September 2025 Quarterly Report

Westgold Resources released its September 2025 Quarterly Report (Q1 FY26), highlighting strong financial performance despite operational metrics being at the lower end of expectations. - Production: 83,937 ounces of gold were produced at an All-In Sustaining Cost (AISC) of A$2,861/oz. - Sales & Revenue: The company sold 94,913 ounces of gold at an average price of A$5,296/oz, generating revenue of A$503 million. - Cash Flow & Balance Sheet: The key highlight was an "underlying cash build" of A$180 million before growth and exploration spending. This resulted in a quarter-on-quarter increase of A$108 million to the treasury, with a closing balance of A$472 million in cash, bullion, and liquid investments. - Guidance: The company reiterated its FY26 guidance of 345,000 – 385,000 oz at an AISC of A$2,600 – A$2,900/oz. - Shareholder Returns: A final FY25 dividend of A$0.03 per share was paid during the quarter.

The quarterly report is a mixed bag but is assessed as Materially Positive, primarily due to the exceptional cash generation which significantly de-risks the company's ambitious growth plans.

• Operational Performance: The operational results are underwhelming. Production of ~84k oz annualizes to ~336k oz, which is at the very bottom of the FY26 guidance range (345k-385k oz). The AISC of A$2,861/oz is near the top end of the guided range (A$2,600-$2,900/oz). This continues a pattern of operational underperformance and reliance on "back-end weighted" guidance, which was a key issue in FY25 when the company ultimately missed its revised targets. This lack of consistent operational delivery remains a key risk.

• Financial Performance: The financial outcome is outstanding and is the primary driver of the positive rating. The company generated A$108M in net cash during a single quarter, boosting its treasury to a formidable A$472M. This was driven by a record high realized gold price (A$5,296/oz), which provided a massive margin of ~A$2,435/oz over AISC.

• Strategic Context: This massive cash build effectively validates the company's strategy. It provides more than enough capital to fully fund the "3-Year Outlook" growth plan announced on October 1, 2025, which aims to increase production to 470,000 oz/annum by FY28 and lower AISC. The strong balance sheet removes funding risk for this growth and supports the recently announced share buyback and enhanced dividend policy.

In essence, the record gold price is masking operational shortcomings but is simultaneously fortifying the balance sheet to a point where the company can comfortably execute the projects designed to fix those very shortcomings. The market is likely to view the de-risking of the balance sheet and the funding of the growth plan as more significant than the soft start to the year's operational figures.

Westgold Resources is a major Australian gold producer, becoming one of the top five in the country following its merger with Karora Resources in mid-2024. The company operates exclusively in Western Australia and is dual-listed on the ASX and TSX.

The company's operations are centered around two main "hubs": - Murchison Operations: Includes the Meekatharra, Cue, and Fortnum processing hubs fed by several underground and open-pit mines. The key growth asset here is the Bluebird-South Junction underground mine. - Southern Goldfields Operations: Acquired through the Karora merger, this includes the Higginsville processing hub and the flagship Beta Hunt underground mine. Beta Hunt is a major growth asset, with recent exploration success at the Fletcher Zone significantly expanding its potential scale.

The company's strategy is to leverage its large, integrated infrastructure to become a +470,000 oz per annum producer by FY28 by expanding its largest, lowest-cost mines.