ANNUAL REPORT 2022 WESTGOLD RESOURCES LIMITED
Westgold Resources Limited Annual Report 2022 A DYNAMIC, GROWTH ORIENTED AUSTRALIAN GOLD MINER With over 1,000 staff and more than 1,300km2 of tenure, Westgold is the dominant gold miner in the Murchison and Bryah regions of Western Australia. www.westgold.com.au 1 Our Purpose and Ambition 1 Values and Behaviours 2 Letter from the Chair 5 Financial Results 6 Our Annual Outputs 8 Our Operations 20 Directors’ Report 30 Remuneration Report (Audited) 48 Auditor’s Independence Declaration 49 Consolidated Statement of Comprehensive Income 50 Consolidated Statement of Financial Position 51 Consolidated Statement of Cash Flows 52 Consolidated Statement of Changes in Equity 53 Notes to the Consolidated Financial Statements 101 Directors’ Declaration 102 Independent Auditor’s Report 108 Shareholder Information 110 Corporate Directory CONTENTS
CHOOSE SAFETY – Think safety and act safely – Look out for each other – Protect our environment SHOW RESPECT – Appreciate everyone for who they are and what they contribute – Enable everyone to do a great job – Grow strong teams and communities DELIVER VALUE – Plan to succeed as a team – Execute with excellence – Rise to the challenge and keep on improving 1 Westgold Resources Limited Annual Report 2022 OUR PURPOSE AND AMBITION Leverage our gold assets and expand our Western Australian footprint to: – create shareholder value, – p rovide opportunities for our team to grow and succeed, and – contribute to our wider communities. VALUES AND BEHAVIOURS Our values and behaviours guide how we work with each other, our communities, and external stakeholders. They influence our actions and decisions, hold us accountable and ultimately enable a culture that drives our success.
LETTER FROM THE CHAIR A YEAR OF RECORDS Dear Shareholders, It is my pleasure to present theWestgold Resources Limited Annual Report for the financial year ended 30 June 2022 (FY22). Having recently joined the Board with new Non Executive Director Mr Julius Matthys in March, we have quickly come to understand the opportunities and challenges that lie ahead for the Group. This financial year has seenWestgold deliver its first full year production and cost guidance in a period where COVID-19 has continued to impact personnel mobility and availability. Achieving our production target of over 270,000 ounces of gold from our Western Australian assets at $1,692/ oz all-in sustaining costs (AISC) was a remarkable achievement considering significant increases in all key inputs to our business. Diesel fuel price increased 106% over the financial year with material changes in other major consumables such as reagents, grinding balls, ground support, flights, haulage services and freight. No part of the value chain was immune to global inflationary pressures. Despite the challenges faced, safe, consistent and predictable production remained our key objectives in FY22. With an expanded safety team, our safety performance began to positively improve. Our major mines began to perform consistently during FY22 with Bluebird, Starlight and Big Bell undergrounds all reaching steady state. Importantly Bluebird and Big Bell began to produce above design levels in the second half of FY22. With this growing momentum in production at our larger mines, the Group is becoming less reliant on our smaller underground operations and higher cost open pits. As planned, open pit operations ceased in the latter half of FY22 and the South Emu – Triton underground was put into care and maintenance in Q1 FY23, pending a revised mine plan that underpins suitable economic returns. Our exploration efforts began to deliver results during the year with early success at the high-grade Sovereign target near Cue. This new discovery between the iconic Great Fingall and Golden Crown mines demonstrates new prospectivity and evidences the opportunity for organic growth fromwithinWestgold’s existing tenure. Westgold advanced many environmental, social and governance (ESG) initiatives during the year. This included signing new electricity supply and LNG gas supply agreements that will seeWestgold replace six diesel fired power stations with four new gas fired power stations commencing in FY23. These new agreements see the Group integrating renewable energy into our power infrastructure and this will deliver significant cost savings and emission reductions. The first new station will be commissioned in the second half of financial year 20222023 (H2, FY23). Our operating results reflect another solid improvement with record production over the previous year but total cost increases, together with the non-cash impairment charges directly impacted Group profitability. Westgold finishes FY22 with a strong balance sheet, $183M in cash and cash equivalents and a refreshed Board and management team. The Group starts FY23 in robust financial condition and with a clear objective. 2 Westgold Resources Limited Annual Report 2022
Westgold will simplify the business and test all options to improve productivity and operational efficiencies and build on our balance sheet strength. The reset of our operating model is well advanced with the key to delivering shareholder value being to mine ‘profitable ounces’ not just ounces. Industry wide cost inflation is forcing a granular cost assessment andWestgold has commenced this deep dive into opportunities that can reduce waste and improve the ability of the business to generate stronger cash flows. There are opportunities to leverage our operating footprint, scale and internal capability with the optimisation of these key factors critical to increasing the profitability and sustainability of the business. The non-cash impairment, alongside a more disciplined approach to capital and operating expenditure, positions Westgold with the opportunity to deliver larger financial returns to our shareholders. Our vision for Westgold 2.0 is to continue to evolve to become a safer, inclusive, socially responsible and highly profitable gold miner. Our workforce is innovative, committed and focussed and with the continued support of our shareholders, stakeholders, communities and staff we are confident that the business can deliver on our FY23 objectives. Hon. Cheryl Edwardes AM Non-Executive Chair 3 Westgold Resources Limited Annual Report 2022
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5 Westgold Resources Limited Annual Report 2022 YEAR END 30 JUNE 2022 FINANCIAL RESULTS GOLD SALES (OZ) 269,705 (FY21: 245,066) 15% REVENUE $647.6m (FY21: $571.1m) 16% NET CASH FROM OPERATIONS $179.9m (FY21: $249.1m) 60% NET PROFIT/(LOSS) BEFORE TAX ($160.1m) (FY21: $112.0m) 155% NET PROFIT/(LOSS) AFTER TAX ($111.1m) (FY21: $76.7m) 122% CLOSING CASH & CASH EQUIVALENTS $182.7m (FY21: $150.6m) 9% PROFIT PER SHARE (25.32c) (FY21: 18.16c) 110% NET ASSETS $587.8m (FY21: $607.3m) 16% AVERAGE HEDGE GOLD PRICE A$2,396/oz (FY21: A$2,133/oz) 3% HEDGES OUNCES 148,000oz (FY21: 156,000oz) 22% Unless specifically noted, all dollar amounts disclosed in this report are Australian Dollars (A$ or AUD)
6 Westgold Resources Limited Annual Report 2022 YEAR END 30 JUNE 2022 OUR ANNUAL OUTPUTS GOLD PRODUCTION CASH COST (C1) ALL IN SUSTAINING COSTS MURCHISON OPERATIONS 204,937oz BRYAH OPERATIONS 65,947oz GROUP 270,884oz MURCHISON OPERATIONS A$1,487/oz BRYAH OPERATIONS A$1,294/oz GROUP A$1,438/oz MURCHISON OPERATIONS A$1,748/oz BRYAH OPERATIONS A$1,525/oz GROUP A$1,692/oz
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8 Westgold Resources Limited Annual Report 2022 OUR OPERATIONS REVIEW OF OPERATIONS Westgold Resources Limited (ASX: WGX) (Westgold or the Group) is a uniquelyWestern Australian gold mining business. With a workforce of over 1,000 people, we are the dominant gold miner in the Murchison and Bryah regions with over 1,300 km2 of tenure. Westgold is the owner-operator of all of its underground mines. This internal capability provides a level of operational flexibility that has insulated our business from the many labour impacts caused by COVID-19. Our operating model is ‘hub and spoke’ style whereby we have the optionality to process ore from our Meekatharra and Cue operations at either processing hub. In contrast the Bryah Basin operation is centred upon the Fortnum processing hub. The Murchison operations incorporate two processing hubs near Cue and Meekatharra. Combined, these operations are forecast to produce ≈200,000 oz in financial year 2022-2023 (FY23). MURCHISON GOLD PRODUCTION AND A$ COSTS MURCHISON OPERATIONS CUE Our Cue operation is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles. This package includes two of Western Australia’s most iconic past producers in the Big Bell mine (≈2.6 million ounces) and the Great Fingall mine (≈1.2 million ounces). It incorporates the 1.2-1.4Mtpa Tuckabianna processing hub, a 148-person village at Big Bell, a 266-person village at Cue and associated mining infrastructure to support a large FIFO and DIDOmining operation. In FY22, the Tuckabianna plant received underground ore from the large Big Bell underground and the smaller Comet underground mine as well ore from the Cuddingwarra open pits. The Tuckabianna processing hub treated 1,345,015 tonnes of ore, at the upper range of the plants operating capacity and in line with expectations. The metallurgical recoveries rate for the ore blend was 88.6%. While Big Bell was the primary producer of ore to the Tuckabianna mill, the Comet underground mine provided supplementary feed during the year. 50,537 oz 50,291 oz 49,301 oz 54,808 oz $ 1,640 /oz $ 1,781 /oz $ 1,795 /oz $ 1,896 /oz - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0 10,000 20,000 30,000 40,000 50,000 60,000 Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022 Cost per oz. Gold Production oz. Murchison Gold Production and A$ Costs Gold Produced AISC $/oz 15,636 oz 16,397 z 16,125 oz 17,789 oz $ 1,393 /oz $ 1,496 /oz $ 1,649 /oz $ 1,683 /oz - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0 5,000 10,000 15,000 20,000 Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022 Cost per oz. Gold Production oz. Bryah Gold Production and A$ Costs Gold Produced AISC $/oz
9 Westgold Resources Limited Annual Report 2022 After four years of dewatering, mine rehabilitation, refurbishment and ramp up, the Big Bell mine achieved commercial production in April 2022 and production rates have been growing since. Several open pits were mined around Cue in FY22. With large stockpiles accumulated, the open pit program ceased at the end of the financial year. Exploration and viability studies were carried out during FY22 at the previously mined Fender open pit mine on the southern limits of the Big Bell shear to evaluate the economics of an underground operation. An exploration decline was commenced then paused due with the higher tonnages coming fromBig Bell. In addition to the mining operations, the Company is accelerating exploration activities across Cue with the primary focus being the Day Dawn and Tuckabianna mining centres. This work has been based on new geophysical datasets and geological re-interpretations in early FY22, leading to the discovery of the Sovereign target, between Great Fingall and Golden Crown. Follow up drilling will occur in early FY23, along with definition drilling into Great Fingall at depth and testing of Caustons, right at the doorstep of the Tuckabianna plant.
10 Westgold Resources Limited Annual Report 2022 MEEKATHARRA Our Meekatharra operation is located around the regional town of Meekatharra and encompasses Westgold’s central group of assets including the historic gold mining centres of Meekatharra North, Paddy’s Flat, Yaloginda, Nannine and Reedy’s. Our Meekatharra assets include the 1.6-1.8Mtpa Bluebird processing hub, a 420-person village, and associated mining infrastructure required to support a large FIFO and DIDOmining operation. For FY22, the Bluebird plant received underground ore from the Paddy’s Flat, South Emu - Triton and Bluebird underground mines and supplementary low grade stockpiles. The Bluebird underground mine has been expanding rapidly since recommencement of mining in mid FY22, with further extensions and opportunities being identified. Overall expansion plans are being developed to determine the true potential of this asset. With the expansion of Bluebird underground, at the end of FY22Westgold paused operations at South Emu - Triton in the Reedy’s area to reassess its economics. The Bluebird processing plant processes both underground and open pit ore, performing strongly for the year treating more than 1,527,840 tonnes, slightly below the plant’s capacity of 1.6-1.8 million tonnes, with remedial works well underway to increase throughput. The metallurgical recoveries rate for the ore blend was 89.6%. In-mine exploration at and around Meekatharra focused on the extension of the Paddy’s Flat, Bluebird and Reedy’s ore systems: – At Paddy’s Flat the Prohibition lodes continued to return excellent drill results. These baseload results were complemented by numerous highgrade intersections in spur and channel lodes form the Consols lodes which were accessed for the first time in a material way during the year; – Deep drilling under the Triton orebody remains in progress at years end. Initial results have underscored the potential of the Triton deposit at depth, with multiple high-grade lodes intersected; – The footprint of the Bluebird deposit continued to be increased via drilling during the year. A number of strong results have expanded the Bluebird mine plan significantly, with the deposit remaining open to both the south and north. OUR OPERATIONS REVIEW OF OPERATIONS (CONTINUED)
11 Westgold Resources Limited Annual Report 2022 The Bryah operations are centred upon the Fortnum processing hub. This operation is forecast to produce ≈60,000 oz in FY23. FORTNUM BRYAH OPERATIONS The Fortnum operations are located in the Proterozoic age Bryah Basin stratigraphy approximately 150km northwest of Meekatharra and represents the northernmost group of Westgold assets. These assets encapsulate the historic mining centres of Labouchere, Fortnum, Horseshoe and Peak Hill which collectively have delivered approximately 2 million ounces of reported gold production. The processing hub incorporates the 0.8-0.9Mtpa 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. Fortnum continues to deliver strong results from the Starlight underground mine and additional mill feed sourced from large, existing low-grade surface stockpiles. This year saw strong production in the Starlight mine including the Moonlight, Twilight North, Galaxy and Trev’s lodes.
12 Westgold Resources Limited Annual Report 2022 50,537 oz 50,291 oz 49,301 oz 54,808 oz $ 1,640 /oz $ 1,781 /oz $ 1,795 /oz $ 1,896 /oz - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0 10,000 20,000 30,000 40,000 50,000 60,000 Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022 Cost per oz. Gold Production oz. Murchison Gold Production and A$ Costs Gold Produced AISC $/oz 15,636 oz 16,397 oz 16,125 oz 17,789 oz $ 1,393 /oz $ 1,496 /oz $ 1,649 /oz $ 1,683 /oz - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0 5,000 10,000 15,000 20,000 Sep Q 2021 Dec Q 2021 Mar Q 2022 Jun Q 2022 Cost per oz. Gold Production oz. Bryah Gold Production and A$ Costs Gold Produced AISC $/oz BRYAH GOLD PRODUCTION AND A$ COSTS OUR OPERATIONS REVIEW OF OPERATIONS (CONTINUED) The processing plant performed well given the hard ore and limited grind capacity, achieving more than 825,070 tonnes for the year with metallurgical recoveries at 95.5%. A new pebble crusher has been ordered for installation mid FY23 which will help manage the hard ores and increase throughput. Amajor extensional drilling programwas being planned at years end at the Starlight mine, with the view to testing the mineralised footprint of the Starlight lodes over a multi-year mining horizon. This work programwill utilise additional resources over and above the two drilling rigs and support staff currently on site at Starlight, and as such will allow the dayto-day resource definition and grade control activities of the mine to continue unabated whilst the expansion potential of Starlight is defined. In addition, Westgold continues to evaluate potential open pit opportunities to supplement underground ore sources across the Bryah tenure. Not only will this work increase ore optionality and mine life across this under explored tenement package, it may provid the catalyst for process plant expansion works at scale.
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14 Westgold Resources Limited Annual Report 2022 Westgold released its annual update of Mineral Resource and Ore Reserve Estimates on the ASX on 23 September 2022. Shareholders should refer to that announcement for full detail including JORC 2012 appendices. The tables below summarise them by operational area. MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING 30 JUNE 2022 Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Measured Murchison 8,942 3.13 901 Bryah 2,137 2.86 197 Sub-Total 11,078 3.08 1,097 Indicated Murchison 45,722 2.21 3,249 Bryah 14,042 1.85 836 Sub-Total 59,764 2.13 4,085 Inferred Murchison 34,916 2.19 2,458 Bryah 4,473 2.08 300 Sub-Total 39,389 2.18 2,758 Total Murchison 89,579 2.29 6,608 Bryah 20,651 2.01 1,332 Grand Total 110,231 2.24 7,940 ORE RESERVE STATEMENT – ROUNDED FOR REPORTING 30 JUNE 2022 Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Proven Murchison 5,867 2.72 513 Bryah 1,166 1.81 68 Sub-Total 7,033 2.57 581 Probable Murchison 14,542 2.73 1,278 Bryah 4,347 1.84 258 Sub-Total 18,889 2.53 1,536 Total Murchison 20,410 2.73 1,791 Bryah 5,512 1.84 325 Grand Total 25,922 2.54 2,116 Glossary: Murchison incorporates the Meekatharra and Cue business units. Bryah incorporates the Fortnum business unit. OUR OPERATIONS MINERAL RESOURCES & ORE RESERVES
15 Westgold Resources Limited Annual Report 2022 The Mineral Resources by mining project are tabulated below: MURCHISON OPERATIONS MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 Measured Indicated Inferred Total Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Big Bell 5,249 3.27 552 9,860 2.61 828 4,976 2.64 422 20,085 2.79 1,802 Cuddingwarra 118 2.09 8 1,708 1.82 100 994 1.57 50 2,820 1.74 158 Day Dawn 58 1.73 3 3,501 4.42 497 3,089 2.57 256 6,648 3.54 756 Tuckabianna 295 4.09 39 3,781 2.66 323 6,765 2.32 505 10,842 2.49 867 Tuckabianna Stockpiles 567 1.32 24 3,792 0.70 86 0 0.00 0 4,358 0.78 110 Meekatharra North 0 0.00 0 97 1.98 6 75 2.11 5 172 2.04 11 Nannine 68 2.55 6 1,293 2.17 90 534 2.15 37 1,895 2.18 132 Paddy's Flat 906 4.29 125 10,618 1.74 595 2,490 1.90 152 14,013 1.93 871 Reedy's 481 3.82 59 3,062 2.56 252 8,883 2.44 698 12,426 2.53 1,009 Yaloginda 552 3.33 59 8,010 1.83 473 7,110 1.46 334 15,672 1.72 865 Bluebird Stockpiles 648 1.25 26 0 0.00 0 0 0.00 0 648 1.25 26 Total 8,942 3.13 901 45,722 2.21 3,249 34,916 2.19 2,458 89,579 2.29 6,608 BRYAH OPERATIONS MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 Measured Indicated Inferred Total Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Fortnum 1,316 4.05 171 4,764 2.38 364 2,436 2.37 186 8,515 2.64 721 Horseshoe 0 0.00 0 1,266 2.09 85 183 1.43 8 1,449 2.01 93 Peak Hill 0 0.00 0 7,547 1.55 376 1,838 1.78 105 9,385 1.60 481 Stockpiles 821 0.96 25 464 0.70 10 16 0.54 0 1,302 0.86 36 Total 2,137 2.86 197 14,042 1.85 836 4,473 2.08 300 20,651 2.01 1,332
16 Westgold Resources Limited Annual Report 2022 The Mineral Resources by mining project are tabulated below: MURCHISON OPERATIONS MINERAL RESOURCE STATEMENT COMPARISON 2021 2022 Change Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Big Bell 21,043 2.76 1,868 20,085 2.79 1,802 -958 0 -66 Cuddingwarra 3,015 1.76 171 2,820 1.74 158 -195 0 -13 Day Dawn 6,648 3.54 756 6,648 3.54 756 0 0 0 Tuckabianna 9,414 2.52 762 10,842 2.49 867 1,428 0 104 Tuckabianna Stockpiles 3,833 0.75 92 4,358 0.78 110 525 0 17 Meekatharra North 322 1.70 18 172 2.04 11 -150 0 -6 Nannine 1,855 2.19 130 1,895 2.18 132 40 0 2 Paddy's Flat 14,408 1.99 921 14,013 1.93 871 -395 0 -49 Reedy's 12,375 2.51 1,000 12,426 2.53 1,009 51 0 9 Yaloginda 15,637 1.67 840 15,672 1.72 865 35 0 25 Bluebird Stockpiles 814 1.19 31 648 1.25 26 -166 0 -5 Total 89,363 2.29 6,589 89,579 2.29 6,608 216 2.66 19 BRYAH OPERATIONS MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 2021 2022 Change Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Fortnum 9,857 2.37 750 8,515 2.64 721 -1,342 0 -29 Horseshoe 1,449 2.01 93 1,449 2.01 93 0 0 0 Peak Hill 9,385 1.60 481 9,385 1.60 481 0 0 0 Stockpiles 1,194 0.85 32 1,302 0.86 36 108 0 3 Total 21,886 1.92 1,357 20,651 2.01 1,332 -1,234 0.64 -25 OUR OPERATIONS MINERAL RESOURCES & ORE RESERVES (CONTINUED)
17 Westgold Resources Limited Annual Report 2022 The Ore Reserves by mining project are tabulated below: MURCHISON OPERATIONS ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 Proven Probable Total Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Big Bell 4,170 2.94 394 4,641 3.08 460 8,811 3.01 854 Cuddingwarra 0 0.00 0 710 1.75 40 710 1.75 40 Day Dawn 0 0.00 0 1,289 6.92 287 1,289 6.92 287 Tuckabianna 42 4.09 5 1,034 2.48 82 1,075 2.54 88 Tuckabianna Stockpiles 567 1.32 24 3,758 0.70 85 4,324 0.79 109 Meekatharra North 0 0.00 0 0 0.00 0 0 0.00 0 Nannine 0 0.00 0 718 1.82 42 718 1.82 42 Paddy's Flat 230 4.84 36 659 4.21 89 889 4.37 125 Reedy's 55 4.40 8 888 3.27 93 943 3.34 101 Yaloginda 155 3.97 20 845 3.65 99 1,000 3.70 119 Bluebird Stockpiles 648 1.25 26 0 0.00 0 648 1.25 26 Total 5,867 2.72 513 14,542 2.73 1,278 20,410 2.73 1,791 BRYAH OPERATIONS ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 Proven Probable Total Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Fortnum 344 3.83 42 2,541 1.97 161 2,886 2.19 204 Horseshoe 0 0.00 0 761 1.84 45 761 1.84 45 Peak Hill 0 0.00 0 581 2.21 41 581 2.21 41 Stockpiles 821 0.96 25 464 0.70 10 1,285 0.86 36 Total 1,166 1.81 68 4,347 1.84 258 5,512 1.84 325
18 Westgold Resources Limited Annual Report 2022 OUR OPERATIONS MINERAL RESOURCES & ORE RESERVES (CONTINUED) The movement in Ore Reserves over the past year are tabulated below: MURCHISON OPERATIONS ORE RESERVE STATEMENT COMPARISON 2021 2022 Change Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Big Bell 9,879 2.79 887 8,811 3.01 854 -1,069 0 -34 Cuddingwarra 1,074 1.71 59 710 1.75 40 -364 0 -19 Day Dawn 1,398 6.55 294 1,289 6.92 287 -108 0 -7 Tuckabianna 889 2.39 68 1,075 2.54 88 186 0 20 Tuckabianna Stockpiles 3,823 0.75 92 4,324 0.79 109 501 0 17 Meekatharra North 169 1.12 6 0 0.00 0 -169 -1 -6 Nannine 1,074 1.49 51 718 1.82 42 -356 0 -9 Paddy's Flat 1,090 3.64 128 889 4.37 125 -201 1 -3 Reedy's 922 3.17 94 943 3.34 101 22 0 7 Yaloginda 1,065 3.15 108 1,000 3.70 119 -65 1 11 Bluebird Stockpiles 814 1.19 31 648 1.25 26 -166 0 -5 Total 22,198 2.55 1,819 20,410 2.73 1,791 -1,788 0.48 -28 BRYAH OPERATIONS ORE RESERVE STATEMENT COMPARISON 2021 2022 Change Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Fortnum 3,572 2.02 232 2,886 2.19 204 -686 0 -28 Horseshoe 761 1.84 45 761 1.84 45 0 0 0 Peak Hill 1,122 1.95 70 581 2.21 41 -542 0 -29 Stockpiles 1,178 0.85 32 1,285 0.86 36 108 0 3 Total 6,633 1.78 379 5,512 1.84 325 -1,120 1.50 -54
19 Westgold Resources Limited Annual Report 2022 COMPLIANCE AND FORWARD-LOOKING STATEMENTS EXPLORATION TARGETS, EXPLORATION RESULTS AND MINERAL RESOURCES The information in this report that relates to Exploration Targets, Exploration Results andMineral Resources is compiled by Westgold technical employees and contractors under the supervision of Mr Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of Geoscientists. Mr Russell is a full-time employee to the company and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Russell is eligible to participate in short- and longterm incentive plans of the company. ORE RESERVES The information in this report that relates to Ore Reserve Estimates is based on information compiled by Mr Leigh Devlin, B.Eng MAusIMM. Mr Devlin has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Devlin consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Devlin is a full-time senior executive of the Company and is eligible to and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents. FORWARD LOOKING STATEMENTS Certain statements in this report relate to the future, including forward looking statements relating toWestgold’s financial position and strategy. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual results, performance or achievements of Westgold to be materially different from future results, performance or achievements expressed or implied by such statements. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement and deviations are both normal and to be expected. Other than required by law, neither Westgold, their officers nor any other person gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. You are cautioned not to place undue reliance on those statements.
for the year ended 30 June 2022 FINANCIAL REPORT 20 Westgold Resources Limited Annual Report 2022 DIRECTORS’ REPORT The Directors submit their report together with the financial report of Westgold Resources Limited (Westgold or the Company) and of the Consolidated Entity, being the Company and its controlled entities (the Group), for the year ended 30 June 2022. DIRECTORS The names and details of the Company’s Directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Names, qualifications, experience and special responsibilities Hon. Cheryl L Edwardes AM - Non-Executive Chair (Appointed 28 March 2022) Ms Edwardes is a highly credentialed and experienced company director and Chair. A solicitor by profession and former Minister in the Court Government, Ms Edwardes has extensive experience and knowledge of WA’s legal and regulatory framework relating to mining projects, environmental, native title, heritage, and land access. During her political career, Ms Edwardes held positions includingWA Attorney General, Minister for the Environment andMinister for Labour Relations. During the past three years, she has also served as a director of the following public listed companies: – Flinders Mines Limited (Appointed 17 June 2019) – Nuheara Limited (Appointed 2 January 2020) – Vimy Resources Limited (Appointed 26 May 2014, Resigned 4 August 2022) Wayne C Bramwell - Managing Director (Appointed Non-Executive Director 3 February 2020) Mr Bramwell is a metallurgist and mineral economist, experienced director and mining executive with extensive project and corporate development, executive management and governance expertise in precious and base metal companies spanning nearly three decades. He holds a Bachelor of Science in Extractive Metallurgy, a Graduate Diploma in Business, a Master of Science in Mineral Economics and is a graduate of the Australian Institute of Company Directors (GAICD). During the past three years, he has served as a director of the following public listed companies: – CZR Resources Limited (Appointed 3 November 2020, Resigned 19 February 2021) – Azure Minerals Limited (Appointed 14 October 2020, Resigned 19 February 2021) – Ardea Resources Limited (Appointed 29 January 2018, Resigned 3 July 2020) – Vimy Resources Limited (Appointed 18 October 2021, Resigned 4 August 2022) – Deep Yellow Limited (Appointed 4 August 2022) Fiona J Van Maanen - Non-Executive Director (Appointed 6 October 2016) Mrs Van Maanen is a CPA, holds a Bachelor of Business (Accounting) and a Graduate Diploma in Company Secretarial Practice. Mrs Van Maanen has significant experience in corporate governance, financial management and accounting in the mining and resources industry. Mrs Van Maanen serves on the Company’s Audit, Risk and Compliance Committee and Remuneration and Nomination Committee. During the past three years, she has served as a director of the following public listed company: – Pantoro Limited (Appointed 4 August 2020) Gary R Davison - Non-Executive Director (Appointed 1 June 2021) Mr Davison, FAusIMM (CP), is a highly regarded mining engineer with over 40 years of worldwide mining experience. Gary holds a Diploma in Engineering (Mining) and a Masters in Mineral and Energy Economics. He is also the Managing Director of Australia’s premier mining consultancy Mining One Pty Ltd. Mr Davison serves on the Company’s Audit, Risk and Compliance Committee and Remuneration and Nomination Committee. During the past three years, he has served as a director of the following public listed company: – Nagambie Resources Ltd (Appointed 15May 2019) Julius L Matthys - Non-Executive Director (Appointed 28 March 2022) Mr Matthys has substantial corporate experience having spent 36 years in the resources sector. He has senior executive roles in large corporate entities including President of Worsley Alumina JV, Marketing Director at BHP Iron Ore, Alumina and Aluminium. Mr Matthys was previously Chair of gold producer Doray Minerals Limited, managing its merger with Silver Lake Resources. He currently serves as a Non-Executive Director of Quintis. Mr Matthys held no public company directorships in the past three years. Peter Cook - Non-Executive Chair (Appointed 19 March 2007, Resigned 28 March 2022) Mr Cook is a geologist and mineral economist and holds a Bachelor of Science (Applied Geology), Master of Science in Mineral Economics and a MAusIMM. Mr Cook has over 35 years of experience in the fields of exploration, project, operational and corporate management of mining companies. During the past three years, he has also served as a director of the following public listed companies: – Castile Resources Limited (Appointed 7 June 2011) – Titan Minerals Limited (Appointed 30 August 2021) – Breaker Resources NL (Appointed 6 September 2021)
21 Westgold Resources Limited Annual Report 2022 Peter Schwann - Non-Executive Director (Appointed 2 February 2017, Resigned 26 July 2022) Mr Schwann (Assoc. in Applied Geology, FAIG, MSEG) is a highly experienced, internationally recognised geologist and mining executive. Mr Schwann has broad experience across multiple commodities with extensive geological capability as well as significant operational management. Mr Schwann served on the Company’s Audit, Risk and Compliance Committee and Remuneration and Nomination Committee. During the past three years, he has served as a director of the following public listed company: – Aruma Resources Limited (Appointed 10 February 2010) COMPANY SECRETARY Lisa Smith (Appointed 20 December 2019) Ms Smith holds a Bachelor of Laws and a Bachelor of Commerce and brings over 17 years legal experience across a broad range of practice areas including commercial and corporate, regulation and compliance as well as experience with secretarial duties. Ms Smith has previously acted as principal lawyer for a private resources industry services firm and has substantial policy and advocacy experience. Susan Park (Appointed 5 April 2022) Ms Park is a governance professional with over 25 years’ experience in the corporate finance industry and extensive experience in Company Secretary and Non-Executive Director roles in ASX, AIM and TSX listed companies. Ms Park holds a Bachelor of Commerce from the University of Western Australia, is a Member of the Institute of Chartered Accountants Australia and New Zealand, a Fellow of the Financial Services Institute of Australasia, a Graduate Member of the Australian Institute of Company Directors and a Fellow of the Governance Institute of Australia. She is currently Company Secretary of several ASX listed companies. INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY As at the date of this report, the interests of the Directors in the shares and options of the Company were: Director Fully Paid Ordinary Shares Options/ Rights Hon. CL Edwardes AM1 6,122 – WC Bramwell 50,000 202,435 FJ Van Maanen 435,521 – GR Davison – – JL Matthys1 112,658 – PGCook2 8,915,579 – PB Schwann3 – – Total 9,519,880 202,435 1. Appointed on 28 March 2022. 2. Resigned on 28 March 2022 (balances provided as at his resignation date). 3. Resigned on 26 July 2022 (balances provided as at his resignation date). PRINCIPAL ACTIVITIES The principal activities during the year of the Group were the exploration, development and operation of gold mines, primarily inWestern Australia. EMPLOYEES The Group had 1,077 employees at 30 June 2022 (2021: 1,051).
for the year ended 30 June 2022 FINANCIAL REPORT DIRECTORS’ REPORT 22 Westgold Resources Limited Annual Report 2022 CORPORATE OVERVIEW Westgold is an explorer and gold producer with a large and strategic land package in the Murchison and Bryah regions of Western Australia. After listing on the ASX in December 2016 the company has consolidated over 1,300 km2 of mining titles that encompass the Fortnum operations (the Bryah region in the north), the Meekatharra operations (in the centre of our tenure) and the Cue operations (in the south), of our Murchison portfolio. The gold endowment of the region is extensive with the Murchison being one of the largest historic goldfields inWestern Australia. To date the Murchison has produced more than 10million ounces of gold withWestgold reporting a total Mineral Resource of 7.9 million ounces with 2.2 million ounces of gold in Ore Reserves (refer ASX announcement 29 September 2021). During FY22Westgold operated six underground mines, several open pits and three processing plants (currently with an installed processing capacity of ≈4 Mtpa) and continued to build its production profile since listing with gold output totalled 270,884 ounces from its Bryah and Murchison operations in FY22. CORPORATE STRUCTURE Westgold’s corporate structure is depicted below. WESTGOLD RESOURCES LIMITED ACN 009 260 306 Bryah Operations Mining Services Murchison Operations ARAGON RESOURCES PTY LTD ACN 114 714 662 WESTGOLDMINING SERVICES PTY LTD ACN 080 756 172 BIG BELL GOLD OPERATIONS PTY LTD ACN 090 642 809 OPERATING AND FINANCIAL REVIEW IMPACT OF COVID-19 Westgold did not apply for or receive any COVID-19 funding support from the Federal or State governments during FY22. Westgold utilises a predominantly fly-in, fly-out (FIFO) and drive-in, drive-out (DIDO) workforce to operate its Western Australian gold assets. Ongoing state and regional border closures in early FY22, followed by the opening of theWestern Australian border in late FY22, continued to disrupt labour availability during the year. The direct financial impact of COVID-19 is difficult to estimate but it is clear that the disruptive nature on labour availability across the world has materially impacted energy, consumables and reagent supply across the mining sector. Westgold continues to closely monitor the health advice across Australia and work cooperatively with government departments and other stakeholders and has proactively worker to mitigate impacts of COVID-19.
23 Westgold Resources Limited Annual Report 2022 OPERATING RESULTS The Group’s full year gold production was a record of 270,884 ounces compared to the previous year (245,411 ounces). 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 13% to $647,576,618 (2021: $571,170,198); – Consolidated total cost of sales increased by 36% to $620,300,818 (2021: $455,456,036); – Profit before income tax and non-cash impairment decreased by 86% to $15,448,892 (2021: $111,893,067); – Non-cash impairment charge of $175,535,410 (2021: $Nil) is a result of the cost pressures, the Big Bell mine carrying value being significantly greater than the initial expected project development costs, the South Emu Triton and Starlight underground mines not producing the required economic returns coupled with the cessation of open pit mining; and – Profit after income tax and non-cash impairment decreased by 245% to a loss of $111,119,291 (2021: profit $76,751,880). REVIEW OF FINANCIAL CONDITION The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $182,701,502 (2021: $150,684,029). Operating Activities Group cash flow generated by operating activities decreased on that of the previous year with a total inflow of $179,855,454 (2021: $249,141,949). Investing Activities Cash flows used in investing activities across the Group increased on that of the previous year with a total outflow of $201,009,289 (2021: $213,805,325). 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 $239,019,046 (2021: $266,190,255), broken into key operations as follows: – Murchison $201,562,547 (2021: $228,372,804); – Bryah $37,456,499 (2021: $37,817,451); and Capital commitments of $17,715,233 (2021: $19,360,999) existed at the reporting date, principally relating to the purchase of plant and equipment. Exploration activities continued at all operations during the year with $18,190,290 (2021: $14,249,778) expended. A review of accumulated land titles was completed resulting in a write-off of $110,165 (2021: $86,058) of carrying values. Financing Activities Net cash flows from financing activities amounted to $53,171,308 (2021: Outflow of $22,217,509). – The Group received $100,800,000 from the placement of 48,000,000 ordinary shares at $2.10(2021: nil); – The Group’s interest-bearing loans and borrowings decreased to $42,959,811 (2021: $45,075,838) with marginal additions to the mobile mining fleet with the expanded growth activities.
for the year ended 30 June 2022 FINANCIAL REPORT DIRECTORS’ REPORT 24 Westgold Resources Limited Annual Report 2022 SHARE ISSUES DURING THE YEAR The following share issues have been undertaken during the year: Date Number of shares Purpose 2 July 2021 205,768 Issued on conversion of options 15 October 2021 1,365,192 Issued on dividend reinvestment plan 18 March 2022 48,000,000 Placement to supplement working capital 30 June 2022 126,564 Issued on conversion of options Total 49,697,524 DIVIDENDS No dividend will be paid to members in respect of the year ended 30 June 2022. Westgold’s key financial objective is to deliver superior shareholder value. One mechanism is by a potential return of capital to our shareholders in the form of a reasonable dividend. Premised upon this the Board has set the dividend policy as a maximum annual dividend of 30% of net profit after tax (NPAT), with the policy reviewed annually. Any payment is at the full discretion of the Board and will be considered in light of market conditions, balance sheet strength and Company growth plans. The Board did not declare a dividend for the 2022 reporting year. The decision was made in order for Westgold to maintain its balance sheet strength during a period of increasing operational costs, and to support the Company’s growth strategy. This position will be reviewed by the Board next reporting period. REVIEW OF OPERATIONS Westgold remains the dominant explorer, developer, operator and gold mining company in the Central Murchison region. The Company has ≈ 350mining titles covering 1,300 km2 across this highly prospective region and operates seven 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 its underground and open pit mines and as such this vertical integration provides greater cost control and operating flexibility across the Company’s assets. The Group’s production profile continued to grow and in FY2022Westgold delivered a record 270,884 ounces from its Bryah andMurchison operations with the Company continuing to grow the Exploration and Growth unit to define, explore and develop the next suite of mineral assets within theWestgold landholding. Bryah Operations The Bryah Operations are centred upon the FortnumGold Operation (FGO). FGO is located within the Proterozoic age Bryah Basin stratigraphy approximately 150 km northwest of Meekatharra and represents the northernmost group of Westgold assets. 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 65,947 ounces at a C1 Cash Cost of $1,294 per ounce and an all-in sustaining cost (AISC) of $1,525 per ounce as disclosed in the table on page 26.
25 Westgold Resources Limited Annual Report 2022 The increase in the gold output and associated increase in the gold price resulted in an increase in revenue to $158,218,086 (2021: $140,661,201). Segment profits decreased to $17,702,894 (2021: $42,842,540). In addition to current Mineral Resources and Ore Reserves, FGO has a number of exploration targets which should underwrite sustainable gold production at the operations beyond existing targets, including: – extensions to the Starlight underground mine; – open pit mining from the historic Yarlarweelor, Nathans and Labouchere mines; – the Regent and Messiah deposits; and – new targets within the proximate Peak Hill tenements. This procession of potential open pit mines can replace the low-grade feedstock and extend the current mine life expectation to in excess of seven years. Murchison Operations The Murchison Operations is located around the regional towns of Meekatharra and Cue in the mid-west region of Western Australia. Gold output increased and revenue improved to $489,358,532 (2021: $430,439,928). Segment profits decreased to $9,462,740 (2021: $72,773,776). Gold output from the operation for the year was 204,937 ounces at a C1 Cash Cost of $1,487 per ounce and an AISC of $1,748 per ounce as disclosed in the table on page 26. Meekatharra Gold Operations (MGO) MGO is located around the regional town of Meekatharra and encompasses Westgold’s central group of assets including the historic gold mining centres of Meekatharra North, Paddy’s Flat, Yaloginda, Nannine and Reedy’s. The MGO processing hub incorporates the 1.6-1.8 Mtpa Bluebird processing plant, a 420-person village, and associated mining infrastructure required to support a large FIFO and DIDOmining operation. The Bluebird plant receives underground ore from the Paddy’s Flat, South Emu - Triton and Bluebird underground mines and supplementary lower grade open pit ore from Five MileWell, Maid Marion, Albury Heath and Aladdin open pits. In addition to current mineral resources and reserves MGO has a number of exploration targets which should underwrite sustainable gold production at the operations beyond existing targets, including: – Extensions to the Bluebird and Paddy’s Flat Mines; – Triton Deeps, Boomerang, Rand and Rand North in the Reedy Mining Area; and – New targets across the central package where drilling under 100m in depth is sparse. Cue Gold Operations (CGO) CGO is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles. This package includes two of Western Australia’s most prolific past producers in the Big Bell mine (2.6 million ounces) and the Great Fingall mine (1.2 million ounces). The CGO processing hub pivots on the 1.2-1.4 Mtpa Tuckabianna processing plant, a 148-person village at Big Bell, a 266-person village at Cue and associated mining infrastructure to support a large FIFO and DIDOmining operation. The Tuckabianna plant receives underground ore from the large Big Bell underground and the smaller Comet underground mines. After four years of de-watering, mine rehabilitation and refurbishment, Big Bell mine production continued to rise in FY2022 with steady state operations announced in April 2022. Gold output was focused on minor short-term open pit mines to build capacity, whilst the major Big Bell mine rehabilitation and development works were completed.
for the year ended 30 June 2022 FINANCIAL REPORT DIRECTORS’ REPORT 26 Westgold Resources Limited Annual Report 2022 In addition to current Mineral Resources and Ore Reserves, CGO has a number of exploration targets which should underwrite sustainable gold production at the operations beyond existing targets, including: – The Great Fingall – Day Dawn area – which has hosted the significant past producers of Great Fingall and Golden Crown (historic head grades of 19.5g/t and 14g/t respectively); – Caustons – on the Tuckabianna trend, close to the mill and high potential for underground mining; – Fender Mine – a shallow underground target identified beneathWestgold’s Fender open pit; – Additional shallow targets on the Big Bell line of lode beneath the 700, 1600 and the Shocker pits; and – Open pit targets within the Cuddingwarra Mining centre. Mining Services Division Westgold is unique in theWAmining sector in that it is predominantly an owner-operator of its mines, with the underground mining services division operating through a 100% owned subsidiary. Westgold Operating Performance by Operation Year Ended 30 June 2022 MURCHISON BRYAH GROUP Physical Summary Units UGOre Mined t 2,433,591 705,868 3,139,459 UGGrade Mined g/t 2.7 2.9 2.8 OP Ore Mined t 669,454 – 669,454 OP Grade Mined g/t 1.6 – 1.6 Ore Processed t 2,872,855 825,070 3,697,925 Head Grade g/t 2.5 2.6 2.5 Recovery % 89 95 90 Gold Produced oz 204,937 65,947 270,884 Gold Sold oz 203,986 65,719 269,705 Achieved Gold Price $/oz 2,399 2,408 2,401 Cost Summary Mining $/oz 1,158 822 1,076 Processing $/oz 406 370 397 Admin $/oz 88 76 84 Stockpile Adjustments $/oz (165) 26 (119) C1 Cash Cost (produced)1 $/oz 1,487 1,294 1,438 Royalties $/oz 95 62 87 Corporate Costs $/oz 20 36 24 Sustaining Capital $/oz 146 133 143 All-in Sustaining Costs2 $/oz 1,748 1,525 1,692
27 Westgold Resources Limited Annual Report 2022 Year Ended 30 June 2021 MURCHISON BRYAH GROUP Physical Summary Units UGOre Mined t 1,838,171 703,508 2,541,679 UGGrade Mined g/t 2.76 2.71 2.75 OP Ore Mined t 641,962 - 641,962 OP Grade Mined g/t 1.64 - 1.65 Ore Processed t 2,945,619 822,326 3,767,945 Head Grade g/t 2.26 2.40 2.29 Recovery % 86.49 95.21 88.40 Gold Produced oz 185,146 60,265 245,411 Gold Sold oz 185,055 60,011 245,066 Achieved Gold Price $/oz 2,326 2,344 2,330 Cost Summary Mining $/oz 791 647 755 Processing $/oz 376 347 369 Admin $/oz 74 71 73 Stockpile Adjustments $/oz (34) (56) (39) C1 Cash Cost (produced)1 $/oz 1,207 1,009 1,158 Royalties $/oz 96 68 89 Corporate Costs $/oz 12 22 14 Sustaining Capital $/oz 132 205 150 All-in Sustaining Costs2 $/oz 1,447 1,304 1,411 1. C1 Cash Cost (C1): represents the cost for mining, processing and administration after accounting for movements in inventory (predominantly ore stockpiles). It includes net proceeds from by-product credits but excludes the cost of royalties and capital costs for exploration, mine development and plant and equipment. 2. All-in Sustaining Cost (AISC): is made up of the C1 cash cost plus royalty expense, sustaining capital expense and general corporate and administration expenses. C1 and AISC are non-IFRS measures and have not been audited. CORPORATE Gold Forward Contracts At the end of the financial year, the Group had unrecognised sales contracts for 148,000 ounces at an average price of $2,396 per ounce ending in July 2023, which the Group will deliver physical gold to settle (refer to Note 5). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Total equity decreased to $587,767,457 (2021: $607,360,307). This included the issue of 48,000,000 ordinary shares equating to cash proceeds of $100,800,000 and an impairment write down of $175,535,410. SIGNIFICANT EVENTS AFTER THE BALANCE DATE There have been no other significant events after the balance date.
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