Westgold Resources Limited Annual Report 2020

27 Westgold Resources Limited Annual Report 2020 OPERATING RESULTS The Group’s operating results improved substantially over the previous year with increased profitability resulting in a net profit after income tax of $34,607,315 (2019: $14,130,064). The results also reflect the continued rationalisation of non-core assets and expansion of the Group’s activities in the Murchison Region. These actions over the year are reflected in the following key measures: – Consolidated revenue increased by 18% over the prior year to $492,268,271 (2019: $418,317,447); – Consolidated total cost of sales increased by 13% over the prior year to $462,752,732 (2019: $408,078,123); – The Group repaid the gold loan repayment facility $25,938,399 (2019: $16,011,946); and – Profit after income tax increased to $34,607,315 (2019: $14,130,064). REVIEW OF FINANCIAL CONDITION The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $137,564,914 (2019: $67,196,289). OPERATING ACTIVITIES Group cash flow generated by operating activities increased on that of the previous year with a total inflow of $155,731,640 (2019: $81,231,882). Investing Activities Cash flows used in investing activities across the Group increased on that of the previous year with a total outflow of $122,278,247 (2019: $109,806,561). Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine (CGO) and the South Emu underground mine (MGO) as well as major capital works on plant and equipment such as the new airstrip and village upgrade at Fortnum (FGO), a new village at Big Bell (CGO) and a new secondary crushing circuit at the Bluebird Plant (MGO). Other capital investment was sustaining capital in all of the operating underground mines to maintain developed tonnes and production output at similar levels. Total capital investment in mine properties and development, exploration and evaluation expenditure and property, plant and equipment during the year was $210,949,085 (2019: $157,065,263), broken into key operations as follows: – MGO $82,842,250 (2019: $52,958,698); – CGO $99,721,650 (2019: $81,401,015); – FGO $27,391,009 (2019: $21,699,381); and – Other $994,176 (2019: $1,006,168). Capital commitments of $10,098,601 (2019: $8,996,852) existed at the reporting date, principally relating to the purchase of plant and equipment. Exploration activities continued at all operations during the year with $14,049,293 (2019: $16,411,426) expended. A review of accumulated land titles was completed resulting in a write-off of $356,317 (2019: $5,471,706) of carrying values. Financing Activities External financing requirements increased to $36,915,232 (2019: $22,324,215) reflecting an increase in external sourced financing of growth activities. – The Group received $66,542,506 from the placement of 20,000,000 ordinary shares at $2.25per share, the conversion of 10,315,603 listed options at $2.02 and the conversion of 230,000 listed options at $2.31; – The Group repaid the gold prepay facility in full (2019: drew on $20,853,550); and – The Group’s interest bearing loans and borrowings increased to $37,826,450 (2019: $36,736,877) with marginal additions to the mobile mining fleet with the expanded growth activities.