Westgold Resources Ltd · ASX:WGX
Westgold Resources — Q1 FY2024 Earnings Presentation
24 slides from Westgold Resources's earnings presentation, October 2023
Slide 1: September Quarter FY24 - Westgold Resources Limited
ASX : WGX westgold.com.au SEPTEMBER QUARTER FY24 WESTGOLD RESOURCES LIMITED Wayne Bramwell | Managing Director Tommy Heng | CFO Phillip Wilding | COO Matthew Pilbeam | GM EH&S
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. Mr Rigby is a full-time
Slide 3: Q1 FY24 Overview – Trend of cash build continues
Q1 FY24 Overview – Trend of cash build continues Third consecutive quarter of cash build cumulatively increases Maintained strong safety results treasury by $58M On track for FY24 Guidance Closing Cash, Bullion & Liquids position ($M) +$25M Gold produced: 63,104oz +$24M 217 All-In Sustaining
Slide 4: Strong start to FY24 – On track for Guidance
Strong start to FY24 – On track for Guidance OPERATION FY23 FY24 Group Guidance Q1 FY24 “Westgold has continued to deliver by adding a Production (oz) 257,116 245,000 -265,000 63,104 further $25M to its treasury in Q1, FY24. This AISC ($/oz) $1,999 $1,800-2,000 $1,935 quarter, once again characteris
Slide 5: Sustained results validate Westgold's approach to safety
Sustained results validate Westgold’s approach to safety EH&S Performance for the Quarter: Westgold maintains its TRIFR which vastly improved over FY23 15 25 Total Recordable Injury Frequency Rate (TRIFR) increased marginally from 8.37 (Q4) to 8.82 (Q1). 12 Month rolling Injury Frequency Rate Lo
Slide 6: Two additional hybrid power stations online
Two additional hybrid power stations online Commissioning status of hybrid power stations Power Facility Gas Solar Battery Comments Tuckabianna Operational since early Aug 2023 Gas power, battery and solar Fortnum commissioned in October 2023 Gas power commissioned in October Big Bell 2023, with sol
Slide 7: WESTGOLD – 100% Western Australian
WESTGOLD – 100% Western Australian 1,400 strong workforce 1,300km2 tenure 4 underground mines 3 processing plants Owner / operator with extensive UG fleet MURCHISON OPERATIONS BRYAH OPERATIONS 7
Slide 8: Q1 in review – production down but margin and cost control maintained
Q1 in review – production down but margin and cost control maintained -8% 68,377 66,048 8% reduction in gold production q on q 62,180 63,104 60,512 Big Bell and Bluebird performed to target Group production (oz) Lower grade at Big Bell as flagged last quarter Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 F
Slide 9: Q1 Key metrics – Continuing to generate net mine cash flow
Q1 Key metrics – Continuing to generate net mine cash flow GROUP MURCHISON BRYAH GROUP JUN QTR SEP QTR SEP QTR SEP QTR FY23 FY24 FY24 FY24 Physical Summary Units AISC of $122M maintained ROM - UG Ore Mined t 690,582 461,508 154,102 615,610 UG Grade Mined g/t 3.0 3.1 2.1 2.9 Lower mining and sust
Slide 10: Q1 Key metrics – Profitability
Q1 Key metrics – Profitability Westgold Monthly AISC ($’m) & ($/oz) Simplicity + Efficiency = Profitability Operating discipline improving Cost management improving Big Bell and Bluebird expanding Starlight and Paddy’s Flat being right sized Observations in Q1 FY24 Reset plan activated Eff
Slide 11: MURCHISON - Operational summary
MURCHISON - Operational summary Big Bell and Bluebird mines performed as planned – Big Bell HG HG Ounces Ounces transitioned to mining predominantly from the South side of the Murchison Operation tonnes Grade mined Recovery produced cave Big Bell 285,624 2.3 21,177 Processed ore tonnage reduced
Slide 12: Great Fingall development commences
Great Fingall development commences Decline development commenced in October 2023 New equipment and high-speed development crew mobilised to site Early development likely to intersect previously discovered linking reef structures (including Sovereign) - with potential to realise early producti
Slide 13: Fender – first ore expected in October 2023
Fender – first ore expected in October 2023 Development recommenced in September 2023 Fender was paused in August 2022 whilst Westgold focused on asset consolidation Business now stabilised and profitable economic environment supports restart Ore to be transported to Meekatharra Processi
Slide 14: MURCHISON – Drilling summary
MURCHISON – Drilling summary Drilling to extend mine life - better results from Q1 include: Paddy’s Flat Consols 2m at 64.83g/t Au from 7m in 23CNDD233 Mudlode 12.91m at 12.47g/t Au from 78m in 23MUDD230 Vivian’s 13m at 10.46g/t Au from 3m in 23VIDD218 Bluebird 15.98m at 12.26g/t A
Slide 15: BRYAH - Operational summary
BRYAH - Operational summary ‘Right sizing’ the Starlight mine continues HG HG Ounces Ounces Produced 154kt at 2.1g/t Au for 10.3koz mined Bryah Operation tonnes grade mined Recovery produced Starlight Mine 154,102 2.1 10,296 Lower Q on Q production due to transition through old workings Fortnu
Slide 16: Extending mine lives – 10 drill rigs in operation across our assets
Extending mine lives – 10 drill rigs in operation across our assets 16
Slide 17: Q1 Exploration & Growth – Multiple targets
Q1 Exploration & Growth – Multiple targets Great Fingall Deeps program completed with 3,337m of Diamond Drilling (DD) during Q1 Program accelerated with mobilisation of second drill rig. Outstanding results returned during the period including: 1.30m @ 12.15g/t Au from 827.00m in hole 23GFDD00
Slide 18: Q1 FY24 – closing cash, bullion and liquids up $25M to $217M
Q1 FY24 – closing cash, bullion and liquids up $25M to $217M Q1 Closing Cash, Bullion and Liquid Assets grows to $217M ($M) +$25M Westgold remains debt free Q1 gold sales of 62,120oz - revenue of $179M (111) Achieved gold price of $2,888/oz 179 Operating cash costs including sustaining capit
Slide 19: Fully leveraged to the gold price from August
Fully leveraged to the gold price from August Cleared the remaining 10koz in the Hedge book in Q1 at an average A$2,459/oz 22,500oz of Zero Cost Collars remain at end of Q1 Contingent deliveries of 2,500oz per month from July 2023 to June 2024, subject to the put and call being struck Protects
Slide 20: Dividend Policy for FY24 – based on FCF
Dividend Policy for FY24 – based on FCF Confidence in the turnaround of Westgold supports revision of the Dividend Policy FY24 Dividend Policy1: $ $ • pay a minimum dividend of 1cps (A$0.01/share) each financial year • up to a maximum of 30% of free cash flow Following criteria apply: Westgold mai
Slide 21: Westgold's FY24 strategic priorities
Westgold’s FY24 strategic priorities Continue to safely Invest in resource and efficiently development and exploration optimise our assets drilling Continue free cash Sensibly invest in technology flow generation that drives cost reduction Assess inorganic growth Increase mine life of opportunities
Slide 22: Want to know more?
Want to know more ? Investor Relations kasun.liyanaarachchi@westgold.com.au Media peter.knight@westgold.com.au www.westgold.com.au ASX : WGX 22
Slide 23: Westgold Today
Westgold Today Corporate Structure Major Shareholders Shares on Issue1 473.6M 72% Performance Rights on Issue1 3.7M 52% Australia 12 Month Trading Range2 A$2.01 – A$0.72 Others 28% 72% Institutions Avg Liquidity / day2,3 ≈1.8M shares 23% North America Cash, Bullion and Investments1 A$217M 23% Europe
Slide 24: Experienced leadership team
Experienced leadership team 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 Director Director Dire