104 Westgold Resources Limited Annual Report 2023 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 2 We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. 1. Impairment assessment of non-current assets Why significant How our audit addressed the key audit matter At 30 June 2023, the Group had non-current assets of $405,001,236 comprising property, plant and equipment, capitalised mine properties and development expenditure and right of use assets (refer to Notes 16,17 and 19 of the financial report). At the end of the reporting period, the Group exercises judgment and estimation in performing their impairment assessment The Group assessed whether the recoverable value exceeds the carrying value as at 30 June 2023 of its Murchison CGO, Murchison MGO and Bryah FGO cash generating units (CGUs) and concluded that no impairment was required for any of these CGUs. We considered this to be a key audit matter because of the significant judgment and estimates involved in the determination of the recoverable amount of the CGUs, including assumptions relating to future gold prices, foreign exchange, operating and capital costs, the discount rate used to reflect the risks associated with the forecast cash flows having regard to the current status of the CGUs, and the reserves and resources included in the life of mine plans. Our audit procedures on the impairment assessment made by the Group included the following: ► Ensured the Group's impairment methodology was in accordance with the requirements of Australian Accounting Standards. ► Evaluated the assumptions and methodologies used by the Group, in particular, those relating to forecast cash flows including inputs used to formulate them, and the resource valuation multiples used. This included assessing, with involvement from our valuation specialists, where appropriate, the gold prices with reference to market prices (where available), market research, market practice, market indices, foreign exchange rates, broker consensus, historical performance, discount rates and resource valuation multiples. ► Tested the mathematical accuracy of the Group's discounted cash flow impairment models and agreed relevant data, including assumptions on timing and future capital and operating expenditure, to the Group's feasibility analysis of the CGUs and the latest Board approved life of mine plans (as appropriate). ► Assessed the work of the Group's internal experts with respect to the capital and operating assumptions used in the cash flow forecasts. We also considered the competence, qualifications and objectivity of the experts and assessed whether key capital and operating expenditure assumptions were consistent with information in Board reports and releases to the market. ► Assessed the work of the Group's experts with respect to the reserve and resource assumptions used in the cash flow forecasts. This included understanding the estimation process. We also examined the competence, qualifications and objectivity of the Group's experts, and assessed whether key economic continued FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT
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