ANNUAL REPORT 2023 WESTGOLD RESOURCES LIMITED
A PROGRESSIVE AND INNOVATIVE WESTERN AUSTRALIAN GOLD MINER With over 1,300 staff and contractors 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 22 Directors’ Report 32 Remuneration Report (Audited) 49 Auditor’s Independence Declaration 50 Consolidated Statement of Comprehensive Income 51 Consolidated Statement of Financial Position 52 Consolidated Statement of Cash Flows 53 Consolidated Statement of Changes in Equity 54 Notes to the Consolidated Financial Statements 102 Directors’ Declaration 103 Independent Auditor’s Report 109 Shareholder Information 111 Corporate Directory CONTENTS Westgold Resources Limited Annual Report 2023
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 2023 OUR PURPOSE AND AMBITION Westgold’s purpose as an organisation is to create intergenerational wealth by leveraging our gold assets. In doing so we aspire to: – create shareholder value, – c ontribute to our wider communities, and – p rovide opportunities for our team to grow and succeed. VALUES AND BEHAVIOURS Our values and behaviours guide how we work with each other, our communities, and external stakeholders. They speak to the core aspirations of the organisation and influence our actions and decisions. Our values provide the framework that holds us accountable and with the buy in of our staff, ultimately drives the culture that will deliver success.
LETTER FROM THE CHAIR A TURNAROUND YEAR Dear Shareholders, It is my pleasure to present the Westgold Resources Limited Annual Report for the financial year ended 30 June 2023 (FY23). FY23 has been one of significant positive change for Westgold. After working through early challenges and refocusing in the first half of FY23, I’m proud to see the company emerge as a truly successful West Australian gold producer. In the first quarter of FY23 the Board initiated a strategic review to address the improvement of profitability of the business. In parallel, a new leadership team initiated the reset of our culture, operational base and approach to cost management. A new strategy was outlined to the shareholders with commitment to an operating regime that would deliver safe and profitable production in FY23. The plan was to restructure and stabilise the business in the first half and if successful, profitability would return in the second half of FY23. Difficult decisions were made, including placing three marginal underground mines on to care and maintenance. Staff and equipment were redeployed and consolidated into four larger operating underground mines. A deep dive into Westgold’s cost base was completed with opportunities identified to improve productivity and reduce our costs. With new vigour, Westgold’s safety performance continued to improve, along with operating efficiencies and productivity. Cost management improved dramatically alongside greater accountability being shifted back to operational management. Significant investments were made in exploration and resource development with a view to extending the planning horizon and mine life of each of our four operating mines and the planned next underground mine at Great Fingall. After two quarters of cash outflow, the business was financially stabilised. The second half of FY23 saw positive cashflow from our operations and increasing efficiencies being realised. The large, fixed forward hedge book was coming to an end and stronger production from our mines, coupled with a rising A$ gold price, lifted our revenue. Our approach to environmental, social and corporate governance (ESG) continues to evolve. ESG is key to our social licence to operate and with a view to reducing our emissions and operating cost, major investment was made in the construction of four new hybrid (gas-solar-battery) power stations across our operations. The first station was commissioned at Tuckabianna in July 2023, with three more stations scheduled for commissioning in the first half of FY24. Our commitment to becoming a better corporate citizen was evidenced in FY23 by greater community initiatives and involvement. A new Community Relations team was established to work with the communities we impact upon across our regional tenure, and particularly the area of indigenous employment. FY23 was a turnaround year for Westgold. Our employees have leaned into the new direction, new culture and the values that underpin how we do business. There is still much to achieve but Westgold finishes FY23 in a strong financial position with $192M in cash, bullion and liquid assets. Importantly, the Group is fully funded to deliver its FY24 corporate objectives. Our vision for Westgold going forward is clear. To be a safer, progressive, socially responsible, highly profitable and cash generative gold miner with the aim of providing consistent returns to our shareholders. Thank you for your continued support. Hon. Cheryl Edwardes AM Non-Executive Chair 2 Westgold Resources Limited Annual Report 2023
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5 Westgold Resources Limited Annual Report 2023 YEAR END 30 JUNE 2023 FINANCIAL RESULTS GOLD SALES 256,009oz (FY22: 269,705 oz) REVENUE $654.4M (FY22: $647.6M) NET CASH FROM OPERATIONS $168.4M (FY22: $179.9M) NET PROFIT/(LOSS) BEFORE TAX $13.9M (FY22: ($160.1M)) NET PROFIT/(LOSS) AFTER TAX $10.0M (FY22: ($111.1M)) CLOSING CASH, BULLION & LIQUIDS* $192M (FY22: $190M) PROFIT/(LOSS) PER SHARE 2.1c (FY22: (25.3c)) NET ASSETS $598.3M (FY22: $587.8M) AVERAGE HEDGE GOLD PRICE A$2,495/oz (FY22: A$2,396/oz) OUTSTANDING HEDGED OUNCES 10,000oz (FY22: 148,000oz) Unless specifically noted, all dollar amounts disclosed in this report are Australian Dollars (A$ or AUD) * Bullion is valued at closing spot price.
6 Westgold Resources Limited Annual Report 2023 YEAR END 30 JUNE 2023 OUR ANNUAL OUTPUTS GOLD PRODUCED CASH COST (C1) ALL IN SUSTAINING COSTS MURCHISON OPERATIONS 203,382oz BRYAH OPERATIONS 53,735oz GROUP 257,116oz MURCHISON OPERATIONS A$1,686/oz BRYAH OPERATIONS A$1,780/oz GROUP A$1,706/oz MURCHISON OPERATIONS A$1,971/oz BRYAH OPERATIONS A$2,103/oz GROUP A$1,999/oz
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8 Westgold Resources Limited Annual Report 2023 OUR OPERATIONS REVIEW OF OPERATIONS Westgold Resources Limited (ASX: WGX) (Westgold or the Group) is a Western Australian gold mining business. With over 1,300 staff and contractors, we are the dominant gold miner in the Mid West. Westgold is the owner-operator of all its underground mines. This internal capability, provides a level of operational flexibility and competitive advantage. This has ensured the business remains able to more consistently deliver against operational targets. A ‘hub and spoke’ style operating model in the Murchison region provides optionality to process ore from Westgold’s mines at either of its two processing hubs near Cue and Meekatharra. In contrast the Bryah operation is centred upon the Fortnum processing hub. In FY23, Westgold produced 257koz of gold at an All-In Sustaining Cost (AISC) of $1,999/oz, meeting the top end of its FY23 Production Guidance of 240koz to 260koz and midpoint of its FY23 AISC Guidance of between $1,900/oz and $2,100/oz. MURCHISON OPERATIONS The Murchison Operations incorporate the Tuckabianna and Bluebird processing hubs. With a combined production of approximately 200koz per annum, the Murchison Operations currently delivers circa 80% of Westgold’s Group gold production. In FY23, the Murchison Operations produced 203koz of gold at an AISC of $1,971/oz (see Figure 1). 0 0 10,000 20,000 30,000 40,000 50,000 60,000 500 1,000 1,500 2,000 2,500 AISC/oz Gold Produced Q4FY23 Q3FY23 Q2FY23* Q1FY23 ALL-IN SUSTAINING COST ($/OZ) GOLD PRODUCTION (OZ) FY23 MURCHISON PRODUCTION AND A$ COST 50,329 oz $ 2,235 /oz $ 2,004 /oz $ 2,016 /oz $ 1,662 /oz 49,280 oz 48,609 oz 55,165 oz * Q2 FY23 AISC adjusted post audited Half-Year Financial Report for the period ended 31 December 2022 NOTE: WESTGOLD ACHIEVES MATERIAL IMPROVEMENT IN SAFETY PERFORMANCE Westgold has achieved a significant year on year improvement in safety. In FY23, there were no fatalities or serious disabling injuries at Westgold. Our Total Recordable Injury Frequency Rate (TRIFR) showed considerable improvement with a 63% reduction on the previous year, finishing at 8.37 injuries per million hours worked. Our Lost Time Injury Frequency Rate (LTIFR) reduced from 1.41 to 0.64, which is a 55% reduction for the period ending June 2023 (see Figure 3). These results were achieved through initiatives including: – Visible and active leadership at all levels of the business; – A specific focus on managing critical risks; – Improved operational discipline across all areas; – Active investment in people, health & wellbeing; and – Tailored, relevant and well tested frameworks, systems and processes in place. Figure 1 - FY23 Murchison Production and A$ Costs
9 Westgold Resources Limited Annual Report 2023 CUE Westgold’s Cue operation is located around the regional town of Cue and encompasses Westgold’s southern-most group of assets including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn and Tuckabianna (see Figure 2). This package includes two of Western Australia’s most iconic past producers in the Big Bell mine (≈2.6Moz) and the Great Fingall mine (≈1.2Moz). 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 DIDO mining operation. In FY23, the Tuckabianna plant received underground ore from the large Big Bell underground and the smaller Comet underground mine in addition to stockpiled ore from the previously mined Cuddingwarra open pits. The Tuckabianna processing hub treated 1,328,159t of ore, at the upper range of the plant’s operating capacity on hard ore and in line with expectations. The hub produced 90,769oz of gold in FY23, achieving a metallurgical recovery of 87%. Big Bell remained the primary source of ore to the Tuckabianna mill, with the Comet underground mine providing additional feed early in the year, prior to entering care and maintenance. In addition to fresh underground feed, Westgold has access to significant ore stockpiles which it continued to utilise as supplementary ore feed at its Cue and Meekatharra processing hubs. 0 3 6 9 12 15 0 5 10 15 20 25 TRIFR LTIFR TRI Q4FY23 Q3FY23 Q2FY23 Q1FY23 Q4FY22 10 9 6 1.41 0.86 0.60 0.62 0.64 6 6 9.03 14.36 18.44 22.91 -63% 12 MONTH ROLLING INJURY FREQUENCY RATE 8.37 Figure 2 - Cue assets Figure 3 - Westgold has reduced TRIFR by 63% in FY23
10 Westgold Resources Limited Annual Report 2023 Since commercial production was declared in FY22, the Big Bell mine (see Figure 4) has consistently produced above its designed capacity of 800900ktpa. In FY23, Big Bell continued to expand, producing 1.13Mt of high grade ore at 2.6g/t. Recent studies focused on expanding Big Bell to the zone beneath the pegmatites using an open stoping with paste fill mining method are well advanced. This zone is expected to extend the overall mine life of Big Bell to over 10 years whilst simultaneously increasing the mined grade. The Fender underground mine, which was paused in early FY23 will commence late in the first quarter of FY24 providing additional feed to the Meekatharra processing hub. This mine will operate as an extension to the Big Bell mine given its close proximity. In addition to the mining operations, the Company is accelerating exploration activities across Cue with the primary focus being the Day Dawn mining centre, consisting of Great Fingall and Golden Crown. This work has been based on new geophysical datasets and geological reinterpretations in early FY22, leading to the discovery of the OUR OPERATIONS REVIEW OF OPERATIONS (CONTINUED) TUCKABIANNA HYBRID POWER FACILITY IN OPERATION “ Westgold continues to innovate to reduce our greenhouse gas emissions and drive our operating costs down.” Wayne Bramwell, Westgold Managing Director In July 2023, Westgold commissioned the first of four Hybrid Power Facilities at its Tuckabianna Process Plant. The new 17.9MW facility, replaces the existing diesel fired power station delivering a reduction of approximately 15kt of CO2 equivalent emissions and 10ML of annual diesel fuel consumption. The Tuckabianna Hybrid Power facility incorporates: – 6MW solar farm fitted with 11,088 photovoltaic panels (see Figure 6) – a battery energy storage system with 2.4MW installed capacity; and – a 9.5MW gas-fuelled power station. In addition to the now operational Tuckabianna facility, a further three new hybrid power facilities are being constructed across the Group at Bluebird, Fortnum and Big Bell. With a combined installed capacity of 82MW, all facilities are expected to be online and powering Westgold’s operations by Q3 FY24. Sovereign target, located between Great Fingall and Golden Crown. A program was also undertaken testing the Great Fingall reef at depth, which resulted in a significant re-interpretation (see Figure 5). As a result of this, the resource grew significantly in FY23 with the mine expected to commence development early in FY24, enabling production in the second half of FY25. The subsequent ramp up of Great Fingall establishes a Group gold production pathway to +300koz per annum. Figure 4 - Big Bell showing proposed development of Big Bell Deeps
11 Westgold Resources Limited Annual Report 2023 These facilities are expected to reduce Westgold’s annual diesel fuel consumption by 38ML and lower annual CO2 equivalent emissions by approximately 57,000t. Westgold expects its All-In Sustaining Cost to reduce by approximately $60/oz1 due to lower cost energy being provided by these new hybrid power facilities. Figure 6 - Tuckabianna solar farm 1 At a diesel price assumption of $1.64/L Figure 5 - Great Fingall FY23 Resource Increase
WESTGOLD FIXED FORWARD SALES COMPLETED IN JULY 2023 In FY23, Westgold reduced its 148koz fixed forward hedge book by 138koz, such that only 10koz remained to be delivered into by the end of July 2023 (see Figure 8). The fixed forwards were delivered at an average price of $2,390/oz, representing a lost opportunity of ~$70 million2 in revenue. The remaining 10koz were delivered in July 2023. Westgold is now free of its fixed forward hedges and its gold sales are leveraged to the current gold spot price. During March 2023, when A$ gold was pushing through $2,900/oz, the company put in place 30,000oz of zero cost collars comprising put options at $2,700/oz and call options at $3,340/oz for deliveries of 2,500oz per month from July 2023 to June 2024, subject to the put and call being struck. 2 Assuming a constant spot gold price of $2,900/oz 12 Westgold Resources Limited Annual Report 2023 OUR OPERATIONS REVIEW OF OPERATIONS (CONTINUED) MEEKATHARRA The 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 (see Figure 7). Westgold’s 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 DIDO mining operation. For FY23, the Bluebird plant received underground ore from the Paddy’s Flat, Triton – South Emu and Bluebird underground mines, along with excess ore from Big Bell 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. A second decline commenced in mid FY23 to expand the mining footprint with outputs continuing to rise with grades well above the original plan. The South Junction zone to the South of Bluebird (location of the access portal) has shown potential to continue to expand the mine. The Bluebird processing hub performed strongly for the year treating 1,494,123t, slightly below the plant’s capacity, mainly due to the now high percentage of hard rock feed (minimal oxide). In FY23, the hub produced 112,614oz of gold at a metallurgical recovery of 89%. Near mine exploration at and around Meekatharra focused on the extension of Paddy’s Flat, BluebirdSouth Junction and the broader Reedy’s package. Figure 7 - Meekatharra assets
This strategy protects the downside of gold price volatility with the put option only being triggered if the gold price falls to $2,700/oz. The upside on this small volume of production is also capped and again, only triggered if the gold price hits $3,340/oz. 148 135 122 109 96 83 70 60 50 40 30 20 10 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 FORWARD CONTRACTS REMAINING (koz) 13 Westgold Resources Limited Annual Report 2023 Figure 8 - Westgold reduced its remaining forward contracts to 10koz in FY23 At Paddy’s Flat, as production from the bulk Prohibition lodes draw to a close, geological work has focused on extending the known high-grade thurst and spur systems. Due to the discreet nature of the highgrade thrusts and spurs, intense geological definition activities will be a hallmark of continued operations at Paddy’s Flat. Westgold is increasingly encouraged by drilling results at Bluebird. This remarkably consistent high-grade zone of mineralisation continued to have its footprint expanded over FY23. The ore body’s progressive expansion was complemented by the successful initial testing of the broader South Junction lodes at depth. In FY24, Westgold will continue extending and infilling the footprint of both Bluebird and South Junction, with multiple drill rigs currently active on surface and underground. During FY23, work progressed on reevaluating the Triton – South Emu system. Westgold is investigating an alternative approach to mine planning and execution at Triton – South Emu which offers a more sustainable and economically compelling project which best utilises the significant infrastructure and mine development in place. Finally, initial testing of the extensions to the historic Gibraltar mine is also planned for early FY24.
14 Westgold Resources Limited Annual Report 2023 BRYAH OPERATIONS The Bryah Operations are centred upon the Fortnum processing hub and incorporate the Fortnum, Horseshoe and Peak Hill mining areas (see Figure 9). With production from Fortnum averaging approximately 50koz per year, the hub remains a key contributor to Westgold’s total production. OUR OPERATIONS REVIEW OF OPERATIONS (CONTINUED) 0 5,000 10,000 15,000 20,000 1,000 500 1,500 2,000 2,500 Q4FY23 Q3FY23 Q2FY23* Q1FY23 ALL-IN SUSTAINING COST ($/OZ) GOLD PRODUCTION (OZ) 15,719 oz $ 1,696 /oz $ 2,140 /oz $ 2,414 /oz $ 2,271 /oz 12,900 oz 11,904 oz 13,212 oz * Q2 FY23 AISC adjusted post audited Half-Year Financial Report for the period ended 31 December 2022 NOTE: FY23 BRYAH PRODUCTION AND A$ COSTS AISC/oz Gold Produced 0 Figure 9 - Bryah assets Figure 10 - FY23 Bryah Production and A$ Costs
15 Westgold Resources Limited Annual Report 2023 In FY23, the Bryah Operations produced 53,735oz of gold at an AISC of $2,103/oz (see Figure 10). The Fortnum operation is 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 2Moz of reported gold production. The processing hub incorporates the 0.8-0.9Mtpa Fortnum carbonin-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 lowgrade stocks providing a blended feedstock to the plant. Fortnum had a challenging year with weaker results delivered from the Starlight underground mine. This resulted in an operational restructure focused on optimising the mine plan, targeting key mining areas including the Moonlight, Twilight North, Galaxy and Trev’s lodes. The processing plant performed well, treating 802,753t of hard ore blend at a metallurgical recovery of 96%. A new pebble crusher will be installed in FY24 which will help manage the hard ores and incrementally increase throughput. A major extension drilling program was undertaken at Starlight during FY23. This program focused on testing the primary Starlight lodes over a multi-year window to provide increased levels of certainty for mine planning and infrastructure investment. Pleasingly these works have resulted in an expansion of the Mineral Resource base in the order of 70koz after mining depletion of 66koz. Drill testing of Starlight remains ongoing, targeting further Mineral Resource increases and translation of these to Ore Reserves as additional data density is achieved. Drill testing of the Nightfall system was also progressed in FY23. The Nightfall mineralisation sits adjacent to the Starlight lodes with many areas already having undergone capital development. This will allow for expedited production once the system is adequately defined. At the end of FY23 Westgold turned its attention to the evaluation of its Peak Hill suite of assets which are envisaged to provide a mediumterm source feed to the Fortnum Processing Plant. Significant progress has been made on locating and validating historic data, with initial geological modelling of Peak Hill mineralisation planned for early FY24. This modelling will form the basis for drill testing in the Peak Hill region over the course of FY24.
16 Westgold Resources Limited Annual Report 2023 Westgold released its annual update of Mineral Resource and Ore Reserve Estimates on the ASX on 11 September 2023. 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 2023 Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Measured Murchison 9,350 3.11 936 Bryah 1,865 2.36 141 Sub-Total 11,215 2.99 1,078 Indicated Murchison 44,827 2.39 3,441 Bryah 13,724 1.88 828 Sub-Total 58,551 2.27 4,270 Inferred Murchison 33,472 2.40 2,585 Bryah 4,115 2.40 318 Sub-Total 37,587 2.40 2,903 Total Murchison 87,649 2.47 6,963 Bryah 19,704 2.03 1,287 Grand Total 107,353 2.39 8,250 ORE RESERVE STATEMENT – ROUNDED FOR REPORTING 30 JUNE 2023 Project Tonnes (‘000s) Grade (g/t) Ounces Au (‘000s) Proven Murchison 5,076 2.67 435 Bryah 1,249 1.54 62 Sub-Total 6,325 2.44 497 Probable Murchison 14,384 2.89 1,335 Bryah 1,994 1.90 122 Sub-Total 16,378 2.77 1,457 Total Murchison 19,461 2.83 1,770 Bryah 3,243 1.76 184 Grand Total 22,704 2.68 1,954 Glossary: Murchison incorporates the Meekatharra and Cue business units. Bryah incorporates the Fortnum business unit. OUR OPERATIONS MINERAL RESOURCES & ORE RESERVES
17 Westgold Resources Limited Annual Report 2023 The Mineral Resources by mining project are tabulated below: MURCHISON OPERATIONS MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2023 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 5,498 3.08 544 9,917 3.23 1,030 8,942 2.73 785 24,357 3.01 2,358 Cuddingwarra 85 1.66 5 1,600 1.63 84 597 1.50 29 2,282 1.59 117 Day Dawn 58 1.73 3 3,776 4.63 562 2,339 4.29 322 6,173 4.47 887 Tuckabianna 267 3.54 30 3,448 2.78 308 2,899 2.63 245 6,614 2.75 584 Tuckabianna Stockpiles 481 1.64 25 3,744 0.70 85 0 0.00 0 4,225 0.81 110 Meekatharra North 0 0.00 0 97 1.98 6 75 2.11 5 172 2.04 11 Nannine 68 2.55 6 859 2.06 57 340 2.26 25 1,267 2.14 87 Paddy's Flat 1,033 4.03 134 10,593 1.70 579 2,415 1.86 144 14,042 1.90 857 Reedy's 458 3.74 55 3,055 2.55 251 8,883 2.44 698 12,396 2.52 1,004 Yaloginda 745 4.30 103 7,737 1.93 481 6,981 1.48 332 15,464 1.84 916 Bluebird Stockpiles 656 1.50 32 0 0.00 0 0 0.00 0 656 1.50 32 Total 9,350 3.11 936 44,827 2.39 3,441 33,472 2.40 2,585 87,649 2.47 6,963 BRYAH OPERATIONS MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2023 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 1,019 3.53 116 4,446 2.50 357 2,078 3.05 204 7,543 2.79 677 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 846 0.94 25 464 0.70 10 16 0.54 0 1,326 0.85 36 Total 1,865 2.36 141 13,724 1.88 828 4,115 2.40 318 19,704 2.03 1,287
18 Westgold Resources Limited Annual Report 2023 The Mineral Resources by mining project are tabulated below: MURCHISON OPERATIONS MINERAL RESOURCE STATEMENT COMPARISON 2022 2023 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 20,085 2.79 1,802 24,357 3.01 2,358 4,272 0 556 Cuddingwarra 2,820 1.74 158 2,282 1.59 117 -538 0 -41 Day Dawn 6,648 3.54 756 6,173 4.47 887 -475 1 131 Tuckabianna 10,842 2.49 867 6,614 2.75 584 -4,227 0 -283 Tuckabianna Stockpiles 4,358 0.78 110 4,225 0.81 110 -133 0 0 Meekatharra North 172 2.04 11 172 2.04 11 0 0 0 Nannine 1,895 2.18 132 1,267 2.14 87 -627 0 -45 Paddy's Flat 14,013 1.93 871 14,042 1.90 857 28 0 -15 Reedy's 12,426 2.53 1,009 12,396 2.52 1,004 -29 0 -5 Yaloginda 15,672 1.72 865 15,464 1.84 916 -208 0 50 Bluebird Stockpiles 648 1.25 26 656 1.50 32 8 0 6 Total 89,579 2.29 6,608 87,649 2.47 6,963 -1,930 -5.73 355 BRYAH OPERATIONS MINERAL RESOURCE STATEMENT - COMPARISON 2022 2023 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 8,515 2.64 721 7,543 2.79 677 -972 0 -45 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 1,302 0.86 36 1,326 0.85 36 24 0 0 Total 20,651 2.01 1,332 19,704 2.03 1,287 -948 1.47 -45 OUR OPERATIONS MINERAL RESOURCES & ORE RESERVES (CONTINUED)
19 Westgold Resources Limited Annual Report 2023 The Ore Reserves by mining project are tabulated below: MURCHISON OPERATIONS ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2023 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 3,573 2.85 327 6,270 3.31 668 9,843 3.14 995 Cuddingwarra 0 0.00 0 98 1.77 6 98 1.77 6 Day Dawn 0 0.00 0 1,944 5.08 317 1,944 5.08 317 Tuckabianna 0 0.00 0 683 3.00 66 683 3.00 66 Tuckabianna Stockpiles 481 1.64 25 3,744 0.70 85 4,225 0.81 110 Meekatharra North 0 0.00 0 0 0.00 0 0 0.00 0 Nannine 0 0.00 0 262 1.93 16 262 1.93 16 Paddy's Flat 117 3.54 13 420 3.47 47 538 3.48 60 Reedy's 57 3.35 6 398 3.42 44 455 3.41 50 Yaloginda 192 5.10 31 566 4.81 88 757 4.89 119 Bluebird Stockpiles 656 1.50 32 0 0.00 0 656 1.50 32 Total 5,076 2.67 435 14,384 2.89 1,335 19,461 2.83 1,770 BRYAH OPERATIONS ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2023 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 403 2.82 37 1,172 2.29 86 1,576 2.42 123 Horseshoe 0 0.00 0 357 2.18 25 357 2.18 25 Peak Hill 0 0.00 0 0 0.00 0 0 0.00 0 Stockpiles 846 0.94 25 464 0.70 10 1,310 0.85 36 Total 1,249 1.54 62 1,994 1.90 122 3,243 1.76 184
20 Westgold Resources Limited Annual Report 2023 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 2022 2023 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 8,811 3.01 854 9,843 3.14 995 1,033 0 141 Cuddingwarra 710 1.75 40 98 1.77 6 -613 0 -35 Day Dawn 1,289 6.92 287 1,944 5.08 317 655 -2 30 Tuckabianna 1,075 2.54 88 683 3.00 66 -393 0 -22 Tuckabianna Stockpiles 4,324 0.79 109 4,225 0.81 110 -99 0 1 Meekatharra North 0 0.00 0 0 0.00 0 0 0 0 Nannine 718 1.82 42 262 1.93 16 -456 0 -26 Paddy's Flat 889 4.37 125 538 3.48 60 -352 -1 -65 Reedy's 943 3.34 101 455 3.41 50 -489 0 -51 Yaloginda 1,000 3.70 119 757 4.89 119 -243 1 0 Bluebird Stockpiles 648 1.25 26 656 1.50 32 8 0 6 Total 20,410 2.73 1,791 19,461 2.83 1,770 -949 0.67 -21 BRYAH OPERATIONS ORE RESERVE STATEMENT COMPARISON 2022 2023 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 2,886 2.19 204 1,576 2.42 123 -1,310 0 -81 Horseshoe 761 1.84 45 357 2.18 25 -403 0 -20 Peak Hill 581 2.21 41 0 0.00 0 -581 -2 -41 Stockpiles 1,285 0.86 36 1,310 0.85 36 24 0 0 Total 5,512 1.84 325 3,243 1.76 184 -2,270 1.95 -142
21 Westgold Resources Limited Annual Report 2023 COMPLIANCE AND FORWARD-LOOKING STATEMENTS EXPLORATION TARGETS, EXPLORATION RESULTS AND MINERAL RESOURCES The information in this report that relates to Exploration results and Mineral Resource Estimates 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 of 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 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 Editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012)”. 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 These materials prepared by Westgold Resources Limited (or “the Company”) include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.
for the year ended 30 June 2023 FINANCIAL REPORT 22 Westgold Resources Limited Annual Report 2023 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 2023. 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 Attorney-General for Western Australia, Minister for Environment and Minister for Labour Relations. Ms Edwardes has extensive experience and knowledge of Western Australia’s legal and regulatory framework relating to mining projects, environmental, native title, heritage and land access. During the past three years, she has also served as a director of the following public listed companies: – Kalium Lakes Limited (appointed 25 November 2022; resigned 3 August 2023); – Flinders Mines Limited (appointed 17 June 2019); – Nuheara Limited (appointed 2 January 2020); and – 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 (BSc Extractive Metallurgy, Grad Dip Business, MSc (Min Econ)) 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. 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); and – Deep Yellow Limited (appointed 4 August 2022; resigned 31 January 2023). 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 Westgold’s Audit, Risk and Compliance Committee and Remuneration and Nomination Committee. During the past three years, she has served as a director of 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 45 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 Westgold’s Audit, Risk and Compliance Committee and Remuneration and Nomination Committee. During the past three years, he has served as a director of Nagambie Resources Ltd (appointed 15 May 2019, resigned 8 September 2021). 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 held 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 has not held any public company directorships in the past three years. David N Kelly - Non-Executive Director (Appointed 5 November 2023) Mr Kelly is a geologist with 35 years’ experience in exploration, operations management, mine planning, project evaluation, business development and project finance. Most recently he was employed by Resolute Mining Limited as Executive General Manager – Strategy and Planning, following 2 years as Chief Operating Officer. Prior to joining Resolute, Mr Kelly was a Director of Optimum Capital, an independent advisory house servicing junior and mid-tier miners. He previously worked with groups such as Consolidated Minerals Limited, WMC Resources Limited, Central Norseman Gold Corporation, NM Rothschild and Sons and Investec Australia and has held several non-executive directorships in mining and exploration companies, including Predictive Discovery, Renaissance Minerals and Turaco Gold.
23 Westgold Resources Limited Annual Report 2023 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 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 Australian Institute of Chartered Accountants, a Fellow of the Financial Services Institute of Australasia, a Graduate Member of the Australian Institute of Company Directors and a Graduate Member of the Governance Institute of Australia. She is currently Company Secretary of several ASX listed companies. Lisa Smith (Appointed 20 December 2019, resigned 11 October 2022) 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. INTERESTS IN THE SHARES AND PERFORMANCE RIGHTS OF THE COMPANY As at the date of this report, the interests of the Directors in the shares and rights of the Company were: Director Fully Paid Ordinary Shares Performance Rights Hon. CL Edwardes AM 6,122 – WC Bramwell 50,000 587,668 FJ Van Maanen 435,521 – GR Davison – – JL Matthys 112,658 – DN Kelly1 – – Total 604,301 587,668 1. Appointed on 5 November 2022. PRINCIPAL ACTIVITIES The principal activities during the year of the Group were the exploration, development and operation of gold mines, primarily in Western Australia. EMPLOYEES The Group had 918 employees at 30 June 2023 (2022: 1,077).
for the year ended 30 June 2023 FINANCIAL REPORT DIRECTORS’ REPORT 24 Westgold Resources Limited Annual Report 2023 CORPORATE OVERVIEW Westgold is a progressive and innovative 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 across three key business units. These units 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) and are supported by Westgold’s wholly owned mining services unit. The gold endowment of the region is extensive with the Murchison being one of the largest historic goldfields in Western Australia. To date the Murchison has produced more than 10 million ounces of gold with Westgold reporting a total Mineral Resource of 7.9 million ounces and 2.1 million ounces of gold in Ore Reserves (refer ASX announcement 6 October 2022). During FY23, Westgold consolidated its operations to four underground mines and three processing plants and produced 257,116 ounces of gold from its Bryah and Murchison operations. 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 WESTGOLD MINING SERVICES PTY LTD ACN 080 756 172 BIG BELL GOLD OPERATIONS PTY LTD ACN 090 642 809
25 Westgold Resources Limited Annual Report 2023 OPERATING AND FINANCIAL REVIEW OPERATING RESULTS The Group’s full year gold production was 257,116 ounces (FY22 - 270,884 ounces). Overall, the results reflect a year of transition following a strategic review that saw the business reset its model to focus on safe and profitable gold production. Three underground operations were put on care and maintenance, all business units restructured and Group expenditure and commercial processes reviewed. These actions over the year are reflected in the following key measures: – Consolidated revenue increased by 1% to $654,371,234 (2022: $647,576,618); – Consolidated total cost of sales increased by 2% to $631,598,901 (2022: $620,300,818); – Profit before income tax and non-cash impairment decreased by 10% to $13,949,469 (2022: $15,448,892); and – Profit after income tax and non-cash impairment increased by 109% to a gain of $10,003,484 (2022: loss $111,119,291). REVIEW OF FINANCIAL CONDITION The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $176,411,855 (2022: $182,701,502). Operating Activities Group cash flow generated by operating activities decreased on that of the previous year with a total inflow of $168,433,218 (2022: $179,855,454). Investing Activities Cash flows used in investing activities across the Group decreased on that of the previous year with a total outflow of $158,074,095 (2022: $201,009,289). Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine (CGO), Starlight underground mine (FGO) and the Bluebird and Paddy’s Flat underground mines (MGO), along with investment in the new power stations for the Clean Energy Transition project (CET). 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 $147,347,357 (2022: $239,019,046), broken into key operations as follows: – Murchison $119,132,722 (2022: $201,562,547); – Bryah $28,214,635 (2022: $37,456,499); and Capital commitments of $26,168,651 (2022: $17,715,233) existed at the reporting date, principally relating to the purchase of plant and equipment. Exploration activities continued at all operations during the year with $18,909,901 (2022: $18,190,290) expended. Financing Activities Net cash flows from financing activities amounted to an outflow of $16,648,770 (2022: inflow of $53,171,308). – The Group’s interest-bearing loans and borrowings decreased to $27,490,818 (2022: $42,959,811) with marginal additions to the mobile mining fleet with the expanded growth activities.
for the year ended 30 June 2023 FINANCIAL REPORT DIRECTORS’ REPORT 26 Westgold Resources Limited Annual Report 2023 SHARE ISSUES DURING THE YEAR There has been no share issues during the year. DIVIDENDS No dividend will be paid to members in respect of the year ended 30 June 2023. The Board did not declare a dividend for the 2023 reporting year. The decision was made in order for Westgold to maintain its balance sheet strength as it continues its operational transformation on building cash and enhance profitability on a sustainable basis and critically ensure that our immediate growth ambitions are funded from our existing cash resources. This position will be reviewed by the Board next reporting period. REVIEW OF OPERATIONS In FY23, Westgold delivered 257,116 ounces from its Murchison and Bryah operations whilst continuing to define, explore and develop the next suite of mineral assets within the Westgold landholding. Westgold remains the dominant gold mining company in the Bryah and Murchison region. The Company has ≈ 350 mining titles covering 1,300 km2 across this highly prospective region and now operates four underground mines and three processing plants. Westgold is an owner-operator of all its underground mines. This vertical integration benefits Westgold by providing greater cost control and operating flexibility across the Company’s assets. Murchison Operations The Murchison Operations are located around the regional towns of Meekatharra and Cue in the mid-west region of Western Australia and incorporates the Meekatharra and Cue Gold Operations. Revenue from the Murchison Operations improved to $517,503,405 (2022: $489,358,532) and segment profits increased to $14,951,974 (2022: $9,462,740). Gold output for the year was 203,382 ounces at a C1 Cash Cost of $1,686 per ounce and an AISC of $1,971 per ounce as disclosed in the table on page 28. 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 mining operations. The Bluebird plant receives underground ore from the Paddy’s Flat and Bluebird underground mines, surplus ore from CGO and supplementary lower grade surface stockpiled ore. In addition to current Mineral Resources and Ore 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, along with the potential inclusion of South Junction; – Triton Deeps and Boomerang in the Reedy Mining Area; and – New targets across the central package where drilling under 100m in depth is sparse, with advanced targets including the GNH and Gibraltar deposits.
27 Westgold Resources Limited Annual Report 2023 Cue Gold Operations (CGO) CGO is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets. This package includes two of 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 incorporates the 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 mining operations. The Tuckabianna plant receives underground ore from the large Big Bell underground, with supplementary feed provided by lower grade surface stockpiles. Following the completion of ramp up and commencement of steady state production in April 2022, Big Bell has consistently delivered design levels, producing 1.1Mt of ore at 2.6g/t for 95koz contained ounces of gold in FY23. In addition to current Mineral Resources and Ore Reserves, CGO has a number of development projects and exploration targets which should underwrite growth in gold production at the operations, including: – Great Fingall and Golden Crown – approved by the Board for development in August 2023; – Fender Mine – a shallow underground mine beneath Westgold’s Fender open pit expected to commence mining in October 2023; – Caustons – on the Tuckabianna trend, close to the mill and high potential for underground mining; – Additional shallow targets on the Big Bell line of lode beneath the 700, 1600 and the Shocker pits; and – Open pit and underground targets within the Cuddingwarra Mining centre. Bryah Operations The Bryah Operations are centred upon the Fortnum Gold 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 mining operations. Mining output is currently dominated by the Starlight underground mine with supplementary, free on surface low grade stockpiles providing a blended feedstock to the plant. Gold output in FY23 was 53,735 ounces at a C1 Cash Cost of $1,780 per ounce and an all-in sustaining cost (AISC) of $2,103 per ounce as disclosed in the table on page 28. The decrease in the gold output, though partially offset by the increase in the gold price, resulted in an overall decrease in revenue to $136,867,829 (2022: $158,218,086). Segment profits decreased to $7,820,360 (2022: $17,702,894). 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.
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