Westgold Resources Ltd · ASX:WGX
Westgold Resources — Denver Gold Forum 2017
23 slides from Westgold Resources's conference presentation, Sep 15, 2017
Slide 1: Denver Gold Forum Presentation & Company Update
ASX:WGX For personal use only Denver Gold Forum Presentation & Company Update September, 2017 References to US$ use the following exchange rate AUD : USD = 0.80 1
Slide 2: Westgold - Corporate Profile
Westgold - Corporate Profile For personal use only Corporate structure (ASX:WGX) Board Non-executive Chairman Peter J. Newton Issued Shares 320.8 million Managing Director Peter G. Cook Share Price A$ 2.00 (US$ 1.60) Director of Operations Steve Norregaard Market Cap ~A$ 640m (US$ 510 million) At Se
Slide 3: A Positive first 9 months of trading
A Positive first 9 months of trading For personal use only Financials – 30 June Year End Revenue A$ 437 million (up 43.5%) Cash Flow A$ 75.6 million (up 52%) Gross Profit A$ 31.5 million Net Profit Before Tax A$ 24.6 million (up 185%) Net Profit After Tax A$ 15.8 million (up 177%) Cash & Cash Equiv.
Slide 4: Westgold - The new force in Australian Gold Production
Westgold – The new force in Australian Gold Production For personal use only 5 Processing Plants – 6.5mtpa of capacity. 10 open pits (another 10 in pipeline more) 4 underground mines (another 5 planned) 16+ million ounce resource base 3.38 m ounce ore reserve ~267,000oz in 2016/17 going above 400,00
Slide 5: Gold Production Profile - Purely West Australian
Gold Production Profile – Purely West Australian For personal use only 1 million tpa 1.8 million tpa 1.2 million tpa 1.2 million tpa 1.3 million tpa 5
Slide 6: Gold Production Profile - Westgold Group
Gold Production Profile – Westgold Group For personal use only FY 2016/2017 5 Key Gold Projects Quarterly Gold Prod'n and A$ Costs 4 Producing, 1 at Pre-feasibility Stage 80,000 1400 70,000 1200 60,000 1000 QTR PROD'N OZ COST PER OZ 50,000 800 40,000 600 30,000 20,000 400 10,000 200 0 0 Sep Q 2016 D
Slide 7: Growth in Annual Gold Output
Growth in Annual Gold Output For personal use only 380,000 – 420,000 oz 380,000 – 420,000 oz 450,000 310,000 – 340,000 oz 400,000 350,000 267,000 oz 300,000 250,000 200,000 150,000 100,000 50,000 0 2017FY(a) 2018FY(fcst) 2019FY(fcst) 2020FY(fcst) Future AISC (forecast) A$1,220/oz – A$1,270/oz (US$ 9
Slide 8: CMGP - The Main Project
CMGP – The Main Project For personal use only Large aggregation play. 9 Major Historic Mining Centre’s 302 Mining Titles covering 932 km2 Mining Centre Prod'n History Million Oz's Big Bell 2.80 Cuddingwarra 0.80 Day Dawn 1.70 Nannine 0.20 Paddy's Flat 2.30 Reedy 1.00 Tuckabianna 0.60 Yaloginda 1.20
Slide 9: Central Murchison Gold Project (CMGP)
Central Murchison Gold Project (CMGP) For personal use only • Produced 101,339 oz in first full year of production Bluebird Plant Feed Components (1.8mtpa): • Full year Cash costs of A$1130/oz (US$905) Targeting a steady state blended feedstock of : • Full year AISC of A$1290 (US$1032/oz) Open Pit O
Slide 10: CMGP - Process Plants - 3mtpa Capacity
CMGP – 2 Process Plants - 3mtpa Capacity For personal use only 10
Slide 11: CMGP - The Paddy's Flat Mine
CMGP – The Paddy’s Flat Mine For personal use only Mining for 2 years now. Resource Category Million tonnes grade Million oz Substantial tonnage capitally developed and now in steady state production Indicated 4.39 3.21 0.452 Inferred 2.40 3.74 0.289 Paddy’s Flat currently producing at 750,000tpa at
Slide 12: CMGP - The Big Bell Mine
CMGP – The Big Bell Mine For personal use only Resource Category Million tonnes grade Million oz A sub-level cave mine being re-established. Indicated 8.71 3.87 1.084 Expected steady state production of 1.0mtpa @ 3.2 g/t Inferred 4.99 3.20 0.513 Dewatering significantly progressed and re-access befo
Slide 13: Fortnum Gold Project (FGP)
Fortnum Gold Project (FGP) For personal use only • Resource* - 24.3 Mt @ 1.8g/t = 1.40 million oz’s Plant Feed Components: • Reserves* - 5.67 Mt @ 1.76 g/t = 0.32 million oz’s Low Grade Stocks currently on surface: • Commercial Production achieved on 30 June 2017 • Multiple feed sources feeding a 1
Slide 14: Eastern Goldfields Projects
Eastern Goldfields Projects For personal use only South Kalgoorlie Operations (SKO) 1.2 million tpa CIL Plant Higginsville Gold Operations (HGO) 1.3 million tpa CIL Plant 14
Slide 15: Higginsville Gold Operations
Higginsville Gold Operations For personal use only • Resource - 33.0 Mt @ 1.97g/t = 2.09 million oz’s • Reserves - 9.07 Mt @ 1.67 g/t = 0.49 million oz’s • Producing at 70,000+ ozpa run-rate • Multiple feed sources feeding a 1.3 million tpa CIL plant (~2 mtpa at expanded capacity and production incr
Slide 16: South Kalgoorlie Operations (SKO)
South Kalgoorlie Operations (SKO) For personal use only SKO Gold Prod'n & A$ Costs QTR GOLD PROD'N OZ 30,000 1400 25,000 1200 1000 COST PER OZ 20,000 800 15,000 600 10,000 400 5,000 200 0 0 Sep Q 2016 Dec Q 2016 Mar Q 2017 Jun Q 2017 Gold Prod'n 15,164 22,566 25,544 15,641 Cash Cost/oz 1240 1001 765
Slide 17: Ahead of the game - Owner Operator
Ahead of the game – Owner Operator For personal use only • The acquisition of Australian Contract Mining – Private Specialist Underground Mining Contractor • Lower our unit costs to the lowest possible. • Have inherent flexibility to change and vary scopes of work. • All the gear fleet and people to
Slide 18: Rover Project - Prefeasibility Stage
Rover Project - Prefeasibility Stage For personal use only • Virgin IOCG Discovery • Blind from surface • Bonanza Grades in broader • poly-metallic halo. • Prolific Production area • Good Infrastructure • roads • gas • water • nearby town • Rail Capital Investment to establish a circa 60,000oz gold
Slide 19: Why invest in Westgold? Compelling peer metrics!
Why invest in Westgold? Compelling peer metrics ! For personal use only 10 9 Enterprise Value / EBITDA Multiple 8 7 6 5 Average 4.65 x 4 3 2 1 0 SILVER LAKE BLACKHAM RAMELIUS DORAY RESOLUTE WESTGOLD ST BARBARA NORTHERN OCEANA GOLD EVOLUTION SARACEN REGIS NEWCREST RESOURCES RESOURCES MINERALS MINING
Slide 20: Why invest in Westgold? Compelling peer metrics!
Why invest in Westgold? Compelling peer metrics ! For personal use only $900.00 EV/Resource oz & EV/Reserve oz $800.00 $700.00 EV / Resource Average = A$125/oz $600.00 EV / Reserve Average = A$380/oz $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 Westgold Silver Lake Ramelius Resolute Mining Beadell
Slide 21: Why invest in Westgold? Compelling peer metrics!
Why invest in Westgold? Compelling peer metrics ! For personal use only 8000 Est. Gold Production (2017) Multiple Market Cap per ounce of production 7000 6000 5000 4000 Average 3460/oz 3000 2000 1000 0 RAMELIUS DORAY SILVER LAKE WESTGOLD RESOLUTE BLACKHAM ST BARBARA SARACEN OCEANA GOLD NORTHERN EVOL
Slide 22: Total Gold Inventory by JORC Category & Project
Total Gold Inventory by JORC Category & Project For personal use only WESTGOLD RESOURCES LIMITED WESTGOLD RESOURCES LIMITED Gold Division Gold Division Mineral Resource Statement - Rounded for Reporting Mineral Reserve Statement - Rounded for Reporting 30/6/17 30/6/17 Project k Tonnes Grade k Ounces
Slide 23: General Disclaimer
The Newly Minted – Top 10 Australian Gold Producer For personal use only General Disclaimer This presentation has been prepared by Westgold Resources Limited (“Westgold” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any sec