West Wits Mining’s Q2 results highlight a major turning point for the company, marked by the securing of a ZAR 875 million (~US$50 million) senior loan facility and the start of on-site mobilisation at its Qala Shallows Gold Project in Gauteng.
The company secured funding from the Industrial Development Corporation of South Africa (IDC) and Absa Bank, covering more than half of the capital needed for the project. The balance will come from equity investments and early revenue streams. The facility offers milestone-based drawdowns and includes a two-year repayment holiday.
Simultaneously, West Wits published an updated Definitive Feasibility Study (DFS) after the period, highlighting enhanced gold prices and adjusted cost factors. The study indicated an 88% rise in free cash flow, reaching US$983 million, and a 97% increase in post-tax NPV7.5 to US$500 million. The post-tax IRR rose from 53% to 81%, and the payback period was reduced to just eight months following the peak funding conclusion.
Steady-state gold production is forecast at 70,000oz per annum over a 12-year period, with life-of-mine production expected to reach 944,000oz at an AISC of US$1,289/oz.
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West Wits secures loan to accelerate Qala Shallows
On-the-ground mobilisation began in June, following safety clearance and site reopening. Modi Mining was appointed as the mining contractor, with equipment and personnel already mobilised. Underground preparation, concrete roadway construction, and reinstallation of hydropower and ventilation systems are currently underway.
The company also mentioned that key suppliers include Bara Consulting and Solrock Mining (EPCM), Rham Equipment (load-haul dumpers), GST South Africa (drill rigs), and AECI (explosives), with initial deliveries completed or scheduled.
West Wits also completed a A$14 million equity raise in June, issuing 652.6 million shares at A$0.022 each. The proceeds will be used to support operations, fund a US$5 million buyback of a 10% stake in West Wits SA Pty Ltd—raising the company’s ownership of the WBP to 74%—and cover working capital.
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West Wits commences mobilisation of Qala Shallows gold project
Three senior appointments were announced during the quarter, including Mine Manager Sifiso Magwaza and Business Development Manager Lindiwe Magidimisa. Modi Mining will manage approximately 1,000 roles on-site, with hiring ramping up as the project scales.
In July, the company held a community information session with Soweto ward councillors and the Local Economic Development Forum to discuss job creation, local procurement and project timelines. West Wits reaffirmed its commitment to transparency and inclusion through regular updates and accessible opportunities.
Looking ahead, the company said it is planning to complete its three-month mobilisation program, finalise funding, and achieve first ore extraction followed by first gold pour. Steady-state production is targeted for 2026/27, with the long-term goal of scaling up to 200,000oz annually under its “Project 200” strategy.
