Westgold Resources Ltd · ASX:WGX
Westgold Resources — Q1 FY23 Earnings Presentation
17 slides from Westgold Resources's earnings presentation, Oct 27, 2022
Slide 1: September Quarterly Overview
WESTGOLD RESOURCES LIMITED ASX: WGX For personal use only SEPTEMBER QUARTERLY OVERVIEW Wayne Bramwell – Managing Director Tommy Heng – Chief Financial Officer Phillip Wilding – Chief Operating Officer 27 October 2022 Matthew Pilbeam – General Manager EH&S
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT For personal use only 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
Slide 3: FY23 – Tracking to Guidance
FY23 – Tracking to Guidance “Westgold’s Q1, FY23 results reflect the commencement For personal use only OPERATION GROUP Q1 of the business reset. Critically, actions taken in late Production (koz) 240,000 -260,000 66,048 August saw our cost trajectory begin to change in AISC (A$/oz) 1,900-2,100 2,10
Slide 4: Q1 FY23 Results – The Reset Begins
Q1 FY23 Results – The Reset Begins TRIFR improving For personal use only 66,048oz produced - at an All-In Sustaining Cost (AISC) of $2,106/oz Positive mine operating cashflow of $21M Production record at Big Bell - 274,444t at 2.5 g/t Au Stellar performance at Starlight - 197,187t at 2.7g/
Slide 5: Q1 Safety and Environmental Performance
Q1 Safety and Environmental Performance For personal use only 30 28.87 30.00 FY23 EH&S Strategy implementation and execution underway – process reviews, ICAM focus, WHS Framework and internal audits. 23.96 24.39 22.91 19.5% decrease in Total Recordable Injury Roling 12 Month Frequency Rate Frequ
Slide 6: Westgold – Bringing Western Australian Gold to the World
Westgold – Bringing Western Australian Gold to the World For personal use only Bryah Operations Murchison Operations 6
Slide 7: Quarter in Review
Quarter in Review For personal use only 80,000 2,400 70,000 2,100 $2,106/oz 60,000 1,800 Gold Production oz. $1,843/oz $1,709/oz $1,759/oz 50,000 1,500 Cost per oz. 40,000 1,200 30,000 900 20,000 600 10,000 300 66,688oz 65,426oz 72,597oz 66,048oz 0 - Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Gold Produced AIS
Slide 8: Q1 Key Metrics
Q1 Key Metrics MURCHISON BRYAH GROUP GROUP SEP QTR SEP QTR SEP QTR YTD For personal use only Westgold is tracking to its full year FY23 production FY23 FY23 FY23 FY23 Physical Summary Units and cost guidance: ROM - UG Ore Mined t 583,562 197,187 780,750 780,750 UG Grade Mined g/t 2.8 2.7 2.8 2.8 O
Slide 9: Q1 Key Metrics – continued
Q1 Key Metrics – continued Reset plan For personal use only • Reset plan for Westgold commenced in late Q1 Costs activated $/oz $'m o Expedited South Emu Triton mine closure 50 2,200 $ 2,167 /oz $ 2,128 /oz o Comet mine put into care and maintenance late in the quarter, and 48 2,100 o Fender put on
Slide 10: Operational Summary - Bryah
Operational Summary - Bryah For personal use only 20,000 1,800 Stellar performance of the Starlight mine - with 197kt at 2.7g/t Au for the quarter 18,000 16,000 Process plant throughput decreased from Q4 - due to $1,683/oz $1,696/oz planned mill shutdowns combined with weather events 14,000 $1,6
Slide 11: Operational Summary - Murchison
Operational Summary - Murchison 60,000 2,400 Processed ore tonnage increased by 2% - to 702.4kt For personal use only 50,000 2,100 compared to the previous quarter (Q4: 687.9kt) $2,235/oz 1,800 40,000 $1,781/oz $1,795/oz $1,896/oz Head grade was steady at 2.5g/t Au (Q4: 2.8g/t Au) as 1,500 more
Slide 12: Q1 Cash Flow Movement
Q1 Cash Flow Movement Q1 gold sales of 66,540oz resulting in revenue of For personal use only $160M at an achieved gold price of $2,411/oz Continuing operating cost pressures $141M (Q4: $134M) on fuel price (13% increase QonQ) and key consumables - but at a slower rate than the previous quarter
Slide 13: Q1 Hedge Book – 109,000oz and tapering
Q1 Hedge Book – 109,000oz and tapering For personal use only Hedge book reduced during Q1 to 109,000oz at an average $2,419/oz Provides approximately 5 months production cover at 260,000oz pa run rate Mitigates any significant downward pressure on the gold price yet allowing headroom for upward
Slide 14: Investing in the Drill Bit – Rigs on Res Dev and Extensional Drilling
Investing in the Drill Bit – 8 Rigs on Res Dev and Extensional Drilling For personal use only 1 1 3 3 14
Slide 15: Investing in the Drill Bit – Rigs on Exploration & Growth
Investing in the Drill Bit – 2 Rigs on Exploration & Growth For personal use only Exploration activities across the Company’s highly prospective ~1,300km2 tenement portfolio continued during Q1 – 2 surface running o 1,310m of Aircore drilling (AC) o 4,475m of Reverse Circulation drilling (RC) o 1,
Slide 16: Q2, FY23 Outlook
Q2, FY23 Outlook For personal use only Optimise and reduce the fixed cost base Operational efficiencies Reduce diesel consumption Rationalisation of surplus fleet Commercial opportunities Review all major supply contracts Business Improvement Programme Target productivity gains Invest
Slide 17: Need More Information?
For personal use only Need More Information? Corporate and Investor Enquiries: Wayne Bramwell – Managing Director P: +61 8 9462 3400 E: Investor.Relations@westgold.com.au www.westgold.com.au 17