Westgold Resources Ltd · ASX:WGX
Westgold Resources — Q2 FY23 Earnings Presentation
19 slides from Westgold Resources's earnings presentation, Jan 25, 2023
Slide 1: December Quarterly Overview
WESTGOLD RESOURCES LIMITED ASX: WGX For personal use only Wayne Bramwell | Managing Director Tommy Heng | Chief Financial Officer DECEMBER QUARTERLY OVERVIEW Phillip Wilding | Chief Operating Officer Matthew Pilbeam | General Manager EH&S 25 JANUARY 2023 1
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT For personal use only 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. Mr
Slide 3: FY23 – Tracking to Guidance
FY23 – Tracking to Guidance For personal use only OPERATION GROUP Q1 Q2 YTD “Westgold’s transformation to becoming a Production (koz) 240,000 -260,000 66,048 62,180 128,228 profitable gold miner continues to advance. AISC (A$/oz) 1,900-2,100 2,106 2,071 2,089 In Q2, FY23 our operating discipline is
Slide 4: Q2 FY23 Results – Efficiencies improving
Q2 FY23 Results – Efficiencies improving EH&S performance metrics continue to improve For personal use only 62,180oz produced – at an All-In-Sustaining Cost (AISC) of $2,071/oz, decreasing QoQ 128,228oz produced for H1 – tracking to top end of FY23 guidance – at an AISC of $2,089/oz Positive
Slide 5: Q2 Environment, Health & Safety Performance
Q2 Environment, Health & Safety Performance COVID-19 - continues to challenge our business, but we can report For personal use only EH&S Performance Highlights for the Quarter: zero material impact to our operations: All Regions effected by COVID-19 clusters in the quarter; 22.1% decrease in Tot
Slide 6: Westgold – 100% Western Australian
WESTGOLD – 100% Western Australian For personal use only 1400 strong workforce 1300km2 tenure 4 underground mines 3 processing plants Owner / operator with extensive UG fleet BRYAH OPERATIONS MURCHISON OPERATIONS 6
Slide 7: Q2 – In review
Q2 – In review For personal use only Production (oz), Achieved Gold Price & AISC ($/oz) Quarters Rolling Gold Production (oz) & AISC ($/oz) 7
Slide 8: Q2 Key Metrics – The trend is your friend
Q2 KEY METRICS – The trend is your friend MURCHISON BRYAH GROUP GROUP DEC QTR DEC QTR DEC QTR YTD For personal use only FY23 FY23 FY23 FY23 Physical Summary Units ROM - UG Ore Mined t 601,578 191,181 792,759 1,573,508 Westgold is tracking to its FY23 production and cost UG Grade Mined g/t 2.8 2.1
Slide 9: Q2 Key Metrics – continued
Q2 KEY METRICS – continued For personal use only • Transition to profitability continues o Operating discipline improving Reset plan o Cost management improving activated o Big Bell and Bluebird expanding o Starlight and Paddy’s Flat being optimised o Redeployment of personnel into larger assets ong
Slide 10: Bryah - Operational Summary
BRYAH - Operational Summary For personal use only Challenging quarter for the Starlight mine with 191kt at 2.1g/t Au for the quarter, a 22% drop in grade, resulting in an increase of 30% to AISC Grade down on mine planning challenges - plans to get this back on track over the next quarter Pr
Slide 11: Murchison - Operational Summary
MURCHISON- Operational Summary Processed ore tonnage increased by 3% - to 724.3kt For personal use only compared to the previous quarter (Q1: 702.4kt) Head grade was steady at 2.4g/t Au (Q1: 2.3g/t Au) as mainly due to weather delays and more LG in blend early in quarter Key mines continue to
Slide 12: Murchison - Operational Summary
MURCHISON- Operational Summary For personal use only Better results returned from drilling activities: Paddy’s Flat 7m at 26.25g/t Au from 89m in 22CNDD209 1.56m at 178.75g/t Au from 89m in 22CNDD211 8.92m at 9.79g/t Au from 28m in 22VIDD015 9.29m at 10.34g/t Au from 116m in 22VIDD346
Slide 13: Extending Mine Lives – rigs on infill and extensional drilling
EXTENDING MINE LIVES – 7 rigs on infill and extensional drilling For personal use only 1 1 3 2 13
Slide 14: Q2 – Waterfall Chart Maps Cash Flow Movement
Q2 – Waterfall Chart Maps Cash Flow Movement For personal use only Q2 gold sales of 62,849oz resulting in revenue of $155M at an achieved gold price of $2,460/oz Continuing operating cost reduction – Q2 $128M (Q1: $141M) o reflects changes to the operating plan and the pausing of mines with the
Slide 15: Q2 Hedge Book – 70,000oz and tapering fast
Q2 Hedge Book – 70,000oz and tapering fast.. For personal use only Hedge book reduced during Q2 to 70,000oz at an average A$2,463/oz Last spot sale on 16/01/23 was @A$2,750/oz No new hedges put in place since March 2022 Hedging position reviewed monthly 15
Slide 16: Q2 Exploration & Growth – Multiple Targets
Q2 Exploration & Growth – Multiple Targets For personal use only 8,400m of Aircore drilling (AC) across 6 early-stage targets o Early encouragement from the Emerald Bore targets 25km north of Meekatharra – follow-up in Q3 2,590m of Diamond Drilling (DD) at Fingall Deeps o Program commenced to te
Slide 17: Q3, FY23 Outlook
Q3, FY23 Outlook For personal use only Grade focus and cost base optimisation continues Operational efficiencies – innovate, optimise and improve Expand Bluebird and continue Big Bell expansion study Optimise Paddy’s Flat and Starlight Optimise our mining fleet [slide 19] Commercial opport
Slide 18: Need More Information?
For personal use only Need More Information? Media and Investor Enquiries: Wayne Bramwell – Managing Director P: +61 8 9462 3400 E: Investor.Relations@westgold.com.au www.westgold.com.au 18
Slide 19: Modern UG Fleet - $200M Replacement Value
MODERN UG FLEET - $200M Replacement Value For personal use only 19