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
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