Key points
- Expansion to increase Meekatharra hub throughput capacity from 1.8Mtpa to 2.9Mtpa
- Estimated capital cost of approximately $100M with target commissioning in FY28
- Anticipated payback period of 9 months
- Projected NPV of approximately $1.9B at a gold price of $5,500/oz
- Expansion to leverage existing infrastructure and long-lead equipment
Full summary
Westgold Resources Limited has announced a Scoping Study for a brownfields expansion of processing capacity at the Meekatharra hub from 1.8Mtpa to 2.9Mtpa, aiming to unlock additional ore supply and improve future cash generation. The expansion, referred to as the Meekatharra Expansion Plan (MXP), is designed to be capital-efficient and leverage existing infrastructure. The study outlines a potential pathway to increase gold production by approximately 47kozpa, supported by increasing ore supply from nearby mines and open pits. The expansion is expected to improve processing unit costs and strengthen free cash flow. The estimated capital cost for the MXP is approximately $100M, with a target commissioning in FY28. The project is anticipated to have a payback period of 9 months and a Net Present Value (NPV) of approximately $1.9B at a gold price of $5,500/oz. Westgold will now commence feasibility-level work to confirm the engineering, capital estimate, delivery schedule, and ore source assumptions ahead of a potential investment decision in late FY27.
Guidance
Capital cost: ~$100M; Payback period: 9 months; NPV: ~$1.9B at gold price of $5,500/oz
Outlook
The Meekatharra Expansion Plan aims to increase processing capacity, leverage existing infrastructure, and improve financial metrics, subject to feasibility-level work and investment decision.