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
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