Westgold Resources Ltd · ASX:WGX
Westgold Resources — Investor Presentation (March 2022)
36 slides from Westgold Resources's investor presentation, Mar 14, 2022
Slide 1: Equity Raising to Accelerate Growth
WESTGOLD RESOURCES LIMITED [ ASX: WGX ] EQUITY RAISING TO ACCELERATE GROWTH - The pathway to 400Koz pa March 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. The following notice and disclaimer apply to this presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Pre
Slide 3: Disclaimer
Disclaimer PAST PERFORMANCE Past performance metrics and figures (including past share price performance of WGX), as well as pro forma financial information, included in this Presentation are given for illustrative purposes only and should not be relied upon as (and is not) an indication of WGX’s or
Slide 4: Disclaimer
Disclaimer EXPLORATION RESULTS This presentation contains WGX Exploration Results. Copies of these announcements are available at www.asx.com.au or https://westgold.com.au/site/investor-centre/asx-announcements . WGX confirms that it is not aware of any new information or data that materially affect
Slide 5: Investment Highlights
Investment Highlights § Australia is Tier 1 jurisdiction - Murchison is a +35M oz gold province Established, Multi-Asset, § Owner miner - operating six underground mines, several open pits and three processing plants Australian Gold Producer § Operational flexibility - 2.2Moz Ore Reserve and ≈4 Mtpa
Slide 6: Westgold Today
Westgold Today Multi-Asset +270Koz pa Australian Mid-Tier Gold Producer 6
Slide 7: Westgold – Mid Tier Australian Gold Producer
Westgold – Mid Tier Australian Gold Producer Established, multi-asset, Australian producer – tier 1 jurisdiction and +35Moz gold province Operational flexibility – ≈4Mt milling capacity and 2.2Moz reserve Owner miners – cost effective and efficient underground and open pit miners FY22 production gui
Slide 8: FY22 Guidance +270kOz from Bryah and Murchison Operations
FY22 Guidance +270kOz from Bryah and Murchison Operations1 Murchison Operations Meekatharra – 1.8 Mtpa Bluebird Processing Hub Cue - 1.4 Mtpa Tuckabianna Processing Hub Murchison Paddy’s Flat +65 ktpm @ 2.7 g/t Au Big Bell +70 ktpm @ 2.7 g/t Au +210,000 oz Bluebird Underground +24 ktpm @ 3.0 g/t Au
Slide 9: Production Stability into FY22
Production Stability into FY22 Tonnes Produced (Primary U/G Mines) Gold Production oz 700,000 140,000 600,000 120,000 500,000 100,000 400,000 80,000 300,000 60,000 200,000 40,000 100,000 20,000 0 Q3 - FY21 Q4 -FY21 Q1 -FY22 Q2 -FY22 0 FY21 - H2 FY22 - H1 Starlight Paddys Flat Big Bell Primary FY22 G
Slide 10: Accelerating the Growth Strategy
Accelerating the Growth Strategy The Pathway to +400Koz from FY24 10
Slide 11: Our Growth Strategy…
Our Growth Strategy… To become larger and enhance profitability, Westgold needs to: § Optimise and expand operations to enhance profitability and shareholder returns WGX FY24 WGX FY22 § Focus on cost optimisation and management growth target guidance § Think bigger +270,000 oz +400,000 oz § Scale ma
Slide 12: Pathway to +400,000 Profitable Ounces in FY24
Pathway to +400,000 Profitable Ounces in FY24 § Strategy – Two Key Pillars to FY23/24 Growth Plan 1) Organic – produce more high-grade tonnes from our portfolio § Expand existing Murchison mines – Bluebird Underground expansion § Accelerate new Murchison production - Fender Underground development §
Slide 13: Bluebird Underground Expansion – Additional Ounces in FY23
Bluebird Underground Expansion – Additional Ounces in FY23 § Bluebird underground is now at steady state § Current FY22 scale +24Ktpm @ 3.0 g/t Au § FY23 expansion ≈50Ktpm @ 3.0 g/t Au § Second decline planned - to access North Lodes to lift production and provide greater operational flexibility wit
Slide 14: Fender Underground – Additional Ounces in FY23
Fender Underground – Additional Ounces in FY23 § Fender – next new mine to feed Tuckabianna hub § Monthly mine production over the 300m strike length of ore system ≈25-35Ktpm @ 2.8g/t Au3. § Low execution risk - pit works, portal establishment and initial 120m of decline now completed § Grade contro
Slide 15: Tuckabianna – Potential FY24 Ounces
Tuckabianna – Potential FY24 Ounces § Tuckabianna 1.4Mtpa Processing Hub § currently fed by Big Bell, Comet undergrounds and Cue open pits § Multiple development targets - on the mill’s doorstep § Tuckabianna trend today § Comet Mine has operated for 5 years at +3 g/t Au § Tuckabianna future potenti
Slide 16: Caustons – 500m from Tuckabianna mill
Caustons – 500m from Tuckabianna mill § Open pit and underground opportunity § Total Resource 165Koz - @3.4g/t Au4 § Current mineral endowment ≈750oz/Vm § Resource development drilling and mine design required § Low-cost mining method - (long hole open stoping) § Shared services and support infrastr
Slide 17: Bryah – Fortnum Processing Hub Expansion
Bryah – Fortnum Processing Hub Expansion § Starlight underground is now at steady state § Starlight operating +60Ktpm @ 2.7 g/t Au § Recent drilling has extended Starlight and Moonlight Deeps lodes § Additional new production sources outside of Starlight being evaluated @ § Labouchere – dewatering c
Slide 18: Day Dawn – Unlocking High-Grade Ounces FY24 on
Day Dawn – Unlocking High-Grade Ounces FY24 on Day Dawn – Great Fingall and Golden Crown § Highest grade assets in Westgold’s Murchison Portfolio § Both prolific high grade +10g/t Au historic mines § Combined Resource ≈1.9Mt @ 8.5 g/t Au for ≈500,000 oz5 § Open pit completed in 2020 – short decline
Slide 19: Equity Raising
ty WESTGOLD Meerut Equity Raising 19
Slide 20: Equity Raising Details
Equity Raising Details A$100 million Single Tranche Placement to Accelerate Growth Strategy § Single tranche placement to sophisticated, professional and institutional investors to raise A$100 million (“Placement”). Placement Structure § Approximately 47.6 million new fully paid ordinary shares (“Ne
Slide 21: Sources and Uses
Sources and Uses 1) Murchison Expansion Projects - A$70 million § Bluebird Mine Expansion Source of funds A$M § Double output from Bluebird Underground from ≈24Kozpa to ≈50Kozpa at steady state from FY23 Placement Proceeds $100 § New Fender underground ≈30Kozpa at steady state from FY23 TOTAL $100 §
Slide 22: Equity Raising Timetable
Equity Raising Timetable EVENT DATE Announcement of Completion of Placement Monday, 14 March 2022 Settlement of new shares issued under the Placement Thursday, 17 March 2022 Allotment of new shares issued under the Placement Friday, 18 March 2022 22
Slide 23: More Information?
More Information? Wayne Bramwell – Executive Director P: +61 8 9462 3400 E: wayne.bramwell@westgold.com.au ASX ASX : WGX www.westgold.com.au 23
Slide 24: 2021 Resource and Reserve Estimate @ June 30, 2021
2021 Resource and Reserve Estimate @ June 30, 2021 Murchison Gold Operations (MGO and CGO) Mineral Resource Statement - Rounded for Reporting 30 June 2021 Measured Indicated Inferred Total Ounces Ounces Ounces Ounces Tonnes Tonnes Tonnes Tonnes Project Grade Au Grade Au Grade Au Grade Au ('000s) ('0
Slide 25: 2021 Resource and Reserve Estimate @ June 30, 2021
2021 Resource and Reserve Estimate @ June 30, 2021 Murchison Gold Operations (MGO and CGO) Ore Reserve Statement - Rounded for Reporting 30 June 2021 Proven Probable Total Project Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces ('000s) Au ('000s) ('000s) Au ('000s) ('000s) Au ('000s) Big
Slide 26: Risk Factors
/ WESTGOLD AU AD cesounces vwirer 26
Slide 27: Risk Factors
Risk Factors This section identifies the areas that the directors regard as the major risks associated with an investment in the Company. Investors should be aware that an investment in the Company involves many risks, which may be higher than the risks associated with an investment in other compani
Slide 28: Risk Factors
Risk Factors DEVELOPMENT RISK Possible future development of a mining operation at any of the Company’s projects is dependent on a number of factors including, but not limited to, the acquisition and/or delineation of economically recoverable mineralisation, favourable geological conditions, receivi
Slide 29: Risk Factors
Risk Factors OPERATIONAL RISK The Company's mining, exploration and development activities will be subject to numerous operational risks, many of which are beyond the Company's control. The Company's operations and maintaining mining productivity rates may be curtailed, delayed or cancelled as a res
Slide 30: Risk Factors
Risk Factors CLIMATE CHANGE RISK Climate change is a risk the Company has considered, particularly related to its operations in the mining industry. The climate change risks particularly attributable to the Company include: the emergence of new or expanded regulations associated with the transitioni
Slide 31: Risk Factors
Risk Factors PERSONNEL AND LABOUR RISKS Poor ESG decisions, implementation of policies or practices can materially adversely impact the Company’s social licence to operate. The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on
Slide 32: Risk Factors
Risk Factors LITIGATION RISK The Company is exposed to possible litigation risks including native title claims, tenure disputes, environmental claims, royalty disputes, other contractual disputes, occupational health and safety claims and employee claims. Further, the Company may be involved in disp
Slide 33: International Offer Restrictions
International Offer Restrictions 33
Slide 34: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 35: International Offer Restrictions
International Offer Restrictions HONG KONG WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong
Slide 36: International Offer Restrictions
International Offer Restrictions SWITZERLAND The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material rela
Westgold Resources — Investor Presentation (March 2022) on 6ix