Westgold Resources Ltd · ASX:WGX
Westgold Resources — European Gold Forum 2017
19 slides from Westgold Resources's conference presentation, 2017
Slide 1: European Gold Forum 2017
ASX:WGX European Gold Forum 2017 References to US$ are at an exchange rate of 1$AUD= US$0.76
Slide 2: General Disclaimer and JORC Compliance Statement
The Newly Minted – Top 10 Australian Gold Producer General Disclaimer This presentation has been prepared by Westgold Resources Limited (“Westgold” or the “Company”). It should not be considered as an offer or invitation or inducement to subscribe for or the purchase of any securities in the Company
Slide 3: About Westgold
About Westgold • Australian publicly listed pre-play gold miner – the demerged gold division of Metals X Limited. • A West Australian gold producer (current run-rate ~300,000ozpa) with expanding operations. • Large Gold Inventory: Total Mineral Resource Estimate (as at 30 June 2016) 15.4 million O
Slide 4: Corporate Profile
Corporate Profile Corporate structure (ASX:WGX) Board Issued Shares 304.7 million, 11 million empl. opts Non-executive Chairman Peter J. Newton Share Price A$ 2.34 Managing Director Peter G. Cook Market Cap A$ 713 million (US$540m) At Mar 27 Director of Operations Steve Norregaard , 2017 Avg. Liquid
Slide 5: Gold Production Profile – Westgold Group
Gold Production Profile – Westgold Group Gold Production Dec 2016 Qtr - 75,134 oz (~300,000ozpa run-rate) 5 Key Gold Projects Gold Production Forecast Calendar 2017 - 350,000oz 4 Producing, 1 at Pre-feasibility Stage Quarterly Gold Prod'n and A$ Costs 80,000 1600 70,000 1400 60,000 1200 QTR PROD'N O
Slide 6: Inaugural Quarterly Results – QE Dec 31, 2016
Inaugural Quarterly Results – QE Dec 31, 2016 Dec 16 Qtr - Outputs Gold Prod'n Oz Cash Cost AISC Gold Production 75,134 ounces 27,000 1400 Gold Sales 79,655 ounces 26,000 1200 GOLD PRODUCTION OUNCES Cash Costs A$ 981 per ounce (~US$750/oz) 25,000 1000 AISC A$ 1,149 per ounce(~US$875/oz) A$ PER OUNCE
Slide 7: Ramping to 400,000+ozpa Production Rate
RAMPING TO 400,000+ozpa Production Rate Underground mines don’t die, they just get deeper!! Target Grow th in Gold Output 500,000 450,000oz 450,000oz 430,000oz 450,000 400,000 340,000oz ANNUALISED GOLD OUTPUT 350,000 ------------------------------------------------------------------------------- 300
Slide 8: Growth in Calendar 2017 – Westgold Group
Growth in Calendar 2017 – Westgold Group • March Quarter Forecast - a planned sideways production output. 5 Key Gold Projects Subsequently hampered by severe rain interruption to mining and ore cartage resulting in lower output. 4 Producing, 1 at Pre-feasibility Stage - Expected gold production Mar
Slide 9: Growth & Sustaining Capital to achieve expansions (CY2017f)
Growth & Sustaining Capital to achieve expansions (CY2017f) • HGO - Higginsville Plant up-grade (est. A$15m) Upgrade crushing and grinding capacity to 1.8mtpa. • FGP - Fortnum Gold Project (est. A$15m) Complete plant & infrastructure Refurb and dewater and refurb Starlight decline. • CMGP - Big Bell
Slide 10: Asset Rich – Westgold Group
Asset Rich – Westgold Group Dominant Land Positions 4 Processing Plants in 2 Prolific Goldfields 5.5Mtpa Capacity Murchison Goldfield Eastern Goldfield 10
Slide 11: Murchison Gold Projects (100% WGX)
Murchison Gold Projects (100% WGX) Central Murchison Gold Project (CMGP) Fortnum Gold Project (FGP) Resource - 108.7 Mt @ 2.2g/t = 7.74 million oz’s Resource - 29.7 Mt @ 1.8g/t = 1.75 million oz’s Reserves - 22.8 Mt @ 2.6 g/t = 1.93 million oz’s Reserves - 5.4 Mt @ 2.0 g/t = 0.34 million oz’s Produc
Slide 12: Eastern Goldfields Projects
Eastern Goldfields Projects South Kalgoorlie Operations (SKO) – (potential sale) 1.2 million tpa CIL Plant Higginsville Gold Operations (HGO) 1.3 million tpa CIL Plant 12
Slide 13: Higginsville Gold Operations
Higginsville Gold Operations Higginsville Gold Operations (HGO) Resource - 33.6 Mt @ 2.0g/t = 2.2 million oz’s Reserves - 7.57 Mt @ 1.78 g/t = 0.43 million oz’s Producing at ~100,000+ ozpa run-rate (with expanded capacity) Multiple feed sources feeding a 1.3 million tpa CIL plant (1.8 mt at expanded
Slide 14: South Kalgoorlie Operations (SKO)
South Kalgoorlie Operations (SKO) – (potential sale/merger with RNC Minerals) QTR GOLD PROD'N OZ SKO Gold Prod'n & A$ Costs 25,000 1400 1200 20,000 COST PER OZ 1000 15,000 800 10,000 600 400 5,000 200 0 0 Mar Q Jun Q Sep Q Dec Q 2016 2016 2016 2016 Gold Prod'n 13,006 10,756 15,164 22,566 Cash Cost/o
Slide 15: Rover Project - Prefeasibility Stage
Rover Project - Prefeasibility Stage 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 eq. project is $100m + 2 year time
Slide 16: Why invest in Westgold - Competitive Peer Metrics
Why invest in Westgold - Competitive Peer Metrics 16 Enterprise Value/Cashflow - Australian 100,000 oz+ Producers 14 12 EV = Hundred millions Reserves = Millions 10 8 Average 6.4 EV/FCF 6 4 2 0 Northern Ramelius Resolute Beadell St Barb Westgold Evolution Regis Silver Lake Oceana Saracen Star EV/FCF
Slide 17: Why invest in Westgold - Arguably the most growth
Why invest in Westgold ?? - Arguably the most growth 18 16 15.4 15.3 14 14 12.1 12 MIllion Oz's 10 9.3 9.1 8.6 8.4 8 5.9 6 5.6 5.5 4 4 3.5 3.2 2.9 2.2 2.1 2 2 1.3 1.5 0.4 0.4 0 RMS RSG BDR SBM WGX EVN RRL NST SLR OGC SAR Resources 2.2 12.1 3.5 9.1 15.4 14 8.6 9.3 3.2 15.3 8.4 REserves 0.4 5.6 1.3 4
Slide 18: Why invest in Westgold - A bigger option on gold price
Why invest in Westgold ?? - A bigger option on gold price ENTERPRISE VALUE PER RESOURCE OUNCE OF GOLD $289.50 $228.80 $181.30 $174.10 A$ PER OUNCE $127.50 $98.90 $97.30 $96.80 $81.50 Average A$135/oz $65.40 $42.20 RMS RSG BDR SBM WGX EVN RRL NST SLR OGC SAR ENTERPRISE VALUE PER RESERVE OUNCE OF GOLD
Slide 19: Newly minted Top 10 Australian Gold Producer
ASX:WGX Newly minted Top 10 Australian Gold Producer Peter Cook Steve Norregaard Rod Corps Managing Director Operations Director Investor Relations peter.cook@westgold.com.au steve.norregaard@westgold.com.au rod.corps@westgold.com.au