Westgold Resources Ltd · ASX:WGX
Westgold Resources — H1 FY22 Earnings Presentation
12 slides from Westgold Resources's earnings presentation, Feb 25, 2022
Slide 1: Westgold Resources Limited Half Year Results
WESTGOLD RESOURCES LIMITED [ ASX: WGX ] HALF YEAR RESULTS 25 February 2022 Debbie Fullarton – Chief Executive Officer Wayne Bramwell – Executive Director
Slide 2: Disclaimer
Disclaimer COMPLIANCE STATEMENT Exploration targets, exploration results the information in this report that relates to exploration targets and exploration results is compiled by Westgold technical employees and contractors under the supervision of Mr. Jake Russell B. Sc. (Hons), who is a member of
Slide 3: Westgold [ASX: WGX] – H1 FY22 Results
Westgold [ASX : WGX] – H1 FY22 Results Established Australian producer – Tier 1 jurisdiction and a +35M oz gold province Operational flexibility – 4Mt milling capacity and 2.2M oz reserve Owner miners – cost effective and efficient underground and open pit miners H1 FY22 – production increased to ≈1
Slide 4: H1, FY22 - Key Metrics
H1, FY22 - Key Metrics Record gold production for Westgold – 132,861 oz for H1 Revenue up 3% – to $311M Cost of sales up 22% – industry labour and cost pressures Paid Maiden Cash Dividend – $6M returned to shareholders Investing for medium and long term Building surface ore stocks $15M –
Slide 5: COVID-19 Cost Escalators
COVID-19 Cost Escalators Increased labour pressures – availability and mobility Increased labour costs – staff and contractors High administrative burden - vaccination mandates Supply chain disruptions – services and equipment Increased costs in fuel, spares and other consumables 5
Slide 6: COVID-19 Impacts and Response
COVID-19 Impacts and Response Mining Operations Salaries and Oncosts 140% 130% Salaries and oncosts ($) 120% 110% Labour costs increase between Jul 21- Dec 21 100% +14% Average 90% despite FTE positions vacant 80% Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Actual Budget $/L Diesel $/L Employee Headco
Slide 7: Proactive Management
Proactive Management Building surface ore stocks ≈1.3Mt held at Dec 21 [30% increase in volume] to mitigate disruption risks Building inventory of critical spares and consumables - invested $5M additional at Dec 21 to mitigate supply risk Capital reinvestment - invested $20M in fleet and infra
Slide 8: Analysis of H1 Results
Analysis of H1 Results HY ended HY ended MAIN MOVEMENTS Consolidated Unit Variance Dec 21 Dec 20 Revenue $M 311 302 9 3% Revenue Increased gold output 6,851oz (5%) – decreased Cost of sales $M 279 229 50 22% achieved gold price $52/oz (2%) Profit after tax $M 20 48 (28) -58% Operating Activities (Ca
Slide 9: Year to Date Performance
Year to Date Performance Gold Production oz 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 FY21 - H2 FY22 - H1 FY22 Guidance FYTD Production Oz Au +270,000 132,861 C1 A$/oz 1,250 – 1,400 1,383 AISC A$/oz 1,500 – 1,700 1,646 Achieved gold price $2,358 / oz 9
Slide 10: Production Stability
Production Stability Tonnes Produced (Primary U/G Mines) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Q3 - FY21 Q4 -FY21 Q1 -FY22 Q2 -FY22 Starlight Paddys Flat Big Bell Primary Tonnes Produced (Secondary U/G Mines) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Q3 - FY21 Q4
Slide 11: H2 Outlook
H2 Outlook Levers to Enhance Profitability Prudent cost management - active cost savings measures Consistent production - baseline tonnage from core mines Increase mined grade - disciplined design and execution Milling optionality - optimise economic return Future proofing the business Imp
Slide 12: Need More Information?
Need More Information? Corporate and Investor Enquiries: Wayne Bramwell – Executive Director P: +61 8 9462 3400 E: wayne.bramwell@westgold.com.au W: www.westgold.com.au 12