Westgold Resources Ltd · ASX:WGX
Westgold Resources — 2023 Precious Metals Summit
30 slides from Westgold Resources's conference presentation, Sep 11, 2023
Slide 1: 2023 Precious Metals Summit
ASX : WGX westgold.com.au For personal use only 2023 PRECIOUS METALS SUMMIT WESTGOLD RESOURCES LIMITED Wayne Bramwell | Managing Director
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: 100% Western Australian gold producer
ASX : WGX – 100% Western Australian gold producer For personal use only FY23 - 257,116 Oz @ AISC of A$1,999/oz [US$1,294/oz] 2.0Moz Ore Reserves and 8.3Moz of Mineral Resources1 A$192M [US$124] in cash and liquids @ 30 June 232 Debt free and now generating free cash flow2 Fully leveraged to the gold
Slide 4: Mines + processing hubs across the Bryah and Murchison
4 Mines + 3 processing hubs across the Bryah and Murchison MURCHISON OPERATIONS For personal use only BRYAH OPERATIONS 4
Slide 5: Westgold's FY23 turnaround
Westgold’s FY23 turnaround Westgold 2.0 – safe and profitable ounces Cash and bullion position improving from Q2 FY23 For personal use only Cash, bullion and liquids position ($M) Refreshed Board and management team in A$192M A$189M A$190M end of FY22 [US$122M] [US$123M] [US$124M] A$168M A$157M A$
Slide 6: Westgold's FY24 strategic priorities
Westgold’s FY24 strategic priorities Continue to safely Invest in resource For personal use only 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
Slide 7: Westgold's FY24 plan is simple
Westgold’s FY24 plan is simple Drivers of cash flow Capital growth and shareholder returns For personal use only Turnaround builds a Investing in growth cash generative opportunities business in FY23 Production up and Focus on margin costs down in FY24 Cash generation Fixed forward Updated dividend
Slide 8: FY24 – production up, costs down
FY24 – production up, costs down For personal use only GUIDANCE FY23 FY24 Production (oz) 240,000 – 260,000 245,000 – 265,000 A$1,900 – A$2,100 A$1,800 – A$2,000 AISC ($/oz) [US$1,229 - US$1,359] [US$1,165 - US$1,294] A$60M A$130M 1 Growth Capital ($M) [US$39M] [US$84M] A$20M A$25M 2 Exploration ($M
Slide 9: Additional revenue from fully leveraged gold spot exposure
~A$4.4M/month [US$2.8M] additional revenue from 8/23 1 One of the few gold producers now fully leveraged to the gold spot price2 For personal use only Forward contracts remaining (koz) 148 135 122 109 96 83 70 60 50 40 30 20 10 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 22 22 22 22 22 2
Slide 10: Modest mine capital expenditure enhances growth
Modest mine capital expenditure enhances growth Investing $60M in the development of 3 new mines Increasing exploration and resource development spend For personal use only Growth capital guidance on new mines in FY24 ($M) Exploration expenditure ($M) A$25M A$60M [US$16M] [US$39M] Almost 150km of dr
Slide 11: Great Fingall – another high grade mine
Great Fingall – another high grade mine 1 49% uplift to Great Fingall Mineral Resource announced in May 2.5Mt of ore production at ≈5g/t for 383koz of gold For personal use only Initial eight-year mine life with development commencing in early Q2, FY24 first ore production in H1, FY25 +45k
Slide 12: Big Bell Deeps Expansion
Big Bell Deeps – 2 mines in 1 1 Big Bell Deeps Expansion For personal use only Long Hole Open Stoping (LHOS) operation under the SLC Operates in parallel with sub-level cave Increases mined grade as LHOS + SLC = grade lift Potentially lifts output to 1.2-1.3Mtpa Potential additional 10 years
Slide 13: A$25M allocated to drilling
A$25M [US$16M] allocated to drilling FY24 Exploration and resource development focus shifts to For personal use only next suite of organic growth opportunities: Bluebird – South Junction (at Meekatharra) Gibraltar (proximal to the Bluebird processing hub at Meekatharra) Peak Hill tenements (wi
Slide 14: Outperforming gold peers in 2023
Outperforming gold peers in 2023 Share price performance YTD 100 For personal use only 90 Westgold 80 (83%) 70 60 50 40 30 North American Mid Caps1 (25%) 20 ASX Mid Cap Developers2 (24%) 10 ASX Large Cap3 (11%) ASX Mid Cap Producers4 (4%) 0 North American Majors5 (-5%) -10 -20 Jan 23 Feb 23 Mar 23 A
Slide 15: A progressive and profitable Australian Gold Miner
WESTGOLD – A progressive and profitable Australian Gold Miner Westgold now a cash generative business – safe and profitable ounces For personal use only H2, FY23 - A$33M [US$21M] in cash generated closed FY23 with A$192M [US$124M] cash, bullion and liquids FY24 - production increasing and costs decr
Slide 16: Talk to us!
Talk to us! For personal use only Investor Relations kasun.liyanaarachchi@westgold.com.au Media peter.knight@westgold.com.au www.westgold.com.au ASX : WGX 16
Slide 17: Appendix A: Westgold overview
For personal use only APPENDIX A Westgold overview 17
Slide 18: Westgold Today
Westgold Today Corporate Structure Major Shareholders Shares on Issue1 473.6M 70% For personal use only Performance Rights on Issue1 3.7M 50% Australia A$1.74 – A$0.72 12 Month Trading Range2 [US$1.13 – US$0.47] Others 30% 70% Institutions Avg Liquidity / day2,3 ≈1.8M shares 23% North America A$192M
Slide 19: Experienced leadership team
Experienced leadership team For personal use only 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
Slide 20: ESG - Committed to the journey
ESG - Committed to the journey 63% reduction in Total Recordable Injury Frequency Rates in Safety, Health FY23 For personal use only and Wellbeing Active investment in the health and wellbeing of our people 33% female directors Diversity and 13% female employees Inclusion Increasing focus
Slide 21: Westgold TRIFR reduced by 63% in FY23
Westgold TRIFR reduced by 63% in FY23 Westgold has reduced TRIFR by 63% in FY23 EH&S Performance Highlights for the Quarter: For personal use only 15 25 22.91 7% decrease in Total Recordable Injury Frequency Rate (TRIFR): 12 Month rolling Injury Frequency Rate 12 18.44 20 Total Recordable Injury (
Slide 22: Hybrid power online – our new Tuckabianna facility
Hybrid power online – our new Tuckabianna facility The Tuckabianna hybrid facility replaces the diesel fired power station and includes: For personal use only 6 MW solar farm fitted with 11,088 photovoltaic panels battery energy storage system with 2.4 MW installed capacity 9.5 MW gas-fuelle
Slide 23: Owner Operator – class leading capability and fleet
Owner Operator – class leading capability and fleet Modern Mining fleet1 - ~A$200M [US$129M] replacement value For personal use only Agi Active Plant Cable Bolter Idle Plant Charge up Diamond Drill Grader IT loader Long Hole Boxhole Borer Spray Mec Underground Truck Underground Jumbo Underground Loa
Slide 24: Westgold Mining Services - competitive advantages
Westgold Mining Services - competitive advantages MINE DEVELOPMENT Westgold has a proven track record in underground mine development, with Great Fingall and Fender For personal use only being the next mines to come into mine development PRODUCTION DRILLING With a fleet of 10 production drill rigs,
Slide 25: Appendix B: Financials
For personal use only APPENDIX B Financials 25
Slide 26: Closing cash, bullion and liquids up to A$192M
Closing cash, bullion and liquids up A$2M [US$1M] to A$192M [US$124M] FY23 Closing Cash, Bullion and Liquid Assets grows to A$192M [US$124] Revenue improved on prior year (FY22: For personal use only +$2M A$470M [US$1M] A$648M [US$419M]) due to increased spot [US$304M) exposure with fewer hedged o
Slide 27: 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 For personal use only FY24 Dividend Policy1: $ $ • pay a minimum dividend of 1cps (A$0.01/share [US$0.006/share]) each financial year • up to a maximum of 30% of free cash flow F
Slide 28: Appendix C: Reserves/Resources
For personal use only APPENDIX C Reserves/Resources 28
Slide 29: 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) For person
Slide 30: Ore Reserve Statement - At June 2023
Ore Reserve Statement - At 30 June 2023 1 MURCHISON OPERATIONS (ROUNDING FOR REPORTING) Proven Probable Total For personal use only Ounces Au Ounces Au Ounces Au Project Tonnes ('000s) Grade Tonnes ('000s) Grade Tonnes ('000s) Grade ('000s) ('000s) ('000s) Big Bell 3,573 2.85 327 6,270 3.31 668 9,84