, we have the optionality to do this and that's an active management decision.

Thanks, Wayne. And another question from Al. Any additional info on remaining divestments, particularly And Chalice, these timeframes, anything else in our non-operating resources that we think could be viewed as non-core, Rayne?

Two questions. So PQ and Chalice are very close on both and hoping to be able to announce that during Q4. In terms of other non-core assets, well, we still have one underground line on care and maintenance, which is Paddy's Flat. That one is now being reworked as a potential large open pit with open pit drilling starting at Paddy's a week or so ago. So in the short term, that's after concluding Pequil and Chalice, that'll be it for now.

Thanks, Wayne. And a question here from Paul. Paul, he's asking, at Bluebridge South Junction, how have the ground conditions been holding up since the change in mining method? And I'll let Aaron answer that question for you.

Thank you, Paul. Yeah, look, the ground conditions at Bluebird are very much under control with our new support and design regimes. To the point, our best performing jumbos in the business now reside at Bluebird. We're outperforming our own internal development targets quite significantly. It's going very well.

Thanks for that, Aaron. And while we've got Paul's questions up, Paul's asking, even our cash liquidity position Why was the buyback not used more? Wayne, would you like to respond to that one?

Sure. Thanks again, Paul. We've got two mechanisms to return capital to shareholders. One's buyback, one's dividends. We're doing both. During the quarter, the focus was very much on the operational issues. And again, for a lot of the quarter, we were in a blackout period for lots of different reasons. And the blackout period's not well understood. We can't buy stock within the month where we issued a quarterly, so that boxed out a lot of time and that precluded the amount of days we could buy. Long story short, we're going to do both. We're funded to do both and we'll continue to do both over the next quarter with the key objective of being a very large, fully frank dividend at the end of the full year.

Thanks for that, Wayne. Ganesh is asking if addressing the ventilation design concerns, if the fixes involved will incur any production interruptions. I'll let Aaron respond to that one.

Thank you Ganesh. The ventilation as of today is not a constraint on our mining operations and the repairs we don't expect to have any material impact going forward. They can be done.

Alright, thank you for that. We're just triaging some more questions coming through. In the Higginsville expansion plan we've allowed for an oversized crushing circa up to 4 million tonnes per annum. We've got a question here from Al Harvey asking what projects or targets in the southern goldfields would be logical feed sources to justify further upsizing the mill and do we think that beta hunt with Fletcher and Mason could be mined at that rate or is there a requirement to get oil from other targets? two boys, I think. Aaron, would you like to respond to that one?

Thank you, Al. As we covered in the presentation, we've got eight grills on Fletcher at the moment. We don't know how big this thing is. We haven't done the study work yet, but largely we would expect that it comes from the Beta Hunt tenements.

Thanks very much, Aaron. And we've got a question here from Hayden. Hi, Hayden. Hayden's asking, Hi, Wayne. Should shareholders expect a dividend in addition to the buyback? Wayne, what do you say to that?

Easiest question today. The answer? Yes.

There you go, Hayden. Another question here. When do we get the expiration update? Any chance that some results will be released earlier? This question is from Ganesh, and I will hand that one to Wayne.

Thank you, Ganesh. Every chance, but the real focus is working towards the resource and reserve update in September.

Thank you for that. And another question here from Ganesh. Ganesh is saying, Nicol is making some noise. Any government support in revisiting the same in Peterhunt way?

I can take that one. The West Australian government has recently set up a $15 million fund to assist nickel juniors to get back into the market. We won't need that money, and we are actually actively doing work on nickel as a part of our ongoing strategy. We're sitting on a lot of nickel units in Beta Hunt, and even though we don't speak about it, we are very conscious of the value in ground.

All right, question here from... Next up, let's just see, sorry, I'm just scrolling through those if you'd like to give me a moment. One moment, please. Well, we've just worked through these and see which ones we've already answered. I think there's a lot of duplication here, so just bear with us for one moment. Just having had a look through all of the questions that come through this, I think the rest are duplicates of the questions that have already been answered. So I think we might have answered them all actually. If you'd like just any final questions, please enter them now. I'll hand over to Wayne then just to wrap it up. But thanks, everyone, for joining us and thank you for your questions. I'll hand over to Wayne to make some closing remarks. Wayne?

Thank you, Annette, and thanks for everyone who patched in today. As I said, and to recap, it was steady as it goes in Q3. We're hitting Q4 in good shape and once removing some of these niggling infrastructure issues, it's full steam ahead. It's all about cash building in this financial year and setting up for a large dividend and continuation of the share buyback. We're funded to do both.

Thanks, Paul. Thank you for joining us.