One-off transaction costs eat into Westgold Resources’ profit despite record revenue in 2025 financial year

One-off transaction costs have eaten into newly expanded Westgold Resources’ profit for the 2025 financial year, despite the company having record revenue and cash flow. Westgold told the market on Thursday its statutory net profit after tax in FY25 was $35 million, down from $95m in FY24. The company said this was because of the impact of one-off transaction and related administration costs, the increased depreciation and amortisation resulting from the larger cost base and production from the southern Goldfields, and higher income tax year-on-year. The company with mines in the Murchison added the Beta Hunt and Higginsville operations in the Goldfields to its portfolio from August 1 last year following the $2.5 billion merger with Canadian company Karora Resources. It also sold the Lakewood mill just south-east of Kalgoorlie-Boulder to Black Cat Syndicate for $85m earlier this year. Westgold said it maintained full exposure to higher gold prices throughout the year, which when combined with production of 326,000 ounces of gold delivered a record yearly revenue of $1.36b, an increase of 90 per cent on FY24. The company said adjusted earnings before interest, tax, depreciation and amortisation increased 84 per cent to $498m, with a “robust” EBITDA margin of 36 per cent. EBITDA per ounce increased year-on-year by 28 per cent to $1526/oz, while underlying free cash flow was $224m, a 120 per cent increase on FY24. Westgold said after returns to shareholders, investment in Karora and income tax payments, it closed FY25 with $364m in cash, bullion and liquid investments, with total available liquidity of $614m including the $250m undrawn balance of the company’s corporate credit facility. The company on Thursday announced a 3¢ per share final dividend for FY25, an enhancement to its dividend policy for FY26, and an on-market share buy-back program of up to 5 per cent of the company’s ordinary shares during the next 12 months. Managing director and chief executive Wayne Bramwell said the record EBITDA and free cash flow demonstrated the latent capacity of the company’s expanded portfolio. “Our balance sheet and confidence in our future cash flows provides the opportunity to reward shareholders with a dividend in excess of our current policy, and to initiate a share buy-back program,” he said.