Good morning, everybody, welcome to Westgold's Q3 FY 2026 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 Rankine, our Chief Operating Officer, and Tommy Heng, our Chief Financial Officer. I'll begin with a high-level overview of the quarter and the broader business context before handing to Aaron and Tommy to cover operations and financials in more detail. We'll open up the line for Q&A. Let's start with the highlights. Slides four and five 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 AUD 2,931 per ounce, excluding the ore purchase agreement. With the ore purchase agreement, all-in sustaining costs rose to AUD 3,338 per ounce.
Importantly, the business delivered an underlying cash build of AUD 285 million, before growth capital, exploration spend, and one-off items. This translated to a AUD 202 million increase in treasury, closing the quarter with AUD 856 million in cash, bullion, and liquid investments. These outcomes reflect the business that is now starting to operate with scale, resilience, and growing financial flexibility, and importantly, doing so while remaining unhedged and fully exposed to the gold price. 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 FY 2026, we've generated AUD 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 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 FY 2026 production of 345,000 ounces-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 maximize 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 eight, Our Three-Year Outlook.
Our three-year outlook continues to provide a clear and executable pathway, growing production to 470,000 ounces by FY 2028, while structurally reducing our cost base. It is essentially a mine/mill optimization strategy that will see us invest sensibly in our mines and mills to allow us to maximize 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. 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 normalized this quarter, reflecting mining sequence at Starlight, which materially outperformed in Q2. As expected, we processed lower tons and grades from the NMG OPA, which contributed to the lower production. At Beta Hunt, ventilation constraints emerged during the quarter. This did not have a material impact on Q3 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 realized 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 tonnes, 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, both mined tonnes 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 as stockpiles across the Higginsville Hub were utilized 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 mined tonnes were lower in Q3, reflecting the Beta Hunt constraints and the absence of Lake Cowan open pits, which concluded in Q2 and contributed strongly to mined tonnes in that quarter. This was more than offset by continued strong performance across the Murchison operations, where all mines delivered solid quarter-on-quarter tonnes growth. In particular, Bluebird South Junction continued to ramp up during the quarter, achieving an annualized mining rate of close to 800,000 tonnes per annum in Q3 and remains on track to reach the targeted 1 million-1.2 million tonnes per annum run rate by the end of Q4.
Grades were also lower quarter-on-quarter, driven by the normalization of Starlight grades following its outperformance in Q2, lower grades mined at Beta Hunt during the ventilation restriction, and softer grades from Two Boys. Ore processed 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 Meekatharra. Finally, milled grades were impacted by the combination of lower mined grades and reduced OPA tonnes and grade during the quarter. Slide 12 shows gold production by 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 normalization of Starlight grades following strong outperformance in Q2. The Meekatharra Hub saw lower grade and production, driven mainly by reduced OPA tonnes and grade, partially offset by improved underground performance at Bluebird South Junction.
Production at the Cue 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 constrained output in Q2 and Q3. Finally, the Higginsville Hub delivered slightly lower grades with Beta Hunt mined ore supplemented by stockpile consumption, which helped 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 14 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 33,000 kilo ounces in inventories at the end of the quarter, valued at AUD 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 quarter, we have upsized our revolving credit facility to AUD 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. When combined with our closing treasury position of AUD 856 million, our total available liquidity now stands at AUD 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 AUD 202 million, closing the period with cash bullion and listed investments of AUD 856 million.
This outcome reflects strong underlying operational cash flows, supported by higher margins and ongoing cost discipline. Underlying cash build was AUD 285 million before AUD 3 million in capital returns through share buybacks, AUD 94 million growth and exploration spend, and AUD 14 million in one-off cash inflows from the sale of Mt Henry-Selene. We have built franking credits this quarter with AUD 34 million in cash tax payments, comprising a true-up of FY 2025 tax and installments for FY 2026. During the quarter, we also had growth in our listed investments balance with both our holdings in Kali Metals and Black Cat Syndicate coming out of escrow. 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. Westgold Resources continues to deliver on its commitment to returning capital to shareholders. We declared a AUD 0.03 per share final dividend for FY 2025 and upgraded our dividend policy for FY 2026 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 AUD 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 AUD 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 drill rigs. I'd like to touch briefly on exploration. Our exploration guidance for FY 2026 is AUD 50 million. 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 Star, supporting our confidence in the longevity and quality of this core mine, which continues to grow. We are also running a surface drill program at Cuddingwarra near Cue 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 proximate higher-grade ore supply for both the Meekatharra and Cue hubs, improving optionality, flexibility, and feed quality across the Murchison over the next three years from FY 2027. 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 tons to a nominal 2.6 million tons 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 tons per annum with an oversized crushing and grinding circuit. Following board approval, we moved quickly in early Q4, investing AUD 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 tailings 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, Westgold completed the divestment of the Mt Henry-Selene Gold Project to Alicanto Minerals and executed the spin-out of the Reedy and Comet assets into the newly ASX-listed Valiant Gold.
Collectively, these transactions delivered approximately AUD 140 million of immediate value to our shareholders, with up to a further AUD 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. Importantly, we have retained exposure to future upside through strategic equity positions, participating alongside Alicanto at Mt Henry-Selene and through our cornerstone shareholding in Valiant. We continue to progress divestment processes for Peak Hill 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 run 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, 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. Al asks, "If not already covered," which, we can talk about it some more, the
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 this 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. Another question from Al. Any additional info on remaining divestments, Peak Hill and Chalice loose timeframes, anything else in our non-operating resources that we think could be viewed as non-core, Wayne?
Two questions. Peak Hill and Chalice. 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 mine 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 in a week or so ago. In the short term, that's after concluding Peak Hill and Chalice, that'll be it for now.
Thanks, Wayne. A question here from Paul Taylor. Hey, Paul, he's asking at Bluebird South Junction, how have the ground conditions been holding up since the change in mining method? 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 really well.
Thanks for that, Aaron. While we've got Paul's questions up, Paul's asking, given 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. Again, for a lot of the quarter, we were in a blackout period for lots of different reasons. The blackout period's not well understood. We can't buy stock within the month where we issue the quarterly, so that knocks out a lot of time, and that precluded the amount of days we could buy. Long story short, we're gonna 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 franked dividend by, 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. The repairs, we don't expect to have any material impact going forward. They can be done.
All right. 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 circuit up to 4 million tons per annum. We've got a question here from Al Harvey asking what projects or targets in the southern gold fields would be logical feed sources to justify further upsizing the mill? Do we think that Beta Hunt with Fletcher and Mason could be mined at that rate? Is there a requirement to get ore from other targets such as Two Boys, I think. Aaron, would you like to respond to that one?
Thank you, Al. Yeah, as we covered in the presentation, we've got eight drills 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. We've got a question here from Hayden Bairstow. 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 exploration updates? Any chance that some results will be released earlier?" This question 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. Another question, here from Ganesh. Ganesh is saying, "Nickel is making some noise. Any government supports and revisiting the same in Beta Hunt, Wayne?
I can take that one. The West Australian Government has recently set up an AUD 50 million fund to assist nickel juniors to get back into the market. We won't need that money. 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. 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, while we've just work through these and see which ones we've already-
Double check the questions.
Which ones we've already answered. I think there's a lot of duplication here. If you'll just bear with us for one moment. just having had a look through all of the questions that come through, there's, I think the rest are duplicates of the questions, that have already been answered. I think we might have answered them all, actually. if you'd like, just any final questions, please enter them now. No? I'll let, I'll hand over to Wayne then just to wrap us up. 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 you go's 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 to, for a large dividend and continuation of the share buyback. We're funded to do both.
Thanks, all. Thank you for joining us.