2023 Diggers and Dealers Presentation
Released
Released
Announcement PDF
Diggers and Dealers 2023
WESTGOLD RESOURCES LIMITED
ASX : WGX
WAYNE BRAMWELL | MANAGING DIRECTOR
WWW.WESTGOLD.COM.AU
Acknowledgement of
traditional ownership
Westgold would like to acknowledge the
Traditional Custodians of the land on which
we gather today and pay our respects to their
Elders past and present.
We would also like to extend that respect to
Aboriginal and Torres Strait Islander peoples
here today.
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 employee
of the company 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 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rigby consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Rigby is eligible to participate in short- and long-term incentive
plans of the company.
The information in this report that relates to 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. Mr Russell is a full time
employee of the Company, 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 2012 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell consents to the inclusion in this report 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 the company.
The information in this report that relates to Ore Reserve Estimates is based on information compiled by Mr. Leigh Devlin, B.Eng MAusIMM. 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Devlin consents to the inclusion in this report 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 the Company and is eligible to, and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure
documents.
MINERAL RESOURCES AND ORE RESERVE ESTIMATES
Information in this presentation relating to Mineral Resource and Ore Reserve estimates is extracted from the ASX releases “Resources and Reserve Statement – Amended” dated 6 October 2022 and “Great Fingall Resource grows to half a million ounces” dated 31 May 2023.
Westgold confirms that it is not aware of any new information or data that materially affects the information included in these announcements and that all material assumptions and technical parameters underpinning the Mineral Resource and Ore Reserve estimates
continue to apply and have not materially changed. Westgold confirms that the form and context in which the competent persons’ findings are presented in this document have not been materially modified from the original market announcements
FORWARD-LOOKING STATEMENTS
These materials prepared by Westgold Resources Limited (or “the Company”) include forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”,
“plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs
or production outputs.
Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors
may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of
obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather
conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company
does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the
Company or management or beyond the Company’s control.
Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance,
achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in these
materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forwardlooking statements or to advise of any change in events, conditions or circumstances.
3
ASX : WGX – 100% Western Australian gold producer
Delivered 257,116 profitable ounces in FY23 at AISC of $1,999/oz
Strong balance sheet with $192M in cash and liquids @ 30 June 20231
Debt free and now generating free cash flow1
Structured for enhanced profitability and growth into FY24
Fully leveraged to the gold price…
1.
Refer Westgold ASX announcement dated 26 July 2023 – June Quarterly Report.
4
WESTGOLD – Dominant player in the Murchison region
1,400 strong
workforce
1,300km2
tenure
4
underground
mines
3
processing
plants
Owner /
operator with
extensive
UG fleet
MURCHISON OPERATIONS
BRYAH OPERATIONS
5
Westgold is delivering
Delivered a business turnaround
Streamlined and simplified the business
Expanded two mines, optimised two more and
put three into care and maintenance
Improved safety, cost and operating
discipline
Underpinning cash generation
Delivered FY23 Guidance
Produced 257koz of gold
Top end of production guidance of
240 – 260koz
Achieved AISC of $1,999/oz
Midpoint of AISC guidance of
$1,900 - $2,100/oz
Leveraged key skillset and scale
Class leading underground mining capabilities
6
Our people are the key to our success
7
7
things you might
not know about
Westgold
8
Westgold is investing in our people
Westgold has reduced TRIFR by 63% in FY23
25
22.91
18.44
12
20
14.36
9
15
-7%
9.03
6
10
0
10
5
9
3
1.41
8.37
0.86
6
6
6
0.60
0.62
0.64
Q4 - FY22 Q1 - FY23 Q2 - FY23 Q3 - FY23 Q4 - FY23
TRI
LTIFR
TRIFR
12 Month rolling Injury Frequency Rate
(injuries/million hours worked)
Total Recordable Injury (TRI) count
15
Westgold is promoting safety excellence
-63%
0
Westgold’s New to Mining simulated underground mine at
our Canning Vale Training Centre
9
Westgold is an innovator
Clean Energy Transition
1.
2.
Hybrid loaders in operation2
• 38 million litre reduction per annum in diesel fuel usage
• 32% reduction in diesel consumption
• 34% power generating capacity supplied by renewables
• 9% more tonnes per bucket
• 56% reduction in emissions
• 52% improvement in acceleration
• ~A$60/oz AISC savings1
• 14% longer machine life
At a diesel price assumption of $1.64/L.
Compared to Westgold’s R2900G fleet
10
Westgold is profitable and cash flow positive
Westgold’s turnaround has improved its cash and bullion position from Q2 FY23
Cash, bullion and liquids position ($M)
189
159
157
6
139
96
7
97
9
Proceeds from capital raise and associated interest
Cash and bullion excluding growth funds
Growth funds1
8
Liquid assets
97
Cash and bullion2
94
8
101
1.
2.
87
7
132
Q1
FY22
168
90
9
Q4
FY21
159
96
110
151
192
190
Q2
FY22
84
Q3
FY22
6
6
56
59
Q1
FY23
Q2
FY23
86
Q4
FY22
70
Q3
FY23
Q4
FY23
11
Westgold now fully leveraged to the gold price
Additional ~$4.4M in monthly revenue from August 20231
Forward contracts remaining (koz)
148
135
122
109
96
83
70
Jun
22
1.
Jul
22
Aug
22
Sep
22
Oct
22
Nov
22
Dec
22
60
Jan
23
Indicative calculation assuming $2,900/oz spot price and the hedged price of $2,459/oz over 10koz
50
Feb
23
40
Mar
23
30
Apr
23
20
May
23
10
Jun
23
Jul
23
12
12
Westgold is investing in organic growth
Investing $60M in the development of 3 new mines
Increasing exploration and resource development spend
Growth capital guidance on new mines in FY24 ($M)
Exploration expenditure ($M)
60
25
Almost 150km of drilling
achieved in FY23
6
24
18
30
19
16
Great Fingall
Big Bell
Expansion
Fender
Investment in
New Mines1
FY19
14
14
FY20
FY21
FY22
FY23
FY24
Guidance
…all fully funded through our expanding profitability and existing cash reserves
1.
New mines defined as mines currently not in production. Total growth capital guidance (including growth capital on producing mines) is $130M for FY24
13
The market is beginning to see Westgold’s potential
Westgold shares have outperformed the XGD in 2023
Percentage change in closing price with 30 December 2022 baseline1 (%)
100
Westgold
90
80
70
60
71%
50
40
S&P/All Ords Gold Index
(XGD)
30
20
10
0
-10
Jan 23
Feb 23
Mar 23
Apr 23
May 23
Jun 23
Jul 23
Aug 23
…but there is still more to do!
1.
Date range from 30 December 22 to 3 August 2023
14
Westgold’s FY24 strategic priorities
Continue to safely and
efficiently optimise our
assets
Invest in resource development and
exploration drilling
Continue free cash flow
generation
Sensibly invest in technology that
drives cost reduction
Increase mine life of our
existing mines
Assess inorganic growth
opportunities aligned to our core
capabilities
15
Things you now know about Westgold
Investing in people
Innovative
1
5
Investing in organic growth
2
4
No fixed forward hedging
3
Profitable and cash flow positive
ASX : WGX
+250kOz gold producer in Western Australia
www.westgold.com.au 1616
Curious about WGX?
Come talk to us at Booth 6
or contact
Investor Relations
kasun.liyanaarachchi@westgold.com.au
Media
www.westgold.com.au
peter.knight@westgold.com.au
ASX : WGX
17
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