Westgold Resources has responded to media speculation surrounding the potential sale of its Lakewood gold processing facility near Kalgoorlie.
The company said it is assessing strategic options as part of an ongoing portfolio review, which was first announced in its December 2024 and September 2024 quarterly reports. This review includes evaluating the possible divestment of non-core assets.
The Lakewood facility, which Karora Resources acquired in July 2022 for $80 million prior to its $1.2 billion merger with Westgold, is part of these discussions.
“Westgold’s strategy remains to focus on expanding its larger, lower-cost processing plants and mines to reduce operating costs and maximise cash flow,” the company said.
“This review is ongoing and Westgold will advise the market if or when definitive and legally binding agreements are entered into in respect of any such divestment in accordance with its continuous disclosure obligations.”
The Australian Financial Review suggested the sale process for Lakewood Mill is in its advanced stages, with a new owner expected to be announced as early as next month.
The sale would align with Westgold’s post-merger efforts to streamline its expanded portfolio and deliver on the operational synergies it promised shareholders.
The Lakewood mill is a key processing asset for Karora and Westgold, but its divestment could further Westgold’s focus on larger, more cost-efficient processing infrastructure.
Market observers are closely watching Westgold’s next moves as the company continues its strategic review aimed at improving cash flow and operational efficiencies across its growing asset base.
In other Westgold news, the company recently yielded several high-grade intervals from a maiden drilling program at the Fletcher zone within the Beta Hunt mine in Western Australia.
Recent drilling at Fletcher hit 41m at 7.99 grams per tonne (g/t) gold and 19m at 5.95g/t gold from drillhole FF475SP-62AE, and 38m at 6.8g/t gold from WF440VD-55AE,
Westgold began drilling activities at Fletcher in November 2024 with two rigs, and has since expanded this to five.
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