Westgold Resources Limited Annual Report 2021

for the year ended 30 June 2021 FINANCIAL REPORT DIRECTOR’S REPORT 28 Westgold Resources Limited Annual Report 2021 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Total equity increased to $607,360,307 (2020: $521,860,827). This included the conversion of 3,625,000 listed options equating to cash proceeds of $8,373,750. SIGNIFICANT EVENTS AFTER THE BALANCE DATE The directors, at their meeting on 27 August 2021, recommended a final unfranked dividend for the year ended on 30 June 2021 of 2 (two) cents per share to all ordinary shareholders registered at 1 October 2021. The amount is not recognised as a liability at 30 June 2021. The Directors will establish a DRP with the issue price for shares under the DRP being at a 7.5% discount to the daily VWAP of the Company’s share price for the 5 business days from the commencing of trading after the record date. There have been no other significant events after the balance date. LIKELY DEVELOPMENTS AND EXPECTED RESULTS The Group is expected to continue exploration, development, operations and production and marketing of gold bullion in Australia and will continue the development of its gold exploration projects. ENVIRONMENTAL REGULATION AND PERFORMANCE The Group’s operations are subject to the relevant Commonwealth and State environmental protection legislations. The Group holds various environmental licenses issued under these laws and these licenses include conditions and regulations in relation to specifying limits on discharges into the air, surface water and groundwater, the storage of hazardous substances and the rehabilitation of areas disturbed during the course of exploration, mining and processing activities. The Board monitors all environmental performance obligations. Our operations are subjected to regular Government agency audits and site inspections. There have been no material breaches of the Group’s licenses and all mining and exploration activities have been undertaken in compliance with the relevant environmental regulations. SHARE OPTIONS AND PERFORMANCE RIGHTS Employee options and rights During the year ending 30 June 2021, the Company granted 1,486,500 unlisted Employee Rights (WGXO) and 33,681 unlisted Employee Options to senior management under the Employee Share Option Plan. Included in this issue were 233,506 Employee Rights granted to the Executive Chairman. The principal terms of the Employee Rights are: – The Employee Rights have been issued for nil consideration; – Each Employee Right carries an entitlement to one fully paid ordinary share in the Company for each Employee Right vested; – Vesting only occurs after the end of the Performance Periods (30 June 2023) and the number of Employee Rights that vest (if any) will depend on: – Relative Total Shareholder Return; – Absolute Total Shareholder Return; – Absolute Earnings Per Share; – Operational Growth; – Employee Rights that vest will expire if not exercised on the vesting date; – Unvested Employee Rights lapse on cessation of a holder’s employment with Westgold; – Any Employee Rights that do not vest after the end of the Performance Periods will automatically lapse; and – No amount is payable by a holder of Employee Rights in respect of the shares allocated upon vesting of the Employee Option.