continued FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT 130 WESTGOLD RESOURCES LIMITED Key Audit Matter How the scope of our audit responded to the Key Audit Matter Acquisition of Karora Resources Inc Effective 1 August 2024, the Group acquired 100% of the share capital of Karora Resources Inc. The acquisition was completed for total consideration of $1,378.0 million as disclosed in Note 35. This acquisition is accounted for in accordance with AASB 3 Business Combinations, resulting in the application of significant management judgment. Management’s assessment involved identifying and recognising the acquired assets and liabilities at fair value, and determining whether any portion of the consideration should be allocated to identifiable intangible assets, mine properties, or goodwill. Specifically, significant judgement was required in assessing the accounting treatment for certain identifiable assets acquired and liabilities assumed, including: • property, plant and equipment which requires assessment of value allocation between certain asset classes; • rehabilitation provision which requires assessment of the fair value; • mine properties and exploration and evaluation assets which requires assessment of the fair value; and • the impact of the transaction on associated tax balances, including the impact on deferred taxes. Our procedures related to the acquisition accounting included, but were not limited to: • reviewing agreements to understand the nature of the transaction, the effective acquisition date and the value of the consideration paid; • obtaining an understanding of the key controls management has in place with respect to the accounting for this transaction; • obtaining a copy of management’s experts’ report commissioned to determine and allocate the purchase consideration to the assets acquired and liabilities assumed, and in conjunction with our valuation specialists, assess the reasonableness of the results of this report including the appropriateness of the methodologies and assumptions utilised; • assessing the independence, competence and objectivity of management’s experts; • performing look-back analysis for rehabilitation provision based on actual provision as of the reporting date and changes occurred from the date of the acquisition; and • in conjunction with management’s tax experts and our tax experts, assessed the reasonableness of the tax balances assumed, tax losses acquired and the deferred tax impact in respect of fair value adjustments made on the acquisition. We also assessed the adequacy of the disclosures included in Note 35 to the financial statements. Accounting for Mine Properties At 30 June 2025, the carrying amount of mine properties was $1,392.4 million. As disclosed in Note 3 accounting for mine properties requires management to exercise significant judgement as the accounting involves several key estimates, including: • the allocation of mining costs between operating and capital expenditure; and • determination of the units of production used to amortise mine properties. Regarding the allocation of mining costs our procedures included, but were not limited to: • obtaining an understanding of, and assessing the design and implementation of, the key controls management has in place in relation to capitalisation of underground mining expenditure and production of physical underground mining data; • on a sample basis, testing of mining costs through to source data and performing the analytical procedures to assess the reasonableness of the total expenditure by key cost category;
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