Westgold Resources Ltd · ASX:WGX
Westgold Resources — CG Global Metals and Mining Conference 2023
33 slides from Westgold Resources's conference presentation, May 11, 2023
Slide 1: CG Global Metals and Mining Conference
CG GLOBAL METALS AND MINING CONFERENCE For personal use only WESTGOLD RESOURCES LIMITED ASX : WGX WAYNE BRAMWELL | MANAGING DIRECTOR MAY 2023 WWW.WESTGOLD.COM.AU
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT The information in this report that relates to Exploration Results is compiled by Westgold technical employees and contractors under the supervision of Mr. Simon Rigby B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists. For personal use only Mr
Slide 3: Westgold overview
For personal use only 1.0 Westgold overview 3
Slide 4: 100% Western Australian Gold Producer
ASX : WGX - 100% Western Australian Gold Producer 240koz to 260koz For personal use only FY23 Production Guidance A$1,900 to A$2,100 per ounce FY23 AISC Guidance [US$1,275 – US$1,410/oz]1 7.9Moz Mineral Resource, 2.1Moz Ore Reserve R&R @ 30 June 2022 Strong Balance Sheet, Generating Free Cash Flow A
Slide 5: Our Journey - To safe and profitable production
Our Journey - To safe and profitable production FY17- FY22 – the ramp up years FY23 on – safe & profitable ounces For personal use only Significant cost inflation ▪ Streamlined business – simplification driving free Westgold spun out of Maiden dividend cash flow and profitability begins exacerbated
Slide 6: Simplified Structure – two business units
Simplified Structure – two business units MURCHISON For personal use only OPERATIONS BRYAH OPERATIONS 6
Slide 7: FY23 – Tracking to top end of production guidance
FY23 – Tracking to top end of production guidance FY23 Group OPERATION Q1 Q2 Q3 YTD Guidance For personal use only Production (oz) 240,000 -260,000 66,048 62,180 60,512 188,740 “Westgold is delivering on the strategy of A$1,900-2,100 A$2,106 A$2,032 A$2,094 A$2,077 producing safe and profitable ounc
Slide 8: Refreshed Leadership
Refreshed Leadership For personal use only Hon. Cheryl Edwardes AM Wayne Bramwell Julius Matthys Fiona Van Maanen Gary Davison David Kelly Independent Managing Independent Independent Independent Independent Non-Executive Chair Director Non-Executive Non-Executive Non-Executive Non-Executive Directo
Slide 9: Corporate Snapshot
Corporate Snapshot Westgold six month price movement Corporate Structure (A$/share) $1.80 Shares on Issue1 473.6M For personal use only Options on Issue1 4.4M $1.60 $A1.70 – $A0.70 12 Month Trading Range2 [US$1.14 – US$0.47] $1.40 Avg Liquidity / day2 ≈2.5M shares $1.20 A$168M Cash, Bullion and Inve
Slide 10: Operations & Projects
For personal use only 2.0 Operations & Projects 10
Slide 11: Four Shallow Underground Mines
Four Shallow Underground Mines For personal use only 11
Slide 12: Big Bell – 3Moz produced to date and growing
Big Bell – 3Moz produced to date and growing Big Bell sub-level cave now consistently above design levels since April 22 For personal use only ▪ Decline and Sub-level cave operation ▪ Designed for 800-900ktpa ▪ Circa 7 years of caving operations ahead Big Bell Deeps Expansion contemplates 1.3-1.4Mtp
Slide 13: Bluebird – Drilling success supports further expansion
Bluebird – Drilling success supports further expansion South Junction and Bluebird have produced > 1Moz Au from shallow open pits For personal use only Bluebird underground expansion to 600ktpa on track ▪ Q1 mine record – 90kt @ 3.2 g/t Au ▪ Q2 mine record – 111kt @ 3.5 g/t Au ▪ Strong result in Q3
Slide 14: Paddy's Flat – Over 1.5Moz produced to date
Paddy’s Flat – Over 1.5Moz produced to date Paddy’s Flat – historic high-grade producer For personal use only ▪ Multiple lodes being mined concurrently ▪ Prohibition load coming to an end ▪ Improved recoveries expected through Bluebird mill as impurities harmful to recoveries diminish with reduced P
Slide 15: Starlight – 750koz produced to date
Starlight – 750koz produced to date… Starlight Underground For personal use only ▪ 750,000 oz Au produced to date ▪ 250,000 oz Au under Westgold management ▪ Multi-lode system, decline and LHOS operation ▪ 500-600ktpa @ +2.5 g/t Au ▪ All ore to Fortnum 0.9Mtpa processing hub ▪ Supplemented with LG o
Slide 16: Owner Operator – Class Leading Capability And Fleet
Owner Operator – Class Leading Capability And Fleet Modern Mining fleet - $200M replacement value For personal use only Agi Active Plant Idle Plant Cable Bolter Charge up Diamond Drill Grader IT loader Long Hole Boxhole Borer Spray Mec Underground Truck Underground Jumbo Underground Loader Water Car
Slide 17: Drilling is adding ounces
Drilling is adding ounces Nine rigs running TODAY Significant increase in exploration investment ▪ 7 rigs on extensional drilling and 2 on regional exploration since FY19 For personal use only A$20.0m Drilling to extend mine life - better results in recent drilling include: [US$13.4m] ▪ Big Bell A$1
Slide 18: Great Fingall Deeps – The next new mine
Great Fingall Deeps – The next new mine… ▪ Historic high grade underground mine ▪ 1.2Moz @19.5 g/t Au For personal use only ▪ Fingall could add 250 – 350ktpa @ +5 g/t Au from late FY24 ▪ Deep drilling programme commenced Q2, FY23 ▪ to test an additional ~250m of down plunge mineralisation beneath th
Slide 19: Investing in the future – Clean energy transition underway
Investing in the future – Clean energy transition underway The Clean Energy Transition Project will substantially reduce the cost of power and carbon emissions: For personal use only ▪ Four new hybrid power facilities under construction ▪ Combination of solar, battery storage and LNG ▪ replaces 5 di
Slide 20: Financials
For personal use only Financials 3.0 20
Slide 21: Q3 Key Metrics – Profitability
Q3 KEY METRICS – Profitability Westgold Monthly AISC ($’m) & ($/oz) Q1 FY23 Q2 FY23* Q3 FY23 A$139m - A$2,106/oz A$126m - A$2,032/oz A$127m - A$2,094/oz For personal use only ▪ Simplicity + Efficiency = Profitability [US$93m - US$1,414/oz] [US$85 - US$1,364/oz] [US$85m - US$1,405/oz] ▪ Operating dis
Slide 22: Q3 FY23 – Closing cash, bullion and liquids up
Q3 FY23 – Closing cash, bullion and liquids up A$9M [US$6M] to A$168M [US$113M] Q3 Closing Cash, Bullion and Liquid Assets grows to $168M ($M) ▪ Westgold remains debt free For personal use only ▪ Q3 gold sales of 60,043oz - revenue of A$159M [US$107M] ▪ Achieved gold price of A$2,635/oz [US$1,769/oz
Slide 23: Hedge Book – Forward contracts completed in July
Hedge Book – Forward contracts completed in July Forward Contracts remaining (ounces) 148,000 For personal use only Hedge book reduced during Q3 to 40,000oz 135,000 122,000 ▪ at an average A$2,459/oz [US$1,650/oz] 109,000 ▪ Last spot sale on 03/05/23 was at A$3,040/oz [US$2,040] 96,000 Optionality o
Slide 24: Westgold – A turnaround story
Westgold – A turnaround story Business simplified in FY23 ▪ Turnaround focused on safety and profitability For personal use only ▪ Simplification driving efficiencies, efficiencies driving profitability Efficiency and grade focus enhancing cash flow ▪ Bluebird Expansion continues on track ▪ Big Bell
Slide 25: Want to know more?
Want to know more ? For personal use only Investor Relations kasun.liyanaarachchi@westgold.com.au Media peter.knight@westgold.com.au www.westgold.com.au ASX : WGX 25
Slide 26: Appendices
For personal use only APPENDICES 26
Slide 27: ESG - Committed to the Journey
ESG - Committed to the Journey ▪ Zero Fatalities in our business Safety, Health For personal use only ▪ Delivered a 50% reduction in Injury Frequency Rates in FY23 and Wellbeing ▪ Active investment in the health and wellbeing of our people ▪ 33% female directors Diversity and ▪ 13% female employees
Slide 28: Q3 Environment, Health & Safety Performance
Q3 Environment, Health & Safety Performance EH&S Performance Highlights for the Quarter: For personal use only Quarter on quarter - LAG Injury Performance ▪ 37.15% decrease in Total Recordable Injury Frequency Rate (TRIFR) – the first time WGX has returned a TRIFR result below 10.0: o Q3 – 9.03 from
Slide 29: ESG - People and Community
ESG - People and Community For personal use only $27K RAISED FOR VINNIES MINING DAY OUT FOR STUDENTS GRADUATE NETWORKING EVENT TLG PARTNERSHIP $9K RAISED FOR RFDS RECORD VACATION STUDENT INTAKE CENTRALISED TRAINING FACILITY OPENED 29
Slide 30: Q3 FY23 – Mine and mill physicals
Q3 FY23 – Mine and mill physicals Ore Mined Mined Grade Mined Ounces Ore Milled Head Grade Recovery Q3 Gold Production MURCHISON (‘000) (g/t) (KOz) (‘000) (g/t) (%) (Oz) For personal use only Paddy’s Flat 170 2.6 13.9 162 2.78 84 12,208 Bluebird 103 3.7 12.3 103 3.84 96 12,246 Open Pit & Low 85 1.12
Slide 31: Q3 FY23 – Consolidated physicals and costs
Q3 FY23 – Consolidated physicals and costs MURCHISON BRYAH GROUP GROUP MAR QTR MAR QTR MAR QTR YTD For personal use only FY23 FY23 FY23 FY23 Physical Summary Units ROM - UG Ore Mined t 543,438 135,889 679,328 2,252,836 UG Grade Mined g/t 2.8 2.2 2.7 2.7 Ore Processed t 671,917 197,438 869,355 2,706,
Slide 32: Mineral Resource Statement - At June 2022
Mineral Resource Statement - At 30 June 2022 MURCHISON OPERATIONS (ROUNDED FOR REPORTING) Measured Indicated Inferred Total Tonnes Ounces Au Tonnes Ounces Au Tonnes Ounces Au Tonnes Ounces Au Project Grade Grade Grade Grade ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) ('000s) For personal
Slide 33: Ore Reserve Statement - At June 2022
Ore Reserve Statement - At 30 June 2022 MURCHISON OPERATIONS (ROUNDING FOR REPORTING) Proven Probable Total For personal use only Ounces Au Ounces Au Ounces Au Project Tonnes ('000s) Grade Tonnes ('000s) Grade Tonnes ('000s) Grade ('000s) ('000s) ('000s) Big Bell 4,170 2.94 394 4,641 3.08 460 8,811
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