September 2024 Quarterly Report
Westgold Resources Limited
ASX: WGX | TSX: WGX | OTC: WGXRF
ABN 60 009 260 306
westgold.com.au
T: +61 8 9462 3400
Level 6, 200 St Georges Terrace
Perth WA 6000 / PO Box 7068
Cloisters Square WA 6850
September 2024 Quarterly Report
31 October 2024
ASX Release
Westgold is an agile ASX200
Australian gold company.
With six operating mines and
combined processing capacity of
~7Mtpa across two of Western
Australia’s most prolific gold regions –
we have a clear vision and strategy to
sustainably produce +500,000 ozpa
from FY26/27.
This announcement is authorised for
release to the ASX by the Board.
Investor Relations
Annette Ellis | IR Manager
+61 458 200 039
Media
Peter Knight | Communications Manager
+61 459 980 481
$1.4B merger lifts Westgold into ASX 200
Perth, Western Australia, 31 October 2024 Westgold
Resources Limited (ASX: WGX , ASX:TSX, OTCQX: WGXRF -
Westgold or the Company) is pleased to report results for the
period ending 30 September 2024 (Q1 FY25).
HIGHLIGHTS
OPERATIONS
Safety Performance Total Recordable Injury Frequency
Rate (TRIFR) of 7.37 / million hours – an increase of ~ 8% as
we integrate the Southern Goldfields Operations
Q1 FY25 record gold production post Karora merger
77,369oz Au @ AISC of $ 2,422/oz during a transitional
quarter including only 2 months Southern Goldfields
production
On Track for FY25 Guidance 400,000 to 420,000 ozpa @
AISC of $2,000 - $2,300 with ramp-up back ended in H2 FY25
EXPLORATION & RESOURCE DEVELOPMENT
Seventeen drill rigs operating across portfolio
Bluebird – South Junction Ore Reserve increased by 233%
to 3.0Mt @ 2.8g/t Au for 277koz
Updated Group Mineral Resource Estimate (+60% to
13.2Moz Au) and Ore Reserve (+69% to 3.3Moz Au)
Impressive drill results from both the Murchison and
Southern Goldfields :
■ 19.00m @ 13.44g/t Au from 24SJDD028 at South Junction
(See ASX Announcement of 5 September 2024)
■ 4.00m @ 22.45g/t Au in hole WF440N1 -01AR at Beta
Hunt Fletcher Zone (See ASX Announcement of 21 August
2024)
CORPORATE
$1.4B Merger completed - Westgold listed on TSX and rejoins
S&P/ASX 200
Closing cash, bullion, and liquid investments at 30 September
of $103M and undrawn $100M Revolving Corporate Facility
Final Dividend declared 1.25 cent per share fully franked
Westgold remains 100% unhedged – offering full exposure to
escalating gold price
September 2024 Quarterly Report 2
Westgold Managing Director and CEO Wayne Bramwell commented:
“Q1 FY25 represents both a transformational and a transitional period for Westgold.
On 1 August Westgold completed a $1.4B merger with Karora Resources that has transformed Westgold
into a 400,000+ ozpa, top five Australian gold producer. On 6 August we commenced trading on the Toronto
Stock Exchange and in September, Westgold joined the ranks of S&P’s ASX200.
Six quarters of disciplined and sustained cash-build from our Murchison operations delivered free cash
and drove the value in Westgold’s scrip that allowed us to complete the merger without a capital raise or
debt draw down debt. Importantly at the end of the quarter, Westgold remained unhedged and debt free,
with its $100M Revolving Corporate Facility undrawn.
The operating results for this quarter mark a transition in scale for Westgold and include three months of
gold production from the Murchison operations , but only two months ’ production from the Southern
Goldfields. The expanded business delivered a record 77,369 ounces (~90koz normalised for a full quarter
of Southern Goldfields production) at an AISC of $2,422/oz, generating $29M in net mine cashflow.
Our focus post -merger has been to rapidly identify , then address key risks and opportunities across the
Southern Goldfields operations. Early activities include deploying additional safety and operational
management to supplement the site teams and expedite remedial maintenance and upgrades in basic
mine infrastructure (water, ventilation, power) . These changes have had immediate positive impact on
mine outputs at both Beta Hunt and Higginsville late in the quarter and will see productivity improve as
each area is addressed.
Integration across the business continues and importantly, Westgold remains on track to meet our FY25
guidance. Production and cost guidance is geared to the second half of the year as Bluebird South-Junction
ramps up to a run rate of more than 1Mtpa, Beta Hunt delivers consistent output of more than 2Mtpa run
rate and mining commences at Great Fingall.
Westgold now has an extensive, pipeline of projects with a landholding of more than 3,200km2 across two
of Australia’s most prolific gold regions. Drilling will unlock value and as planned we have rapidly mobilised
additional drills to Beta Hunt and prioritised targets across Higginsville.
The 100 day integration plan will be complete during Q2 FY25 and we are confident in higher mine outputs
and reduced costs across the business as these programmes are systematically rolled out and synergies
delivered.”
ENDS
September 2024 Quarterly Report 3
Executive Summary
Cash Position at 30 September 2024
Westgold closed the quarter with cash, bullion and liquid investments of $103M (see Figure 1Error! Reference
source not found. ). Notably, this result was net of the significant cash component and major once-off costs
relating to the Company’s $1.4B merger with TSX listed Karora Resources Inc (Karora) during the period.
Costs relating to the transaction include $125M cash payment to Karora shareholders , $28M in change of
control payments to Karora’s directors, executives and advisor fees.
Figure 1: Cash, Bullion, and Liquid Investments Movement – Q1 FY25
Notes
• Cash acquired of $32M from Karora on 1 August is net of the Macquarie debt repayment of $44M and Culico Metals and
Kali Metals contributions of $11M.
• Operating Cash Flows includes:
▪ Southern Goldfields for August and September only
▪ Merger Costs of $153M relates to:
o $125M cash consideration paid to Karora Resources shareholders,
o $21M change of control payments to Karora’s Executives and Directors,
o $7M to advisors’ costs (legal, financial, taxation and corporate advisory).
$'m
September 2024 Quarterly Report 4
Group Production Highlights – Q1 FY25
Westgold produced 77,369 ounces of gold in Q1 FY25, its highest quarterly gold production yet, returning net
mine cashflow of $29M. This result was from three months of production from the Murchison (52,889 ounces)
but only two months of production from the Southern Goldfields operations (24,480 ounces).
All-In Sustaining Cost (AISC) for the quarter was $2,422/oz (Q4 FY24 $2,041/oz).
The elevated costs in Q1 FY25 reflect the transitional nature of th e quarter . In the Southern Goldfields
production was impacted by the poor performance of the Pioneer Open Pit at Higginsville and lower than
expected ounce production from Beta Hunt.
Capital growth projects continued to advance across the Group whilst the Fender underground at Cue
transitioned to commercial production during the quarter.
Figure 2: Westgold Quarterly Production (oz), Achieved Gold Price and AISC ($/oz)
Gold production (oz)
September 2024 Quarterly Report 5
Figure 3: Westgold Monthly AISC
The Company sold 72,202 oz of gold for the quarter achieving a record price of $3,723/oz, generating $269M in
revenue. With Westgold free of any fixed forward sales contracts, the Company continues to offer shareholders
full exposure to record spot gold prices.
Westgold’s operations generated $101M of mine operating cashflows with the achieved gold price $1,301/oz
over AISC. AISC for Q1 FY25 of $187M (Q4 FY24 of $108M) was impacted by $65M in additional costs from
the Southern Goldfields and Fender transitioning to commercial production.
Capital expenditure during Q1 FY25 of $58M (Q4 FY24 $64M) includes $39M investment in growth projects
(Bluebird-South Junction and Big Bell expansions and the Great Fingall development), and upgrading
processing facilities and infrastructure.
Investment in exploration and resource development of $14M for the quarter was focussed on Bluebird-South
Junction and Starlight in the Murchison , and the Fletcher Zone and Two Boys underground in the Southern
Goldfields.
The net mine cash inflow for Q1 FY25 was $29M (refer Table 1 under Group Performance Metrics).
September 2024 Quarterly Report 6
Environmental, Social and Governance (ESG)
People
During the quarter female participation in the workforce increased from 12.5% to 14.6%. Family and medical
leave guidelines were rolled out to the wider business, with a pleasing increase in men utilising paternal leave
as either the primary or secondary carer.
Staff retention continued to improve, with record low turnover.
At the end of the quarter, Westgold employed 2,100 employees and contractors. Integration of the Southern
Goldfields was a major focus as policies, procedures and processes were aligned.
Safety, Health, the Environment and Community
Westgold’s Murchison business achieved a 16.44% reduction in its key safety metric for the full FY24 financial
year. With the integration of the Southern Goldfields assets, the Total Recordable Injury Frequency Rate (TRIFR)
increased to 7.37 injuries per million hours worked, representing an increase of 7.59% quarter on quarter.
The business incurred two Lost Time Injuries, increasing the Lost Time Injury Frequency Rate (LTIFR) by 61.29%
to 1.00. The High Potential Incident frequency decreased by 24.17% to 5.18. Significant Psychosocial Harm
Events remains at 0.00.
One Significant Environmental Incident was recorded during the quarter with a pipeline break at the Higginsville
processing facility resulting in a tailings spill . The spill was reported to the regulator and immediately
remediated to minimise environmental impact.
Figure 4: Southern Goldfields integration led to a rise in TRIFR during Q1 FY25
September 2024 Quarterly Report 7
Group Performance Metrics
Westgold’s quarterly physical and financial outputs for Q1 FY25 are summarised below. The Group operates
across the Murchison and Southern Goldfields regions of Western Australia with the Murchison Operations
incorporating four underground mines ( Bluebird-South Junction , Starlight, Big Bell , and Fender) and three
processing hubs (Fortnum, Tuckabianna and Bluebird).
Westgold’s merger with Karora Resources completed on 1 August 2024. The Karora assets are grouped and
reported as Westgold’s Southern Goldfields operations – incorporating the Beta Hunt and Two Boys
underground mines (Pioneer open pit closed in Sep tember) and two processing hubs ( Higginsville and
Lakewood).
Table 1: Westgold Q1 FY25 Performance
Physical Summary Units Murchison Southern
Goldfields Group
ROM - UG Ore Mined t 650,066 291,442 941,508
UG Grade Mined g/t 2.4 2.3 2.4
ROM - OP Ore Mined t - 70,388 70,388
OP Grade Mined g/t - 2.1 2.1
Ore Processed t 878,890 410,671 1,289,561
Head Grade g/t 2.1 2.0 2.1
Recovery % 90 92 90
Gold Produced oz 52,889 24,480 77,369
Gold Sold oz 49,813 22,389 72,202
Achieved Gold Price A$/oz 3,723 3,723 3,723
Cost Summary
Mining A$’M 57 31 88
Processing A$’M 32 21 53
Admin A$’M 7 5 11
Stockpile Movements A$’M 1 (2) (2)
Royalties A$’M 5 5 10
Cash Cost (produced oz) A$’M 101 60 161
Corporate Costs A$’M 3 1 4
Sustaining Capital A$’M 17 5 23
All-in Sustaining Costs A$’M 121 65 187
All-in Sustaining Costs A$/oz 2,294 2,696 2,422
September 2024 Quarterly Report 8
Physical Summary Units Murchison Southern
Goldfields Group
Notional Cashflow Summary
Notional Revenue (produced oz) A$’M 197 91 288
All-in Sustaining Costs A$’M (121) (65) (187)
Mine Operating Cashflow A$’M 76 26 101
Growth Capital A$’M (34) (5) (39)
Plant and Equipment A$’M (11) (8) (19)
Exploration Spend A$’M (11) (3) (14)
Net Mine Cashflow A$’M 20 9 29
Net Mine Cashflow A$/oz 369 367 368
Q1 FY25 Group Performance Overview
Westgold processed 1,289,561t (Q4 FY24 – 862,889t) of ore in total at an average grade of 2.1g/t Au (Q4 FY24
– 2.1g/t Au), producing 77,369oz of gold (Q4 FY24 – 52,795oz). Group AISC in Q1 FY25 was $187M (Q4 FY24 -
$108M). The $79M increase reflects the enlarged Westgold post-merger (Southern Goldfields $66M).
MURCHISON
Mining costs in the Murchison were $1,074/oz (Q4 FY25 $817/oz) coinciding with the Fender mine achieving
commercial production on 1 July 2024.
Ore stockpiles built -up during Q4 FY24 as a result of atypical rainfall in the Murchison were processed in
Q1 FY25. As Bluebird-South Junction ramps up from 500kt to >1Mtpa during the year, the current reliance on
hauling comparatively lower-grade, stockpiled ore from Fortnum and Cue will reduce accordingly, improving
both economic performance and gold production from the Murchison operations.
The Bluebird mill commenced planned maintenance on crushing and milling circuits in September to prepare
the processing hub for higher throughputs and increased delivery of higher grade ore from an expanded
Bluebird-South Junction in H2 FY25.
Total Capital expenditure of $45M, included Growth Capital ($ 34M) and Plant and Equipment ($11M) across
the Murchison operations. Growth Capital related to planned expansions at Big Bell, Great Fingal l
development, Bluebird – South Junction and Starlight mine sites. Plant and Equi pment capital related to
Processing facilities ($5M), Paste plant ($5M) and Camp upgrades ($1M) during the quarter.