December 2024 Quarterly Report
Westgold Resources Limited
ASX: WGX | TSX: WGX
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
December 2024 Quarterly Report
23 January 2025
ASX Release
Westgold is a n 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 +500,000ozpa
from FY26/27.
Financial values are reported in A$
unless otherwise specified
This announcement is authorised for
release to the ASX by the Board.
Investor Relations & Media
Kasun Liyanaarachchi | IR Manager
+61 458 564 483
Production lifts again in Q2, FY25
Perth, Western Australia, 23 January 2025 Westgold
Resources Limited (ASX | TSX: WGX - Westgold or the
Company) is pleased to report results for the period ending
31 December 2024 (Q2 FY25).
HIGHLIGHTS
OPERATIONS
Safety Performance Total Recordable Injury Frequency Rate
(TRIFR) of 6.85 / million hours – an improvement of ~7%
Record gold production in Q2 FY25 of 80,886oz Au @ AISC of
A$2,703/oz with increased net mine cashflow of $45M
funding the Company’s operational and growth capital
requirements
EXPLORATION & RESOURCE DEVELOPMENT
Seventeen drill rigs operating across portfolio
Bluebird-South Junction Resource and Reserve grown to
1.4Moz and 573Koz respectively
Starlight Mineral Resource grown by 91%, underpinning
expansion plan for Fortnum
Impressive drill results from both the Murchison and
Southern Goldfields:
■ 68.00m at 5.48g/t Au in hole 24BLDD171 at South Junction
■ 6.60m @ 41.84g/t Au in hole WF440N1- 05AE at Beta Hunt
Fletcher Zone
■ 5.65m at 360.84 g/t Au in hole NF1120RD28 at Sta rlight
CORPORATE
Ore purchase agreement signed with New Murchison Gold - set
to increase Murchison production in FY26
Balance sheet bolstered with additional A$200M c orporate
facility - providing Westgold access to a total of A$300M in
corporate facilities without mandatory hedging.
Closing cash, bullion, and liquid investments at 31 December 2024
of $152M
Westgold remains 100% unhedged – offering full exposure to
escalating gold price
December 2024 Quarterly Report 2
Westgold Managing Director and CEO Wayne Bramwell commented:
“Q2, FY25 was the first full quarter of Westgold stewardship of the Southern Goldfields assets. Outputs
continue to lift with a record group gold production of 80,886oz - increasing net mine cash flows to $45M
and funding the Company’s operational and growth capital requirements. Westgold also drew down $50M
from the corporate facility during the period to balance the working capital requirements of our much larger
business.
The FY25 strategy is to systematically reconfigure the larger po rtfolio to generate higher levels of free
cashflow with capital investment in critical mine infrastructure at Beta Hunt and Bluebird-South Junction,
and resource development drilling key to achieving this.
In the Southern Goldfields we have rapidly demonstrated the ability to lift mine outputs. We are investing
for the next decade of operations at Beta Hunt with the key enablers to higher mine productivity including
a clean mine water supply, upgrades to underground pumping, power, ventilation and facilities for our
workforce. All of these projects are underway and on completion will set this mine up to consistently
deliver >2Mtpa run rates during 2025.
In the Murchison, we are steadily expanding the Bluebird-South Junction mine to lift outputs to 1-1.5Mtpa
run rates in 2025, ultimately sustaining the Bluebird mill from a single source. A change in ground support
methodology to support the expansion and transition to a larger transverse open stoping mining method
slowed the progress of this ramp up in Q2 , and with those changes now implemented, Bluebird-South
Junction mine output is increasing again.
Seventeen drill rigs are operational today. At South Junction, intersections such as 68.00m at 5.48g/t Au
and 45.00m at 4.18g/t Au highlight the quality and thickness of the mineral endowment . At the Fletcher
Zone, five rigs are operational, with highly encouraging results including 6.6m at 41.84g/t and 24.6m at
6.9g/t Au building our confidence in a third mining front.
Our strategic asset review co mmenced with the Fortnum scoping study defining a pathway to a higher
margin, expanded 1.5Mtpa facility with a 10-year integrated mine plan. At Meekatharra we finalised an ore
purchase agreement with a Mur chison explorer that unlocks value for all shareholders and will provide a
new softer feed source to our Bluebird mill in FY26.
Strong treasury management is key to delivering our strategy and providing returns to our shareholders.
During the quarter Westgold expanded our corporate facility to $300M without mandatory hedging to
support mine and process plant expansion plans as this investment will reduce operating cost and
enhance future cashflows.
Building a simpler, yet larger scale and more profitable business requires investment and time.
Six months on post-merger, Westgold now has the portfolio that can deliver increased levels of free cash
flow. Our capital investments are focussed on higher mine productivity and lowering our all in sustaining
costs with the Group’s Q4, FY25 exit run rate the measure of our success.”
December 2024 Quarterly Report 3
Executive Summary
Cash Position at 31 December 2024
Q2, FY25 was the first full quarter of Westgold stewardship of the Southern Goldfield assets.
Westgold closed the quarter with cash, bullion and liquid investments of $152M (see Figure 1). This result was
driven by record group gold production of 80,886oz, increasing net mine cash flows of $45M and funding the
Company’s operational and growth capital requirements.
Westgold also draw down $50M from the corporate facility during the period to balance the working capital
requirements of now, a much larger business.
Figure 1: Cash, Bullion, and Liquid Investments Movement (A$M) – Q2 FY25
Notes
■ Merger costs of $13M relating to Karora Resources Inc’s North American advisor costs finalised in Q2.
■ Dividend payment relates to payment of FY24 Final Dividend (declared 1.25 cent per share fully franked).
■ Working capital movement of $29M reflects the timing of creditor payments.
■ The draw down of $50M from the corporate facility provides prudent overall treasury management of a
larger business.
87
56
50
17
12
Opening
Cash, Bullion &
Investments
37
Opening Bullion
11
Opening Investments
Opening Cash
Murchison
Operating Cash Flow
Southern Goldfields
Operating Cashflow
Sustaining Capital
Closing Cash
Working Capital
(29)
Lease Payments
(10)
Stockpiles
(3)
Proceed from
Borrowing drawdown
Exploration
(9)
55
136
152Closing
Cash, Bullion &
Investments
Merger Costs
PP&E
(13)
(10)
(16)
Closing Investments
Closing Bullion
Growth Capital
Dividend paid
(6)
(29)
103
Operating Capital Expenditure Working Capital
December 2024 Quarterly Report 4
Group Production Highlights – Q2 FY25
Westgold achieved its highest quarterly gold production in Q2 FY25, producing 80,886 ounces and generating
$45M in net mine cashflow.
This included 46,461 ounces from the Murchison and 34 ,425 ounces from the Southern Goldfields.
Notwithstanding the quarter-on-quarter improvement in ounces produced, the ramp up at the Bluebird-South
Junction and Beta Hunt underground mines was slower than planned.
All-In Sustaining Cost (AISC) for the quarter was $2,703/oz (Q1 FY25 $2,422/oz). The elevated AISC $/oz in Q2
FY25 was due to lower than anticipated production from Bluebird-South Junction and Beta Hunt combined with
the impact of absorbing a full quarter of Southern Goldfields operating costs.
Capital growth projects continued to advanc e across the Group in line with the current strategy to ramp up
production in H2 FY25.
Figure 2: Westgold Quarterly Production (oz), Achieved Gold Price and AISC ($/oz)
2,245 2,492
2,041 2,422 2,7033,041 3,137 3,493 3,723 4,066
Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
133 130
108
187
219
Achieved gold price ($/oz)
AISC ($/oz)
AISC ($M)
Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25
59,238
52,100 52,795
77,369 80,886
Gold production (oz)
December 2024 Quarterly Report 5
Figure 3: Westgold Monthly AISC
The Company sold 86,879oz of gold for the quarter achieving a record price of $4,066/oz, generating $353M 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 $110M of mine operating cashflows with the achieved gold price $1,363/oz
over AISC. AISC for Q 2 FY25 of $219M (Q1 FY25 of $ 187M) including $32M in add itional costs from the
Southern Goldfields being under Westgold’s control for the first full quarter.
As illustrated in Figure 3 the monthly AISC since post-merger (August 2024) has been relatively consistent.
Capital expenditure during Q2 FY25 of $56M (Q1 FY25 $ 58M) includes $2 9M investment in growth projects
(Bluebird-South Junction and the Great Fingall development), $ 27M upgrading processing facilities,
infrastructure and equipment across the sites.
Investment in exploration and resource development of $9M (Q1 FY25 $14M) for the quarter was focussed on
Bluebird-South Junction a nd Starlight in the Murchison, and the Fletcher Zone, Larkin Zone and Two Boys
underground in the Southern Goldfields.
The net mine cash inflow for Q2 FY25 was $45M (refer Table 1 under Group Performance Metrics).
0
30
40
50
60
70
80
90
100
110
120
0
-400
-200
1,800
2,000
2,200
2,400
2,600
3,000
2,800
-1,200
-1,000
-800
-600
Oct
23
Nov
23
Dec
23
Jan
24
Feb
24
Mar
24
Apr
24
May
24
1,983
Jun
24
Jul
24
Sep
24
Oct
24
Nov
24
Dec
24
40
48 45
50
42
38
69
2,198
2,342
74
2,619 2,542
75
70
2,230
2,370
43
2,209
Aug
24
38
75
1,842
35
2,309
2,643
35
2,561
2,796 2,791
2,490
AISC (A$M) AISC/oz(A$/oz)
December 2024 Quarterly Report 6
Environmental, Social and Governance (ESG)
People
People are a key enabler of operational productivity. Westgold is committed to investing in building
organisation capability and lowering workforce turnover. Westgold’s continued focus on diversity and inclusion
has been recognised at the AMEC Awards 2024 , with Westgold celebrated as finalists for the Diversity and
Inclusion Award. Respect in the Workplace training was rolled out to the business and a Respect Hotline was
established as another avenue for the workforce to raise workplace concerns.
At the end of the quarter, Westgold employed 2,100 employees and contractors.
Safety and Sustainability
Westgold has maintained a strong focus on safety, resulting in continued positive trends across key
performance indicators this quarter. The Total Recordable Injury Frequency Rate (TRIFR) decreased to 6.85
injuries per million hours worked, representing a 7.09% improvement quarter- on-quarter. The business
recorded zero (0) Lost Time Injuries, resulting in a 3.52% decrease in the Lost Time Injury Frequency Rate (LTIFR)
to 0.98. The High Potential Incident Rate (HiPR) increased from 5.18 to 6.09.
During this quarter, zero (0) Significant Environmental Incidents were recorded.
Figure 4: The TRIFR Decreased in Q2 FY25
December 2024 Quarterly Report 7
Group Performance Metrics
Westgold’s quarterly physical and financial outputs for Q2 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 Inc completed on 1 August 2024 . The se assets are grouped and
reported as Westgold’s Southern Goldfields operations – incorporating the Beta Hunt and Two Boys
underground mines and two processing hubs (Higginsville and Lakewood).
Table 1: Westgold Q2 FY25 Performance
Physical Summary Units Murchison Southern
Goldfields Group
ROM - UG Ore Mined t 664,568 450,555 1,115,123
UG Grade Mined g/t 2.3 2.3 2.3
ROM - OP Ore Mined t - - -
OP Grade Mined g/t - - -
Ore Processed t 749,182 592,823 1,342,005
Head Grade g/t 2.1 2.0 2.1
Recovery % 90 92 91
Gold Produced oz 46,461 34,425 80,886
Gold Sold oz 50,263 36,616 86,879
Achieved Gold Price A$/oz 4,066 4,066 4,066
Cost Summary
Mining A$’M 72 52 124
Processing A$’M 32 24 56
Admin A$’M 6 5 11
Stockpile Movements A$’M (6) 3 (3)
Royalties A$’M 5 12 17
Cash Cost (produced oz) A$’M 109 96 205
Corporate Costs A$’M 3 1 4
Sustaining Capital A$’M 7 3 10
All-in Sustaining Costs A$’M 119 100 219
All-in Sustaining Costs A$/oz 2,556 2,903 2,703
December 2024 Quarterly Report 8
Physical Summary Units Murchison Southern
Goldfields Group
Notional Cashflow Summary
Notional Revenue (produced oz) A$’M 189 140 329
All-in Sustaining Costs A$’M (119) (100) (219)
Mine Operating Cashflow A$’M 70 40 110
Growth Capital A$’M (26) (3) (29)
Plant and Equipment A$’M (15) (12) (27)
Exploration Spend A$’M (5) (4) (9)
Net Mine Cashflow A$’M 24 21 45
Net Mine Cashflow A$/oz 509 605 554
Q2 FY25 Group Performance Overview
Westgold processed 1,342,005t (Q1 FY25 – 1,289,561t) of ore in total at an average grade of 2.1g/t Au (Q1 FY25
– 2.1g/t Au), producing 80,886oz of gold (Q1 FY25 – 77,369oz). Group AISC in Q2 FY25 was $219M (Q1 FY25 -
$187M).
The $ 32M increase reflects the enlarged Westgold post-merger accounting for th ree months’ worth of
production at the Southern Goldfields in comparison to two months in Q1 FY25.
MURCHISON
The Murchison operations produced 46,461oz of gold (Q1 FY25 – 52,889oz), largely as a result of lower
production from the Bluebird-South Junction mine and reduced access to low grade stockpiles.
Total AISC of $119M was in line with the prior quarter (Q1 AISC - $121M). Total AISC continues to trend down
against historical average quarterly AISC, demonstrating the effectiveness of Westgold’s cost optimisation and
focus on profitability. Mining costs in the Murchison operations were $1,549/oz (Q1 FY25 $1,074/oz) coinciding
with additional costs to re-establish access to remnant mining areas at Big Bell being offset by lower sustaining
capital requirements. In addition, a revision to ground support requirements in the South Junction area of the
Bluebird-South Junction mine , slowed production from South Junction and r esulted in increased ground
support costs for this quarter.
Total Capital expenditure of $41M, included Growth Capital ($ 26M) and Plant and Equipment ($ 15M) across
the Murchison operations. Growth Capital related to the Great Fingall development and expansions to the
Bluebird-South Junction and Starlight mines.
Plant and Equi pment capital includes investment related to processing facilities ($ 6M), Bluebird-South
Junction primary ventilation fans ($3M) and Bluebird paste plant ($2M) during the quarter.