Westgold Resources Ltd · ASX:WGX
Westgold Resources — Bell Potter Unearthed Conference 2021
22 slides from Westgold Resources's conference presentation, Feb 10, 2021
Slide 1: Investor Presentation – Bell Potter Unearthed Conference
For personal use only Investor Presentation Bell Potter Unearthed Conference February 2021
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only ASX: WGX (ASX200, GDX, GDXJ) Focused FPO Shares on Issue: 423.86 million ($2.40/sh) Increasing Output 2.32 million ZEPO & Employee Perf. Rights Self-sufficient Market Capitalization: ~A$ 1.02 billion share price $2.40 (3/2/21) (~US$775 million) Fiscally Stron
Slide 3: Governance & Exec. Management
Governance & Exec. Management For personal use only BOARD OF DIRECTORS: Exec Chair (Trans’n): Peter Cook Focused EXECUTIVE MANAGEMENT: Indep NED: Fiona Van Maanen CEO: Debbie Fullarton Self-sufficient Indep NED: Peter Schwann COO: Anthony Buckingham Indep NED: Wayne Bramwell Increasing Output Co Sec
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. For personal use only 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 For personal use only Focused 7 Underground Mines 4 Open Pits 3 Processing plants Steady Profile: 4 Villages Steady Profile: Steady Profile: 65,000 – 75,000 oz p.a. 110,000 – 120,000 oz p.a. 95,000 – 105,000 oz p.a. C1 Cash Costs: $1,050-$1,150/oz C1 Cas
Slide 6: Forward Guidance (12 months)
Forward Guidance (12 months) For personal use only Gold Sales 270,000 – 300,000 oz Cash Costs (C1) - $/oz $1,200 – $1,300/oz Focused AISC - $/oz $1,450 - $1,550/oz Increasing Output Self-sufficient Fiscally Strong Long Life High Margin
Slide 7: Minterra – underground mining services
Minterra – underground mining services For personal use only Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 8: Open Pit Mining Services
Open Pit Mining Services For personal use only Focused Increasing Output Self-sufficient Fiscally Strong Long Life High Margin UNIQUE ONLY OWNER OPERATOR MINER
Slide 9: Self Sufficient Advantages
Self Sufficient Advantages Quarterly Gold Prod'n and A$ Cost of Sales For personal use only 70,000 1,800 Focused 60,000 1,500 50,000 1,200 Self-sufficient Qtr Prod'n Oz Cost Per Oz 40,000 900 30,000 Increasing 20,000 600 Output 300 10,000 Fiscally Strong 0 Mar Q 2020 Jun Q 2020 Sep Q 2020 Dec Q 2020
Slide 10: Gold Price Implications
Gold Price Implications 3,000 For personal use only $2,450/oz 2,500 $2,088/oz Focused 2,000 $1,768/oz A$900+/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 Increasing 1,000 Output 500 Fiscally Strong 0 FY2017 FY2018 FY2019 FY2020 F
Slide 11: Growth Capital Reduces after Big Bell
Growth Capital Reduces after Big Bell For personal use only Focused 18 14 Self-sufficient 26 Big Bell ramp-up 70 16 Increasing 86 $' millions Output 90 20 60 25 80 54 Fiscally Strong 2 2 9 47 30 5 47 45 17 28 23 Long Life 17 18 FY2017 FY2018 FY2019 FY2020 FY2021 FCST FY2022 FCST High Margin P&E Othe
Slide 12: First Half of FY 2021 (un-audited)
First Half of FY 2021(un-audited) For personal use only Q1- 2021FY Q2 – 2021FY 1st HALF - 2021FY Focused Plant & Equipment 5.3 7.4 12.7 Sustaining Capex 9.2 9.0 18.2 Self-sufficient Growth Capital 31.6 32.5 64.1 Increasing Exploration 4.6 3.6 8.2 Output Owner Mining Capex 5.8 5.5 11.3 Fiscally Stron
Slide 13: Balance Sheet Strength
Balance Sheet Strength Cash Balance – Grown to $163m For personal use only Spares, Ore Stocks & GIC Focused 3 Process Plants, 4 villages, o/pit & u/g mining fleet 7 Underground mines, 5 open pits Self-sufficient 6.25 million oz of resource not in reserves Increasing Output Mine Equipment leases/ROU
Slide 14: Built on Cash Flow not on Debt
Built on Cash Flow not on Debt Why we are different ? For personal use only Our philosophy’s!! Focused Debt Kills Miners ! Self-sufficient Debt can Destroy Shareholder wealth ! Increasing Deliberate project rebuilds – patiently within our means to preserve value Output and create long term value. Fi
Slide 15: Resource & Reserves (at June 30, 2020) – JORC 2012
Resource & Reserves (at June 30, 2020) – JORC 2012 For personal use only 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 16: Westgold has already produced million ounces
Westgold has already produced 1 million ounces For personal use only Sustainable Production Focused Self-sufficient Increasing Output Fiscally Strong Long Life High Margin
Slide 17: ESG – Our Footprint
ESG – Our Footprint (from our June 30, 2020 ESG Report) For personal use only 1 as at 02/2021 <4 Focused on as at 02/2021 Improved ESG Outcomes > 900
Slide 18: Trading Comparatives – Price to Cashflow (2021 Fcst)
Trading Comparatives – Price to Cashflow (2021 Fcst) For personal use only 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 Average Re-rating 4 LARGE SMALL after CAPs MEDIUM CAPs CAPs WGX GDX Entry 3 > 1m Oz pa < 350k Oz pa P/CF 4 X 350k – 1m Oz pa 2 1 0 Large Cap Medium
Slide 19: Trading Comparatives – EV / EBITDA (2021 Fcst)
Trading Comparatives – EV / EBITDA (2021 Fcst) For personal use only 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 post > 1m Oz pa CAPs < 350k Oz pa GDX Entry 5 350k – 1m Oz pa EV/EBITDA 3.1x 0 Large Cap Medium cap Small Cap WGX
Slide 20: Investment Synopsis
Investment Synopsis For personal use only 6th Largest Domestic Gold Producer in Australia, ASX 200, GDX, GDXJ Strong Balance Sheet – >A$160m in cash, no corporate debt Best Value Self-sufficient, Owner Operator, Substantial Fixed Assets and Fleet Re-rating after GDX Entry Long Life Mines – Substanti
Slide 21: JORC Compliance Statement
JORC COMPLIANCE STATEMENT For personal use only 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)
Slide 22: Thank You!
For personal use only Thank You!
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