for the year ended 30 June 2022 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 82 Westgold Resources Limited Annual Report 2022 17. MINE PROPERTIES AND DEVELOPMENT (CONTINUED) Discount rate In determining the fair value of CGU’s, the future real cashflows are discounted using rates based on the Group’s estimated after tax real weighted average cost of capital with a mid-point of 5.5%. Operating and capital costs Life of mine operating and capital cost assumption are based on the Group’s latest budget and life-of-mine plans. Sensitivity Analysis After recognising the asset impairment and write down for the Murchison and Bryah, and using the assumption and methodology above, the recoverable value of the Murchison and Bryah have been assessed as being equal to their carrying amount at 30 June 2022. Any variation in the key assumptions going forward will impact the recoverable value of the CGU’s. If the variation in an assumption has a negative impact on recoverable value, it could indicate a requirement for additional impairment of non-current assets for either or both the Murchison and Bryah CGU’s. Murchison CGO Sensitivity Analysis It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on the recoverable amount of the Murchison CGOCGU as at 30 June 2022. Murchison CGO Increase in key assumption $m Decrease in key assumption $m 10% change in gold price ($/oz.) 138 (138) 1% change in inflation rate (50) 53 1% change in discount rate (14) 14 10% change in operating cost (92) 92 Murchison MGO Sensitivity Analysis It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on the recoverable amount of the Murchison MGOCGU as at 30 June 2022. Murchison MGO Increase in key assumption $m Decrease in key assumption $m 10% change in gold price ($/oz.) 89 (89) 1% change in inflation rate (19) 20 1% change in discount rate (4) 4 10% change in operating cost (82) 82
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