Announcement PDF ASX : WGX TSX : WGX Westgold Resources Limited Q1, FY25 Quarterly Results westgold.com.au Important Notices and Disclaimer Investor Presentation Summary Information This investor presentation is dated 31 October 2024 and has been prepared by Westgold Resources Limited (ASX: WGX, TSX:WGX, OTCQX: WGXRF) (Westgold) based on information available to it at the time of preparing this presentation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. By reviewing or retaining these materials, or attending or participating in this presentation, you acknowledge and represent that you have read, understood and accepted the terms of this “Important Notices and Disclaimer”. This presentation contains summary information about Westgold and its activities current only at the date of this presentation. This presentation is for information purposes only. The information in the presentation is of a general nature only and does not purport to be complete. This presentation should be read in conjunction with Westgold’s periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au and on Westgold's website at www.westgold.com.au, and in Canada under Westgold's profile on SEDAR+ at www.sedarplus.ca. Certain information in this presentation may have been obtained from research, surveys or studies conducted by third parties, including industry or general publications. Neither Westgold nor its representatives have independently verified any such information sourced from third parties or industry or general publications. To the maximum extent permitted by law, none of Westgold, its directors, employees or agents, advisers, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. Not an Offer This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. This presentation has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this presentation have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the US Securities Act or exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws. Not Investment Advice This presentation does not constitute in any way an offer or invitation to subscribe for securities in Westgold pursuant to the Corporations Act 2001 (Cth). This presentation does not constitute investment advice and has been prepared by Westgold without taking into account the recipient’s investment objectives, financial circumstances or particular needs. Each recipient must make his/her own independent assessment and investigation of Westgold and its business and assets when deciding if an investment is appropriate and should not rely on any statement or the adequacy and accuracy of any information. This presentation is in summary form and does not purpose to be exhaustive. Westgold makes no representation or warranty (either expressed or implied) as to the accuracy, reliability or completeness of the information in this presentation. Westgold and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from the presentation, except liability under statute that cannot be excluded. 2 Important Notices and Disclaimer Forward-looking Statements Ore Reserves and Mineral Resources This document contains “forward-looking information” and “forward-looking statements” which are based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of Westgold believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects’, ‘anticipates’, ‘plans’, ‘believes’, ‘estimates’, ‘seeks’, ‘intends’, ‘targets’, ‘projects’, ‘forecasts’, or negative versions thereof and other similar expressions, or future or conditional verbs such as ‘may’, ‘will’, ‘should’, ‘would’ and ‘could’. Although management believes that the assumptions made by Westgold and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Westgold to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, changes in laws, regulations and practices, the geopolitical, economic, permitting and legal climate that Westgold operates in, as well as those factors disclosed in Westgold's publicly filed documents. Westgold believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Readers should not place undue reliance on forward-looking information. Westgold does not undertake to update any forwardlooking information, except in accordance with applicable securities laws. This presentation refers to Westgold having a combined Ore Reserve and Mineral Resource estimate of 13.2Moz and 3.3Moz (respectively) and refers to the individual Ore Reserve (or Mineral Reserve) and Mineral Resource estimate of Westgold. Historical Information Information about the past performance of Westgold contained in this presentation is given for illustrative purposes only and cannot be relied upon as an indicator of (and provides no guidance as to) future performance, including future share price performance of Westgold. Any such historical information is not represented as being, and is not, indicative of Westgold’s view on its future financial condition and/or performance, nor the future financial condition and/or performance of the merged group. The information in this presentation that relates to the Ore Reserves and Mineral Resources of Westgold has been extracted from the ASX announcement titled “Westgold 2024 Mineral Resources and Ore Reserves " released to the ASX on 16 September 2024 and available at www.asx.com.au. Westgold confirms that it is not aware of any new information or data that materially affects the information included in that announcement, and that all material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. Westgold confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from that announcement. The information in this presentation that relates to Westgold’s Exploration results and Mineral Resource Estimates is compiled by Westgold technical employees and contractors under the supervision of Mr. Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists and who has verified, reviewed and approved such information. Mr Russell is a full-time employee of Westgold and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the Joint Ore Reserves Committee’s 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code) and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Russell is a full-time employee as General Manager – Technical Services of Westgold and, accordingly, is not independent for purposes of NI 43-101. Mr Russell consents to and approves of the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short and long-term incentive plans of Westgold. The information in this presentation that relates to Westgold’s Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. FAusIMM and who has verified, reviewed and approved such information. Mr. Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr. Devlin is full-time senior executive of Westgold and, accordingly, is not independent for purposes of NI 43-101. Mr. Devlin consents to and approves of the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Mr. Devlin is a full-time senior executive of Westgold and is eligible to and may participate in short-term and long-term incentive plans of Westgold as disclosed in its annual reports and disclosure documents. 3 Important Notices and Disclaimer JORC CODE It is a requirement of the ASX Listing Rules that the reporting of Ore Reserves and Mineral Resources in Australia comply with the JORC Code. Investors outside Australia should note that while Ore Reserve and Mineral Resource estimates of Westgold in this presentation comply with the JORC Code (such JORC Code-compliant Ore Reserves and Mineral Resources being "Ore Reserves" and "Mineral Resources" respectively), they may not comply with the relevant guidelines in other countries and, in particular, do not comply with (i) National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators (the "NI 43-101"); or (ii) Item 1300 of Regulation S-K, which governs disclosures of Mineral Reserves in registration statements filed with the SEC. Information contained in this presentation describing mineral deposits may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of Canadian or US securities laws. Investment Risk As noted above, an investment in shares in Westgold is subject to investment and other known and unknown risks, some of which are beyond the control of Westgold. Westgold does not guarantee any particular rate of return or the performance of Westgold, nor does it guarantee the repayment of capital from Westgold or any particular tax treatment. Prospective investors should have regard to the risks outlined in this presentation when making their investment decision and should make their own enquires and investigations regarding all information in this presentation, including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Westgold and the impact that different future outcomes may have on Westgold. These risks, together with other general risks applicable to all investments in listed securities not specifically referred to, may affect the value of shares in Westgold in the future. There is no guarantee that the Westgold shares will make a return on the capital invested, that dividends will be paid on the Westgold shares or that there will be an increase in the value of the Westgold shares in the future. Accordingly, an investment in Westgold should be considered highly speculative and potential investors should consult their professional advisers before deciding whether to subscribe for Westgold shares. Effect of Rounding A number of figures, amounts, percentages, estimates and calculations of value in this presentation are subject to the effect of rounding. The actual calculation of these figures may differ from the figures set out in this presentation. 4 Q1, FY25 was transformational...  $1.4B Merger with TSX Karora Resources completed on 1 August 2024  Becomes pro-forma +400kozpa producer  Merger funded through growth and disciplined cash build from Murchison assets  Westgold lists on TSX and rejoins S&P/ASX 200  100-day integration plan of Southern Goldfields assets and team commenced  17 drill rigs operating across portfolio on resource development and exploration 5 ...and transitional to a larger business Two months’ production from Southern Goldfields and three months’ production from Murchison LEGEND Operating mines FY25 +400 kozpa Au Southern Goldfields + Processing plants Murchison Beta Hunt Two Boys Higginsville Lakewood Starlight Bluebird Big Bell Fender *Great Fingall 3.3Moz Au 13.2Moz Au ~3,200km2 Ore Reserve [1] Mineral Resource[1] 5 mills ~7Mtpa Processing capacity in Western Australia Western Australia Fortnum Bluebird Tuckabianna ~19 Active drill rigs 2,127 Employees Murchison Southern Goldfields Kalgoorlie Headquarters (Perth) * Great Fingall Mine in Development 1. Refer to ASX release “2024 Ore Reserves and Mineral Resources” of 16 September 2024. See appendices for breakdown of Measured, Indicated and Inferred material. 6 Safety and Sustainability People and Place 7 Standardising safety culture Additional resources deployed to support Southern Goldfields 8 People drive our business • Combined team of 2,100 • Positive workplace culture post-merger • Diversity and inclusion initiatives advancing in Q1 • Female participation increased from 12.5% to 14.6% • Male participation in primary and secondary carers leave increasing 9 Balance Sheet Strength Key to growth strategy 10 Q1, FY25 waterfall chart Cash, Bullion, and Liquid Investments Movement 8 11 Cashflow (continued) Cash, Bullion, and Liquid Investments Movement commentary Operating cash flows funded growth projects and the merger without drawing down on debt • Cash acquired of $32M from Karora on 1 August is net of the Macquarie debt repayment of $44M and related Culico Metals and Kali Metals contributions of $11M. • Operating cash flows for the Southern Goldfields are for August and September only. • Growth capital projects relate to the investments in expansions at Beta Hunt, Big Bell, Great Fingall development, Bluebird – South Junction and Starlight mine sites. • PPE related to processing facilities upgrades, paste plant, camp and infrastructure upgrades and underground equipment. • Merger Cost of $153M relates to: o $125M cash consideration paid to Karora shareholders o $21M change of control payments to Karora Executives and Directors, and o $7M to Karora advisors’ (legal, financial, taxation and corporate advisory). 12 Guidance Gold production (oz) 1. 2. Record production of 77,369oz (~90koz normalised for full three months of Southern Goldfields production) Mine operating cashflow margin of $1,301/oz (achieved gold price above the AISC) 3. FY25 full year cost guidance maintained at $2,000 to $2,300/oz. 4. AISC will improve quarter on quarter following integration of Southern Goldfields, and as growth projects ramp up production in H2 FY25 Achieved gold price ($/oz) AISC ($/oz) AISC ($M) 13 FY25 Guidance Maintained Outputs anticipated to increase in H2 FY25 FY25 Guidance Production (oz) AISC (A$/oz) Growth Capital (A$M) Exploration (A$M) 400,000 – 420,000 FY25 Q1 Actual 77,269 2,000 – 2,300 2,422 235 58 50 14 • Production upside potential o Third party ore purchase (Q2, FY25) o Polar Star Lode at South Junction (H2, FY25) o Fletcher zone (H2, FY25) • YoY AISC A$/oz reduction expected with cost discipline and post-merger synergies being realised • Increased investment in growth projects & exploration sets platform enhanced for FCF 14 Operational Results 15 Group Results – Q1, FY25 Physical Summary ROM - UG Ore Mined UG Grade Mined ROM - OP Ore Mined OP Grade Mined Units t g/t t g/t Ore Processed Head Grade Recovery Gold Produced Achieved Gold Price All-in Sustaining Costs Notional Cashflow Summary Notional Revenue (produced oz) All-in Sustaining Costs Mine Operating Cashflow Growth Capital Plant and Equipment Exploration Spend Net Mine Cashflow t g/t % oz A$/oz A$/oz Group 941,508 2.4 70,388 2.1 1,289,561 2.1 90 77,369 3,723 2,422 A$’M A$’M A$’M A$’M A$’M A$’M A$ M 288 (187) 101 (39) (19) (14) 29 • Record gold production at record achieved gold price maintains cashflow - despite a transition period of higher costs and Southern Goldfields pro-rata production • Capital investments of $58M - progressing to plan - at key growth targets including Bluebird South-Junction, Beta Hunt and Great Fingall • Focus on integration of two asset portfolios - and two teams 16 Murchison Physical Summary ROM - UG Ore Mined UG Grade Mined ROM - OP Ore Mined OP Grade Mined Units t g/t t g/t Ore Processed Head Grade Recovery Gold Produced Achieved Gold Price All-in Sustaining Costs Notional Cashflow Summary Notional Revenue (produced oz) All-in Sustaining Costs Mine Operating Cashflow Growth Capital Plant and Equipment Exploration Spend Net Mine Cashflow t g/t % oz A$/oz A$/oz A$’M A$’M A$’M A$’M A$’M A$’M A$ M Murchison 650,066 2.4 878,890 2.1 90 52,889 3,723 2,294 197 (121) 76 (34) (11) (11) 20 • Costs remain within guidance – Fender reaching commercial production and higher percentage of stockpile ore processed after atypical rain in Q4 restricted haulage operations offset by lower processing costs with Bluebird mill planned enhancements • Capital investment progressing to plan - to increase Bluebird-South Junction higher grade ore production from 0.5Mtpa to 1.2Mtpa in H2 FY25 • Bluebird mill enhancements during the quarter - to accommodate higher throughput from Bluebird-South Junction 17 Southern Goldfields Physical Summary Units ROM - UG Ore Mined UG Grade Mined ROM - OP Ore Mined OP Grade Mined t g/t t g/t Ore Processed Head Grade Recovery Gold Produced Achieved Gold Price All-in Sustaining Costs Notional Cashflow Summary Notional Revenue (produced oz) All-in Sustaining Costs Mine Operating Cashflow Growth Capital Plant and Equipment Exploration Spend Net Mine Cashflow t g/t % oz A$/oz A$/oz A$’M A$’M A$’M A$’M A$’M A$’M A$ M Southern Goldfields 291,442 2.3 70,388 2.1 410,671 2.0 92 24,480 3,723 2,696 91 (65) 25 (5) (8) (3) 9 • Q1 results reflect only two months of production from Southern Goldfields • Operating efficiencies identified - implementation began late Q1 and we will see outputs and AISC improve during H2 • Expedited investment in key mine infrastructure - including pumping, power and ventilation at Beta Hunt and Two Boys • Beta Hunt on track to consistently achieve throughput rate of 2Mtpa – from H2, FY25 18 Investing in Growth 19 Investing in Growth $14M Q1 Total Capital expenditure includes:  $39M in growth capital CAPITAL ALLOCATION $8M  planned expansions at key producing assets  $19M in plant and equipment  Processing facilities ($5M)  Paste plant ($5M)  Camp upgrades ($1M) and  other ($8M)  $14M in Exploration $1M $5M $5M $39M Plant and Equipment Processing facilities Growth Capital Paste plant Exploration Camp upgrades Other 20 Exploration and Resource Development Unleash the drills 21 Extending mine lives Q1 Resource Definition Drilling Programmes • Surface drilling: • South Junction (2-3 rigs) • UG Drilling: • Bluebird-South Junction (2 rigs) • Fletcher (2-3 rigs) • Big Bell (1 rig) • Starlight (2 rigs) 22 Bluebird – South Junction: From 0.5 to to 1.2 Mtpa 1. Refer to ASX announcement titled “Westgold Declares Maiden South Junction Ore Reserve” – 14 August 2024 • Updated Mineral Resource Estimate of 11Mt at 2.8g/t Au for 960koz featuring a Measured and Indicated component of 4.7Mt at 3.1g/t Au for 465koz Au • Bluebird – South Junction Ore Reserve increased to 3.0Mt @2.8g/t Au for 277koz • Upside in Polar Star Lode • How big is thing? 23 Beta Hunt from 1.6Mtpa to >2Mtpa • 7km footprint - Southern 3 km largely untested • 4 key orebodies to-date o Western Flanks the largest (~1.6Moz)1 • Orebodies offset - along the Alpha Island Fault (AIF) • Current Mineral Resources of 30.59Mt @ 2.7g/t Au for 2.65Moz1 • Current Ore Reserve of 6.24Mt @ 2.7g/t Au for 542Koz1 • 3 rigs dedicated to Fletcher 1. Refer to ASX announcement titled: “2024 Mineral Resource Estimate and Ore Reserves” - 16 September 2024 24 Beta Hunt – A Zone and Western Flanks to >2Mtpa 1. Refer to ASX announcement titled “Outstanding Drill Results From Fletcher Zone At Beta Hunt” – 21 August 2024 2. Refer to ASX announcement titled “Fletcher Exploration Target ” – 16 September 2024 • Fletcher potential identified in 2016: o not advanced until 2023 • Parallel structure to the 1.6Moz Western Flanks – same style of mineralisation ~300m to west • Outstanding early drill results returned over 2km of strike1 • Fletcher Exploration Target2: o 23-27Mt @ 2.1-2.5g/t Au for 1.6-2.1Moz • Includes Stage 1 Target (southern half of zone): o 12-16Mt @ 2.1-2.5g/t Au for 0.8-1.2Moz Au • Drilling activities accelerated: o with three rigs committed to resource definition drilling 25 The next suite of assets Greenfields Activities  10,686m of AC drilling: o Testing early-stage targets including Nannine (Meekatharra) and Labouchere (Fortnum) o Assay results pending Q2  Development of RC drilling programs: o Test advanced targets: Mountain View (Cue), Champion (Meekatharra), Peak Hill (Fortnum) and Erin (Higginsville) o Scheduled in Q2  Ongoing target generation and ranking continues across the broader tenement portfolio 26 What's ahead? 27 Focus on the two growth engines – and cost reduction Murchison Southern Goldfields Portfolio Bluebird-South Junction Beta Hunt Strategic Review • Increase mine scale to 1.2Mtpa • Expansion to >2Mtpa • Reduce haulage from Cue • Define Fletcher Zone • Rank assets across 3,200km2 land holdings • Increase feed grade • Consolidate processing in Southern Goldfields • Right size the package • Increase margins • Prioritise high value prospects 28 Westgold – A compelling value proposition Top 5 ASX / Top 10 TSX Producer Unhedged Financial Strength Production capacity of +400,000 ozpa One of Australia’s largest fully unhedged gold producers Robust balance sheet with $300M in undrawn debt facility Portfolio has scale Diversification Investing in Growth Potential Shareholder Returns is Our Focus Merger with Karora establishes platform that can be scaled & optimised for FCF Operating in two of Australia’s most abundant gold fields Enviable pipeline of organic growth opportunities Focus on FCF and returns to shareholders 29 Thank You www.westgold.com.au Investor Relations Annette Ellis Investor Relations Manager Annette.ellis@westgold.com.au +61 458 200 039 Media Peter Knight Communications Manager peter.knight@westgold.com.au +61 459 980 481