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.
RkJQdWJsaXNoZXIy MjE2NDg3