FY24 Full Year Results Presentation
Released
Released
Announcement PDF
Westgold Resources Limited
FY24 Full Year Results
ASX:WGX | TSX:WGX | OTCQX:WGXRF
westgold.com.au
Important Notices and Disclaimer
Investor Presentation
Summary Information
This investor presentation is dated 29 August 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. This presentation has been prepared following Westgold's acquisition of all of the outstanding and
issued common shares in Karora Resources Inc (Karora) by way of a statutory plan of arrangement.
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.
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.
Not an Offer
Not Investment Advice
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 does not constitute in any way an offer or invitation to subscribe for securities in Westgold
pursuant to the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and
Investment Commission or any of the Canadian Securities Administrators. 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, Karora 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.
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.
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.
2
Important Notices and Disclaimer
Forward-looking Statements
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 forward-looking information, except in accordance with applicable securities laws.
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.
Ore Reserves and Mineral Resources
This presentation refers to Westgold having a combined Ore Reserve and Mineral Resource estimate of 13Moz
and 3.2Moz (respectively) and refers to the individual Ore Reserve (or Mineral Reserve) and Mineral Resource
estimate of Westgold.
The information in this presentation that relates to the Ore Reserves and Mineral Resources of Westgold (except
in relation to Bluebird-South Junction and Starlight Mineral Resources) has been extracted from the ASX
announcement titled “Westgold 2023 Mineral Resources and Ore Reserves " released to the ASX on 11
September 2023 and available at www.asx.com.au. The information in this presentation that relates to the
Mineral Resources and Ore Reserve of Bluebird-South Junction has been extracted from the ASX announcement
titled "Westgold Declares Maiden South Junction Ore Reserve" announcement on 14 August 2024 and available
at www.asx.com.au. The information in this presentation that relates to the Mineral Resources of Starlight has
been extracted from the ASX announcement titled “Starlight Mineral Resource Increases by 41%" released to the
ASX on 11 June 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 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. MAusIMM 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.
The information in this presentation that relates to the Mineral Reserves and Mineral Resources of Karora has
been extracted from the TSX announcement titled “Karora Announces Strong Increase In Beta Hunt Gold Mineral
Resources, Grades And Gold Mineral Reserves” dated 21 November 2023 and available at www.sedarplus.com.
3
Important Notices and Disclaimer
JORC CODE
Investment Risk
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.
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.
Karora Foreign Estimates
This presentation refers to Westgold having a production capacity of +400kozpa, which is based on Karora's TSX
announcement " Karora Announces First Quarter Gold Production of 36,147 ounces, Gold Sales of 40,343
Ounces and a cash position of C$87.3 million" dated 5 April 2024 filed by Karora on SEDAR+
(www.sedarplus.com) in accordance with NI 43-101, and Westgold's ASX announcement titled "Q3 FY24
Production Update" dated 3 April 2024 and available at ww.asx.com.au. All material assumptions underpinning
the Westgold production target as announced on that date continue to apply and have not materially changed.
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.
For the purposes of Listing Rule 5.12, Westgold cautions that the Karora Mineral Reserves and Mineral Resources
are not reported in accordance with the JORC Code. The Karora Mineral Reserves and Mineral Resource
estimates are foreign estimates prepared in accordance with NI 43-101. A competent person has not done
sufficient work to classify the foreign estimate as a Mineral Resource in accordance with the JORC Code, and it is
uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code.
Please refer to Westgold's ASX announcement titled “Merger to create a +400kozpa Australian Gold Miner" dated
8 April 2024 for additional technical information relating to the foreign estimate. The information in this
presentation and the aforementioned announcement provided under Listing Rules 5.12.2 to 5.12.7 that relates to
the Karora foreign estimate is based on information compiled by Mr Jake Russell B.Sc. (Hons) MAIG and is an
accurate representation of the available data and studies for Karora's projects. Mr Russell is a member of the
Australian Institute of Geologists and has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person, as
defined in the JORC Code and as a Qualified Person as defined in NI 43-101. Mr Russell is a full-time employee as
General Manager Technical Services for Westgold and, accordingly, is not independent for purposes of NI 43-101.
Mr Russell consents to the inclusion in this presentation of the matters based on this information in the form and
context in which they appear.
4
FY24 – Year in review
Return to meaningful profitability through focus on safe and profitable ounces
Westgold delivers $95M Statutory Profit in FY24 ($M)
95
Safety improvement
Achieved revised
production/cost guidance
10
Unhedged and debt free1
2.25 cps dividends declared for
FY24
Merger with Karora completed
1 August 2024
-111
FY22
1. $100M Corporate Revolving facility remains undrawn
FY23
FY24
5
Focus on safety and sustainability delivers results
Safety
Sustainability
Substantial reduction in Total Injury Frequency
Rate (TRIFR)
All Murchison operating mines and mills
running on hybrid power which now can:
Generate 82 MW (gas, battery
& solar)
Injuries per million hours worked
22.9
Reduce diesel consumption by
38 million litres per annum
8.4
FY22
1. At a diesel price assumption of $1.64/L
FY23
-18%
6.9
FY24
Reduce carbon emissions by
56%
Deliver ≈$60/oz in AISC
savings1
6
1
Top end of adjusted FY24 production guidance …
and bottom end of FY24 cost guidance
Production (oz)
AISC ($/oz)
Growth Capital
($M)
Exploration ($M)
FY24 Group
Guidance
FY24 Actual
FY23 Actual
220,000-230,000
227,237
257,116
2,100-2,300
130
25
2,1782
157
25
1,999
72
19
YoY production down due to
Paddy’s Flat
underperformance and
closure
YoY AISC $/oz higher due to
lower production
Increased growth capital
executing growth pipeline
Exploration expenditure has
already produced Reserve &
Resource increases3
1. Refer to ASX announcement titled “Q3, FY24 Production Update” – 3 April 2024
2. Post audit adjustments of financials
3. Refer to ASX announcements made by Westgold titled "Bluebird-South Junction Increases to 6.4Mt at 3.1 gpt Au" announcement on 16 April 2024; "Starlight Mineral Resource Increases by 41%"
announcement on 11 June 2024; and "Westgold Declares Maiden South Junction Ore Reserve" announcement on 14 August 2024
7
Substantial improvement in financial metrics
FY24
($M)
FY23
($M)
Inc/(Dec) %
Revenue
716
657
9%
EBITDA
271
167
62%
NPAT
95
10
852%
Free Cash Flow1
86
10
760%
Net Assets
692
598
16%
Cash, Bullion & Liquids2
263
192
37%
1. Operating cash inflows minus investing cash outflows
2. Bullion is valued at the closing gold price
Increased gold price and reduced
YOY hedging exposure
Increased margin delivers higher
EBITDA, profitability and free cash
flows
8
Westgold is now fully unhedged
Increased revenue driven by gold price and reduced hedging exposure
Consistent increase in revenue ($M)
$716M
$648M
$657M
$337M
$327M
Increased gold price
and reduced YOY
hedging exposure
$571M
$658M
$387M
$311M
Hedged revenue
$330M
$184M
$25M
FY21
FY22
Sales at spot price
FY23
$33M
Zero cost collars
struck at $3,340/oz
Completed fixed
forward sales
contracts in July 2023
Completed zero cost
collars in June 2024
FY24
9
Lower total AISC year on year
Lower mining costs offset by increased sustaining capital
Lower total AISC in FY24 ($M)
AISC reduced by ~4% to $495M in FY24
Mining suspended at Paddy’s Flat and the
completion of ore drives at Big Bell sub-level cave
in FY23
514
495
(67)
Increased capital mine development at Great
Fingall, Starlight (Nightfall expansion), Bluebird
(South Junction expansion), Big Bell (LHOS) and
Fender
30
7
3
7
(2)
2
Sustaining
Capital
Corporate
Costs
Royalties
Stockpile
Movements
Admin
Processing
Increase sustaining capital for existing mines at
Bluebird, Big Bell and Starlight.
FY23
AISC
Mining
Remuneration & Benefits strategy implementation
in Q2 and Q3 FY24
FY24
AISC
10
Delivering meaningful profitability
Focus on safe, profitable ounces
NPAT growth in FY24 ($M)
Increased profit
margin driven by
improved gold
price exposure
and reduction in
operating costs
Increased profit
(11)
(38)
134
FY24 NPAT
Corporate
Costs
Gross Profit
Income Tax
Expense
Increase due to the
remuneration and
benefits strategy
announced in Q2 FY24
10
FY23 NPAT
95
11
$157M invested in Growth Capex in FY24
Investing in our future
FY24 Growth capex breakdown ($M)
Ramp up to
commercial
production
1 July 2024
14
Expansion into
South Junction
11
10
157
42
27
Access into
Nightfall
LHOS expansion
23
17
Decline development
FY24
Growth
Capex
Other
Hybrid Power
Project
Plant &
Equipment
Big Bell
Fingall
Fender
Bluebird
Starlight
15
12
$71M Cash Build in an investment intensive year
Six consecutive quarters of Cash, Bullion & Liquids build ($M)
+$71M
build in FY24
+$16M
+$21M
+$25M
+$24M
+$9M
159
Q2
FY23
+$9M
238
263
247
217
+$104M
192
168
Q3
FY23
1. $100M Corporate Revolving facility remains undrawn
Q4
FY23
Q1
FY24
Q2
FY24
Q3
FY24
Q4
FY24
13
8
176
Opening Cash
18
(128)
Closing
Cash & Bullion
8
Closing
Investments
Dividend paid
19
Closing Bullion
(5)
236
Closing Cash
(6)
Payments for
Financial Assets
68
(24)
Lease Payments
Working Capital
(26)
Stockpiles
(48)
Exploration
PP&E
Growth Capital
714
Sustaining Capital
Operating
Cash Costs
Revenue
8
Opening
Investments
192
Opening Bullion
Opening
Cash & Bullion
$71M cash & bullion build
Westgold’s operations continue to generate FCF ($M)
+$71M
(429)
(75)
263
14
12% free cash flow payout ratio for FY24
2.25 cents per share of dividend declared
(1.25 cents per share fully franked)
2.25
Westgold Dividend Policy1
pay a minimum dividend of 1cps (A$0.01/share)
each financial year
1.25
up to a maximum of 30% of free cash flow
Subject to Westgold maintaining a minimum net
cash balance of A$100M (after the payment of any
dividend)
1.00
Interim dividend
Final fully
franked dividend
FY24 Dividends
Declared
1. Subject to the full discretion of the Board of Directors, taking into consideration Westgold’s underlying financial performance and cash flow, commodity price expectations, balance
sheet and treasury risk management, working capital needs and competing internal and external investment opportunities necessary for future growth, development and exploration and
any other factors that the Board of Directors may consider relevant. Free cash flow is defined as net cash flows from operating and investing activities before debt/equity and dividends.
15
Summary of Financial Results
Trending in the right direction
Revenue
EBITDA
NPAT
$716M
$271M
$95M
9% from FY23
62% from FY23
852% from FY23
$571M
$648M
$657M
$716M
$271M
$252M
$95M
$77M
$209M
$10M
$167M
-$111M
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
16
Our FY25 platform
Leading Australian
Gold Producer
WA is
our home
Financial
Strength
Among top 5, with
production over
400,000 ozpa1
Operating in two of
Australia’s most
abundant gold regions
Robust balance sheet
with $165 million in
available liquidity
Strategic
Merger
Unhedged
Advantage
Growth
Potential
Shareholder
Returns is Our
Focus
Merger with Karora
delivers substantial
diversification, synergy
& upside
One of Australia’s
largest fully unhedged
gold producers
Strong pipeline of
organic growth
projects
Committed to free cash
flow generation and
shareholder returns
1. Refer to “Karora’s Foreign Estimates” section in slide 4 for further information
17
Contact Information:
Thank you.
Investor Relations
Kasun Liyanaarachchi | Investor Relations Manager
kasun.liyanaarachchi@westgold.com.au
+61 458 564 483
Media
Peter Knight | Communications Manager
peter.knight@westgold.com.au
+61 459 980 481
ASX: WGX | TSX:WGX | OTCQX: WGXRF
westgold.com.au
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