Westgold Resources expects to produce more than 250,000 ounces of gold in the 2022 financial year, more than doubling its output from five years ago.
The company’s guidance for the fiscal year has been increased to 270,000 ounces of gold. In the 2020-21 financial year, the company produced 245,411 ounces.
Westgold chief executive officer Debbie Fullarton said its gold production had increased annually since 2019.
“In the 2022 financial year, Westgold’s gold production is expected to grow again to more than 270,000 ounces as the Big Bell, Bluebird and South Emu-Triton mines achieve higher levels of output.
“Provided production inputs like labour, mining equipment and consumables don’t continue to rise excessively, we are poised to deliver another solid performance in the 2022 financial year.
“With this backdrop and continuing proactive cost management, the strategy for the 2022 financial year is focused on lifting grade and cost optimisation within our mines so as to continue building financial strength to fund Westgold’s organic and regional growth aspirations.”
The company anticipates that its all-in sustaining cost (AISC) will be between $1500 and $1700 per ounce this financial year.
Westgold’s production in the 2020-21 financial year was impacted by labour shortages and lower overall grade milled.
Executive chairman Peter Cook said border restrictions, labour availability and weather impacts constrained production during the June quarter, though several positives begin to shine through.
“Increased draw points at Big Bell, the restart of the expanded Bluebird mine and the commencement of stoping from the Triton North lodes at Reedy’s all provide catalysts for a lift in gold production from these key underground mines during next quarter,” Cook said.
“Our operational focus is now on lifting mine grades to ensure reliable and continuous delivery of our operational targets whilst our corporate focus remains on growth and expansion from greenfield and brownfield exploration or regional growth through acquisition.”
Westgold has two operational centres including the Fortnum gold operation and Central Murchison gold project in Western Australia.