Westgold Resources Limited Annual Report 2021

23 Westgold Resources Limited Annual Report 2021 OPERATING RESULTS The Group’s full year operating results improved substantially compared to the previous year. Overall, the results reflect the continued maturity and growth of the core assets following the rationalisation on non-core assets and focus on the 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 16% to $571,170,198 (2020: $492,268,271); – Consolidated total cost of sales decreased by 2% to $455,456,036 (2020: $462,752,732); – Profit after income tax increased by 122% to $76,751,880 (2020: $34,607,315). REVIEW OF FINANCIAL CONDITION The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $150,684,029 (2020: $137,564,914). Operating Activities Group cash flow generated by operating activities increased on that of the previous year with a total inflow of $249,141,949 (2020: $155,731,640). Investing Activities Cash flows used in investing activities across the Group increased on that of the previous year with a total outflow of $213,805,325 (2020: $122,278,247). Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine (CGO) and the Bluebird and South Emu underground mines (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 current year was $266,190,255 (2020: $210,949,085), broken into key operations as follows: – MGO $87,777,406 (2020: $82,842,250); – CGO $140,595,398 (2020: $99,721,650); – FGO $37,817,451 (2020: $27,391,009); and – Other $Nil (2020: $994,176). Capital commitments of $19,360,999 (2020: $10,098,601) existed at the reporting date, principally relating to the purchase of plant and equipment. Exploration activities continued at all operations during the year with $14,249,778 (2020: $14,049,293) expended. A review of accumulated land titles was completed resulting in a write-off of $86,058 (2020: $356,317) of carrying values. Financing Activities Net cash flows used in financing activities amounted to $22,217,509 (2020: Inflow of $36,915,232). – The Group received $8,373,750 from the conversion of 3,625,000 listed options at $2.31; – The Group’s interest bearing loans and borrowings increased to $45,075,838 (2020: $37,826,450) with marginal additions to the mobile mining fleet with the expanded growth activities.