Westgold Resources Ltd · ASX:WGX
Westgold Resources — Q3 FY22 Earnings Presentation
16 slides from Westgold Resources's earnings presentation, Apr 28, 2022
Slide 1: March Quarterly Overview
WESTGOLD RESOURCES LIMITED [ ASX: WGX ] MARCH QUARTERLY OVERVIEW 28 April 2022 Debbie Fullarton – Chief Executive Officer Wayne Bramwell – Executive Director
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT Exploration targets, exploration results the information in this report that relates to exploration targets and exploration results is compiled by Westgold technical employees and contractors under the supervision of Mr. Jake Russell B. Sc. (Hons), who is a member of
Slide 3: Q3 FY22 Results
Q3 FY22 Results Established Australian producer: Tier 1 jurisdiction and a +35M oz gold province Operational flexibility: 4Mt milling capacity and 2.2M oz reserve Owner miner: Cost effective and efficient miner with stable costs YTD FY22: Production tracking to guidance: 198,288oz @ AISC of A$1,684/
Slide 4: Year to Date Performance
Year to Date Performance Group Gold Production 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Q1 Q2 Q3 FY22 Guidance FYTD Production Oz Au +270,000 198,288 AISC A$/oz 1,500 – 1,700 1,684 Achieved gold price $2,366 / oz 4 4
Slide 5: Cash Flow Movement
Cash Flow Movement Analysis of cash movement of A$79M ▪ Net proceeds from placement A$97M ▪ Cash Margin A$44M made up of: ▪ Revenue A$132M ▪ Unsold gold A$27M ▪ Operating Costs (A$103M) Operating ▪ Sustaining Capital (A$12M) Capital Expenditure ▪ Capital Expenditure of (A$39M) comprises: Working Cap
Slide 6: Key Metrics
Key Metrics Westgold - Production, Achieved Gold Price & AISC Q3 Gold Q1 Gold Q2 Gold Produced YTD Gold FY Production Produced Produced 65,426 oz Produced Guidance Costs 66,173 oz 66,688 oz 198,288 oz 270,000 oz Costs Key Points $'000 $/oz 250 $2,380 /oz $2,385 /oz $2,366 /oz 2,500 $2,322 /oz ▪ Achi
Slide 7: Production Stability
Production Stability Tonnes Produced (Primary) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Q1 -FY22 Q2 -FY22 Q3 -FY22 Big Bell Paddys Flat Starlight Primary Tonnes Produced (Secondary) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Q1 -FY22 Q2 -FY22 Q3 -FY22 Bluebird Comet S
Slide 8: Grade Improving
Grade Improving Average Grade (Primary) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 -FY22 Q2 -FY22 Q3 -FY22 Big Bell Paddys Flat Starlight Primary Average Grade (Secondary) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q1 -FY22 Q2 -FY22 Q3 -FY22 8 South Emu Comet Bluebird Secondary 8
Slide 9: ESG – Group Power Project Proposal
ESG – Group Power Project Proposal ▪ Westgold is committed to integrating renewable power into its operations and plan to switch to gas fired generators as carbon emissions from gas are 26% lower than diesel per GJ of energy. ▪ The Company is well advanced in negotiations with the preferred tenderer
Slide 10: Safety and Environmental Performance
Safety and Environmental Performance 30 45.00 Total Recordable Injury Frequency Rate (TRIFR) increased slightly by 1.79% (from 23.96 to 24.39) for the quarter. Lost Time Injury Frequency Rate (LTIFR) Rolling 12 Month Frequency Rate 20 30.00 decreased by 13.85% (from 2.31 to 1.99) Recordable Injury C
Slide 11: Application of Growth Funds
Application of Growth Funds A$M Category Use of Fund Progress • Bluebird expansion • Fender development • New Fender Underground underway 70 Murchison Growth • Tuckabianna Trend • Day Dawn • Mill & infrastructure • Fortnum Mill upgrade to • Resource development 1Mtpa planned 10 Bryah Growth drilling
Slide 12: Board Changes
Board Changes Board Changes – majority independent and meeting diversity expectations ▪ Retirement of founder and Non-Executive Chair Mr Peter Cook. ▪ Westgold flourished under the stewardship of Mr Cook to become the sixth largest domestic gold producer in Australia. ▪ Appointment of the Hon. Chery
Slide 13: COVID-19 Management
COVID-19 Management ▪ The COVID-19 pandemic has continued to provide operational and logistical challenges to our business. ▪ In this quarter, the business successfully implemented a range of specific Coronavirus control measures to restrict the impact of COVID-19 on our operations in line with WA G
Slide 14: Investing Activities
Investing Activities ▪ Building surface ore stocks - invested a further $10m to mitigate disruption risks ▪ Building inventory of critical spares and consumables - invested A$2M additional this quarter to mitigate supply risk ▪ Capital reinvestment - invested A$10M in fleet and infrastructure this q
Slide 15: Q4 Outlook
Q4 Outlook Levers to Enhance Profitability ▪ Simplify the business ▪ Focus on profitability and productivity ▪ Increased production with baseline tonnage from core mines supported by secondary mines ▪ Increase mined grade demonstrated through disciplined design and execution ▪ Reduction in AISC thro
Slide 16: Need More Information?
Need More Information? Corporate and Investor Enquiries: Wayne Bramwell – Executive Director P: +61 8 9462 3400 E: wayne.bramwell@westgold.com.au www.westgold.com.au 16