Westgold Resources has strengthened its financial position by expanding its existing syndicated facility from $100 million to $300 million through the addition of a new $200 million tranche.
This facility, funded equally by ING Bank (Australia) Limited and Société Générale, increases Westgold’s available undrawn capital for general corporate purposes and supports its growth objectives.
The new $200 million facility, known as ‘facility B’, will remain accessible until June 30 2025, with repayments to commence in September 2025 if drawn.
Importantly, the company has avoided mandatory gold hedging as part of this agreement, which will allow Westgold to maintain its exposure to potential upside in gold prices.
“Increasing our undrawn facilities to $300 million bolsters our balance sheet and enhances Westgold’s financial agility to execute on our growth strategy in FY25 (the 2024–25 financial year),” Westgold managing director and chief executive officer Wayne Bramwell said.
“The ongoing support from our existing facility providers, ING Bank and Société Générale, is very pleasing. Remaining unhedged is a key driver of profitability and a strategic outcome for the business.”
Argonaut PCF acted as the financial advisor for the transaction, while National Australia Bank has been appointed as facility agent and security trustee.
“Westgold is building a larger, more profitable and sustainable business across two of Australia’s most prolific gold regions,” Bramwell said.
“Today’s announcement reflects the shared confidence of the company and our lenders in our team’s vision and ability to capture and create increasing economic value from this portfolio of assets.”
This expanded facility positions Westgold with the necessary financial support to drive its growth strategy, while the absence of mandatory hedging allows for greater operational flexibility in a fluctuating gold market.
The news follows Westgold’s announcement that it is on track to meet FY25 guidance after a record third quarter.
Westgold produced a record 77,369 ounces (oz) of gold from its expanded portfolio, achieving an average sale price of $3,723/oz.
Cash, bullion and liquid investments for Westgold at September 30 was $103.2 million.
With an additional $100 million available in its undrawn revolving corporate facility, Westgold has $203 million in available funds, bolstering liquidity during a period of peak capital investment.
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