News Summary
Westgold Resources announced on December 10, 2025, that it has recommenced mining at its historic Great Fingall Mine. The company successfully fired the first high-grade stope, marking the transition from development to production. The initial stope grades are reported to be between 3-4 g/t Au. The mine is planned to ramp up to a steady-state production rate of approximately 40,000 tonnes per month by late FY27, with the ore being processed at the company’s Cue processing hub. CEO Wayne Bramwell noted this revitalizes a historic mine that produced over 1.2 million ounces at 19.5 g/t Au in the early 1900s, and its high-grade ore will complement the bulk tonnage from the Big Bell mine.
Material Impact
The recommencement of mining at Great Fingall is a material and positive development, primarily because it confirms management is successfully executing on its stated operational timeline. This milestone was a key catalyst anticipated for Q2 FY26 and its timely achievement builds credibility.
Reviewing the historical news provides critical context:
– June 25, 2025: Westgold awarded the mining contract for Great Fingall to Barminco, signaling the project was moving forward and forecasting first production in “early FY26”.
– August 6, 2025: The company’s FY26 guidance explicitly stated to expect “first ore from higher grade virgin stopes in Q2 FY26”.
– October 27, 2025: The Q1 FY26 quarterly report and subsequent transcript confirmed the project was “on track to deliver the first ore from virgin stopes in Q2”.
The December 10 news is the successful culmination of this planned sequence. It is a critical de-risking event for the company’s 3-Year Outlook (released September 30, 2025), which projects a production increase to 470,000 ounces per annum by FY28. The introduction of high-grade ore from Great Fingall is a key component in achieving this growth and in lowering the group’s consolidated All-In Sustaining Cost (AISC), which stood at a high A$2,861/oz in Q1 FY26.
While the initial grades of 3-4 g/t Au are significantly lower than the historical bonanza grades, they represent a valuable high-grade feed for the Cue hub that should improve margins. The market had been waiting for this confirmation, and it provides tangible evidence that the company’s growth strategy is advancing as planned. This contrasts with the operational issues and guidance downgrade in February 2025, suggesting the company is getting a better handle on its expanded portfolio post-Karora merger.
Catalysts
– Q2 FY26 Results (January 2026): The immediate focus will be the next quarterly report to see the initial production contribution (tonnes and grade) from Great Fingall and its impact on the Murchison operations’ cost profile.
– Operational Ramp-Up: Monitor progress reports on the ramp-up at Great Fingall towards its 40,000 tpm target. Also critical will be updates on the ramp-up at Beta Hunt (targeting >2 Mtpa) and Bluebird-South Junction (targeting 1.2 Mtpa), especially after the infrastructure upgrades at Beta Hunt were reported as complete in the Q1’26 update.
– FY26 Guidance: Assess if the company remains on track to meet its back-end weighted FY26 guidance of 345,000 – 385,000 oz at an AISC of A$2,600 – A$2,900/oz.
– Asset Sales: Progress on the announced divestment of non-core assets (Peak Hill, Mt Henry, Chalice), which would further strengthen the balance sheet and simplify the portfolio.
– Share Buyback: Any announcements regarding the execution of the 5% on-market share buyback, which management indicated in October they would use if they saw value.
Materiality Conclusion
The news is Material – Positive. It is not a surprise discovery but a critical and expected operational milestone. Its significance lies in de-risking the company’s multi-year growth plan and demonstrating management’s ability to execute on its guidance, which helps rebuild confidence after earlier operational stumbles in FY25. This confirmation provides fundamental support for the company’s growth trajectory and valuation.
