Unveiling Westgold's Extraordinary FY25 Financial Growth
Record-Breaking Financial Performance
Westgold Resources Limited has announced impressive financial results for FY25, marking a significant achievement following its recent merger. The highlights reflect a strong upward trend in revenue and adjusted EBITDA, indicating robust operational efficiency and strategic growth.
Significant Revenue Growth
Westgold has reported a record revenue of $1,360M, representing a remarkable 90% increase from the previous year's $716M. This leap showcases the Company's ability to capitalize on market opportunities.
Enhanced Financial Metrics
In addition to revenue, Westgold reported an adjusted EBITDA of $498M for FY25, marking an 84% increase compared to $271M in FY24. This significant growth was driven by improved operational capabilities and a competitive EBITDA margin of 36%.
Net Profit Overview
Despite these gains, net profit after tax did experience a decline, falling to $35M, down 63% from $95M in FY24. This decrease was primarily attributed to one-off transaction costs associated with the merger.
Impressive Cash Flow
Westgold also reported a substantial increase in underlying free cash flow, which soared by 120% to $224M, up from $102M in FY24. This demonstrates the effectiveness of the Company in generating positive cash inflows.
Operational Highlights
Managing Director and CEO Wayne Bramwell highlighted that FY25 was transformative for the company, emphasizing the incorporation of Southern Goldfields assets into Westgold's portfolio, which contributed significantly to overall production.
Production Milestones
Westgold reported achieving record gold production of 326,000 ounces, largely due to the enhanced operational scale post-merger. The strategic investments made in infrastructure and employee talent across the Group helped facilitate this impressive growth.
Cash and Liquidity Position
As of the end of FY25, Westgold's balance sheet showed robust cash and equivalents amounting to $364M, enhancing its liquidity position and allowing for possible shareholder rewards such as dividends and share buy-back initiatives.
Improving Shareholder Returns
The company announced a 33% increase in dividends to 3 cents per share, up from 2.25 cents per share in FY24. This step indicates the board's confidence in sustaining shareholder returns moving into the future.
Future Prospects
As Westgold proceeds, the directors express optimism regarding the company’s future cash flows and the potential for further enhancing shareholder returns beyond the current policies.
Frequently Asked Questions
What was Westgold's revenue for FY25?
Westgold reported a record revenue of $1,360M for FY25.
How much did the adjusted EBITDA increase?
The adjusted EBITDA increased by 84% to $498M.
Why did net profit decrease?
Net profit decreased predominantly due to one-off transaction costs related to the merger.
What is the current cash position of Westgold?
As of the end of FY25, Westgold has $364M in cash, bullion, and liquid investments.
What dividend was declared for FY25?
Westgold declared a dividend of 3 cents per share for FY25, up from 2.25 cents in FY24.
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