Westgold Resources Limited Annual Report 2021

for the year ended 30 June 2021 FINANCIAL REPORT DIRECTOR’S REPORT 24 Westgold Resources Limited Annual Report 2021 SHARE ISSUES DURING THE YEAR The following share issues have been undertaken during the year: Date Number of shares Purpose 12 October 2020 350,000 Issued on conversion of options 22 October 2020 950,000 Issued on conversion of options 28 October 2020 20,000 Issued on conversion of options 11 November 2020 2,305,000 Issued on conversion of options 30 June 2021 69,936 Issued on conversion of options Total 3,694,936 DIVIDENDS No dividends were paid to members in respect of the year ended 30 June 2020. The Board has taken into consideration the uncertainties that COVID-19 has created upon personnel availability, their movement and the integrity of the supply chain that supports our operations when considering any payment of a dividend. These uncertainties remain for FY2022 and as such the Board has taken a pragmatic view and recommended the payment of a maiden cash dividend (unfranked) of 2.0 cents per fully paid share for FY2021 in recognition of Westgold’s improved financial metrics for this year. The Directors will establish a dividend reinvestment plan (“DRP”) with the issue price for shares under the DRP being at a 7.5% discount to the daily volume weighted average price (“VWAP”) of the Company’s share price for the 5 business days from the commencing of trading after the record date. The final dividend will have a record date of 1 October 2021 and a payment date of 15 October 2021. REVIEW OF OPERATIONS Westgold remains the dominant explorer, developer, operator and gold mining company in the Central Murchison region. The Company has ≈ 350 mining titles covering 1,300 km 2 across this highly prospective region and operates six underground mines, several open pits and three processing plants (currently with an installed processing capacity of ≈4 Mtpa). Westgold is unique in that it is an owner-operator of all of its underground and open pit mines and as such this vertical integration provides greater cost control and operating flexibility across the Company’s assets. Westgold continued to streamline the business in FY2021 and disposed of its non-core lithium royalties. The Group’s production profile continues to grow and in FY2021 Westgold delivered a record 245,411 ounces from its Fortnum, Meekatharra and Cue Gold operations with the Company also establishing a new Exploration and Growth unit to define, explore and develop the next suite of mineral assets within the Westgold landholding. Fortnum Gold Operations (FGO) FGO is located in the Proterozoic age Bryah Basin stratigraphy approximately 150 km northwest of Meekatharra and represents the northernmost group of Westgold assets in the Central Murchison region. These assets encapsulate the historic mining centres of Labouchere, Fortnum, Horseshoe and Peak Hill which collectively has delivered approximately 2 million ounces of reported gold production. The FGO processing hub incorporates the 0.9 Mtpa Fortnum carbon-in-leach (CIL) processing plant, a 200-person village, airstrip and associated mining infrastructure required to support a remote FIFO operation. Mining output is currently dominated by the Starlight underground mine with supplementary, free on surface low grade stocks providing a blended feedstock to the plant. Gold output for the year was 60,265 ounces at a C1 Cash Cost of $1,009 per ounce and an all-in sustaining cost (AISC) of $1,304 per ounce as disclosed in the table on page 26. The increase in the gold output and associated increase in the gold price resulted in an increase in revenue to $140,661,201 (2020: $130,688,889). Segment profits also increased to $42,842,540 (2020: $33,236,970).