Update shared on05 Oct 2025
Fair value Increased 34%Analysts have raised their price target for Westgold Resources from $4.35 to $5.83, citing expectations of stronger revenue growth and improved profit margins. These factors are driving the company’s outlook higher.
What's in the News
- Westgold Resources announced a share buyback program to repurchase up to 47,183,455 shares, representing 5% of its share capital. The program is valid until September 11, 2026 (Buyback Transaction Announcements).
- The Board of Directors approved a 3 cents per share unfranked final dividend for fiscal year 2025, with a total payout of $28.3 million. This represents a payout ratio of 78%. The dividend will be paid on October 10, 2025 (Dividend Increases).
- The company plans to invest $50 million in exploration and resource definition in fiscal year 2026. This will target 100km of exploration drilling, primarily focusing on the Murchison and Southern Goldfields packages (Business Expansions).
- Westgold reported fiscal year 2025 production at 326,384 ounces and has provided guidance of 345,000 to 385,000 ounces for fiscal year 2026, including third party ore (Announcement of Operating Results, Corporate Guidance New/Confirmed).
- Recent product-related announcements detailed ongoing resource model validation, development drilling programs, and operational cost adjustment measures for both open pit and underground mining (Product-Related Announcements).
Valuation Changes
- Fair Value has risen from A$4.35 to A$5.83. This reflects a higher assessment of the company’s intrinsic worth.
- Discount Rate increased slightly from 7.10% to 7.15%. This indicates a minor adjustment in risk assumptions.
- Revenue Growth expectations have climbed from 17.8% to 21.5%. This signals stronger projected top-line performance.
- Net Profit Margin improved significantly from 27.8% to 36.1%. This shows anticipated gains in profitability.
- Future P/E ratio has fallen from 8.15x to 7.69x. This suggests improved valuation relative to future earnings.
Disclaimer
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