PERTH (miningweekly.com) – Western Australian gold miner Westgold Resources has reported a 13% increase in gold production, and a 15% decrease in all-in sustaining costs (AISC) for the three months to June.

Gold production in the quarter reached 68 377 oz, up from the 60 512 oz produced in the March quarter, with AISC reported at A$1 780/oz. For the full year ended June, Westgold produced 257 116 oz at an AISC of A$1 999/oz, delivering at the top end the guided 260 000 oz.

Gold sales for the June quarter reached 66 577 oz, at an achieved gold price of A$2 721/oz, generating revenues of A$181-million.

“Westgold’s outstanding fourth-quarter results demonstrate what our business can deliver when our teams execute to plan. Our momentum continues and this was the second consecutive quarter where we built cash, evidencing our cost out and business improvement programmes are beginning to be effective,” said MD Wayne Bramwell.

“We delivered the full-year guidance as stated and start 2024 from a position of financial strength. With full exposure to the gold price from August and our organic growth opportunities advancing rapidly, we have growing confidence in our team’s ability to expand the scale and profitability of the business in the year ahead.”

The company on Wednesday announced that it was expected to restart production from the Fender orebody, which is immediately south of Big Bell, in October this year, with the ore to be transported to the Meekatharra processing plant, displacing lower-grade stockpile feed.

Fender was suspended from production early in the 2023 financial year while the company restructured. With the business now stable, equipment and personnel available and economics favourable, Westgold will promptly commence production from the Fender underground.

Meanwhile, Westgold’s off-market bid for Musgrave Minerals closed and lapsed on Wednesday, with the takeover target continuing to back an offer from fellow gold miner Ramelius Resources.

Westgold in June announced an all-scrip offer for Musgrave, under which shareholders would have received one fully paid Westgold share for every 5.37 Musgrave shares held, valuing Musgrave at A$177.3-million.

However, Ramelius is offering one of its own shares for every 4.21 Musgrave shares held, as well as a 4c-a-share cash payment.

The offer valued Musgrave at A$201-million and valued the company’s shares at 34c each.

The Ramelius offer is set to close on August 18.