Westgold Resources Ltd · ASX:WGX
Westgold Resources — Precious Metals Summit Beaver Creek and Denver Gold Forum 2019
27 slides from Westgold Resources's conference presentation, Sep 13, 2019
Slide 1: Precious Metals Summit / Denver Gold Forum
For personal use only Precious Metals Summit Beaver Creek - Sept 2019 Denver Gold Forum Denver - Sept 2019 1
Slide 2: Compliance & General Disclaimer
Compliance & General Disclaimer For personal use only 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, Mr Paul Hucker
Slide 3: About Westgold
ABOUT WESTGOLD For personal use only Westgold is Australia’s 7th largest domestic gold producer. All Westgold’s operations are in the Murchison Region of W.A. Westgold has consolidated an enviable gold inventory and re- established three gold processing hubs over the past 3-4 years with approximatel
Slide 4: Corporate Structure
Corporate Structure For personal use only FPO Shares on Issue: 398.9 million Options on Issue: 7.3 million (various dates above $2/share) Market Capitalization*: ~A$960 million (~US$650 million) Major Shareholders: Shareholders Composition: 4 * Assume share price of A$2.40
Slide 5: Share Price Performance
Share Price Performance For personal use only WGX Share Price up 166% YTD (A$0.90 - A$2.40/share) Australian Gold Index (XGD) up 47% YTD Outperforming Aussie Gold Index 5
Slide 6: Rationalization of the Groups Assets
Rationalization of the Groups Assets For personal use only Focus on Core Business THE KEEPERS THE SELLS Murchison Region Assets Kalgoorlie Region Assets OLD Fortnum Gold Opertions • South Kalg Gold Operations S OLD Meekatharra Gold Operations • Higginsville Gold Operations S Cue Gold Operations • Li
Slide 7: The Core Business
The Core Business For personal use only CENTRAL MURCHISON AGGREGATION: WE OWN THE MAJORITY OF TENURE AND RESOURCES IN THE MURCHISON. Over 10 Million ounces of Historic Production Murchison Goldfields 4 major historic underground producers 9.35 Million ounces of Total Resource*. FGO MGO 2.65 Million
Slide 8: Processing Hubs
3 PROCESSING HUBS 3.5 – 4.0 MILLION TONNES OF PLANT CAPACITY For personal use only FORTNUM 0.9 – 1.0 Million TPA 65 – 70,000oz pa BLUEBIRD 1.4 – 1.6 Million TPA 110 - 120,000oz pa FGO MGO CGO TUCKABIANNA Kalgoorlie 1.2 – 1.4 Million TPA Perth 100-110,000 oz pa 8
Slide 9: Murchison Gold Operations
MURCHISON GOLD OPERATIONS For personal use only PASSING THE TIPPING POINT !! Since consolidation of the land position the company has developed 6 underground mines, 12 open pits and fully refurbished and commissioned 3 processing plants. Capital investment over the last 3 years in the Murchison Asse
Slide 10: Murchison Region Operating Model
MURCHISON REGION OPERATING MODEL For personal use only Mine & Cart to a centralized processing hub from anywhere within a 100 km radius. Blended plant feedstocks to manage consistent physical output and consistent gold production. A trend toward underground mining as the main output because it is su
Slide 11: Underground Mines to Dominate
UNDERGROUND MINES TO DOMINATE “Old mines don’t die, they just get deeper !” For personal use only Mine Past Prod’n Resource Reserve’s Depth Big Bell 2.71 M Oz 2.1 M Oz 1.10 M Oz 540m Great Fingall 1.37 M Oz 0.41 M Oz 0.23 M Oz 850m Golden Crown 0.29 M Oz 0.19 M Oz 0.04M Oz 500m Paddy’s Flat 0.83 M O
Slide 12: Fortnum (FGO) – Snapshot
FORTNUM (FGO) – SNAPSHOT For personal use only 3 Major Gold Production Fields: Labouchere, Fortnum, Peak Hill Simple Metallurgy & CIP Plant capacity of 0.9Mtpa ORE FEED SOURCES : Starlight U/g Mine ~ 500 kt @ 3.5+ g/t . Fortnum (FGO) Open Pit/Stocks ~ 400kt @ 1.2 g/t GOLD OUTPUT 65 – 70,000 oz @ US$
Slide 13: Meekatharra (MGO) – Snapshot
M E E K AT H A R R A ( M G O ) – S N A P S H O T Five (5) Major Gold Production Fields: Meekatharra North, Paddy’s Flat, For personal use only Yaloginda, Nannine, Reedy’s Generally Simple Metallurgy & CIP Plant capacity of 1.4 – 1.6 Mtpa ORE FEED SOURCES : . Meekatharra (MGO) U/g Mines - moving to 1
Slide 14: Cue (CGO) – Snapshot
CUE (CGO) – SNAPSHOT For personal use only Five (5) Major Gold Production Fields: Big Bell, Cuddingwarra, Day Dawn, Tuckabianna, Pinnacles Simple Metallurgy & CIP Plant capacity of 1.2 Mtpa ORE FEED SOURCES : U/g Mines - 500 ktpa kt @ ~ 4+ g/t (building to 1.2Mtpa @ ~ 3g/t) Open Pits - 700kt @ 1.5 g
Slide 15: Westgold Unique as Owner Operator
WESTGOLD UNIQUE AS OWNER OPERATOR For personal use only • We own major underground mining fleet. • We own our own raise drilling and underground diamond drill fleets. • We own substantial open pit mining fleet. • We operate our own crane, elevated work platform and low loader fleets. • We have a vas
Slide 16: FY 2020 Guidance
FY 2020 Guidance For personal use only AUD $0.68 MGO 110 -120,000 oz CGO 100 - 110,000 oz FGO 65 - 70,000 oz Westgold Group Gold Production & Cost Guidance – FY 2020 Period Q1 Q2 Q3 Q4 FY2020 Gold Prod’n 63 -68,000 oz 67- 72,000 oz 71-79,000 oz 74-81,000 oz 275- 300,000oz C1 Cost (A$/oz) 1,230 – 1,2
Slide 17: Exploding Margins
EXPLODING MARGINS For personal use only FY2018 Act FY2019 Act FY2020 Fcst 253,210oz 255,221oz 285,000 oz* Cash Costs C1 Cash Costs C1 Cash Costs C1 (US$520/oz) A$1,273/oz A$1,253/oz A$1,200/oz US$ 865/oz US$ 852/oz US$ 815/oz AISC AISC AISC A$1,462/oz A$1,408/oz A$1,395/oz A$840/oz US$ 994/oz US$ 95
Slide 18: Comparison to Peer Metrics: EV/Production Ounces
Comparison to Peer Metrics For personal use only s EV/PRODUCTION OUNCES-2020 K oz 12000 4 76 11280 10000 s K oz 7 s 85 K oz oz s 5 9K 8000 8390 14 36 oz s 0K 7788 7738 36 s K oz 6718 0 6000 41 s s 5638 oz K oz s 5K 5 oz s 29 21 3K K oz 4000 21 5 3646 3632 28 oz s 3413 6K 3226 16 2000 2069 0 EVOLUTIO
Slide 19: Comparison to Peer Metrics: EV/FCF
Comparison to Peer Metrics For personal use only EV/FCF-2021 25 22.58 20 21.49 19.28 15 13.01 AVERAGE – 11.85 11.82 10 11.18 8.65 6.56 6.27 5 4.01 3.08 0 ST BARBARA EVOLUTION REGIS SARACEN NORTHERN GOLD ROAD RESOLUTE RAMELIUS SLIVER LAKE WESTGOLD DACIAN GOLD LTD MINING LTD RESOURCES MINERALS STAR RE
Slide 20: Comparison to Peer Metrics: FCF Yield
Comparison to Peer Metrics For personal use only FCF YIELD % - 2021 30 27.2 25 20 15 15.5 13 11.6 AVERAGE – 10 10 10 8.1 7.4 6.7 5 4.4 4.4 4 0 DACIAN GOLD WESTGOLD SLIVER LAKE RESOLUTE RAMELIUS GOLD ROAD NORTHERN SARACEN EVOLUTION REGIS ST BARBARA RESOURCES RESOURCES MINING LTD RESOURCES RESOURCES S
Slide 21: Comparison to Peer Metrics: EV/EBITDA
Comparison to Peer Metrics For personal use only EV/EBITDA-2021 10 9 9.2 8 7 7 7 AVERAGE – 6.2 6 6.4 5.7 5 5.3 4.78 4 4.11 3.5 3 2 2.4 1.9 1 0 EVOLUTION NORTHERN GOLD ROAD SARACEN REGIS ST BARBARA SLIVER LAKE RAMELIUS RESOLUTE WESTGOLD DACIAN GOLD MINING LTD STAR RESOURCES MINERALS RESOURCES LTD RES
Slide 22: Comparison to Peer Metrics: EV/NAV
Comparison to Peer Metrics For personal use only EV/NAV-SPOT $1525 US 1.8 1.6 1.57 1.4 1.29 AVERAGE – 1.2 1.2 1.27 1.15 1 1.02 0.95 0.8 0.83 0.79 0.89 0.71 0.6 0.69 0.4 0.2 0 EVOLUTION NORTHERN RAMELIUS SARACEN REGIS GOLD ROAD WESTGOLD SLIVER LAKE ST BARBARA DACIAN GOLD RESOLUTE MINING LTD STAR RESO
Slide 23: Westgold – Investment Synopsis
W ESTGOLD – Investm ent Synopsis For personal use only PASSING THE TIPPING POINT OF HEAVY INVESTMENT Ramp-ups nearing Completion. Gold Output Rising. Costs Reducing. Now a simple focussed Story. Discounted to Peer Metrics – re-rating underway. Cash, Asset Rich,Growth Source Data: Bells Gold Tracker
Slide 24: De-merger of NT Polymetallic Assets
DE-MERGER OF NT POLYMETALLIC ASSETS For personal use only 1:4 In-specie Distribution -100 million shares 1:1 Entitlements Issue -100 million shares (underwritten) Shares on Issue -200 million shares Net Working Capital $19 million Funded to Explore & Develop Note: The potential demerger of Castile i
Slide 25: Resource & Reserves Statements
R E S O U R C E & R E S E R V E S TAT E M E N T S For personal use only For full details please refer to the announcement ”Annual Update – Mineral Resource & Ore Reserve as at 30 June 2018” released by Westgold Resources Limited (ASX:WGX) on 2nd October 2018. 25
Slide 26: For personal use only
For personal use only 26
Slide 27: Westgold Resources Limited
WESTGOLD RESOURCES LIMITED
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