Cue Hub Expansion to 1.7Mtpa in FY28
Westgold increases its Cue hub capacity to 1.7Mtpa with A$22M capex, adding 15kozpa of production.
Westgold Resources Limited announced a debottlenecking expansion of its Cue processing hub, increasing capacity from 1.4Mtpa to 1.7Mtpa. The project, which primarily involves upgrading the mill motor and ancillary equipment, carries an indicative capital cost of A$14M–A$22M, with A$22M considered the most likely figure. The company estimates a rapid 10-month payback period and expects to add approximately 15kozpa to Cue production from FY28 onward.
The release includes a scoping study outlining a life-of-mine (LoM) all-in sustaining cost (AISC) of A$2,916–A$3,564/oz and a net present value (NPV) of approximately A$1.1B at a gold price of A$5,500/oz. Westgold’s balance sheet holds A$939M in cash and liquid investments, alongside an undrawn A$600M credit line, providing sufficient liquidity to absorb the capital expenditure.
Westgold Resources Limited (WGX) is advancing its Cue expansion, a project that adds approximately 4% to group production, or 15,000 ounces, on a base of roughly 400,000 ounces. The initiative requires a modest capital outlay of A$22 million, with a swift payback period that the company’s balance sheet can fund more than 40 times over.
A scoping study places the all-in sustaining cost (AISC) range between A$2,916 and A$3,564 per ounce. This figure includes all life-of-mine sustaining costs and is based on a gold price assumption of A$5,500 per ounce. With actual spot gold prices currently higher than that assumption, margins remain robust.
While the earlier plan already called for an increase in throughput to 1.5 million tonnes per annum (Mtpa), the upgrade to 1.7 Mtpa represents a genuine, albeit small, positive surprise.
Westgold Resources Limited (WGX) is an unhedged ASX 100 gold producer operating two regions in Western Australia: the Murchison area, which includes three processing hubs at Fortnum, Meekatharra, and Cue, and the Southern Goldfields region with the Higginsville hub. The company’s total processing capacity stands at approximately 5.7 million tonnes per annum (Mtpa), with plans to expand this to over 6.4 Mtpa.
In fiscal year 2026, production reached 387,000 ounces (koz). The company maintains a robust mineral resource base of 16.3 million ounces (Moz) and reserves of 3.5 moz, supporting a mine life exceeding 10 years. Westgold has divested or spun out non-core assets, including Valiant Gold, Peak Hill, Chalice, and Mt Henry-Selene.