Fund Manager Summary
The fund managers believe that Westgold Resources Ltd presents a strong investment opportunity given its solid positioning in the gold market. In their opinion, the company’s projected production of circa 250,000 ounces of gold at an all-in cost of approximately $2,000 AUD per ounce is favorable against a current gold price of $3,000 AUD. With a market capitalization of $700 million, Westgold operates four underground mines and three processing plants, supported by a workforce of over 1,400 employees. The fund managers are particularly optimistic about the company's growing JORC resources and ongoing operational efficiencies. They anticipate that Westgold will capitalize on its good jurisdiction and growth prospects in the near future.
Source: Trading View
Commentary From The Managers
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Contact Asset Management
30 Sept 2025
$4.48
Summary
- Westgold (ASX:WGX) has been a standout performer since Contact Asset Management initiated a position a few months ago.
- WGX boasts a diversified portfolio of high-quality assets in Western Australia.
- The company capped off a transformative FY25 with record-breaking results.
- Results were fuelled by strategic acquisitions and operational efficiencies.
- WGX is expected to be an outsized beneficiary of robust gold prices due to its low-cost profile.
- Contact Asset Management continues to hold because WGX is considered its preferred gold exposure.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Contact Asset Management
30 Sept 2025
$4.48
- Westgold (ASX:WGX) has been a standout performer since Contact Asset Management initiated a position a few months ago.
- WGX boasts a diversified portfolio of high-quality assets in Western Australia.
- The company capped off a transformative FY25 with record-breaking results.
- Results were fuelled by strategic acquisitions and operational efficiencies.
- WGX is expected to be an outsized beneficiary of robust gold prices due to its low-cost profile.
- Contact Asset Management continues to hold because WGX is considered its preferred gold exposure.
Summary
L1 Capital
30 Sept 2025
$4.48
- Westgold (Long +56%) showed strong performance as gold prices rose sharply by 17% during the quarter.
- L1 Capital maintains a positive outlook for gold and focuses on mid-cap producers.
- The rise in gold prices is attributed to factors such as growing public fiscal deficits, U.S. dollar devaluation, emerging market central bank accumulation, and a global rate cutting cycle.
- Westgold's recent 3-year outlook was positively received, highlighting its transformation into a producer of significant scale.
- Expected FY25 production of approximately 325koz is projected to grow to around 470koz by FY28.
- L1 Capital sees medium-term upside potential for further production growth.
- Westgold is enhancing its portfolio quality by focusing on scalable operations through investments in exploration.
- This strategy is anticipated to lead to a more efficient cost structure and a significantly stronger earnings profile.
Summary
L1 Capital
31 Jan 2025
$2.58
- Westgold Resources declined during the month due to a weaker than expected production result for Q2 FY25.
- The company has reduced its FY25 guidance as a result of this production shortfall.
- Significant growth is driven by the simultaneous ramp-up of two core assets: Beta Hunt and Bluebird.
- Progress on these assets has been slower than anticipated due to mine infrastructure constraints.
- Westgold is making necessary investments to de-bottleneck the assets through FY25, aiming for improved performance in FY26.
- The company is rapidly transforming into a producer of material scale, with FY24 production expected at ~230koz and projected to exceed 500koz post-FY26.
- This growth is supported by a combination of organic growth and the merger with Karora, which closed in August 2024.
- Westgold is upgrading its portfolio quality by focusing on scalable operations and investing in exploration.
- These initiatives are expected to lead to a more efficient cost structure and stronger cash flow generation over time.
- L1 Capital continues to hold Westgold Resources as they believe in the company's long-term growth potential.
Summary
L1 Capital
31 Dec 2024
$2.83
- Westgold Resources Ltd is a ~$2.5b 100% West Australian underground gold miner approaching significant growth.
- Expected FY24 production of ~230koz, increasing to ~550koz post FY26.
- Growth driven by a transformational merger with Karora Resources, completed in August 2024.
- Operations are divided between the Murchison region and the newly acquired Southern Goldfields.
- Westgold is enhancing its portfolio quality by focusing on scalable operations and investing in exploration.
- Strategy centers on scaling mines and reducing portfolio complexity.
- Organic growth potential to > 550koz in the near-term, supported by:
- Great Fingall: Project expected to begin production in Q4 FY25, adding ~50koz annually.
- Bluebird: Expansion to > 1.2Mpta from ~450ktpa in FY24, potentially increasing annual production by ~60koz.
- Beta Hunt Expansion: Growth to > 2Mtpa, exploration target of 1.5 to 2.1Moz of gold.
- Westgold currently trading at ~6x P/E multiple compared to ASX peer set at ~11.5x.
- Strong cash balance and growing production base contribute to the attractiveness of Westgold's investment thesis.
Summary
L1 Capital
30 Nov 2024
$2.81
- Westgold Resources (Long -11%) faced a decline in value following a 4% drop in gold price over the month.
- The AUD gold price remains up approximately 32% for the year, indicating potential for increased cash flow in gold equities.
- Westgold is on track to transform into a producer with FY24 production of ~230koz, aiming for growth towards ~600koz post FY26.
- This growth is supported by both organic expansion and the recent merger with Karora, finalized in August 2024.
- Westgold is enhancing its portfolio quality by focusing on scalable operations through targeted exploration investments.
- This focus on scalability is expected to lead to a more efficient cost structure over time, driving stronger cash flow generation.
Summary
Cadence Capital
31 Oct 2024
$3.22
- Cadence Capital updates their investment thesis on Westgold Resources Ltd.
- Westgold produced 77koz of gold in the recent quarter.
- The company maintained its full year production guidance of 400-420koz.
- Post-merger synergies are anticipated to reduce all-in sustaining costs per ounce by 2025.
- Cadence Capital continues to hold due to these promising production figures.
- In October, Evolution reported 194koz of gold and 19kt of copper produced.
- Evolution is also on track to meet their full year guidance.
- Their FY25 mine cash flow guidance was upgraded by $107m due to rising gold prices.
Summary
Endeavor Asset Management
30 Sept 2024
$2.67
- Endeavor Asset Management executed a decision to sell their remaining position in Australian gold miner Westgold Resources (WGX) at a price of $2.82 per share.
- The decision followed internal analysis indicating that market expectations for guidance were too lofty.
- Post-exit, WGX announced guidance that missed on headline gold production and capex.
- Since the initial investment in May, Endeavor realized a total gain of 31% on the position.
- As of the month’s end, WGX shares closed at $2.67, which is 10% lower than the average exit price.
Summary
Cadence Capital
31 Aug 2024
$2.83
- Cadence Capital last updated on Westgold Resources in March 2024.
- Westgold has completed its merger with Karora Resources, increasing its gold production from 225 koz per annum to around 500 koz.
- This merger positions Westgold as the fourth largest gold producer in Australia.
- Westgold operates with a relatively low cost of production compared to similar mid-cap listed gold companies.
- The company’s production is fully unhedged, benefiting from rising gold prices.
- Westgold’s PE ratio is currently low compared to historical norms.
- Cadence Capital believes Westgold’s share price needs to ‘catch up’ with recent gold price increases, similar to Resolute Mining.
Summary
Endeavor Asset Management
31 July 2024
$2.61
- Westgold Resources (WGX) has completed its merger with Karora Resources, positioning itself as a top-five Australian gold producer.
- The company now possesses a resource base of approximately 13 million ounces.
- Endeavor Asset Management sees potential for WGX to increase production beyond 500,000 ounces per annum.
- WGX's June quarterly report indicated strong performance, finishing the year at the top of production guidance and low end of cost guidance.
- Endeavor Asset Management anticipates significant updates from the newly merged entity, including expectations for FY25 production guidance.
- Over the past month, shares in Westgold appreciated by 8%.
Summary
Endeavor Asset Management
31 May 2024
$2.31
- Endeavor Asset Management highlights that Westgold is led by a highly regarded management team.
- The company possesses significant upside potential following the merger with neighbouring miner ‘Karora’.
- Synergies generated by this merger are expected to improve group profitability.
- Inclusion in indexes should lead to a higher valuation for the company.
- Our discounted cash flow (DCF) analysis suggests a potential upside of 30% compared to our entry price.
Summary
Cadence Capital
31 Mar 2024
$2.77
- Cadence Capital observed that Westgold Resources has benefited from a rising gold price.
- The current gold price has reached USD 2,283 per ounce, setting new all-time highs.
- In April, Westgold revised its full year production guidance from 245,000 ounces to between 220,000 and 230,000 ounces.
- The revision was due to the completion of mining at Paddy’s Flat Prohibition orebody and recent inclement weather.
- Despite production setbacks, Westgold's share price has increased over 20% since the end of February.
- Westgold announced a proposed merger with Karora Resources to create a company with more than 400,000 ounces of annual production.
- Cadence Capital continues to hold interest in Westgold due to these developments.
Summary
L1 Capital
31 Dec 2023
$2.13
- Westgold production expected to grow from around 250koz to over 300koz ounces in the next few years.
- Attractive A$ gold price anticipated to remain above A$3,000/koz, supporting growth potential.
- Exceptional free cash flow growth anticipated in the coming years as production and prices increase.
- New management team has effectively executed a turnaround strategy over the past year.
- L1 Capital continues to hold due to these positive indicators in Westgold Resources Ltd.
Summary
Collins St Asset Management
31 Mar 2023
$1.31
- Westgold Resources Ltd is valued at $700 million
- Three main projects located in Western Australia
- On track to meet production budget for the year, expected to produce circa 250,000 ounces of gold
- All-in costs are projected at approximately $2,000 (AUD) per ounce
- Current AUD gold price is around $3,000, positioning the company favorably in the market
- Workforce of over 1,400 employees
- Operates four underground mines and three processing plants
- Has actively driven improvements and efficiencies in the last six months
- Company benefits from a good jurisdiction, growing JORC resource, and attractive value
- Collins St Asset Management is excited about WGX's performance prospects in the coming months and years
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With a solid production forecast and a gold price backdrop that favors them, Westgold appears poised to capitalize on its operational efficiencies and resource potential. The coming months could reveal significant upside for this $700 million player in the gold sector."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Westgold Resources Ltd (ASX:WGX)?
Fund managers including Collins St Asset Management, L1 Capital, Cadence Capital, Endeavor Asset Management and Contact Asset Management have invested in Westgold Resources Ltd (ASX:WGX).
Why do fund managers invest in Westgold Resources Ltd?
Fund managers are investing in Westgold Resources Ltd due to its strong operational performance and favorable market conditions. With a projected production of 250,000 ounces of gold at a competitive cost of approximately AUD $2,000 per ounce, and a current gold price around AUD $3,000, the company is positioned to capitalize on market opportunities. Westgold's robust infrastructure, including four underground mines and three processing plants, alongside its commitment to operational efficiencies and growth in JORC resources, further enhance its attractiveness as an investment.
What happened to Westgold Resources Ltd (ASX:WGX)?
Fund managers are investing in Westgold Resources Ltd due to its strong performance driven by strategic acquisitions and operational efficiencies amidst rising gold prices. The company’s diversified, high-quality asset portfolio in Western Australia positions it as a key beneficiary of robust gold market conditions. With a projected production increase from approximately 325koz in FY25 to 470koz by FY28, Westgold is enhancing its operational scale and cost efficiency, making it an attractive mid-cap gold producer with significant upside potential.