Westgold posts a solid quarter

Higher average head grades and higher tonnage of ore mined saw Westgold produce 60 797 oz of gold during the quarter under review, up from the 59 783 oz produced in the previous quarter.

The company said on Friday that gold production for the quarter was in line with the guidance of between 60 000 oz and 67 500 oz, while all-in sustaining costs (AISC) for the quarter beat the guidance of between A$1 550/oz and A$1 640/oz, at A$1 459/oz.

Gold sales for the September quarter declined from 66 234 oz to 60 030 oz, while the achieved gold price increased from A$2 294/oz to A$2 422/oz.

The company told shareholders that its hedge position stood at 7.5% of its overall reserves, with hedged ounces totalling 186 000 oz, at an average receivable price of A$2 083/oz at the end of the quarter.

Westgold is currently delivering 6 000 oz a month into its hedge book, or around 25% to 30% of its expected output, and this level of delivery is expected to remain constant for the coming financial year.

For the full 2021 financial year, Westgold has set a production target of between 270 000 oz and 300 000 oz, at an AISC of between A$1 460/oz and A$1 560/oz.