Westgold Resources FY26 Results: Net profit up 452% to $480M
- Underlying NPAT surged 452% YoY to $480M, driven by record gold production and higher realized prices
- Revenue grew 79% to $2,441M with EBITDA margin expanding to 45% from 37%
- Free cash flow jumped to $602M, boosting treasury balance to $939M; company remains debt-free
- Board declared 10cps fully franked final dividend and approved $50M buyback for FY27
*this image is generated using AI for illustrative purposes only.
Westgold Resources Limited (ASX: WGX) reported a 452% year-on-year rise in underlying net profit after tax (NPAT) to $480 million for the fiscal year ended June 30, 2026. The Australian gold miner also declared a fully franked final dividend of 10 cents per share, significantly above its minimum commitment.
The Perth-based company delivered record financial outcomes driven by a combination of volume growth and favorable commodity pricing. Revenue climbed 79% to $2,441 million, while underlying earnings before interest, tax, depreciation, and amortization (EBITDA) more than doubled to $1,104 million.
Operational Drivers
Westgold produced a record 387,354 ounces of gold in FY26, a 19% increase from the previous year’s 326,384 ounces. Sales volumes rose even sharper at 26%, reaching 390,358 ounces as the company drew down inventory.
The revenue expansion was fueled by both higher output and a substantial jump in realized gold prices. The achieved gold price rose 42% to $6,238 per ounce, compared to $4,387 per ounce in FY25. Despite industry-wide inflationary pressures, all-in sustaining costs (AISC) remained relatively stable, increasing just 7% to $2,841 per ounce.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Gold Produced (oz) | 387,354 | 326,384 | +19% |
| Gold Sales (oz) | 390,358 | 308,979 | +26% |
| Achieved Price ($/oz) | 6,238 | 4,387 | +42% |
| AISC ($/oz) | 2,841 | 2,666 | +7% |
Financial Performance
Underlying EBITDA margins expanded to 45% from 37% in the prior year, reflecting strong operating leverage. Operating cash flow surged 170% to $964 million, enabling significant balance sheet strengthening.
Free cash flow jumped from $5 million in FY25 to $602 million in FY26. This robust generation allowed Westgold to build its treasury position by $575 million, closing the year with $939 million in cash and remaining 100% debt-free. The company is also fully unhedged against gold price movements.
Statutory NPAT stood at $443 million, slightly lower than the underlying figure due to losses on asset sales ($119 million) and assets held for sale ($5 million), partially offset by an $85 million tax adjustment benefit.
Shareholder Returns
Management returned approximately $122 million to shareholders in FY26 through dividends and on-market buybacks. The declared final dividend of 10cps represents a 233% increase over the prior year’s payout.
For FY27, the Board approved a new Shareholder Capital Return Policy and authorized a $50 million on-market share buy-back program. CEO Wayne Bramwell stated the company would continue allocating capital to high-return growth projects while maintaining balance sheet strength.
What the Numbers Show
The divergence between production growth (+19%) and sales growth (+26%) indicates Westgold actively reduced its gold inventory during the period. This strategy allowed the company to capture higher realized prices earlier, accelerating cash conversion. With AISC rising only 7% against a 42% price increase, the margin expansion was primarily driven by external price dynamics rather than cost efficiency gains.
How will Westgold's decision to remain fully unhedged against gold price movements impact its earnings volatility if the current price surge moderates in FY27?
Which specific high-return growth projects will Westgold prioritize for capital allocation given its new $50 million buyback program and strong cash position?
Can Westgold sustain its record production levels of 387,354 ounces in FY27 without triggering significant inflationary pressure on its All-In Sustaining Costs (AISC)?
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