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.
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