Westgold Resources Ltd · ASX:WGX
Westgold Resources — Q4 FY2023 Earnings Presentation
21 slides from Westgold Resources's earnings presentation, Jul 26, 2023
Slide 1: June Quarter FY23
WESTGOLD RESOURCES LIMITED (ASX : WGX) JUNE QUARTER FY23 WAYNE BRAMWELL | MANAGING DIRECTOR TOMMY HENG | CFO PHILLIP WILDING | COO MATTHEW PILBEAM | GM EH&S SIMON RIGBY | GM EXPLORATION & GROWTH 26 JULY 2023 WWW.WESTGOLD.COM.AU
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT 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 Rigby is a full-time
Slide 3: Achieved FY23 production and cost guidance
Achieved FY23 production and cost guidance FY23 Group OPERATION FY23 Q1 Q23 Q3 Q4 Guidance Production (oz) 240,000 -260,000 257,116 66,048 62,180 60,512 68,377 “Westgold’s outstanding Q4, FY23 results AISC ($/oz) A$1,900-2,100 A$1,999 A$2,106 A$2,032 A$2,094 A$1,780 demonstrate what our business can
Slide 4: Q4 FY23 Overview – Turnaround producing results
Q4 FY23 Overview – Turnaround producing results ▪ Continued EH&S performance improvement – 7% reduction in TRIFR compared to Q3 and 63% reduction in FY23 ▪ 68,377oz of gold produced at All-In Sustaining Cost (AISC) of $1,780/oz - 13% increase in gold production and 15% improvement in ASIC vs Q3 ▪ Fu
Slide 5: Westgold TRIFR reduced by 63% in FY23
Westgold TRIFR reduced by 63% in FY23 EH&S Performance Highlights for the Quarter: Westgold has reduced TRIFR by 63% in FY23 15 25 ▪ 7% decrease in Total Recordable Injury Frequency 22.91 Rate (TRIFR): 12 Month rolling Injury Frequency Rate ▪ Q4 – 8.37 from Q3 – 9.03 12 18.44 20 Total Recordable Inj
Slide 6: Hybrid power online – our new Tuckabianna facility
Hybrid power online – our new Tuckabianna facility ▪ The Tuckabianna hybrid facility replaces the diesel fired power station and includes: ▪ 6 MW solar farm fitted with 11,088 photovoltaic panels ▪ battery energy storage system with 2.4 MW installed capacity ▪ 9.5 MW gas-fuelled power station ▪ ~10M
Slide 7: WESTGOLD – 100% Western Australian
WESTGOLD – 100% Western Australian 1,400 strong workforce 1,300km2 tenure 4 underground mines 3 processing plants Owner / operator with extensive UG fleet MURCHISON OPERATIONS BRYAH OPERATIONS 7
Slide 8: Q4 in review - Production up, costs reduced and margin growing
Q4 in review - Production up, costs reduced and margin growing +13% 68,377 66,048 13% improvement in gold production in Q4 62,180 Group production (oz) ▪ underpinned by throughput and grade 60,512 lifts at Big Bell and Bluebird mines Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 AISC for Q4 of $122M reduced by 4%
Slide 9: Q4 Key metrics – Net mine cash flow up
Q4 Key metrics – Net mine cash flow up MURCHISON BRYAH GROUP GROUP JUN QTR JUN QTR JUN QTR FY23 FY23 FY23 FY23 Physical Summary Units ROM - UG Ore Mined t 527,445 163,137 690,582 2,943,418 ▪ AISC of $122M reduced by 4% UG Grade Mined g/t 3.2 2.5 3.0 2.8 Ore Processed t 723,607 194,569 918,179 3,625,
Slide 10: Q4 Key Metrics – Profitability enhanced
Q4 Key Metrics – Profitability enhanced Westgold Monthly AISC ($’m) & ($/oz) Simplicity + Efficiency = Profitability ▪ Operating discipline improving ▪ Cost management improving ▪ Big Bell and Bluebird expanding ▪ Starlight and Paddy’s Flat being right sized Reset Benefits seen in June Quarter plan
Slide 11: MURCHISON - Operational Summary
MURCHISON - Operational Summary HG HG Ounces Ounces ▪ Processed ore tonnage increased by 8% - to 723.6kt compared to Murchison Operation tonnes grade mined Recovery produced the previous quarter (Q3: 671.9kt). Big Bell 290,075 2.8 25,984 ▪ Q3 production was more heavily impacted by weather Tuckabian
Slide 12: MURCHISON – Drilling extending planning horizons
MURCHISON – Drilling extending planning horizons Drilling to extend mine life - better results from Q4 include: ▪ Paddy’s Flat ▪ Consols ▪ 6.81m at 11.95g/t Au from 55m in 23CNDD103 ▪ 10.34m at 9.67g/t Au from the collar in 23CNDD113 ▪ Mudlode ▪ 20.00m at 4.14g/t Au from 50m in 23MUDD175 ▪ 14.59m at
Slide 13: Fender – restart expected in October 2023
Fender – restart expected in October 2023 ▪ Fender was paused in August 2022 ▪ whilst Westgold focused on asset consolidation ▪ Business now stabilised and profitable ▪ economic environment supports restart ▪ Ore to be transported to Meekatharra Processing Hub ▪ Westgold has optionality over where o
Slide 14: BRYAH - Operational summary
BRYAH - Operational summary ▪ ‘Right sizing’ the Starlight mine HG HG Ounces Ounces ▪ Produced 163kt at 2.5g/t Au for 12.9koz mined Bryah Operation tonnes grade mined Recovery produced ▪ Mined grade increased 14% compared to Q3 Starlight Mine 163,137 2.5 12,942 ▪ new management team resetting operat
Slide 15: Extending mine lives – 7 rigs on extensional + 2 on exploration
Extending mine lives – 7 rigs on extensional + 2 on exploration 2 2 2 1 15
Slide 16: Q4 Exploration & Growth – Multiple targets
Q4 Exploration & Growth – Multiple targets 2,563m of Diamond Drilling (DD) at Great Fingall Deeps ▪ Outstanding results returned during the period include: 5.00m @ 5.66g/t Au from 869.00m in hole GFD011_23W1 (Upper Fingall Reef) 4.20m @ 5.46g/t Au from 912.80m in hole GFD011_23W1 (Lower Fingall Reef
Slide 17: Q4 FY23 – closing cash, bullion and liquids up A$24M to A$192M
Q4 FY23 – closing cash, bullion and liquids up A$24M to A$192M Q4 Closing Cash, Bullion and Liquid Assets grows to $192M ($M) +$24M ▪ Westgold remains debt free ▪ Q4 gold sales of 66,577oz - revenue of A$181M (113) ▪ Achieved gold price of A$2,721/oz ▪ Operating cash costs including sustaining capit
Slide 18: Fully leveraged to the gold price from August
Fully leveraged to the gold price from August Westgold to clear its hedge book by July Hedge book reduced during Q4 to 10,000oz 148 ▪ at an average A$2,459/oz 135 122 30,000oz of Zero Cost Collars in FY24 Forward contracts remaining (koz) 109 ▪ Contingent deliveries of 2,500oz per month 96 from July
Slide 19: Westgold declines to improve takeover offer for Musgrave
Westgold declines to improve takeover offer for Musgrave 2 June 2023 3 July 2023 4 July 2023 24 July 2023 Westgold announces Ramelius announces Westgold announces Westgold offer closed all scrip takeover offer competing offer intent not to improve for Musgrave offer 1 Westgold ordinary share $0.04 i
Slide 20: Westgold's FY24 strategic priorities
Westgold’s FY24 strategic priorities Continue to safely Invest in resource and efficiently development and exploration optimise our assets drilling Continue free cash Sensibly invest in technology flow generation that drives cost reduction Assess inorganic growth Increase mine life of opportunities
Slide 21: Want to know more?
Want to know more ? Investor Relations kasun.liyanaarachchi@westgold.com.au Media peter.knight@westgold.com.au www.westgold.com.au ASX : WGX 21