2.9Mtpa Meekatharra Expansion Plan
Westgold targets a 2.9Mtpa Meekatharra operation with $100m in brownfields investment and a final investment decision expected in late fiscal year 2027.
Westgold Resources Limited (WGX) released a Scoping Study for the Meekatharra Expansion Plan (MXP), proposing to lift Meekatharra processing capacity from 1.8Mtpa to 2.9Mtpa, a ~61% increase, with target commissioning in FY28. The expansion is brownfields: parallel crushing and a single-stage SAG milling circuit integrated with existing downstream leach, adsorption and gold recovery infrastructure.
Indicative capital is ~A$100M, the upper end of a A$65M–A$100M scoping range with ±35% accuracy. Payback is estimated at ~9 months. The study models an additional ~47kozpa gold production, taking MXP life-of-mine production to 1.5–1.8moz over 10 years, up from 1.2moz recovered ounces in the current arrangement.
MXP LoM AISC is $1,968–$2,406/oz, with an approximate midpoint of $2,187/oz. At a $5,500/oz gold price, MXP LoM NPV is ~$1.9B, pre-tax undiscounted cash flow ~$3.2B, and NPV improvement versus the current plan is ~$1.1B. At $6,000/oz spot, absolute NPV rises to ~$2.4B.
The production target is 31% Ore Reserves, 44% Measured and Indicated Resources, 14% Inferred Resources, and 11% third-party ore. Inferred material is not scheduled until FY35, after forecast recovery of expansion capital. Next steps are feasibility-level work, FEED and execution planning, with a potential investment decision targeted for late FY27.
Westgold Resources Limited (WGX) has announced that its Meekatharra Expansion Project (MXP) is materially larger than the previously disclosed Meekatharra expansion assumption of 1.8Mtpa to 2.0Mtpa in the 3-Year Outlook. The proposed ~47kozpa uplift represents approximately 12% over the record FY26 production of 387,354oz. At a gold price of $5,500/oz, the project offers a ~$1.1B NPV improvement, which is roughly 19% of Westgold’s current market capitalization, indicating that the scale is market-relevant if the scoping study converts to reality.
However, this remains a scoping study rather than a final investment decision (FID), carrying ±35% capital accuracy with no committed construction decision until late FY27. The stock has already rallied strongly into this release, moving from $4.29 on 17 July 2026 to $6.22 on 24 August 2026, a 45% move. Some expansion optimism is therefore already priced into the shares.
Westgold Resources Limited, an unhedged Western Australian gold producer listed on the ASX and TSX under ticker WGX, operates two regions and four processing hubs: Fortnum, Meekatharra, Cue, and Higginsville. Its key mines include Bluebird–South Junction, Big Bell, Great Fingall, Starlight, Beta Hunt, and Fender, along with multiple open-pit and stockpile feed sources. Beta Hunt also carries nickel mineral resources.
The company reported a record FY26 gold production of 387,354oz. Its portfolio has been streamlined through divestments, with Mt Henry–Selene, Peak Hill, and Chalice sold, and Reedy/Comet spun out into Valiant Gold.