How Restarting Great Fingall’s High-Grade Mine At Westgold Resources (ASX:WGX) Has Changed Its Investment Story

• Westgold Resources has restarted high-grade gold mining at the historic Great Fingall mine in Western Australia, delivering first production from this reef in more than a century and moving the asset from development into production.
• This restart is expected to make Great Fingall a cornerstone source of high-grade ore for Westgold’s Cue processing hub, supporting higher-quality feed alongside existing operations.
• We’ll now examine how bringing Great Fingall’s high-grade ore into production reshapes Westgold’s investment narrative and future production profile.

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Westgold Resources Investment Narrative Recap

To own Westgold, you need to believe it can turn a portfolio of mature and historic WA gold assets into a larger, higher grade, more cash generative business while keeping costs in check. The Great Fingall restart directly supports that story by adding high grade feed to the Cue hub, but it does not remove the near term risk that all in sustaining costs stay elevated and margins remain tight if operating improvements and grade delivery elsewhere fall short.

Against that backdrop, Westgold’s FY2027 and FY2028 guidance, with planned production of about 420 koz and 470 koz respectively at AISC around A$2,450 to A$2,500 per ounce, is the key reference point for how much Great Fingall can contribute to a higher quality production base. This guidance gives investors a concrete yardstick to watch as Great Fingall ramps toward its targeted steady state volumes and as the wider group works to defend margins in the face of rising input costs.

Yet while Great Fingall helps, investors should still be aware of the pressure that persistent cost inflation in labor and energy could place on...

Read the full narrative on Westgold Resources (it's free!)

Westgold Resources' narrative projects A$2.1 billion revenue and A$618.3 million earnings by 2028. This requires 15.0% yearly revenue growth and about A$583.5 million earnings increase from A$34.8 million today.

Uncover how Westgold Resources' forecasts yield a A$6.82 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly A$3.60 to A$25.64, showing how far apart individual views can be. Against that wide range, the success or otherwise of Westgold’s cost control and grade delivery at operations like Great Fingall could be a major swing factor in how the company ultimately performs, so it is worth weighing several of these perspectives before forming your own view.

Explore 7 other fair value estimates on Westgold Resources - why the stock might be worth 39% less than the current price!

Build Your Own Westgold Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Westgold Resources research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Westgold Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Westgold Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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