Westgold Resources Limited Annual Report 2020

101 Westgold Resources Limited Annual Report 2020 39. DISCONTINUED OPERATIONS Higginsville Gold Operations In FY2019 Westgold sold its wholly owned subsidiaries that collectively make up HGO; namely Hill 51 Pty Ltd, Avoca Resources Pty Ltd, Avoca Mining Pty Ltd and Polar Metals Pty Ltd to RNC Minerals Limited. The consideration for the sale was $55 million (with working capital adjustments). The purchase consideration comprised of $24 million in cash; $27 million in 49,811,364 fully paid ordinary shares in RNC Minerals Limited and an option fee of $4 million in 7,104,655 fully paid ordinary shares in RNC Minerals Limited. 2020 2019 Results of the discontinued operations: Revenue – 76,963,348 Cost of sales – (95,008,018) Gross loss – (18,044,670) Other income – 1,110,359 Loss on sale of financial assets – (90,309) Other expenses – (34,867) Finance costs – (496,717) Exploration and evaluation expenditure written off – (693,428) Gain on disposal of controlled entities – 16,435,747 Loss before tax – (1,813,885) Income tax benefit – 2,456,810 Profit (loss) for the year from discontinued operations – 642,925 Cash flow information from discontinued operations: Operating activities – 9,796,749 Investing activities – (9,082,668) Financing activities – (247,904) – 466,177 Proceeds on disposal Consideration received in cash and cash equivalents – 24,079,927 Consideration received in shares – 30,937,176 Fees and working capital adjustments – (1,150,000) Less net assets disposed of – 53,867,103 Assets Cash and cash equivalents – 614,991 Trade and other receivables – 461,278 Inventories – 15,108,933 Prepayments – 50,226 Property, plant and equipment – 10,137,250 Mine properties and development costs – 10,607,459 Exploration and evaluation expenditure – 33,505,161 – 70,485,298