# Westgold Resources (WGX.AU)

Canonical: https://gigainvestors.com/s/WGX.AU

Analysis as of: 2026-10-16T07:39:04.859Z. Financial observations: FY2000–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 4.86 per share; close as of 2026-10-15.

Estimated value: low AUD 0.97 per share, central AUD 1.07 per share, high AUD 1.13 per share. Buy at or below the central value AUD 1.07 per share. Valuation as of 2026-10-16T07:39:04.859Z; scenarios are not confidence intervals.

Expected annual return: 3.6% at the stated quote. About 3.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 1.52×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: -0.14×

- FY2019: -0.01×

- FY2020: 0.04×

- FY2021: 0.19×

- FY2022: 0.03×

- FY2023: 0.01×

- FY2024: 0.18×

- FY2025: 0.17×

- FY2026: 0.31×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.4%

- ROIC, second-lowest year: -1.1%

- Typical minus recent gross margin: -16.3 pp

- Typical gross margin (annual median): 5.6%

- Recent gross margin (lower of latest and 3-year median): 21.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 34.8%

- ROIC including acquisitions, ten-year median: 1.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 2.4%

- FY2018: -8.4%

- FY2019: -1.1%

- FY2020: 3.9%

- FY2021: 14.6%

- FY2022: 2.9%

- FY2023: 1.3%

- FY2024: 17.6%

- FY2025: 7.9%

- FY2026: 29.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 404M

- Net income, five-year total: AUD 472M

- Return on incremental invested capital: 80.9%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 0.3 pp

- Working capital / revenue, final three-year average: 5.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.08×

- FY2023: 0.45×

- FY2024: 0.04×

- FY2025: 2.06×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -1.1% vs 17.6%

- Per-share earnings: -0.07 to 0.20 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 12.1%

- Ordinary dilution, 5-year annual growth: 17.6%

- Market cap gain: AUD 3.9B

- Cumulative retained earnings: AUD 536M

- Diluted shares, 10-year annual growth: 12.1%

- Diluted shares, 5-year annual growth: 17.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD 0.26

- Per-share value, starting three-year median: AUD -0.07

- Per-share value, ending three-year median: AUD 0.20

- Buybacks concentrated in cheaper years (correlation): -0.03

- Average buyback yield: 0.4%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 20M

- Cumulative net income, 10 years: AUD 572M

- ROIC, first three-year median: -1.1%

- ROIC, last three-year median: 17.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.02

- FY2018: AUD -0.09

- FY2019: AUD 0.04

- FY2020: AUD 0.08

- FY2021: AUD 0.18

- FY2022: AUD -0.23

- FY2023: AUD 0.02

- FY2024: AUD 0.20

- FY2025: AUD 0.04

- FY2026: AUD 0.46

### accounting: pass

- Sloan accruals: -13.6%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -13.5%

- FY2018: -7.0%

- FY2019: -9.9%

- FY2020: -15.2%

- FY2021: -18.6%

- FY2022: -33.5%

- FY2023: -18.5%

- FY2024: -24.4%

- FY2025: -10.1%

- FY2026: -13.6%

## Holders

## Price story

Down 37% since Feb 2026 · sales +79.4%

Story as of 2026-10-16T10:00:10.424Z; price observation 2026-10-15.

Price needs cash profits to grow 39.9% a year for ten years

- 2025-10-01: Westgold Sets 3-Year Outlook to Lift Gold Output to 470,000 Ounces ([finance.yahoo.com](https://finance.yahoo.com/news/westgold-sets-3-outlook-lift-110816399.html))

- 2026-02-28: Westgold Resources (ASX:WGX) Is Up 6.6% After Record Half-Year, Dividend And Buyback Announcement ([finance.yahoo.com](https://finance.yahoo.com/news/westgold-resources-asx-wgx-6-051134904.html))

### Sales · FY2025–2026

sales +79.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 307M 

- FY2018: AUD 277M 

- FY2019: AUD 418M 

- FY2020: AUD 492M 

- FY2021: AUD 571M 

- FY2022: AUD 648M 

- FY2023: AUD 654M 

- FY2024: AUD 716M 

- FY2025: AUD 1.4B 

- FY2026: AUD 2.4B 

### Gross margin · FY2026

gross margin 35.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 5.5% 

- FY2019: 2.4% 

- FY2020: 5.7% 

- FY2021: 20.1% 

- FY2022: 4.0% 

- FY2023: 3.3% 

- FY2024: 21.9% 

- FY2025: 17.3% 

- FY2026: 35.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in gold; annual sales are AUD 2.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2026: revenue 2440893000; grossProfit 876135000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 17.3% to 35.9% during 2024–26; it earns 3.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2024: grossProfit / revenue = 21.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2025: grossProfit / revenue = 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2026: grossProfit / revenue = 35.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); 10-year return on capital observations [[2017,0.023995439165613742],[2018,-0.08374669122565086],[2019,-0.010559985809336758],[2020,0.038760973397790686],[2021,0.14551597634151103],[2022,0.02908321772725902],[2023,0.012648790797147669],[2024,0.17633536669149927],[2025,0.0787110322166006],[2026,0.2982378319842624]]; median 0.03392209556252485. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 11% of cash earnings on expansion; earns 80.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2019: growth capex 38806157; upkeep 101031029; owner earnings 6782688.6. Growth capex / owner earnings = 5.721353181391816.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2020: growth capex 37420130; upkeep 141024380; owner earnings 27042025. Growth capex / owner earnings = 1.3837769175940042.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2021: growth capex 88519356; upkeep 140477713; owner earnings 67736712.4. Growth capex / owner earnings = 1.3068150617832464.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2023: growth capex 4957453; upkeep 154583136; owner earnings 4505320.399999999. Growth capex / owner earnings = 1.1003552599721877.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2024: growth capex 52829555.7708427; upkeep 220253583.2291573; owner earnings 4136320.3708426952. Growth capex / owner earnings = 12.77211410973945.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2025: growth capex 0; upkeep 293596000; owner earnings 71475000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2026: growth capex 48932000; upkeep 331846000; owner earnings 443454000. Growth capex / owner earnings = 0.11034289915075746.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); Incremental return on capital 0.8093654307814846, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); Dividend observations: [[2017,0],[2018,52335395],[2019,300665],[2020,42127306],[2021,6324785],[2022,6324785],[2023,0],[2024,4736227],[2025,5928000],[2026,28250000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); FY2026: cash repurchases 26558000 AUD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WGX.AU SharesStats.PercentInsiders = 0.75 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 39.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:04.859Z); Ten-year compound average after fade. Initial solved rate 0.5787115263509033. Price 4.86; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.0674809585281878 → FY2026 0.46244171821749486. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2017-01: AUD 1.99 per share

- 2017-02: AUD 2.43 per share

- 2017-03: AUD 2.36 per share

- 2017-04: AUD 1.94 per share

- 2017-05: AUD 1.95 per share

- 2017-06: AUD 1.84 per share

- 2017-07: AUD 1.58 per share

- 2017-08: AUD 1.80 per share

- 2017-09: AUD 1.96 per share

- 2017-10: AUD 1.88 per share

- 2017-11: AUD 1.88 per share

- 2017-12: AUD 1.77 per share

- 2018-01: AUD 1.57 per share

- 2018-02: AUD 1.60 per share

- 2018-03: AUD 1.50 per share

- 2018-04: AUD 1.49 per share

- 2018-05: AUD 1.69 per share

- 2018-06: AUD 1.85 per share

- 2018-07: AUD 1.59 per share

- 2018-08: AUD 1.38 per share

- 2018-09: AUD 1.27 per share

- 2018-10: AUD 1.10 per share

- 2018-11: AUD 1.00 per share

- 2018-12: AUD 0.88 per share

- 2019-01: AUD 1.02 per share

- 2019-02: AUD 1.21 per share

- 2019-03: AUD 1.26 per share

- 2019-04: AUD 1.49 per share

- 2019-05: AUD 1.74 per share

- 2019-06: AUD 1.88 per share

- 2019-07: AUD 1.93 per share

- 2019-08: AUD 2.34 per share

- 2019-09: AUD 2.50 per share

- 2019-10: AUD 2.35 per share

- 2019-11: AUD 2.00 per share

- 2019-12: AUD 2.29 per share

- 2020-01: AUD 2.19 per share

- 2020-02: AUD 2.03 per share

- 2020-03: AUD 1.88 per share

- 2020-04: AUD 2.06 per share

- 2020-05: AUD 2.34 per share

- 2020-06: AUD 2.09 per share

- 2020-07: AUD 2.36 per share

- 2020-08: AUD 2.13 per share

- 2020-09: AUD 2.36 per share

- 2020-10: AUD 2.57 per share

- 2020-11: AUD 2.30 per share

- 2020-12: AUD 2.64 per share

- 2021-01: AUD 2.35 per share

- 2021-02: AUD 2.04 per share

- 2021-03: AUD 2.00 per share

- 2021-04: AUD 2.16 per share

- 2021-05: AUD 2.28 per share

- 2021-06: AUD 1.88 per share

- 2021-07: AUD 1.75 per share

- 2021-08: AUD 1.77 per share

- 2021-09: AUD 1.63 per share

- 2021-10: AUD 1.95 per share

- 2021-11: AUD 2.02 per share

- 2021-12: AUD 2.04 per share

- 2022-01: AUD 1.82 per share

- 2022-02: AUD 2.26 per share

- 2022-03: AUD 1.92 per share

- 2022-04: AUD 1.63 per share

- 2022-05: AUD 1.43 per share

- 2022-06: AUD 1.18 per share

- 2022-07: AUD 1.30 per share

- 2022-08: AUD 0.94 per share

- 2022-09: AUD 0.83 per share

- 2022-10: AUD 0.73 per share

- 2022-11: AUD 0.75 per share

- 2022-12: AUD 0.88 per share

- 2023-01: AUD 1.22 per share

- 2023-02: AUD 0.95 per share

- 2023-03: AUD 1.31 per share

- 2023-04: AUD 1.52 per share

- 2023-05: AUD 1.54 per share

- 2023-06: AUD 1.44 per share

- 2023-07: AUD 1.65 per share

- 2023-08: AUD 1.62 per share

- 2023-09: AUD 1.70 per share

- 2023-10: AUD 2.09 per share

- 2023-11: AUD 2.14 per share

- 2023-12: AUD 2.18 per share

- 2024-01: AUD 2.21 per share

- 2024-02: AUD 1.96 per share

- 2024-03: AUD 2.62 per share

- 2024-04: AUD 2.25 per share

- 2024-05: AUD 2.31 per share

- 2024-06: AUD 2.42 per share

- 2024-07: AUD 2.61 per share

- 2024-08: AUD 3.04 per share

- 2024-09: AUD 2.67 per share

- 2024-10: AUD 3.22 per share

- 2024-11: AUD 2.85 per share

- 2024-12: AUD 2.83 per share

- 2025-01: AUD 2.58 per share

- 2025-02: AUD 2.51 per share

- 2025-03: AUD 2.88 per share

- 2025-04: AUD 2.97 per share

- 2025-05: AUD 3.04 per share

- 2025-06: AUD 2.87 per share

- 2025-07: AUD 2.56 per share

- 2025-08: AUD 3.44 per share

- 2025-09: AUD 4.48 per share

- 2025-10: AUD 5.32 per share

- 2025-11: AUD 6.10 per share

- 2025-12: AUD 6.44 per share

- 2026-01: AUD 7.36 per share

- 2026-02: AUD 7.75 per share

- 2026-03: AUD 5.89 per share

- 2026-04: AUD 5.35 per share

- 2026-05: AUD 5.13 per share

- 2026-06: AUD 4.70 per share

- 2026-07: AUD 4.73 per share

- 2026-08: AUD 6.37 per share

- 2026-09: AUD 5.34 per share

- 2026-10: AUD 5.02 per share

## Annual estimated value (AUD per share)

- FY2021: low AUD 0.56 per share, central AUD 0.60 per share, high AUD 0.64 per share

- FY2022: low AUD 0.60 per share, central AUD 0.63 per share, high AUD 0.68 per share

- FY2023: low AUD 0.58 per share, central AUD 0.62 per share, high AUD 0.66 per share

- FY2024: low AUD 0.57 per share, central AUD 0.59 per share, high AUD 0.61 per share

- FY2025: low AUD 0.35 per share, central AUD 0.39 per share, high AUD 0.41 per share

- FY2026: low AUD 0.95 per share, central AUD 1.06 per share, high AUD 1.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:39.140Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.