Westgold Resources (WGX.AX) Refreshed 3yr outlook 600koz aspiration in line with GSe, though accelerated capex moderates ne...

Equity Research 9 September 2026 | 8:08PM AEST

Westgold Resources (WGX.AX): Refreshed 3yr outlook/ 600koz aspiration in-line with GSe, though accelerated capex moderates

WGX provided a refreshed 3yr outlook to FY29, with FY27 group production to grow Hugo Nicolaci | to 385-425koz (from ~387koz in FY26) before growing further to ~425-470koz in Goldman Sachs Australia Pty Ltd FY28 and ~460-510koz in FY29, broadly in-line with the prior 3yr outlook Paul Young (mix-shift impacts between assets on recently announced mill expansion timings; | ~30koz/70koz/~40koz of third party volumes also in-line with GSe). Beyond FY29, Goldman Sachs Australia Pty Ltd

WGX also highlighted an aspirational group production target of >600kozpa Marcus Dosanjh | (largely on the inclusion of Fletcher Zone which provides a pathway to add an Goldman Sachs Australia Pty Ltd additional ~140kozpa on current reserves), in-line with GSe, where we see production growing to ~600kozpa from ~FY32 and sustained at >500kozpa until the end of the decade vs. VA Consensus peak production of ~500koz in FY30 before steeply declining to end of life by the end of the decade.

WGX guided to a higher FY27 group AISC of ~A$2,980-3,380/oz excl. OPA (vs. ~A$2,840/oz in FY26; prior GSe/VA Consensus at the top-end/mid-point respectively) reflecting higher labour, energy, and consumable costs with increased royalty payments and accelerated Murchison open pit mining. FY28 group AISC is expected to remain stable at ~A$3,000-3,400/oz before reducing in FY29 to ~A$2,640-3,000/oz (real FY27 $; prior GSe at or above the top-end with prior VA Consensus at or below the bottom-end).

WGX continue to predict group growth capex to peak in FY27, now at ~A$450-480mn (above prior GSe/VA Consensus on accelerated mine development), before declining to ~A$430-460mn in FY28 and ~A$390-410mn in FY29 (real FY27 $) broadly in-line with GSe on a like for like basis (before our Fletcher/Higginsville spend), though above VA Consensus and the prior 3yr outlook.

We remain Buy-rated, with WGX trading at ~0.80x NAV or pricing ~US$3,480/oz gold (peer average ~0.95x NAV and ~US$3,750/oz), where though near-term FCF yields are now more subdued at ~5% on accelerated mine development spend (and concurrent execution across a number of projects may add relative complexity vs. peers), medium to longer-term yields of ~7-20% remain attractive.

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Goldman Sachs Westgold Resources (WGX.AX)

Key takeaways n Group FY27 guidance & 3yr outlook: Along with FY27 guidance, WGX provided a refreshed 3yr production/AISC/capex outlook (now rolled to FY29), continuing to highlight growing production on grade/throughput/utilisation uplift, coinciding with falling unit costs and growth spend (albeit rebased higher on inflation and accelerated development spend to support future production). Importantly, despite recently declaring a maiden Fletcher Zone reserve (deemed as WGX’s largest organic growth opportunity), all Fletcher Zone development and associated capital (incl. the originally incorporated Higginsville expansion) has been excluded from the refreshed outlook as studies assessing the optimal development strategy for the broader Southern Goldfields remain ongoing. o Production: WGX expects FY27 group production to grow to 385-425koz (355-395koz organic/30koz third party purchased; from ~387koz in FY26) before growing further to ~425-470koz in FY28 (incl. ~70koz third party purchased) and ~460-510koz in FY29 (incl. ~40koz third party purchased), broadly in-line with the prior 3yr outlook (prior FY27/28 production of 420koz/470koz respectively; WGX previously expected no material group level production changes…