Multimillion-Dollar Turnaround of Wiluna Gold Mining Operations
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April 27, 2026
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Following delays in the planned three-stage redevelopment of its mining and processing infrastructure together with higher costs and logistical issues due to significant global events, WMC faced significant cashflow issues.
The key asset of WMC is the Wiluna Gold operation, located within the Yilgarn Craton in the Northern Goldfields region of Western Australia. WMC hold a tenement package of approximately 1,600 square kilometres, supported by infrastructure capable of sustaining commercial gold production operations.
The cashflow issues could not be adequately addressed through financial accommodation from stakeholders or further capital raisings. FTI Consulting was appointed by the directors of WMC in July 2022 to use the voluntary administration regime to attempt to achieve a better outcome for creditors than a liquidation.
Our Impact
- FTI Consulting stabilised operations and positioned the business for growth so WMC could operate profitably and safely under a new board.
- Our Administrators restructured the secured debt, an AUD57 million facility with a new lender while also ensuring AUD39 million in unsecured debts were paid in full via a creditors’ trust distribution.
- To obtain funding for the restructure, the Deed of Company Arrangement (‘DOCA’) approved by Creditors provided for the issue of Convertible Notes. Subsequent Notes were issued to assist with the payment of unsecured creditors via the Creditors’ Trust. No additional shares were issued during the administration, no Notes were converted and the maturity of all Notes were extended to 30 June 2028, providing the company with financial flexibility going forward.
- After a marathon three-and-a-half-year process, the team retired as Deed Administrators on 31 December 2025.
- On 22 April 2026, an independent valuation of WMC ascribed a preferred equity value of between AUD330 million and AUD440 million, compared to a pre-voluntary administration market capitalisation of AUD73 million.
Our Role
- FTI Consulting’s voluntary administration and mining experts adopted a business-as-usual approach while strategic options were investigated. After testing the market, it was determined a recapitalisation utilising the voluntary administration process would be the best way to maximise value. WMC’s creditors ultimately voted in favour of a DOCA recapitalisation proposal put forward by the Administrators.
- The team restructured the secured debt and paid the incumbent secured lender in full. A new debt profile was agreed upon to better match the current size and cashflow profile of WMC’s operations.
- We established a new operations and finance team, addressed several legacy contractual issues, determined the recapitalisation pathway and appointed a new board of directors.
- By completing the developed underground mining areas, selling inventories and approving construction and commissioning of a tailings retreatment business, our experts were able to maintain the remotely located operations as a going concern, returning the operation to profitability.
- Our experts then oversaw a key operational project, the Golden Age Cutback, producing 22,035 ounces of gold at 2.01g/t and securing a medium-term tailings storage strategy.
Related Information
Published
April 27, 2026
Key Contacts
Senior Managing Director, Head of Australia Retail & Consumer Products Practice
Senior Managing Director