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
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