Annual Report

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# Annual Report

Source: https://www.westgold.com.au/pdf/fe3594f4-dd33-4e4b-a37c-7eb7eabff047/Annual-Report.pdf?Platform=ListPage
Published: 2022-06-30T00:00:00+00:00
Fetched: 2026-05-05T09:43:08.631+00:00
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# Annual Report
WESTGOLD RESOURCES LIMITED
ANNUAL
REPORT
2022
A DYNAMIC,
GROWTH ORIENTED
AUSTRALIAN
GOLD MINER
With over 1,000 staff and more than
1,300km2 of tenure, Westgold is the
dominant gold miner in the Murchison
and Bryah regions of Western Australia.
www.westgold.com.au
CONTENTS
1 Our Purpose and Ambition
1 Values and Behaviours
2 Letter from the Chair
5 Financial Results
6 Our Annual Outputs
8 Our Operations
20 Directors’ Report
30 Remuneration Report (Audited)
48 Auditor’s Independence Declaration
49 Consolidated Statement of Comprehensive Income
50 Consolidated Statement of Financial Position
51 Consolidated Statement of Cash Flows
52 Consolidated Statement of Changes in Equity
53 Notes to the Consolidated Financial Statements
101 Directors’ Declaration
102 Independent Auditor’s Report
108 Shareholder Information
110 Corporate Directory
Westgold Resources Limited Annual Report 2022
OUR PURPOSE VALUES AND
AND AMBITION BEHAVIOURS
Leverage our gold assets and expand our Our values and behaviours guide how we
Western Australian footprint to: work with each other, our communities,
and external stakeholders. They
– create shareholder value, influence our actions and decisions,
–    provide opportunities for our team to hold us accountable and ultimately
grow and succeed, and enable a culture that drives our success.
– contribute to our wider communities.
CHOOSE SAFETY
– Think safety and act safely
– Look out for each other
– Protect our environment
SHOW RESPECT
– Appreciate everyone
for who they are and
what they contribute
– Enable everyone
to do a great job
– Grow strong teams
and communities
DELIVER VALUE
– Plan to succeed as a team
– Execute with excellence
– Rise to the challenge and
keep on improving
Westgold Resources Limited Annual Report 2022 1
LETTER FROM THE CHAIR
A YEAR
OF RECORDS
Dear Shareholders,
It is my pleasure
to present
the Westgold
Resources Limited
Annual Report for
the financial year
ended 30 June
2022 (FY22).
Having recently joined the Board
with new Non Executive Director
Mr Julius Matthys in March, we have
quickly come to understand the
opportunities and challenges that lie Despite the challenges faced, Westgold advanced many
ahead for the Group. safe, consistent and predictable environmental, social and governance
production remained our key (ESG) initiatives during the year.
This financial year has seen Westgold objectives in FY22. With an This included signing new electricity
deliver its first full year production expanded safety team, our safety supply and LNG gas supply
and cost guidance in a period where performance began to positively agreements that will see Westgold
COVID-19 has continued to impact improve. Our major mines began to replace six diesel fired power stations
personnel mobility and availability. perform consistently during FY22 with four new gas fired power
Achieving our production target of with Bluebird, Starlight and Big Bell stations commencing in FY23. These
over 270,000 ounces of gold from our undergrounds all reaching steady new agreements see the Group
Western Australian assets at $1,692/ state. Importantly Bluebird and Big integrating renewable energy into
oz all-in sustaining costs (AISC) was a Bell began to produce above design our power infrastructure and this will
remarkable achievement considering levels in the second half of FY22. deliver significant cost savings and
significant increases in all key inputs With this growing momentum in emission reductions. The first new
to our business. production at our larger mines, the station will be commissioned in the
Group is becoming less reliant on our second half of financial year 2022-
Diesel fuel price increased 106% smaller underground operations and 2023 (H2, FY23).
over the financial year with material higher cost open pits. As planned,
changes in other major consumables open pit operations ceased in the Our operating results reflect another
such as reagents, grinding balls, latter half of FY22 and the South Emu solid improvement with record
ground support, flights, haulage – Triton underground was put into production over the previous year but
services and freight. No part of the care and maintenance in Q1 FY23, total cost increases, together with the
value chain was immune to global pending a revised mine plan that non-cash impairment charges directly
inflationary pressures. underpins suitable economic returns. impacted Group profitability.
Our exploration efforts began to Westgold finishes FY22 with a strong
deliver results during the year with balance sheet, $183M in cash and
early success at the high-grade cash equivalents and a refreshed
Sovereign target near Cue. This new Board and management team.
discovery between the iconic Great
Fingall and Golden Crown mines The Group starts FY23 in robust
demonstrates new prospectivity and financial condition and with a clear
evidences the opportunity for organic objective.
growth from within Westgold’s
existing tenure.
2 Westgold Resources Limited Annual Report 2022
Westgold will simplify the business
and test all options to improve
productivity and operational
efficiencies and build on our balance
sheet strength.
The reset of our operating model
is well advanced with the key to
delivering shareholder value being
to mine ‘profitable ounces’ not just
ounces. Industry wide cost inflation
is forcing a granular cost assessment
and Westgold has commenced this
deep dive into opportunities that can
reduce waste and improve the ability
of the business to generate stronger
cash flows.
There are opportunities to leverage
our operating footprint, scale
and internal capability with the
optimisation of these key factors
critical to increasing the profitability
and sustainability of the business.
The non-cash impairment, alongside
a more disciplined approach to capital
and operating expenditure, positions
Westgold with the opportunity to
deliver larger financial returns to our
shareholders.
Our vision for Westgold 2.0 is to
continue to evolve to become a safer,
inclusive, socially responsible and
highly profitable gold miner. Our
workforce is innovative, committed
and focussed and with the continued
support of our shareholders,
stakeholders, communities and staff
we are confident that the business can
deliver on our FY23 objectives.
Hon. Cheryl Edwardes AM
Non-Executive Chair
Westgold Resources Limited Annual Report 2022 3
4 Westgold Resources Limited Annual Report 2022
YEAR END 30 JUNE 2022
FINANCIAL
RESULTS
Unless specifically noted, all dollar amounts disclosed in this report are Australian
Dollars (A$ or AUD)
GOLD SALES (OZ) REVENUE
269,705 $647.6m
(FY21: 245,066) 15% (FY21: $571.1m) 16%
NET CASH FROM NET PROFIT/(LOSS)
OPERATIONS BEFORE TAX
$179.9m ($160.1m)
(FY21: $249.1m) 60% (FY21: $112.0m) 155%
NET PROFIT/(LOSS) CLOSING CASH
AFTER TAX & CASH EQUIVALENTS
($111.1m) $182.7m
(FY21: $76.7m) 122% (FY21: $150.6m) 9%
PROFIT PER SHARE NET ASSETS
(25.32c) $587.8m
(FY21: 18.16c) 110% (FY21: $607.3m) 16%
AVERAGE HEDGE GOLD PRICE HEDGES OUNCES
A$2,396/oz 148,000oz
(FY21: A$2,133/oz) 3% (FY21: 156,000oz) 22%
Westgold Resources Limited Annual Report 2022 5
YEAR END 30 JUNE 2022
OUR ANNUAL
OUTPUTS
MURCHISON OPERATIONS
204,937oz
BRYAH OPERATIONS
GOLD PRODUCTION
65,947oz
GROUP
270,884oz
MURCHISON OPERATIONS
A$1,487/oz
BRYAH OPERATIONS
CASH COST
(C1) A$1,294/oz
GROUP
A$1,438/oz
MURCHISON OPERATIONS
A$1,748/oz
BRYAH OPERATIONS
ALL IN SUSTAINING
COSTS A$1,525/oz
GROUP
A$1,692/oz
6 Westgold Resources Limited Annual Report 2022
Westgold Resources Limited Annual Report 2022 7
OUR OPERATIONS
REVIEW OF
OPERATIONS
Westgold Resources Limited (ASX: WGX) (Westgold or the Group) is a uniquely Western Australian gold mining business.
With a workforce of over 1,000 people, we are the dominant gold miner in the Murchison and Bryah regions with over 1,300
km2 of tenure.
Westgold is the owner-operator of all of its underground mines. This internal capability provides a level of operational
flexibility that has insulated our business from the many labour impacts caused by COVID-19. Our operating model is
‘hub and spoke’ style whereby we have the optionality to process ore from our Meekatharra and Cue operations at either
processing hub. In contrast the Bryah Basin operation is centred upon the Fortnum processing hub.
MURCHISON OPERATIONS
The Murchison operations incorporate two processing hubs near Cue and Meekatharra. Combined, these operations
are forecast to produce ≈200,000 oz in financial year 2022-2023 (FY23).
MURCHISON GOLD PRODUCTION AND A$ COSTS
Mur chi son Gol d Pr oduct i on and A$ Cost s
60,000 $ 1,896 /oz 2,000
$ 1,781 /oz $ 1,795 /oz
$ 1,640 /oz 1,800
50,000
1,600
1,400
40,000
Gold Production oz.
1,200
Cost per oz.
30,000 1,000
54,808 oz
50,537 oz 50,291 oz 49,301 oz 800
20,000
600
400
10,000
200
0 -
Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022
Gold Produced AISC $/oz
CUE
Our Cue operation is located around theBregional
ryah Gotown
ld PofroCue
ducand
tionencompasses
and A$ CosWestgold’s
ts southern-most group of
Murchison assets
20,000
including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles.
2,000
This package includes two of Western Australia’s most iconic past producers in the Big Bell mine (≈2.6 million ounces) and
the Great Fingall mine (≈1.2 million ounces). $ 1,496 /oz $ 1,683 /oz 1,800
$ 1,649 /oz
$ 1,393 /oz 1,600
It incorporates
15,000 the 1.2-1.4Mtpa Tuckabianna processing hub, a 148-person village at Big Bell, a 266-person village at Cue
and associated mining infrastructure to support a large FIFO and DIDO mining operation. 1,400
Gold Production oz.
Cost per oz.
In FY22, the Tuckabianna plant received underground ore from the large Big Bell underground and the smaller 1,200 Comet
underground
10,000 mine as well ore from the Cuddingwarra open pits. 1,000
17,789 oz
The Tuckabianna processing
15,636hub 16,397 oz
oz treated 1,345,015 16,125
tonnes of ore, at the oz range of the plants operating capacity
upper 800 and in
line with expectations. The metallurgical recoveries rate for the ore blend was 88.6%. 600
5,000
While Big Bell was the primary producer of ore to the Tuckabianna mill, the Comet underground mine provided400
supplementary feed during the year.
200
0 -
Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022
8 Westgold Resources Limited Annual Report 2022 Gold Produced AISC $/oz
After four years of dewatering,
mine rehabilitation,
refurbishment and ramp up,
the Big Bell mine achieved
commercial production in April
2022 and production rates
have been growing since.
Several open pits were mined
around Cue in FY22. With large
stockpiles accumulated, the
open pit program ceased at the
end of the financial year.
Exploration and viability
studies were carried out
during FY22 at the previously
mined Fender open pit mine
on the southern limits of the
Big Bell shear to evaluate the
economics of an underground
operation. An exploration
decline was commenced then
paused due with the higher
tonnages coming from Big Bell.
In addition to the mining operations, the Company is accelerating exploration activities across Cue with the primary
focus being the Day Dawn and Tuckabianna mining centres. This work has been based on new geophysical datasets and
geological re-interpretations in early FY22, leading to the discovery of the Sovereign target, between Great Fingall and
Golden Crown.
Follow up drilling will occur in early FY23, along with definition drilling into Great Fingall at depth and testing of Caustons,
right at the doorstep of the Tuckabianna plant.
Westgold Resources Limited Annual Report 2022 9
OUR OPERATIONS
REVIEW OF OPERATIONS
(CONTINUED)
MEEKATHARRA
Our Meekatharra operation is
located around the

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