Westgold Resources Ltd · ASX:WGX
Westgold Resources — BMO Capital Markets 27th Global Metals & Mining Conference 2018
28 slides from Westgold Resources's conference presentation, 2018
Slide 1: BMO Capital Markets 27th Global Metals & Mining Conference 2018
ASX: WGX BMO Capital Markets - 27th Global Metals & 1 Mining Conference 2018
Slide 2: A Golden Opportunity!!
A Golden Opportunity !! Westgold is a relatively new name in the international gold market. Westgold was the gold division of Metals X Limited, a larger Australian diversified miner. It was de-merged to become an independently listed pure-play gold miner in December 2016 and trades on the Australian
Slide 3: Corporate Summary
Corporate Summary BMO ©) capital Markets: 27th Global Metals & Mining Conference
Slide 4: Corporate Snapshot
Corporate Snapshot Corporate structure (ASX:WGX) Board Issued Shares 356.8 million Ch Peter J. Newton Listed Options (30 June 2019 @ A$2.00) 64.1 million MD Peter G. Cook Unlisted Options (various empl.) 15.0 million DOp’s Steve Norregaard NED Peter B. Schwann Market Cap ($1.60/sh) ~ A$570 m (US$ 44
Slide 5: Becoming Recognised – but still comparatively under-owned in North America
Becoming Recognised – but still comparatively under-owned in North America. 2% 28% 15% 8% 11% 26% BMO Capital Markets - 27th Global Metals & Mining Conference 2018 5
Slide 6: Five Gold Operations – Purely West Australian
Five Gold Operations – Purely West Australian Central processing hub servicing multiple mines Steady State Production Ranges shown Fortnum Gold Project 1 million tpa 60-75,000 oz per annum Meekatharra Gold Op’s 1.6 – 1.8 million tpa 120 – 140,000 oz per annum Cue Gold Op’s 1.2 – 1.4 million tpa 80-1
Slide 7: Group Gold Production 2017
Group Gold Production 2017 Gold Production 2017 FY Fortnum Plant 80,000 Commissions – July 2017 70,000 60,000 Gold Produced (oz) 50,000 40,000 30,000 20,000 10,000 0 Mar Q '17 June Q'17 Sep Q'17 Dec Q'18 FGP 0 0 7,981 8,265 SKO 25,544 15,641 11,290 12,711 CGO 0 0 0 0 MKO 23,328 28,460 30,428 32,654
Slide 8: Balance Sheet 30 June 2017
Asset Rich, Fiscally Secure & Low Carrying Values Balance Sheet 30 June 2017 Cash on Hand & Debtors $24m NRV Gold $16m Gold & GIC $8m Stores & Spares 5 Process Plants $750 million replacement cost 6 underground mines 6 open pit mines 16 million oz of Gold Resource 3.4 million oz Reserves 2 months cr
Slide 9: Total Gold Inventory by JORC Category & Project
Total Gold Inventory by JORC Category & Project WESTGOLD RESOURCES LIMITED WESTGOLD RESOURCES LIMITED Gold Division Gold Division Mineral Resource Statement - Rounded for Reporting Mineral Reserve Statement - Rounded for Reporting 30/6/17 30/6/17 Project k Tonnes Grade k Ounces Au Project k Tonnes G
Slide 10: Expanding Gold Output
Expanding Gold Output Target Growth in Gold Output 500,000 Big Bell Mine Big Bell Mine Ore Production Sub-level Cave 450,000 Steady State 400,000 Tuckabianna Plant Commissions March 2018 350,000 Annualised Gold Output 300,000 250,000 200,000 150,000 100,000 50,000 0 2017 a CY2018f CY2019f CY2020f CY
Slide 11: Peer Comparatives: Enterprise Value / EBITDA Ratio 2018/19f
Peer Comparatives Enterprise Value / EBITDA Ratio 2018/19f Source Macquarie Equities Feb 2018 16 14 12 10 8 6 Average 5.76X 4 3.6x 2 0 G G S D D D S S O LD G D R… ES LD G S LD IN IN RC E L L L RC E RC E AF IN L ST A C IN AL IN IN GO GO GO M GO IN GO UR GO IN E R GO M M OU RA R DO OU SO U SE OS M KE
Slide 12: Peer Comparatives (Australian Peer Group)
Peer Comparatives (Australian Per Group) EV per oz of Mineral Resource EV per oz of Ore Reserve 1000 (Australian Peer Group) (Australian Peer Group) 900 Source: Bell Potter Group Feb 13, 2018 Source: Bell Potter Group Feb 13, 2018 400 800 350 700 300 600 250 500 Average A$398/oz 200 400 Average A$15
Slide 13: Operations Summary
BMO (m4) Capital Markets: Operations Summary 27th Global Metals & Mining Conference 13
Slide 14: Meekatharra Gold Operations (MGO)
Typically Australian Gold Projects – CMGP as an example. HISTORIC PRODUCTION Meekatharra Gold Operations (MGO) Multiple feed sources (underground and open pit mines) to a centralised ore processing hubs. Cue Gold Operations (MGO) BMO Capital Markets - 27th Global Metals & Mining Conference 2018 14
Slide 15: CMGP – Meekatharra Gold Operations
CMGP – Meekatharra Gold Operations CMGP-MKO Gold Production & US$ Costs QTR GOLD PROD'N OZ 35000 1400 30000 1200 COST PER OZ 25000 1000 20000 800 15000 600 10000 400 5000 200 0 0 Mar Q Jun Q Sep Q Dec Q 2017 2017 2017 2017 CMGP Gold Prod'n 23328 28,460 30,428 32,654 CMGP Cash Cost/oz 991 828 889 848
Slide 16: MGO (GMGP) - Paddy's Flat, the main mine
MGO (GMGP) - Paddy’s Flat, the main mine 16 BMO Capital Markets - 27th Global Metals & Mining Conference 2018
Slide 17: MGO (GMGP) - Reedy's – A second mining centre
MGO (GMGP) - Reedy’s – A second mining centre BMO Capital Markets - 27th Global Metals & Mining Conference 2018 17
Slide 18: CMGP – Cue Gold Operations
CMGP – Cue Gold Operations HISTORIC PRODUCTION 18 BMO Capital Markets - 27th Global Metals & Mining Conference 2018
Slide 19: CGO – Big Bell, the cornerstone mine
CGO – Big Bell, the cornerstone mine BMO Capital Markets - 27th Global Metals & Mining Conference 2018 19
Slide 20: CGO – Comet, a second underground mine
CGO –Comet, a second underground mine Historic Production BMO Capital Markets - 27th Global Metals & Mining Conference 2018 20
Slide 21: CGO – The Great Fingall & Golden Crown Mines
CGO – The Great Fingall & Golden Crown Mines, longer term high-grade add’ns Golden Crown Great Fingall BMO Capital Markets - 27th Global Metals & Mining Conference 2018 21
Slide 22: Fortnum Gold Project (FGP)
Fortnum Gold Project (FGP) First half commissioned on LG producing: 16,246 oz’s Now into a production phase, with steady state output profile being: Open Pit Ore 500,000tpa @ 1.7g/t Underground Ore 360,000 tpa @ 3.5g/t Low Grade 140,000 tpa @ 1.0g/t ---------------------------- Annual Feed 1,000,000
Slide 23: Eastern Goldfields Projects
Eastern Goldfields Projects South Kalgoorlie Operations (SKO) Jubilee Plant - 1.2 million tpa CIL Higginsville Gold Operations (HGO) Higginsville Plant - 1.3 million tpa CIL 23 BMO Capital Markets - 27th Global Metals & Mining Conference 2018
Slide 24: Higginsville Gold Operations
Higginsville Gold Operations HGO Gold Prod'n & US$ Costs 17,000 1400 QTR GOLD PROD'N OZ 16,500 1200 COST PER OZ 16,000 1000 15,500 800 15,000 600 14,500 14,000 400 13,500 200 13,000 0 Mar Q 2017 Jun Q2017 Sep Q 2017 Dec Q 2017 HGO Gold Prod'n 15,267 16,208 16,589 14,464 HGO Cash Cost/oz 1106 999 743
Slide 25: South Kalgoorlie Operations (SKO)
South Kalgoorlie Operations (SKO) SKO Gold Prod'n & US$ Costs 30,000 1200 QTR GOLD PROD'N OZ 25,000 1000 COST PER OZ 20,000 800 15,000 600 10,000 400 5,000 200 0 0 Mar Q Sep Q Dec Q Jun Q2017 2017 2017 2017 Gold Prod'n 25,544 15,641 11,290 12,711 Cash Cost/oz 597 825 761 662 AISC/oz 846 978 874 1007
Slide 26: Ahead of the game – Owner Operator
Ahead of the game – Owner Operator • The acquisition of Australian Contract Mining – Private Specialist Underground Mining Contractor • Lower our unit costs to the lowest possible. • Have inherent flexibility to change and vary scopes of work. • All the gear fleet and people to handle our expansions
Slide 27: Other Assets
Other Assets • Rover Project (NT) Ø High-grade Virgin IOCG deposit at Rover 1 Ø Virgin Pb-Zn-Ag discovery at Explorer 108 Ø Curiosity virgin discovery (11.7m @ 3.73%Pb, 4.86%Zn, 1.02g/t Au, 33g/t Ag) – (refer ASX:MLX 22/12/14) Ø Dominant land Position in virgin field with numerous undrilled targets
Slide 28: Disclaimer
Disclaimer JORC Compliance Statement Competent Persons Statements The information in this report that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled Mr Jake Russell B.Sc. (Hons) MAIG, Mr Paul Hucker B. Eng (Hons) MAIMM, and Anthony Buckingham B
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