Westgold Resources Ltd · ASX:WGX
Westgold Resources — Investor Presentation (December 2020)
20 slides from Westgold Resources's investor presentation, Dec 14, 2020
Slide 1: Investor Presentation: December, 2020
Investor Presentation : December, 2020
Slide 2: Corporate Snapshot
Corporate Snapshot ASX: WGX (ASX200) Focused FPO Shares on Issue: 423.86 million Self-sufficient 1.29 million ZEPO & Employee Perf. Rights Increasing Market Capitalization: ~A$ 1.13 billion Output share price $2.65 (~US$830 million) Fiscally Strong Corporate Debt: Nil $28m equipment leasing Long Lif
Slide 3: Governance & Exec. Management
Governance & Exec. Management BOARD OF DIRECTORS: Exec Chair: Peter Cook Focused EXECUTIVE MANAGEMENT: Indep NED: Fiona Van Maanen CEO: Debbie Fullarton Self-sufficient Indep NED: Peter Schwann COO: Anthony Buckingham Increasing Indep NED: Wayne Bramwell Output Co Sec: Lisa Smith Fiscally Strong WES
Slide 4: Murchison Gold Operations – Our Core Business
Murchison Gold Operations – Our Core Business Aggregating a gold province – 22.9 million oz historic production and remaining resources. FGO Focused MGO 335 Mining Titles FGO CGO 1,566 Sq Km MGO CGO
Slide 5: Murchison Gold Operations – Our Core Business
Murchison Gold Operations – Our Core Business Focused 7 Underground Mines 4 Open Pits 3 Processing plants 4 Villages Surface & Underground Fleet AUSTRALIA’s ONLY OWNER MINER
Slide 6: Minterra – underground mining services
Minterra – underground mining services Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 7: Open Pit Mining Services
Open Pit Mining Services Focused Self-sufficient Increasing Output Fiscally Strong Long Life AUSTRALIA’s ONLY OWNER MINER High Margin
Slide 8: Murchison Gold Operations – Our Core Business
Murchison Gold Operations – Our Core Business Aggregating a gold province – 22.9 million oz historic production and remaining resources. Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 9: Focused Self-sufficient Increasing
Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 10: FY 2020 Results – All arrows pointing up!
FY 2020 Results – All arrows pointing up! Y/E 30 June Y/E 30 June Change 2020 2019 Gold sales 235,196 220,705 7% Focused Revenue $492.3 m $418.3 m 18% Net cash flow $155.7 m $81.2 m 92% from operations Self-sufficient Net profit before tax $43.9 m $12.7 m 246% Net profit after tax $34.6 m $14.1 m 14
Slide 11: FY 2021 – Q1 Actuals and Guidance
FY 2021 – Q1 Actuals and Guidance Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 12: Mineral Resource as at June 30, 2020 – JORC 2012
Mineral Resource as at June 30, 2020 – JORC 2012 Focused Self-sufficient Total Resource Increasing 8.8 Million Oz’s Output Fiscally Strong Long Life Total Reserves High Margin 2.56 Million Oz’s
Slide 13: Regional Flexibility
Regional Flexibility MGO & CGO essentially one project with two process plants Total Mineral Resource = 7.482 million oz (106.3 Mt @ 2.19g/t) Focused Total Ore Reserves = 2.158 million oz (25.61 Mt @ 2.62g/t) Conversion Ration 29%, Mine Life ( at 225Koz pA) = 9.6 years) Self-sufficient Reserves Sust
Slide 14: Reducing Capital Requirements
Reducing Capital Requirements Focused 18 14 Big Bell Self-sufficient 26 ramp-up 70 16 86 Increasing $' millions 90 20 60 Output 25 80 54 2 2 9 47 30 Fiscally Strong 5 47 45 17 28 23 17 18 Long Life FY2017 FY2018 FY2019 FY2020 FY2021 FCST FY2022 FCST High Margin P&E Other Gold Op's P& E Big Bell MP&D
Slide 15: Expanding Margins
Expanding Margins 3,000 $2,450/oz 2,500 $2,088/oz Focused 2,000 $1,768/oz A$930/oz $1,627/oz A$ Gold Price/oz A$570/oz AISC Margin $1,614/oz A$378/oz AISC Margin AISC Margin Self-sufficient 1,500 1,000 Increasing Output 500 Fiscally Strong 0 FY2017 FY2018 FY2019 FY2020 FY2021 Fcst Long Life C1- Cash
Slide 16: Trading Comparatives – Price to Cashflow (2021 Fcst)
Trading Comparatives – Price to Cashflow (2021 Fcst) 9 8 P/CF 7 P/CF 8.1 X Upside Average 7.7 X Best Value 6 Average P/CF 5 6.4 X Re-rating Average LARGE SMALL 4 CAPs MEDIUM CAPs > 1m Oz pa CAPs < 350k Oz pa WGX GDX Entry 3 350k – 1m P/CF 4 X 18/12/20 Oz pa 2 1 0 Large Cap Medium cap Small Cap WGX S
Slide 17: Trading Comparatives – EV / EBITDA (2021 Fcst)
Trading Comparatives – EV / EBITDA (2021 Fcst) 25 20 EV/EBITA 21.2 X 15 Best Value EV/EBITA EV/EBITA Upside 16.9 X 17.8 X LARGE Re-rating 10 CAPs MEDIUM SMALL CAPs > 1m Oz pa CAPs < 350k Oz pa GDX Entry 5 350k – 1m Oz pa 18/12/20 EV/EBITDA 3.1x 0 Large Cap Medium cap Small Cap WGX Source Data: Thoms
Slide 18: Investment Synopsis
Investment Synopsis 6th Largest Domestic Gold Producer in Australia, ASX 200 Strong Balance Sheet – Circa A$150m in cash, no corporate debt Best Value Re-rating Self-sufficient, Owner Operator, Substantial Fixed Assets and Fleet GDX Entry Long Life Mines – Substantial Resource & Reserves Increasing
Slide 19: JORC Compliance Statement
JORC COMPLIANCE STATEMENT Competent Persons Statements The information in this report that relates to Exploration Results and Mineral Resources and Ore Reserves is based on information compiled Mr Jake Russell B.Sc. (Hons) MAIG and Anthony Buckingham B.Eng (Mining Engineering) MAusIMM. Both have suf
Slide 20: Thank You!
Thank You!
Westgold Resources — Investor Presentation (December 2020) on 6ix