Brokers believe there is significant upside to be had from Westgold Resources Ltd (ASX: WGX) shares, after the ASX gold miner signed off on a major expansion at its Higginsville operations this week.
The teams at both Macquarie and Canaccord Genuity have issued research reports on the company on Wednesday, with both having a bullish price target assigned to the stock.
But firstly, let’s look at what Westgold announced this week.
Uplift in production
The company said in a statement to the ASX on Tuesday that it had greenlit a $145 million expansion of its Higginsville processing hub in Western Australia, which would increase gold production by about 60,000 ounces per year, and reduce processing costs by 24% to $34 per tonne of ore.
Westgold said the expansion had a pre-tax payback period of 21 months at a gold price of $4905, or just 12 months if the current spot gold price was used.
The expansion includes a new primary crusher, a new mill, a pebble crusher, and additional leaching tanks to take processing capacity to 2.6 million tonnes of ore per year, up 62.5%.
The new infrastructure would also support future expansion to 4 million tonnes of ore per year, the company said.
Westgold Managing Director Wayne Branwell said regarding the expansion.
The Higginsville Expansion Plan (HXP) is the next step to drive down unit costs and increase group free cash flow from the Southern Goldfields. By expanding the Higginsville mill capacity to a nominal 2.6Mtpa we are creating a more productive, lower-cost processing hub to match the growing outputs from our Beta Hunt mine. This will see us deliver higher group gold production at a lower cost, in line with our 3-Year Outlook.
Mr Bramwell said the definitive feasibility study showed the expansion plan was robust, but importantly, it was designed with the future in mind.
Strategically, the HXP has been designed with future growth in mind. While nameplate capacity of the enhanced flowsheet stands at 2.6Mtpa, many of the upgrades within the flowsheet such as the ore conveying systems, jaw crusher and SAG mill apron feeder are designed to support further expansion to 4Mtpa. This ensures milling capacity is not an impediment to future mine expansions at prospects such as the Fletcher and Mason Zones at Beta Hunt. With the study complete and final investment decision approved, our focus now shifts to securing long-lead items, progressing EPC tendering and maintaining operational continuity throughout the build. The timing of the HXP aligns strategically with the anticipated growth in mining rates from the Southern Goldfields, ensuring that expanded processing capacity is ready to accommodate increased ore delivery from Beta Hunt.
ASX gold stock looking cheap
The Canaccord Genuity team ran the ruler over the announcement and have upgraded their price target for Westgold shares to $8.75 from $8.50.
This compares to the current share price of $6.46.
They also noted that the figures underpinning the expansion were conservative and did not factor in potential debottlenecking or future resource growth.
The team at Macquarie actually reduced their price target on the shares by 2%, but it was still a bullish $9.50 per share.
The post How much is this ASX gold miner worth after its recent big news? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Westgold Resources Limited right now?
Before you buy Westgold Resources Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Westgold Resources Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Why Life360, St George Mining, Telix, and Westgold shares are charging higher today
- This ASX gold stock is trading higher after greenlighting expansion plans
- Westgold Resources gives green light to $145m Higginsville expansion
- 3 shares dumped from the ASX 200 index (and 3 new additions)
- If gold is a safe haven, why are ASX 200 gold stocks like Northern Star and Evolution Mining getting smashed this week?
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.