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Solid FY24 start for Westgold Resources

Westgold Resources (ASX:WGX) reported a strong start to the 2023-24 financial year, with production data for the three months ending in September. The company produced 63,104 ounces of gold from its Murchison and Bryah Operations in Western Australia during this period, with an average gold sale price of $2,888/oz. While production fell short by around 5,000 ounces compared to the previous quarter and the same period in 2022, it resulted in a $25 million boost to the company’s cash, bullion, and liquid assets, reaching a total of $217 million ($192 million at the end of June and 2022-23). Westgold remains on track to achieve its 2023-24 production guidance of 245,000 – 265,000 ounces, having produced 259,116 ounces in 2022-23. Westgold’s CEO, Wayne Bramwell, stated that the company is building balance sheet strength and anticipates positive cash flow in the upcoming quarters.

Meanwhile, Red 5 also reported promising results from its King of The Hill gold mine in Western Australia (KOTH) for the three months ending in September. The company achieved production of 55,009 ounces during this period, positioning it well to meet its FY24 production guidance of 195,000 – 215,000 ounces. The September quarter’s production was approximately 6,700 ounces lower than that of the preceding quarter. Red 5 recorded gold sales totaling 54,383 ounces in the September 2023 quarter, with an average realized price of $2,609/oz. Red 5 noted that all three mines, including KOTH Open Pit, KOTH Underground, and Darlot Underground, performed well during the quarter, meeting expected targets. Although unplanned crusher shutdowns affected the mill throughput for the quarter, Red 5 is optimistic about its future prospects.

As of September 30, Red 5 had $44.6 million in cash and bullion, with outstanding debt reduced to $112.8 million from $127.8 million at June 30, following a $15.0 million repayment, including $10.8 million of accelerated debt repayments. The company’s net debt position decreased by $13.7 million for the quarter to $68.2 million at September 30, compared to $81.9 million at June 30.

Both companies will release their detailed quarterly reports later this month.

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