Westgold Resources Ltd · ASX:WGX
Westgold Resources — Swiss Mining Institute Conference 2024
26 slides from Westgold Resources's conference presentation, Mar 20, 2024
Slide 1: Swiss Mining Institute – Introducing Westgold
For personal use only Westgold Resources Limited Wayne Bramwell | Managing Director & CEO ASX:WGX | OTCQX:WGXRF Swiss Mining Institute – Introducing Westgold westgold.com.au
Slide 2: Disclaimer
Disclaimer Compliance Statement Forward-looking Statements The information in this report that relates to Exploration Results is compiled by Westgold technical employees and These materials prepared by Westgold Resources Limited (or “the Company”) include forward-looking statements. contractors unde
Slide 3: 100% Western Australian Gold Producer
100% Western Australian Gold Producer Focused on free cash generation and shareholder returns Clear strategy focused on safe and profitable ounces For personal use only 245-265koz gold production at an AISC of US$1,231–$1,368/oz expected in FY24 US$54M of cash flow generated over the last four quart
Slide 4: Corporate Snapshot
Corporate Snapshot Westgold price movement since 1 January 20232 1.8 Corporate Structure 1.5 US$/share Shares on Issue1 473.6M Rights on Issue1 9.3M 1.2 +177% 12 Month Trading 0.9 US$1.68 – $0.71 For personal use only Range2 Avg Liquidity / day2,3 ≈2.2M shares 0.6 Jan 23 Mar 23 May 23 Jul 23 Sep 23
Slide 5: Dominant miner in the Murchison region
Dominant miner in the Murchison region Tier 1 mining jurisdiction, operating within a Starlight region endowed with >35Moz of gold 3 Processing plants, 4 operating mines For personal use only In development – Great Fingall UG Western Bluebird Australia Inhouse mining and drilling Big Bell Fortnum fl
Slide 6: Delivering safe and profitable ounces
Delivering safe and profitable ounces H1 FY24 Focus areas going forward For personal use only Safety 46% reduction in TRIFR in 12 months Continuous improvement Implementation of new WHS legislation Psychosocial harm risk mitigation EBITDA US$100M - up 132% Business Improvement program Profit
Slide 7: Focus shifts to free cash generation
Focus shifts to free cash generation Free cash Production focus focus 270,884 For personal use only 257,116 245,411 235,150 220,843 FY19 FY20 FY21 FY22 FY23 Gold Production1 (oz) 1. Production from current Westgold assets only 7
Slide 8: US$54M cash and bullion built over months
US$54M cash and bullion built over 12 months Fourth consecutive quarter of cash flow generation +$14M 163 +$17M For personal use only 148 +$17M 132 +$54M +$6M 115 109 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23 FY24 FY24 Closing Cash, Bullion & Liquids position (US$M) Exchange: A$1.00=US$0.684 as at 31 December 2
Slide 9: Portfolio of shallow, long life underground mines
Portfolio of shallow, long life underground mines Drilling is extending mine lives For personal use only LHOS, in development 9
Slide 10: Owner miners who drill
Owner miners who drill Our own mining and drilling fleet gives us a competitive advantage in a tight labour market For personal use only Over 124 pieces of mining equipment with an indicative replacement value of ~US$137M Westgold workforce is >1300 strong across its operations Exchange: A$1.00=US$0
Slide 11: Four operating mines + organic growth opportunities
Four operating mines + organic growth opportunities Greenfield prospects Mine restart Mines in Operating being tested opportunities Development mines For personal use only >4 3 1 4 Fingall Dolerite Big Bell UG mine Boomerang - Kurara Paddy’s Flat UG mine Bluebird UG mine Peak Hill Mining Area South
Slide 12: US$13M in exploration + US$10M in ResDef in FY23
US$13M in exploration + US$10M in ResDef in FY23 In FY24, Westgold expects to invest US$17M in exploration drilling ≈246km of drilling completed in FY23 Drilling in FY23 (km) For personal use only Resource Definition 107 4% Mineral Resource growth post depletion Greenfield Exploration 40 7% increase
Slide 13: Pragmatic approach to sustainability
Pragmatic approach to sustainability 82MW of hybrid power (gas, solar and battery) facilities now in operation These hybrid facilities will: For personal use only Reduce diesel consumption by 38 million litres per annum Reduce carbon emissions by 56% Deliver ≈US$41/oz in AISC savings1 Bluebird solar
Slide 14: Capital allocation focused on shareholder returns
Capital allocation focused on shareholder returns 1 2 3 For personal use only Financial flexibility Investment in growth Capital returns US$163M in cash US$89M growth New policy with minimum and bullion @ 31 capital in FY24 0.7 USc/share annualised December 2023 dividend US$68M undrawn US$17M in 0.7
Slide 15: Westgold remains on track for FY24 guidance
Westgold remains on track for FY24 guidance Bottom end of production guidance and top of cost guidance FY24 Group H1 FY24 Guidance Driven by free cash flow and profitability For personal use only Production (oz) 245,000 -265,000 122,343 Being an owner – operator gives us operational flexibility AISC
Slide 16: Westgold’s priorities for FY24
Westgold’s priorities for FY24 5 Sensibly invest in 3 technology that drives cost 6 For personal use only reduction Continue to 1 increase mine life of our existing Assess growth Continue to safely mines 4 opportunities aligned to our core and efficiently capabilities optimise our Continue to invest
Slide 17: Thank you. Contact Information
Contact Information: Thank you. For personal use only Investor Relations Kasun Liyanaarachchi | Investor Relations Manager kasun.liyanaarachchi@westgold.com.au +61 458 564 483 Media Peter Knight | Communications Manager Swiss Mining Institute peter.knight@westgold.com.au +61 459 980 481 Conference 2
Slide 18: Appendix
For personal use only Appendix 18
Slide 19: H1 FY24 Results summary
H1 FY24 Results summary Key Consolidated Results H1 FY24 H1 FY23 Movement Gold Produced (oz) 122,342 128,228 (5%) Gold Sales (oz) 122,081 129,389 (6%) Achieved gold price (US$/oz) 2,027 1,665 22% For personal use only All-In Sustaining Cost (AISC) (US$/oz) 1,432 1,417 1% Revenue (US$M) 248 215 15% C
Slide 20: Starlight UG mine
Starlight UG mine Mine statistics Mining method LHOS Mine life ~4 years Indicative mine scale 600 ktpa For personal use only # diamond drills operating 3 Growth Nightfall lode is higher grade than Starlight lode 3.5 3.1 350 Nightfall 3.0 300 2.5 2.5 2.2 2.1 250 2.0 200 Starlight 163 154 136 147 1.5
Slide 21: Bluebird UG mine
Bluebird UG mine Mine statistics Mining method LHOS Mine life ~3 years Indicative mine scale 480 ktpa For personal use only # diamond drills operating 4 South Junction pit Growth South Junction expansion opportunity 5 4.3 4.4 Bluebird pit 4 3.7 200 3.3 3 139 150 126 126 103 2 100 1 50 Bluebird and S
Slide 22: Big Bell UG mine
Big Bell UG mine Mine statistics Mining method SLC and LHOS Current sub Mine life ~16 years level cave Indicative mine scale 1 Mtpa For personal use only # diamond drills operating 1 Growth Long Hole Open LHOS to increase Big Bell grade Stoping expansion 3.0 2.7 2.8 500 2.5 2.5 2.3 400 2.0 290 286 2
Slide 23: Fender UG mine
Fender UG mine Mine statistics Mining method LHOS Mine life ~3 years Indicative mine scale 330 ktpa For personal use only # drills operating 1 2.0 25 1.7 20 1.5 15 15 1.0 10 0.5 5 Fender restarted late Q2 FY24 0.0 0 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Ore Mined (kt) Grade (g/t) 23
Slide 24: Great Fingall Project
Great Fingall Project Golden Crown UG (1983-1996) 288koz @ 13.80g/t Au Statistics Mining method LHOS Golden Crown Mine life ~8 years Great Fingall OP For personal use only (1995-2018) # diamond drills operating 1 137koz @ 1.55g/t Au Expected first production H1 FY25 Expected steady state +45koz pa G
Slide 25: Mineral Resource Statement – At June 2023
Mineral Resource Statement – At 30 June 2023 1 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) Big Bell 5
Slide 26: Ore Reserve Statement – At June 2023
Ore Reserve Statement – At 30 June 2023 1 Murchison Operations (Rounded for reporting) Proven Probable Total Project Tonnes ('000s) Grade Ounces Au ('000s) Tonnes ('000s) Grade Ounces Au ('000s) Tonnes ('000s) Grade Ounces Au ('000s) Big Bell 3,573 2.85 327 6,270 3.31 668 9,843 3.14 995 Cuddingwarra
Westgold Resources — Swiss Mining Institute Conference 2024 on 6ix