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next year to 50,000 tpm. However, a second decline is planned to and the other two tuned, so it switches to be about opex and meeting
access the higher-grade north lodes which would allow for larger guidance on costs.”
volumes at higher grades to be delivered into the underutilised 1.8 Like its peers in the WA gold sector, Westgold has been battling to
mtpa mill. keep a lid on costs as inflation shows itself in labour and material
“Bluebird’s expansion has come for a modest capital investment and shortages as well as higher fuel costs.
it is doing well,” Bramwell said. The company’s December half-year report saw AISC of $1,646/
It is a similar situation at Fender, where a decline taken from the oz against full-year guidance of $1,500-1,700/oz. However, those
bottom of the historical open pit will deliver 25-35,000 tpm @ 2.8 numbers were achieved before Russia’s invasion of Ukraine sent the
g/t gold to the Tuckabianna mill from mid-March with only minimal oil price rocketing.
capital development. “We have become more focused on opex and the strategy for Q4
The variety of capital projects belies the sprawling nature of is to be super careful,” Bramwell said. “We can see some relief in
Westgold’s portfolio which comprises six mines across three labour supply with the borders opening but we don’t expect those
processing hubs. Bramwell admits such a diverse asset base labour costs to go down straight away. For energy, it is a question of
requires careful monitoring. how to be more efficient in the fuel we use.
“All the mines are quite different,” he said. “At Big Bell, the approach “COVID kept throwing up weird ways to hurt us. If you run through the
is different. Because of the scale [70,000 tpm @ 2.7 g/t gold], it has numbers and see things like ground support [mesh and bolts] going
consumed so much capital and the focus has to be in far more details, up 32%, you can see the effect of disruptions to the supply chain out
whereas Starlight is a one mine, one mill [the 900,000 tpa Fortnum of China.”
facility] high-grade underground operation which is making good The focus on cash costs is another reflection of Westgold’s modified
approach under Bramwell, one designed to show investors the
company can be a reliable producer of profitable gold ounces.
“We are at a transition point of getting the business to a level of
stability,” he said. “We have a strategic plan where we know what we
need to do to make sure gaps don’t exist.
“Investors want to see maturity and profitability, margin and free cash
flow. A re-rating will happen once we can do that by delivering on
guidance for 4-6 quarters in a row. If you hit that, you start to build
respect and trust, that’s when Westgold will trade at the same or a
premium to others.”
Westgold production rates are beginning to find consistency with Inevitably for a mid-tier gold miner, investors are also demanding
a record 132,861oz gold produced in the December half-year. inorganic growth options.
(Pictured: Izabela Saastamoinen and Francis Andrews) “The organic stuff is front of mind, but we do see the market being
harder on exploration stories which may allow us to put our foot on a
money at 60,000 ozpa. It has actually earned the right to have more few things,” Bramwell said.
capex thrown at it because it punches above its weight. Meanwhile,
Last year the company made an unsuccessful bid for Gascoyne
alongside Bluebird at Meekatharra, Paddy’s Flat is complicated by
Resources Ltd – “more for their mill than their mining assets” – and
multiple orebodies and declines so it’s easy to get it wrong.”
this year has increased its holding in Alto Metals Ltd to 14%.
For Bramwell, the challenge is to find an ideal mix between bespoke
“We have spoken to [Alto managing director] Matt Bowles many
approaches and a unifying company strategy.
times,” Bramwell said. “We like what they are doing there and we
“We are trying to make the company simpler, and trying to harness really like that Sandstone belt but don’t expect Westgold to launch
economies-of-scale,” he said. “We look at each mine and ask where a hostile takeover. We have a good relationship and will let Alto
it is on its journey and what the impact of not spending capex today manage it themselves.
would be on it.
“That Sandstone region is screaming for consolidation but we don’t
“The only one-size-fits-all aspect is to be smart with capital. We are need to be rushed.”
asking how we can optimise some of the functions across all the
After a string of asset and corporate acquisitions in the last five years,
operations, how can we do things smarter.”
there is a sense Westgold is preparing for a period of steady-state
“Doing things smarter” extends beyond capital and into operating growth and production.
costs. Bramwell said that with production rates now consistent, the
“The business has taken a long time to find its rhythm, buying and
operational focus had switched to cost containment.
selling assets frequently,” Bramwell said. “Now that the big mines
“If you look at the December half-year period, it was about getting are starting to be consistent and the growth plans are in place, it is
the ounces out because this company has a history of missing definitely in step.”
production targets,” he said. “We have now got six cylinders running

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