Understanding ASX: WGX Mining Earnings Amid Higher Costs

Thursday, 31 October 2024, 20:37

ASX: WGX mining earnings are facing challenges due to higher mining costs reported by Westgold Resources. Today, Westgold shares experienced a 5% drop following the withering performance. The company produced 77,369 ounces of gold and reported increased all-in sustaining costs.
Capitalbrief
Understanding ASX: WGX Mining Earnings Amid Higher Costs

ASX: WGX Mining Earnings Under Pressure

In the latest update on ASX: WGX mining earnings, Westgold Resources has announced significant increases in operating costs, pushing its shares down by 5% to $3.06. This downturn follows an impressive surge of over 40% since the year's commencement.

Quarterly Production and Financial Highlights

  • Gold Production: Westgold successfully produced 77,369 ounces of gold in Q1, a noticeable increase from the prior quarter's total of 52,795 ounces.
  • All-In Sustaining Cost (AISC): The group AISC climbed to $187 million, a staggering $79 million increment from Q4 FY24.

Merger and Operational Context

During this period, the Perth-based miner completed a $1.4 billion merger deal with Canada’s Karora Resources and listed its operations on the Toronto Stock Exchange. Westgold attributed the rise in AISC primarily to its integration with Karora's Southern Goldfields operations located in Western Australia.

Market Outlook

Despite these challenges, Westgold remains confident, aiming for full-year production guidance of 400,000 to 420,000 ounces with an AISC expected in the range of $2,000 to $2,300.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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