25 Westgold Resources Limited Annual Report 2023 OPERATING AND FINANCIAL REVIEW OPERATING RESULTS The Group’s full year gold production was 257,116 ounces (FY22 - 270,884 ounces). Overall, the results reflect a year of transition following a strategic review that saw the business reset its model to focus on safe and profitable gold production. Three underground operations were put on care and maintenance, all business units restructured and Group expenditure and commercial processes reviewed. These actions over the year are reflected in the following key measures: – Consolidated revenue increased by 1% to $654,371,234 (2022: $647,576,618); – Consolidated total cost of sales increased by 2% to $631,598,901 (2022: $620,300,818); – Profit before income tax and non-cash impairment decreased by 10% to $13,949,469 (2022: $15,448,892); and – Profit after income tax and non-cash impairment increased by 109% to a gain of $10,003,484 (2022: loss $111,119,291). REVIEW OF FINANCIAL CONDITION The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $176,411,855 (2022: $182,701,502). Operating Activities Group cash flow generated by operating activities decreased on that of the previous year with a total inflow of $168,433,218 (2022: $179,855,454). Investing Activities Cash flows used in investing activities across the Group decreased on that of the previous year with a total outflow of $158,074,095 (2022: $201,009,289). Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine (CGO), Starlight underground mine (FGO) and the Bluebird and Paddy’s Flat underground mines (MGO), along with investment in the new power stations for the Clean Energy Transition project (CET). Other capital investment was sustaining capital in all of the operating underground mines to maintain developed tonnes and production output at similar levels. Total capital investment in mine properties and development, exploration and evaluation expenditure and property, plant and equipment during the current year was $147,347,357 (2022: $239,019,046), broken into key operations as follows: – Murchison $119,132,722 (2022: $201,562,547); – Bryah $28,214,635 (2022: $37,456,499); and Capital commitments of $26,168,651 (2022: $17,715,233) existed at the reporting date, principally relating to the purchase of plant and equipment. Exploration activities continued at all operations during the year with $18,909,901 (2022: $18,190,290) expended. Financing Activities Net cash flows from financing activities amounted to an outflow of $16,648,770 (2022: inflow of $53,171,308). – The Group’s interest-bearing loans and borrowings decreased to $27,490,818 (2022: $42,959,811) with marginal additions to the mobile mining fleet with the expanded growth activities.
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