Westgold Resources Limited

WESTGOLD RESOURCES LIMITED 

ANNUAL 
REPORT 
2022

A DYNAMIC, 
GROWTH ORIENTED 
AUSTRALIAN 
GOLD MINER

With over 1,000 staff 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

CONTENTS

Our Purpose and Ambition 
Values and Behaviours 
Letter from the Chair 
Financial Results
Our Annual Outputs
Our Operations 

1 
1 
2 
5 
6 
8 
20  Directors’ Report 
30  Remuneration Report (Audited)
48  Auditor’s Independence Declaration 
49  Consolidated Statement of Comprehensive Income   
50  Consolidated Statement of Financial Position 
51  Consolidated Statement of Cash Flows 
52  Consolidated Statement of Changes in Equity 
53  Notes to the Consolidated Financial Statements
101  Directors’ Declaration
102 
108  Shareholder Information       
110  Corporate Directory

Independent Auditor’s Report

Westgold Resources Limited Annual Report 2022OUR PURPOSE 
AND AMBITION 

VALUES AND 
BEHAVIOURS 

Leverage our gold assets and expand our 
Western Australian footprint to:

–   create shareholder value,

–     provide opportunities for our team to 

grow and succeed, and

–   contribute to our wider communities.

Our values and behaviours guide how we 
work with each other, our communities, 
and external stakeholders. They 
influence our actions and decisions, 
hold us accountable and ultimately 
enable a culture that drives our success. 

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 2022LETTER FROM THE CHAIR 

A YEAR  
OF RECORDS

Dear Shareholders,

It is my pleasure 
to present 
the Westgold 
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 seen Westgold 
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.

2

Westgold Resources Limited Annual Report 2022

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 from within Westgold’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 see Westgold 
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 2022-
2023 (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.

Westgold will simplify the business 
and test all options to improve 
productivity and operational 
efficiencies and build on our balance 
sheet strength. 

The reset of our operating model 
is well advanced with the key to 
delivering shareholder value being 
to mine ‘profitable ounces’ not just 
ounces. Industry wide cost inflation 
is forcing a granular cost assessment 
and Westgold has commenced this 
deep dive into opportunities that can 
reduce waste and improve the ability 
of the business to generate stronger 
cash flows. 

There are opportunities to leverage 
our operating footprint, scale 
and internal capability with the 
optimisation of these key factors 
critical to increasing the profitability 
and sustainability of the business.

The non-cash impairment, alongside 
a more disciplined approach to capital 
and operating expenditure, positions 
Westgold with the opportunity to 
deliver larger financial returns to our 
shareholders. 

Our vision for Westgold 2.0 is to 
continue to evolve to become a safer, 
inclusive, socially responsible and 
highly profitable gold miner. Our 
workforce is innovative, committed 
and focussed and with the continued 
support of our shareholders, 
stakeholders, communities and staff 
we are confident that the business can 
deliver on our FY23 objectives.

Hon. Cheryl Edwardes AM 
Non-Executive Chair

3

Westgold Resources Limited Annual Report 20224

Westgold Resources Limited Annual Report 2022YEAR END 30 JUNE 2022

FINANCIAL 
RESULTS

Unless specifically noted, all dollar amounts disclosed in this report are Australian 
Dollars (A$ or AUD)

GOLD SALES (OZ)

REVENUE

269,705

$647.6m

(FY21: 245,066)

15%

(FY21: $571.1m)

16%

NET CASH FROM  
OPERATIONS

$179.9m

NET PROFIT/(LOSS) 
BEFORE TAX

($160.1m)

(FY21: $249.1m)

60%

(FY21: $112.0m)

155%

NET PROFIT/(LOSS)  
AFTER TAX

($111.1m)

CLOSING CASH  
& CASH EQUIVALENTS

$182.7m

(FY21: $76.7m)

122%

(FY21: $150.6m)

9%

PROFIT PER SHARE

NET ASSETS

(25.32c)

$587.8m

(FY21: 18.16c)

110%

(FY21: $607.3m)

16%

AVERAGE HEDGE GOLD PRICE

HEDGES OUNCES

A$2,396/oz

148,000oz

(FY21: A$2,133/oz) 

3%

(FY21: 156,000oz)

22%

Westgold Resources Limited Annual Report 2022

5

YEAR END 30 JUNE 2022

OUR ANNUAL 
OUTPUTS

MURCHISON OPERATIONS

204,937oz

BRYAH OPERATIONS

65,947oz

GROUP

270,884oz

MURCHISON OPERATIONS

A$1,487/oz

BRYAH OPERATIONS

A$1,294/oz

GROUP

A$1,438/oz

MURCHISON OPERATIONS

A$1,748/oz

BRYAH OPERATIONS

A$1,525/oz

GROUP

A$1,692/oz

GOLD PRODUCTION

CASH COST  
(C1)

ALL IN SUSTAINING  
COSTS

6

Westgold Resources Limited Annual Report 2022

7

Westgold Resources Limited Annual Report 2022OUR OPERATIONS 

REVIEW OF 
OPERATIONS 

Westgold Resources Limited (ASX: WGX) (Westgold or the Group) is a uniquely Western Australian gold mining business. 
With a workforce of over 1,000 people, we are the dominant gold miner in the Murchison and Bryah regions with over 1,300 
km2 of tenure. 

Westgold is the owner-operator of all of its underground mines. This internal capability provides a level of operational 
flexibility that has insulated our business from the many labour impacts caused by COVID-19. Our operating model is 
‘hub and spoke’ style whereby we have the optionality to process ore from our Meekatharra and Cue operations at either 
processing hub. In contrast the Bryah Basin operation is centred upon the Fortnum processing hub.

MURCHISON OPERATIONS

The Murchison operations incorporate two processing hubs near Cue and Meekatharra. Combined, these operations 
are forecast to produce ≈200,000 oz in financial year 2022-2023 (FY23).

MURCHISON GOLD PRODUCTION AND A$ COSTS 

MMuurrcchhiissoonn  GGoolldd  PPrroodduuccttiioonn  aanndd  AA$$  CCoossttss

$ 1,781 /oz

$ 1,795 /oz

$ 1,896 /oz

$ 1,640 /oz

50,537 oz

50,291 oz

49,301 oz

54,808 oz

Sep Q 2021

Dec Q 2021

Mar Q 2022

Jun Q 2022

Gold Produced

AISC $/oz

 2,000

 1,800

 1,600

 1,400

 1,200

 1,000

 800

 600

 400

 200

 -

.

z
o
r
e
p
t
s
o
C

60,000

50,000

40,000

30,000

20,000

10,000

0

.

z
o
n
o
i
t
c
u
d
o
r
P
d
o
G

l

CUE

Our Cue operation is located around the regional town of Cue and encompasses Westgold’s southern-most group of 
Murchison assets including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles. 
This package includes two of Western Australia’s most iconic past producers in the Big Bell mine (≈2.6 million ounces) and 
the Great Fingall mine (≈1.2 million ounces).

BBrryyaahh  GGoolldd  PPrroodduuccttiioonn  aanndd  AA$$  CCoossttss

$ 1,683 /oz

20,000

 2,000

 1,800

$ 1,649 /oz

$ 1,496 /oz

$ 1,393 /oz

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. 

15,000

 1,400

In FY22, the Tuckabianna plant received underground ore from the large Big Bell underground and the smaller Comet 
underground mine as well ore from the Cuddingwarra open pits.

10,000

The Tuckabianna processing hub treated 1,345,015 tonnes of ore, at the upper range of the plants operating capacity and in 
line with expectations. The metallurgical recoveries rate for the ore blend was 88.6%.

15,636 oz

16,125 oz

 800

16,397 oz

17,789 oz

While Big Bell was the primary producer of ore to the Tuckabianna mill, the Comet underground mine provided 
supplementary feed during the year.

 400

.

z
o
n
o
i
t
c
u
d
o
r
P
d
o
G

l

5,000

.

z
o
r
e
p
t
s
o
C

 1,600

 1,200

 1,000

 600

 200

0

 -

Sep Q 2021

Dec Q 2021

Mar Q 2022

Jun Q 2022

8

Westgold Resources Limited Annual Report 2022

Gold Produced

AISC $/oz

 
 
 
 
 
 
 
 
 
 
 
 
 
 
After four years of dewatering, 
mine rehabilitation, 
refurbishment and ramp up, 
the Big Bell mine achieved 
commercial production in April 
2022 and production rates 
have been growing since.

Several open pits were mined 
around Cue in FY22. With large 
stockpiles accumulated, the 
open pit program ceased at the 
end of the financial year.

Exploration and viability 
studies were carried out 
during FY22 at the previously 
mined Fender open pit mine 
on the southern limits of the 
Big Bell shear to evaluate the 
economics of an underground 
operation. An exploration 
decline was commenced then 
paused due with the higher 
tonnages coming from Big Bell.

In addition to the mining operations, the Company is accelerating exploration activities across Cue with the primary 
focus being the Day Dawn and Tuckabianna mining centres. This work has been based on new geophysical datasets and 
geological re-interpretations in early FY22, leading to the discovery of the Sovereign target, between Great Fingall and 
Golden Crown. 

Follow up drilling will occur in early FY23, along with definition drilling into Great Fingall at depth and testing of Caustons, 
right at the doorstep of the Tuckabianna plant.

Westgold Resources Limited Annual Report 2022

9

OUR OPERATIONS

 REVIEW OF OPERATIONS 
(CONTINUED)

MEEKATHARRA 

Our 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.

Our 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 
FY22, the Bluebird plant 
received underground 
ore from the Paddy’s Flat, 
South Emu - Triton and 
Bluebird underground mines 
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. Overall 
expansion plans are being 
developed to determine the 
true potential of this asset.

With the expansion of Bluebird 
underground, at the end 
of FY22 Westgold paused 
operations at South Emu - 
Triton in the Reedy’s area to 
reassess its economics.

The Bluebird processing plant 
processes both underground 
and open pit ore, performing 
strongly for the year treating 
more than 1,527,840 tonnes, 
slightly below the plant’s 
capacity of 1.6-1.8 million 
tonnes, with remedial works 
well underway to increase 
throughput. The metallurgical 
recoveries rate for the ore 
blend was 89.6%.

In-mine exploration at and around Meekatharra focused on the extension of 
the Paddy’s Flat, Bluebird and Reedy’s ore systems:

 – At Paddy’s Flat the Prohibition lodes continued to return excellent drill 
results. These baseload results were complemented by numerous high-
grade intersections in spur and channel lodes form the Consols lodes which 
were accessed for the first time in a material way during the year;

 – Deep drilling under the Triton orebody remains in progress at years end. 

Initial results have underscored the potential of the Triton deposit at depth, 
with multiple high-grade lodes intersected;

 – The footprint of the Bluebird deposit continued to be increased via drilling 
during the year. A number of strong results have expanded the Bluebird 
mine plan significantly, with the deposit remaining open to both the south 
and north.

10

Westgold Resources Limited Annual Report 2022

BRYAH OPERATIONS

The Bryah operations are centred upon the Fortnum processing hub. This operation is forecast to produce 
≈60,000 oz in FY23.

FORTNUM

The Fortnum operations are 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 2 million ounces 
of reported gold production.

The processing hub incorporates the 0.8-0.9Mtpa Fortnum carbon-in-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 low-grade stocks providing a blended 
feedstock to the plant.

Fortnum continues to deliver strong results from the Starlight underground mine and additional mill feed sourced from 
large, existing low-grade surface stockpiles. This year saw strong production in the Starlight mine including the Moonlight, 
Twilight North, Galaxy and Trev’s lodes.

Westgold Resources Limited Annual Report 2022

11

OUR OPERATIONS

 REVIEW OF OPERATIONS 
(CONTINUED)

60,000

$ 1,781 /oz

$ 1,640 /oz

MMuurrcchhiissoonn  GGoolldd  PPrroodduuccttiioonn  aanndd  AA$$  CCoossttss

$ 1,795 /oz

$ 1,896 /oz

 2,000

 1,800

 1,600

 1,000

z
o
r
e
p
t
s
o
C

50,000

30,000

z
o
n
o
i
t
c
u
d
o
r
P
d
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G

.

40,000

The processing plant performed well given the hard ore and limited grind capacity, achieving more than 825,070 tonnes for 
the year with metallurgical recoveries at 95.5%. A new pebble crusher has been ordered for installation mid FY23 which will 
help manage the hard ores and increase throughput.

 1,200

.

 1,400

20,000

50,537 oz

A major extensional drilling program was being planned at years end at the Starlight mine, with the view to testing the 
mineralised footprint of the Starlight lodes over a multi-year mining horizon. This work program will utilise additional 
resources over and above the two drilling rigs and support staff currently on site at Starlight, and as such will allow the day-
to-day resource definition and grade control activities of the mine to continue unabated whilst the expansion potential of 
Starlight is defined.
10,000

50,291 oz

49,301 oz

 600

 800

 400

l

54,808 oz

In addition, Westgold continues to evaluate potential open pit opportunities to supplement underground ore sources 
across the Bryah tenure. Not only will this work increase ore optionality and mine life across this under explored tenement 
Mar Q 2022
package, it may provide the catalyst for process plant expansion works at scale.

Jun Q 2022

Dec Q 2021

Sep Q 2021

0

 -

 200

BRYAH GOLD PRODUCTION AND A$ COSTS

Gold Produced

AISC $/oz

20,000

15,000

10,000

5,000

0

.

z
o
n
o
i
t
c
u
d
o
r
P
d
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G

l

BBrryyaahh  GGoolldd  PPrroodduuccttiioonn  aanndd  AA$$  CCoossttss

$ 1,393 /oz

$ 1,496 /oz

$ 1,649 /oz

$ 1,683 /oz

15,636 oz

16,397 oz

16,125 oz

17,789 oz

Sep Q 2021

Dec Q 2021

Mar Q 2022

Jun Q 2022

Gold Produced

AISC $/oz

 2,000

 1,800

 1,600

 1,400

 1,200

 1,000

 800

 600

 400

 200

 -

.

z
o
r
e
p
t
s
o
C

12

Westgold Resources Limited Annual Report 2022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
13

Westgold Resources Limited Annual Report 2022OUR OPERATIONS

MINERAL RESOURCES 
& ORE RESERVES

Westgold released its annual update of Mineral Resource and Ore Reserve Estimates on the ASX on 23 September 
2022. 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 2022 

Project

Measured

Murchison 

Bryah 

Sub-Total

Indicated

Murchison 

Bryah 

Sub-Total

Inferred

Murchison 

Bryah 

Sub-Total

Total

Murchison 

Bryah 

Grand Total

Tonnes (‘000s)

Grade (g/t)

Ounces Au (‘000s)

8,942

2,137

11,078

45,722

14,042

59,764

34,916

4,473

39,389

89,579

20,651

110,231

3.13

2.86

3.08

2.21

1.85

2.13

2.19

2.08

2.18

2.29

2.01

2.24

901

197

1,097

3,249

836

4,085

2,458

300

2,758

6,608

1,332

7,940

ORE RESERVE STATEMENT – ROUNDED FOR REPORTING 30 JUNE 2022 

Project

Proven

Murchison

Bryah

Sub-Total

Probable

Murchison

Bryah

Sub-Total

Total

Murchison

Bryah

Grand Total

Tonnes (‘000s)

Grade (g/t)

Ounces Au (‘000s)

5,867

1,166

7,033

14,542

4,347

18,889

20,410

5,512

25,922

2.72

1.81

2.57

2.73

1.84

2.53

2.73

1.84

2.54

513

68

581

1,278

258

1,536

1,791

325

2,116

Glossary: 
Murchison incorporates the Meekatharra and Cue business units.
Bryah incorporates the Fortnum business unit.

14

Westgold Resources Limited Annual Report 2022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Mineral Resources by mining project are tabulated below: 

MURCHISON OPERATIONS 

MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022

Measured

Indicated

Inferred

Total

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)

3.27

2.09

1.73

4.09

1.32

0.00

2.55

4.29

3.82

3.33

1.25

3.13

3,792

0.70

552

9,860

8

3

39

24

0

6

1,708

3,501

3,781

97

1,293

2.61

1.82

4.42

2.66

1.98

2.17

1.74

125

10,618

59

59

26

3,062

2.56

8,010

1.83

0

0.00

828

100

497

323

86

6

90

595

252

473

0

4,976

994

3,089

6,765

0

75

534

2,490

8,883

7,110

2.64

1.57

2.57

2.32

0.00

2.11

2.15

1.90

2.44

1.46

0

0.00

422

20,085

2.79

1,802

50

256

505

0

5

37

152

698

334

0

2,820

1.74

6,648

3.54

10,842

2.49

4,358

172

1,895

14,013

0.78

2.04

2.18

1.93

158

756

867

110

11

132

871

12,426

2.53

1,009

15,672

648

1.72

1.25

865

26

901

45,722

2.21

3,249

34,916

2.19

2,458

89,579

2.29

6,608

Project

Big Bell

Cuddingwarra

Day Dawn

Tuckabianna

Tuckabianna 
Stockpiles

Meekatharra North

Nannine

Paddy's Flat

Reedy's

Yaloginda

Bluebird Stockpiles

5,249

118

58

295

567

0

68

906

481

552

648

Total

8,942

BRYAH OPERATIONS 

MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022

Project

Fortnum

Horseshoe

Peak Hill

Stockpiles

Total

Measured

Indicated

Inferred

Total

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)

1,316

4.05

171

4,764

364

2,436

2.38

2.09

1.55

0.70

1,266

7,547

464

2.37

1.43

1.78

186

8

8,515

1,449

105

9,385

2.64

2.01

1.60

183

1,838

16

0.54

0

1,302

0.86

721

93

481

36

85

376

10

0

0

821

2,137

0.00

0.00

0.96

2.86

0

0

25

197

14,042

1.85

836

4,473

2.08

300

20,651

2.01

1,332

Westgold Resources Limited Annual Report 2022

15

 
 
OUR OPERATIONS

MINERAL RESOURCES & ORE 
RESERVES (CONTINUED)

The Mineral Resources by mining project are tabulated below: 

MURCHISON OPERATIONS 

MINERAL RESOURCE STATEMENT COMPARISON 

Project

Big Bell

Cuddingwarra

Day Dawn

Tuckabianna

Tuckabianna Stockpiles

Meekatharra North

Nannine

Paddy's Flat

Reedy's

Yaloginda

Bluebird Stockpiles

Total

2021 

2022 

Change

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

1,868

20,085

2.79

1,802

-958

21,043

3,015

6,648

9,414

3,833

322

1,855

14,408

12,375

15,637

814

2.76

1.76

3.54

2.52

0.75

1.70

2.19

1.99

2.51

1.67

1.19

171

756

762

92

18

130

921

2,820

1.74

6,648

10,842

4,358

172

1,895

14,013

3.54

2.49

0.78

2.04

2.18

1.93

158

756

867

110

11

132

871

1,000

12,426

2.53

1,009

840

15,672

31

648

1.72

1.25

865

26

89,363

2.29

6,589

89,579

2.29

6,608

0

0

0

0

0

0

0

0

0

0

0

2.66

-66

-13

0

104

17

-6

2

-49

9

25

-5

19

-195

0

1,428

525

-150

40

-395

51

35

-166

216

BRYAH OPERATIONS 

MINERAL RESOURCE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022

Project

Fortnum

Horseshoe

Peak Hill

Stockpiles

Total

2021 

2022 

Change

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

9,857

1,449

9,385

2.37

2.01

1.60

1,194

0.85

750

93

481

32

8,515

1,449

9,385

2.64

2.01

1.60

1,302

0.86

721

93

481

36

-1,342

0

0

108

0

0

0

0

Ounces 
Au 
(‘000s)

-29

0

0

3

21,886

1.92

1,357

20,651

2.01

1,332

-1,234

0.64

-25

16

Westgold Resources Limited Annual Report 2022

 
 
Probable

Total

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

The Ore Reserves by mining project are tabulated below:

MURCHISON OPERATIONS 

ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 

Proven

Grade 
(g/t)

2.94

0.00

0.00

4.09

1.32

0.00

0.00

4.84

4.40

3.97

1.25

2.72

Project

Big Bell

Cuddingwarra

Day Dawn

Tuckabianna

Tuckabianna Stockpiles

Meekatharra North

Nannine

Paddy's Flat

Reedy's

Yaloginda

Bluebird Stockpiles

Tonnes 
(‘000s)

4,170

0

0

42

567

0

0

230

55

155

648

Total

5,867

BRYAH OPERATIONS 

Ounces 
Au 
(‘000s)

394

0

0

5

24

0

0

36

8

20

26

4,641

710

1,289

1,034

3,758

0

718

659

888

845

0

513

14,542

3.08

1.75

6.92

2.48

0.70

0.00

1.82

4.21

3.27

3.65

0.00

2.73

460

40

287

82

85

0

42

89

93

99

0

8,811

710

1,289

1,075

4,324

0

718

889

943

1,000

648

1,278

20,410

ORE RESERVE STATEMENT - ROUNDED FOR REPORTING 30 JUNE 2022 

Project

Fortnum

Horseshoe

Peak Hill

Stockpiles

Total

Proven

Probable

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

344

0

0

821

1,166

3.83

0.00

0.00

0.96

1.81

42

0

0

25

68

Tonnes 
(‘000s)

2,541

761

581

464

4,347

Grade 
(g/t)

Ounces 
Au 
(‘000s)

1.97

1.84

2.21

0.70

1.84

161

45

41

10

258

Tonnes 
(‘000s)

2,886

761

581

1,285

5,512

3.01

1.75

6.92

2.54

0.79

0.00

1.82

4.37

3.34

3.70

1.25

2.73

Total

Grade 
(g/t)

2.19

1.84

2.21

0.86

1.84

854

40

287

88

109

0

42

125

101

119

26

1,791

Ounces 
Au 
(‘000s)

204

45

41

36

325

Westgold Resources Limited Annual Report 2022

17

 
 
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 

Project

Big Bell

Cuddingwarra

Day Dawn

Tuckabianna

Tuckabianna Stockpiles

Meekatharra North

Nannine

Paddy's Flat

Reedy's

Yaloginda

Bluebird Stockpiles

Total

2021 

2022 

Change

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

9,879

1,074

1,398

889

3,823

169

1,074

2.79

1.71

6.55

2.39

0.75

1.12

1.49

1,090

3.64

922

1,065

814

3.17

3.15

1.19

887

59

294

68

92

6

51

128

94

108

31

8,811

710

1,289

1,075

4,324

0

718

889

943

1,000

648

3.01

1.75

6.92

2.54

0.79

0.00

1.82

4.37

3.34

3.70

1.25

854

-1,069

40

287

88

109

0

42

125

101

119

26

-364

-108

186

501

-169

-356

-201

22

-65

-166

0

0

0

0

0

-1

0

1

0

1

0

-34

-19

-7

20

17

-6

-9

-3

7

11

-5

22,198

2.55

1,819

20,410

2.73

1,791

-1,788

0.48

-28

BRYAH OPERATIONS

ORE RESERVE STATEMENT COMPARISON

2021 

2022 

Change

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

Tonnes 
(‘000s)

Grade 
(g/t)

Ounces 
Au 
(‘000s)

3,572

2.02

232

2,886

761

1,122

1,178

1.84

1.95

0.85

45

70

32

2.19

1.84

2.21

761

581

1,285

0.86

204

-686

45

41

36

0

-542

108

0

0

0

0

6,633

1.78

379

5,512

1.84

325

-1,120

1.50

-28

0

-29

3

-54

Project

Fortnum

Horseshoe

Peak Hill

Stockpiles

Total

18

Westgold Resources Limited Annual Report 2022

 
 
COMPLIANCE AND  
FORWARD-LOOKING STATEMENTS

EXPLORATION TARGETS, EXPLORATION RESULTS AND MINERAL RESOURCES 

The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources 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 to 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 long-
term incentive plans of the company. 

ORE RESERVES 

The information in this report that relates to Ore Reserve Estimates 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 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. 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 

Certain statements in this report relate to the future, including forward looking statements relating to Westgold’s financial 
position and strategy. These forward-looking statements involve known and unknown risks, uncertainties, assumptions 
and other important factors that could cause the actual results, performance or achievements of Westgold to be materially 
different from future results, performance or achievements expressed or implied by such statements. Actual events or 
results may differ materially from the events or results expressed or implied in any forward-looking statement and deviations 
are both normal and to be expected. Other than required by law, neither Westgold, their officers nor any other person gives 
any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking 
statements will actually occur. 

You are cautioned not to place undue reliance on those statements.

Westgold Resources Limited Annual Report 2022

19

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 2022. 

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 Minister in the Court Government, Ms Edwardes 
has extensive experience and knowledge of WA’s legal 
and regulatory framework relating to mining projects, 
environmental, native title, heritage, and land access.

During her political career, Ms Edwardes held positions 
including WA Attorney General, Minister for the 
Environment and Minister for Labour Relations. 

During the past three years, she has also served as a 
director of the following public listed companies:

 – Flinders Mines Limited (Appointed 17 June 2019)
 – Nuheara Limited (Appointed 2 January 2020) 
 – 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 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 (GAICD).

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)

 – Deep Yellow Limited (Appointed 4 August 2022)

20

Westgold Resources Limited Annual Report 2022

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 the Company’s Audit, 
Risk and Compliance Committee and Remuneration and 
Nomination Committee.

During the past three years, she has served as a director of 
the following public listed company:

 –

 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 40 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 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:

 – Nagambie Resources Ltd (Appointed 15 May 2019)

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 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 held no public company directorships in the 
past three years. 

Peter Cook - Non-Executive Chair  
(Appointed 19 March 2007, Resigned 28 March 2022)

Mr Cook is a geologist and mineral economist and holds a 
Bachelor of Science (Applied Geology), Master of Science 
in Mineral Economics and a MAusIMM. Mr Cook has 
over 35 years of experience in the fields of exploration, 
project, operational and corporate management of mining 
companies. 

During the past three years, he has also served as a director 
of the following public listed companies:

 – Castile Resources Limited (Appointed 7 June 2011)
 –
Titan Minerals Limited (Appointed 30 August 2021)
 – Breaker Resources NL (Appointed 6 September 2021)

for the year ended 30 June 2022FINANCIAL REPORT 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
Lisa Smith (Appointed 20 December 2019)

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.

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 Institute of Chartered Accountants 
Australia and New Zealand, a Fellow of the Financial Services Institute of Australasia, a Graduate Member of the Australian 
Institute of Company Directors and a Fellow of the Governance Institute of Australia. She is currently Company Secretary of 
several ASX listed companies.

INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the Directors in the shares and options of the Company were:

Director

Hon. CL Edwardes AM1 

WC Bramwell

FJ Van Maanen

GR Davison

JL Matthys1

PG Cook2

PB Schwann3

Total

Fully Paid 
Ordinary 
Shares

Options/ 
Rights

6,122

–

50,000

202,435

435,521

–

112,658

8,915,579

–

–

–

–

–

–

9,519,880

202,435

1. 
2. 
3. 

Appointed on 28 March 2022.
Resigned on 28 March 2022 (balances provided as at his resignation date).
Resigned on 26 July 2022 (balances provided as at his resignation date).

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 1,077 employees at 30 June 2022 (2021: 1,051).

Westgold Resources Limited Annual Report 2022

21

CORPORATE OVERVIEW
Westgold is an explorer and 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 
that 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.

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 with 2.2 million ounces of gold in Ore Reserves (refer ASX announcement 29 September 
2021).

During FY22 Westgold operated six underground mines, several open pits and three processing plants (currently with an 
installed processing capacity of ≈4 Mtpa) and continued to build its production profile since listing with gold output totalled 
270,884 ounces from its Bryah and Murchison operations in FY22.

CORPORATE STRUCTURE
Westgold’s corporate structure is depicted below.

WESTGOLD  
RESOURCES LIMITED

ACN 009 260 306

ARAGON RESOURCES 
PTY LTD

BIG BELL GOLD OPERATIONS 
PTY LTD

WESTGOLD MINING 
SERVICES PTY LTD

ACN 114 714 662

ACN 090 642 809

ACN 080 756 172

Bryah  
Operations

Murchison 
Operations

Mining  
Services

OPERATING AND FINANCIAL REVIEW

IMPACT OF COVID -19
Westgold did not apply for or receive any COVID-19 funding support from the Federal or State governments during FY22. 

Westgold utilises a predominantly fly-in, fly-out (FIFO) and drive-in, drive-out (DIDO) workforce to operate its Western 
Australian gold assets. Ongoing state and regional border closures in early FY22, followed by the opening of the Western 
Australian border in late FY22, continued to disrupt labour availability during the year. 

The direct financial impact of COVID-19 is difficult to estimate but it is clear that the disruptive nature on labour availability 
across the world has materially impacted energy, consumables and reagent supply across the mining sector.

Westgold continues to closely monitor the health advice across Australia and work cooperatively with government 
departments and other stakeholders and has proactively worker to mitigate impacts of COVID-19.

22

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT DIRECTORS’ REPORT  OPERATING RESULTS
The Group’s full year gold production was a record of 270,884 ounces compared to the previous year (245,411 ounces). 
Overall, the results reflect the continued maturity and growth of the core assets following the rationalisation on non-core 
assets and focus on the expansion of the Group’s activities in the Murchison Region. 

These actions over the year are reflected in the following key measures:

 – Consolidated revenue increased by 13% to $647,576,618 (2021: $571,170,198);
 – Consolidated total cost of sales increased by 36% to $620,300,818 (2021: $455,456,036); 
 –
 –

 Profit before income tax and non-cash impairment decreased by 86% to $15,448,892 (2021: $111,893,067);
 Non-cash impairment charge of $175,535,410 (2021: $Nil) is a result of the cost pressures, the Big Bell mine carrying 
value being significantly greater than the initial expected project development costs, the South Emu Triton and Starlight 
underground mines not producing the required economic returns coupled with the cessation of open pit mining; and
 Profit after income tax and non-cash impairment decreased by 245% to a loss of $111,119,291 (2021: profit $76,751,880).

 –

REVIEW OF FINANCIAL CONDITION
The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $182,701,502  
(2021: $150,684,029).

Operating Activities
Group cash flow generated by operating activities decreased on that of the previous year with a total inflow of $179,855,454 
(2021: $249,141,949).

Investing Activities
Cash flows used in investing activities across the Group increased on that of the previous year with a total outflow of 
$201,009,289 (2021: $213,805,325).

Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine 
(CGO) and the Bluebird and South Emu underground mines (MGO). 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 $239,019,046 (2021: $266,190,255), broken into key operations as follows:

 – Murchison $201,562,547 (2021: $228,372,804);
 – Bryah $37,456,499 (2021: $37,817,451); and

Capital commitments of $17,715,233 (2021: $19,360,999) existed at the reporting date, principally relating to the purchase of 
plant and equipment.

Exploration activities continued at all operations during the year with $18,190,290 (2021: $14,249,778) expended.

A review of accumulated land titles was completed resulting in a write-off of $110,165 (2021: $86,058) of carrying values.

Financing Activities
Net cash flows from financing activities amounted to $53,171,308 (2021: Outflow of $22,217,509).

 –
 –

The Group received $100,800,000 from the placement of 48,000,000 ordinary shares at $2.10(2021: nil); 
The Group’s interest-bearing loans and borrowings decreased to $42,959,811 (2021: $45,075,838) with marginal additions 
to the mobile mining fleet with the expanded growth activities.

Westgold Resources Limited Annual Report 2022

23

SHARE ISSUES DURING THE YEAR
The following share issues have been undertaken during the year:

Date

2 July 2021

15 October 2021

18 March 2022

30 June 2022

Total

Number of 
shares

Purpose

205,768

Issued on conversion of options

1,365,192

Issued on dividend reinvestment plan

48,000,000

Placement to supplement working capital

126,564

Issued on conversion of options

49,697,524

DIVIDENDS
No dividend will be paid to members in respect of the year ended 30 June 2022.

Westgold’s key financial objective is to deliver superior shareholder value. One mechanism is by a potential return of capital 
to our shareholders in the form of a reasonable dividend. Premised upon this the Board has set the dividend policy as a 
maximum annual dividend of 30% of net profit after tax (NPAT), with the policy reviewed annually. Any payment is at the full 
discretion of the Board and will be considered in light of market conditions, balance sheet strength and Company growth 
plans. 

The Board did not declare a dividend for the 2022 reporting year. The decision was made in order for Westgold to maintain 
its balance sheet strength during a period of increasing operational costs, and to support the Company’s growth strategy. 

This position will be reviewed by the Board next reporting period.

REVIEW OF OPERATIONS
Westgold remains the dominant explorer, developer, operator and gold mining company in the Central Murchison region. 
The Company has ≈ 350 mining titles covering 1,300 km2 across this highly prospective region and operates seven 
underground mines, several open pits and three processing plants (currently with an installed processing capacity of 
≈4 Mtpa).

Westgold is unique in that it is an owner-operator of all its underground and open pit mines and as such this vertical 
integration provides greater cost control and operating flexibility across the Company’s assets.

The Group’s production profile continued to grow and in FY2022 Westgold delivered a record 270,884 ounces from its 
Bryah and Murchison operations with the Company continuing to grow the Exploration and Growth unit to define, explore 
and develop the next suite of mineral assets within the Westgold landholding.

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 a remote FIFO operation. Mining output is currently 
dominated by the Starlight underground mine with supplementary, free on surface low grade stocks providing a blended 
feedstock to the plant.

Gold output for the year was 65,947 ounces at a C1 Cash Cost of $1,294 per ounce and an all-in sustaining cost (AISC) of 
$1,525 per ounce as disclosed in the table on page 26.

24

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT DIRECTORS’ REPORT  The increase in the gold output and associated increase in the gold price resulted in an increase in revenue to $158,218,086 
(2021: $140,661,201). Segment profits decreased to $17,702,894 (2021: $42,842,540). 

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;
 –
 – new targets within the proximate Peak Hill tenements.

the Regent and Messiah deposits; and

This procession of potential open pit mines can replace the low-grade feedstock and extend the current mine life 
expectation to in excess of seven years.

Murchison Operations 
The Murchison Operations is located around the regional towns of Meekatharra and Cue in the mid-west region of Western 
Australia.

Gold output increased and revenue improved to $489,358,532 (2021: $430,439,928). Segment profits decreased to 
$9,462,740 (2021: $72,773,776). 

Gold output from the operation for the year was 204,937 ounces at a C1 Cash Cost of $1,487 per ounce and an AISC of 
$1,748 per ounce as disclosed in the table on page 26.

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 a large FIFO and DIDO mining operation. The Bluebird plant receives 
underground ore from the Paddy’s Flat, South Emu - Triton and Bluebird underground mines and supplementary lower 
grade open pit ore from Five Mile Well, Maid Marion, Albury Heath and Aladdin open pits.

In addition to current mineral resources and 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;
 –
Triton Deeps, Boomerang, Rand and Rand North in the Reedy Mining Area; and
 – New targets across the central package where drilling under 100m in depth is sparse.

Cue Gold Operations (CGO)
CGO is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets 
including the historic mining centres of Big Bell, Cuddingwarra, Day Dawn, Tuckabianna and Pinnacles. This package 
includes two of Western 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 pivots on the 1.2-1.4 Mtpa Tuckabianna processing plant, a 148-person village at Big Bell, 
a 266-person village at Cue and associated mining infrastructure to support a large FIFO and DIDO mining operation.

The Tuckabianna plant receives underground ore from the large Big Bell underground and the smaller Comet underground 
mines. After four years of de-watering, mine rehabilitation and refurbishment, Big Bell mine production continued to rise in 
FY2022 with steady state operations announced in April 2022.

Gold output was focused on minor short-term open pit mines to build capacity, whilst the major Big Bell mine rehabilitation 
and development works were completed. 

Westgold Resources Limited Annual Report 2022

25

In addition to current Mineral Resources and Ore Reserves, CGO has a number of exploration targets which should 
underwrite sustainable gold production at the operations beyond existing targets, including:

 –

The Great Fingall – Day Dawn area – which has hosted the significant past producers of Great Fingall and Golden Crown 
(historic head grades of 19.5g/t and 14g/t respectively);

 – Caustons – on the Tuckabianna trend, close to the mill and high potential for underground mining;
 – Fender Mine – a shallow underground target identified beneath Westgold’s Fender open pit;
 – Additional shallow targets on the Big Bell line of lode beneath the 700, 1600 and the Shocker pits; and
 – Open pit targets within the Cuddingwarra Mining centre.

Mining Services Division 
Westgold is unique in the WA mining sector in that it is predominantly an owner-operator of its mines, with the underground 
mining services division operating through a 100% owned subsidiary.

Westgold Operating Performance by Operation

Year Ended 30 June 2022

MURCHISON 

BRYAH

GROUP

Units

t

g/t

t

g/t

2,433,591

705,868

3,139,459

2.7

669,454

1.6

2.9

–

–

2.8

669,454

1.6

t

2,872,855

825,070

3,697,925

g/t

%

oz

oz

2.5

89

204,937

203,986

$/oz

2,399

1,158

406

88

(165)

2.6

95

65,947

65,719

2,408

822

370

76

26

2.5

90

270,884

269,705

2,401

1,076

397

84

(119)

1,487

1,294

1,438

95

20

146

62

36

133

87

24

143

1,748

1,525

1,692

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

Physical Summary

UG Ore Mined

UG Grade Mined

OP Ore Mined

OP Grade Mined

Ore Processed

Head Grade

Recovery

Gold Produced

Gold Sold

Achieved Gold Price

Cost Summary

Mining

Processing

Admin

Stockpile Adjustments

C1 Cash Cost (produced)1

Royalties

Corporate Costs

Sustaining Capital

All-in Sustaining Costs2

26

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT DIRECTORS’ REPORT   
Year Ended 30 June 2021

MURCHISON 

BRYAH

GROUP

Physical Summary

UG Ore Mined

UG Grade Mined

OP Ore Mined

OP Grade Mined

Ore Processed

Head Grade

Recovery

Gold Produced

Gold Sold

Achieved Gold Price

Cost Summary

Mining

Processing

Admin

Stockpile Adjustments

C1 Cash Cost (produced)1

Royalties

Corporate Costs

Sustaining Capital

All-in Sustaining Costs2

Units

t

g/t

t

g/t

t

g/t

%

oz

oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

$/oz

1,838,171

703,508

2,541,679

2.76

641,962

1.64

2.71

-

-

2.75

641,962

1.65

2,945,619

822,326

3,767,945

2.26

86.49

185,146

185,055

2,326

2.40

95.21

2.29

88.40

60,265

245,411

60,011

2,344

245,066

2,330

791

376

74

(34)

647

347

71

(56)

755

369

73

(39)

1,207

1,009

1,158

96

12

132

1,447

68

22

205

1,304

89

14

150

1,411

1. 

2. 

 C1 Cash Cost (C1): represents the cost for mining, processing and administration after accounting for movements in inventory 
(predominantly ore stockpiles). It includes net proceeds from by-product credits but excludes the cost of royalties and capital costs for 
exploration, mine development and plant and equipment.
 All-in Sustaining Cost (AISC): is made up of the C1 cash cost plus royalty expense, sustaining capital expense and general corporate and 
administration expenses.

C1 and AISC are non-IFRS measures and have not been audited.

CORPORATE

Gold Forward Contracts
At the end of the financial year, the Group had unrecognised sales contracts for 148,000 ounces at an average price of 
$2,396 per ounce ending in July 2023, which the Group will deliver physical gold to settle (refer to Note 5). 

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Total equity decreased to $587,767,457 (2021: $607,360,307). This included the issue of 48,000,000 ordinary shares 
equating to cash proceeds of $100,800,000 and an impairment write down of $175,535,410.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE
There have been no other significant events after the balance date.

Westgold Resources Limited Annual Report 2022

27

 
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group is expected to continue exploration, development, operations and production and marketing of gold bullion in 
Australia and will continue the development of its gold exploration projects.

ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are subject to the relevant Commonwealth and State environmental protection legislations.

The Group holds various environmental licenses issued under these laws and these licenses include conditions and 
regulations in relation to specifying limits on discharges into the air, surface water and groundwater, the management and 
storage of hazardous substances and the rehabilitation of areas disturbed during the course of exploration, mining and 
processing activities.

The Board monitors all environmental performance obligations. Our operations are subjected to regular Government 
agency audits and site inspections. There have been zero significant environmental incidents, material breaches of the 
Group’s environmental licenses and all mining and exploration activities have been undertaken in compliance with the 
relevant environmental regulations.

SHARE OPTIONS AND PERFORMANCE RIGHTS

Employee options and rights
During the year ending 30 June 2022, the Company granted 2,126,401 unlisted Performance Rights (WGXAF) to senior 
management under the Employee Share Option Plan. Included in this issue were 202,435 Performance Rights granted to 
the Managing Director.

The principal terms of the Employee Rights are:

The Performance Rights have been issued for nil consideration;

 –
 – Each Performance Right carries an entitlement to one fully paid ordinary share in the Company for each Performance 

 –

Right vested;
 Vesting only occurs after the end of the Performance Periods (30 June 2024) and the number of Performance Rights that 
vest (if any) will depend on:
 – Relative Total Shareholder Return;
 – Absolute Total Shareholder Return;
 –
 –

 Absolute Earnings Per Share;
 Operational Growth;

 – Any Performance Rights that do not vest after the end of the Performance Periods will automatically lapse; and
 – No amount is payable by a holder of Performance Rights in respect of the shares allocated upon vesting.

Unissued shares
As at the date of this report, unissued ordinary shares under share based payment arrangements are:

Performance Rights (Rights)

Rights – Tranche 4 - Employees

Rights – Tranche 5 - Directors

Rights – Tranche 5 - Employees

Total

Number of 
shares

Exercise 
Price

Expiry Date

762,080

202,435

1,367,993

2,332,508

Zero

Zero

Zero

30 June 2023

30 June 2024

30 June 2024

Holders of these instruments do not have any right, by virtue of the instrument, to participate in any share issue of the 
Company or any related body corporate.

Shares issued as a result of exercising options
During the financial year 332,332 listed options were converted to acquire fully paid ordinary shares in the Company, refer 
to Note 26 for further details.

28

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT DIRECTORS’ REPORT  INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Company paid a premium in respect of a contract of insurance to insure Directors and Officers 
of the Company and related bodies corporate against those liabilities for which insurance is permitted under section 199B of 
the Corporations Act 2001. Disclosure of the nature of the liabilities and the amount of the premium is prohibited under the 
conditions of the contract of insurance.

INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its 
audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment 
has been made to indemnify Ernst & Young during or since the financial year.

DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of committees of Directors held during the year and the number 
of meetings attended by each Director was as follows:

Directors

Audit, Risk and Compliance 
Committee

Remuneration and 
Nomination Committee

Eligible to 
attend

Attended

Eligible to 
attend

Attended

Eligible to 
attend

Attended

3

13

13

13

3

10

13

3

13

13

12

3

10

12

–

–

3

3

1

–

3

–

–

3

3

1

–

3

–

–

4

4

1

–

4

–

–

4

4

1

–

4

Hon. CL Edwardes AM1

WC Bramwell

FJ Van Maanen

GR Davison

JL Matthys1

PG Cook2

PB Schwann3

1. 
2. 
3. 

Appointed on 28 March 2022.
Resigned on 28 March 2022.
Resigned on 26 July 2022.

Committee Membership
As at the date of this report, the Company had an Audit, Risk and Compliance Committee and a Remuneration and 
Nomination Committee of the Board of Directors. Members acting on these committees during the year were:

Audit, Risk and Compliance Committee

Remuneration and Nomination Committee

FJ Van Maanen – Chair

PB Schwann – Chair4

PB Schwann

WC Bramwell1

GR Davison2

JL Matthys3

FJ Van Maanen

WC Bramwell1

GR Davison2

JL Matthys3 

1. 
2. 
3. 

4. 

Resigned as a member of the Committee on 1 August 2021.
Appointed to the Committee on 1 August 2021.
 Appointed to the Committee on 2 June 2022. Mr Matthys was appointed Chair of the Remuneration and Nomination Committee on 
28 July 2022. 
Resigned on 26 July 2022.

Westgold Resources Limited Annual Report 2022

29

REMUNERATION REPORT (AUDITED)

CONTENTS
1.  Remuneration report overview
2.  Remuneration and Nomination Committee responsibilities
3.  Remuneration governance
4.  Non-Executive Director remuneration
5.  Executive remuneration
6.  Performance and executive remuneration outcomes
7.  Executive employment arrangements
8.  Additional statutory disclosure

1.   REMUNERATION REPORT OVERVIEW
The Directors of Westgold Resources Limited present the Remuneration Report (the Report) for the Group for the year 
ended 30 June 2022 (FY2022). This Report forms part of the Directors’ Report and has been audited in accordance with 
section 300A of the Corporations Act 2001 and its regulations. 

The Report details the remuneration arrangements for Key Management Personnel (KMP) being the:

 – Non-Executive Directors (NEDs); and
 – Executive directors and senior executives (collectively “the executives”).

KMP are those who directly, or indirectly, have authority and responsibility for planning, directing and controlling the major 
activities of the Group.

Details of KMP of the Group are set out below:

Name

(i)

Non-Executive 
Directors

Position

Appointed

Resigned

Hon. CL Edwardes AM

Non-Executive Chair

WC Bramwell

Non-Executive Director

FJ Van Maanen

Non-Executive Director

GR Davison

JL Matthys

PG Cook

Non-Executive Director

Non-Executive Director

Non-Executive Chair

PB Schwann1

Non-Executive Director

(ii)

Executive Director

WC Bramwell

WC Bramwell

PG Cook

Executive Director

Managing Director

Executive Chair

(iii)

Senior Executives

SH Heng

PW Wilding

L Smith

DA Fullarton

Chief Financial Officer

A/Chief Operating Officer

Chief Executive Officer 

28/03/2022

03/02/2020

06/10/2016

01/06/2021

28/03/2022

01/08/2021

02/02/2017

01/08/2021

24/05/2022

19/03/2007

02/08/2021

24/05/2022

–

31/07/2021

–

–

–

28/03/2022

–

23/05/2022

-

31/07/2021

–

–

–

Company Secretary & General Counsel

20/12/2019

01/07/2020

01/10/2019

23/05/2022

23/05/2022

A Buckingham

Chief Operating Officer 

1.  

PB Schwann resigned as an Independent Non-Executive Director on 26 July 2022.

30

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED) REMUNERATION AND NOMINATION COMMITTEE RESPONSIBILITIES

2. 
Remuneration and Nomination Committee duties
The Remuneration and Nomination Committee is a subcommittee of the Board and are chartered to:

 –

 –

 –
 –

 Oversee formulation and review of the Company’s organisational development, succession planning for the Group’s 
Executive Directors and senior executives;
 Approve, review and refer to the Board matters relating to the appointment and the removal of executives who report 
directly to the Managing Director and or Executive Director to ensure that an appropriate Board succession plan is in 
place; 
 Ensure that the performance of the Board and its members is regularly reviewed; and 
 Assist the Chair in advising Directors about their performance and possible retirement. 

Remuneration report at FY2021 AGM
The FY2021 remuneration report received positive shareholder support at the FY2021 AGM with a vote of 100% in favour. 

Director succession planning 
The Remuneration and Nomination Committee continually considers the changing needs of the Group with the aim to 
maintain consistent governance over all activities.

During the financial year, Westgold appointed the Hon. CL Edwardes AM as Non-Executive Chair on 28 March 2022, and 
JL Matthys as a Non-Executive Director on 28 March 2022. 

The Board structure as at 30 June 2022 is as follows:

Name

Hon. CL Edwardes AM

WC Bramwell

FJ Van Maanen

GR Davison

JL Matthys

PB Schwann

Position

Non-Executive Chair

Managing Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

3.  REMUNERATION GOVERNANCE
The Remuneration and Nomination Committee makes recommendations to the Board on:

 – Non-Executive Director fees;
 – Executive remuneration (Directors and senior executives); and
 –

 The executive remuneration framework and incentive plan policies.

The Remuneration and Nomination Committee assess the appropriateness of the nature and amount of remuneration 
of Non-Executive Directors and executives on a periodic basis by reference to relevant employment market conditions 
with the overall objective of ensuring maximum stakeholder benefit from the retention of high performing Directors and 
executive team. The composition of the Remuneration and Nomination Committee is set out on page 29 of this financial 
report.

Use of remuneration advisors
The Remuneration and Nomination Committee did not engage any remuneration advisors during the current year.

Westgold Resources Limited Annual Report 2022

31

4.  NON-EXECUTIVE DIRECTOR REMUNERATION

NED Remuneration Policy
The NED fee policy is designed to attract and retain high calibre directors who can discharge the roles and responsibilities 
required in terms of good governance, strong oversight, independence and objectivity.

The Company’s constitution and the ASX listing rules specify that the NED fee pool limit, shall be approved periodically 
by shareholders. The last determination was at the Annual General Meeting of shareholders on 26 November 2021 with 
an aggregate fee pool of $750,000 per year. The amount of the aggregate remuneration sought to be approved by 
shareholders and the manner in which it is paid to NEDs is reviewed annually against comparable companies. The Board 
also considers advice from external advisors when undertaking the review.

Non-executive directors are encouraged to hold shares in the Company and align their interests with the Company’s 
shareholders. The shares are purchased by the directors at the prevailing market share price.

NED Remuneration Structure
The remuneration of NEDs consists of director’s fees. There is no scheme to provide retirement benefits to NEDs other than 
statutory superannuation. NEDs do not participate in any performance-related incentive programs. Fees paid to NEDs 
cover all activities associated with their role on the Board and any sub-committees. Additional fees were paid to NEDs in 
FY2022 for being a Chair of a sub-committee. NEDs are entitled to fees or other amounts as the Board determines where 
they perform special duties or otherwise perform extra services on behalf of the Company. They may also be reimbursed for 
out-of- pocket expenses incurred as a result of their directorships.

Position

Non-Executive Chair

Non-Executive Director

Chair of Audit, Risk and Compliance Committee

Member of Audit, Risk and Compliance Committee

Chair of Remuneration and Nomination Committee

Member of Remuneration and Nomination Committee

Annual Fees $

175,000

85,000

10,000

7,500

10,000

7,500

5.  EXECUTIVE REMUNERATION

Executive Remuneration Policy 
In determining executive remuneration, the Board aims to ensure that remuneration practices are:

 –
 –
 –
 –

 competitive and reasonable, enabling the Company to attract and retain high calibre talent;
 aligned to the Company’s strategic and business objectives and the creation of shareholder value;
 transparent and easily understood; and
 acceptable to shareholders.

The Company’s approach to remuneration ensures that remuneration is competitive, performance-focused, clearly links 
appropriate reward with desired business performance and is simple to administer and understand by executives and 
shareholders.

In line with the remuneration policy, remuneration levels are reviewed annually to ensure alignment to the market and 
the Company’s stated objectives to provide a base level of remuneration which is both appropriate to the position and is 
competitive in the market.

Executive Remuneration Structure
The Company’s remuneration structure provides for a combination of fixed and variable pay with the following components:

 –
 –
 –

 fixed remuneration
 short-term incentives (STI); and
 long-term incentives (LTI).

32

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED)In accordance with the Company’s objective to ensure that executive remuneration is aligned to Company performance, 
a portion of executives’ remuneration is placed “at risk”. The relative proportion of FY2022 potential total remuneration 
packages split between the fixed and variable remuneration is shown below:

Executive

Executive Director

Other Executives

Elements of remuneration

Fixed 
remuneration

75%

75%

STI

14%

9%

LTI

11%

16%

Fixed remuneration
Fixed remuneration consists of base salary, superannuation and other non-monetary benefits and is designed to reward for:

 –
 –
 –

 the scope of the executive’s role;
 the executive’s skills, experience and qualifications; and
 individual performance.

Short Term Incentive (STI) arrangements
Under the STI, all executives have the opportunity to earn an annual incentive award which is delivered in cash. The STI 
recognises and rewards annual performance.

How is it paid?

Any STI award is paid in cash after the assessment of annual performance.

How much can executives earn?

In FY2022, the STI dollar values that executives are entitled to receive as a percentage 
of their fixed remuneration would not exceed 50% for the Managing Director and 40% 
for the other executives.

How is performance measured? A combination of specific Company Key Performance Indicators (KPIs) is chosen 
to reflect the core drivers of short-term performance and provide a framework for 
delivering sustainable value to the Group and its shareholders. 

These measures have been selected as they can be reliably measured, are key drivers 
of value for shareholders and encourage behaviours in line with the Company’s core 
values. 

What KPIs were chosen?

The following KPIs were chosen for the 2022 financial year:

When is it paid?

What happens if an 
executive leaves?

 –
 –
 –
 –

 KPI 1: Safety & Environmental Performance Targets (25%)
 KPI 2: All-in Sustaining Cost (AISC) relative to budget (25%)
 KPI 3: Gold production relative to budget (25%)
 KPI 4: Personal KPI (25%)

The STI award is determined after the end of the financial year following a review of 
performance over the year against the STI performance measures by the Remuneration 
and Nomination Committee. The Board approves the final STI award based on this 
assessment of performance and the award is paid in cash up to three months after the 
end of the performance period.

Where executives cease to be an employee of the Group:

 –

 due to resignation or termination for cause, before the end of the financial year, no 
STI is awarded for that year; or

 – due to redundancy, ill health, death or other circumstances approved by the Board, 
the executive will be entitled to a pro-rata cash payment based on assessment of 
performance up to the date of ceasing employment for that year;
 unless the Board determines otherwise.

 –

What happens if there 
is a change of control?

In the event of a change of control, a pro-rata cash payment will be made based on 
assessment of performance up to the date of the change of control (subject to Board 
discretion).

Westgold Resources Limited Annual Report 2022

33

During the financial year a combination of financial and non-financial measures were used to measure performance for STI 
rewards, with a score being calculated on the following measures: 

Metric

Weighting

Targets

Score

Safety - Medically Treated Injury 
Frequency Rate (MTIFR)

Safety - Lost Time Injury 
Frequency Rate (LTIFR)

Annual MTIFR decreases by 25% or more

10

Annual MTIFR stays within ±25%

Annual MTIFR increases by 25% or more

Annual LTIFR decreases by 25% or more

10

Annual LTIFR stays within ±25%

Annual LTIFR increases by 25% or more

Environmental

5

No serious breaches of environmental management

Exceptional environmental management performance

AISC relative to budget 

25

Gold Production relative to 
budget

25

Serious breach of environmental management

Actual costs below budget by 10%

Actual costs below budget by between 5% and 10%

Actual costs below budget by less than 5%

Actual costs above budget by less than 5%

Actual costs above budget by between 5% & 10%

Actual costs above budget by more than 10%

Actual production above budget by 10%

Actual production above budget by between 5% and 10%

Actual production above budget by less than 5%

Actual production equals to budget

Actual production below budget by less than 5%

Underperforms budget by between 5% & 10%

Exceptional Effort and Exceptional Achievement

Exceptional Effort and Good Achievement

Personal performance

25

Good Effort and Good Achievement

Good Effort and Average Achievement

Average Effort and Average Achievement

Total

100

10

5

0

10

5

0

5

2.5

0

25

20

15

10

5

0

25

20

15

10

5

0

25

20

15

10

5

34

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED)STI outcomes
Performance against those measure is as follows for FY2022:

Name

Position

WC Bramwell

WC Bramwell

Managing Director

Executive Director

SH Heng

Chief Financial Officer

PW Wilding

A/Chief Operating Officer

L Smith

Total

Company Secretary & General Counsel

STI Achieved 
%

STI Awarded1 
$

Maximum 
potential 
award 
$

43

53

32

42

43

11,062

26,027

77,548

145,973

34,897

109,479

7,433

17,490

35,063

82,500

166,003

381,469

1. 

 Performance is measured based on a combination of the operational segment performance as well as overall Group performance. The 
FY2022 STI awards were paid in August 2022.

Long Term Incentive (LTI) arrangements
Under the LTI plan, annual grants of options are made to executives to align remuneration with the creation of shareholder 
value over the long-term.

How is it paid?

Executives are eligible to receive Performance Rights (Performance Rights).

Are options eligible for 
dividends?

How much can executives earn?

In FY2022 Performance Rights were issued, being a conditional right issued to receive 
a share subject to the terms of the offer.

Executives are not eligible to receive dividends on unvested rights.

The LTI dollar values that executives are entitled to receive as a percentage of their 
fixed remuneration would not exceed 80% (FY2021: 80%) for the Managing Director 
and 60% (FY2021: 60%) for the other executives.

The number of Rights granted were determined using the fair value at the date of grant 
using a Monte Carlo valuation model, taking into account the terms and performance 
conditions upon which the Rights were granted.

How is performance measured?

Tranche 5 Performance Rights will vest and become exercisable subject to the 
following conditions:

A service condition which requires:

 –

 Continued employment for the three-year period from 1 July 2021 to 30 June 2024.

A performance condition which comprises the following:

 Growth in Relative Total Shareholder Return (RTSR)
 –
 – Growth in Absolute Total Shareholder Return (ATSR)
 –
 –

 Growth in Absolute Earnings Per Share
 Operational Growth

Westgold Resources Limited Annual Report 2022

35

How is performance measured? Relative Total Shareholder Return Performance Condition

The Relative TSR Performance Rights (25% of total Rights) are measured against a 
defined peer group of companies over the service period, which the Board considers 
compete with the Company for the same investment capital, both in Australia and 
overseas, and which by the nature of their business are influenced by commodity prices 
and other external factors similar to those that impact on the TSR performance of the 
Company. 

The vesting schedule for the Relative TSR measure is as follows:

Relative TSR Performance

Below 50th percentile

At 50th percentile

% Contribution to the Number of 
Employee Rights to Vest

0%

50%

Above 50th percentile and below 75th 
percentile

Pro-rata from 50% to 100%

75th percentile and above

100%

Absolute Total Shareholder Return Performance Condition

The ATSR Performance Rights (25% of total Rights) will vest subject to the performance 
of the Company’s TSR over the service period. The ATSR will be measured by 
comparing the 30 day VWAP at grant date to the 30 day VWAP at vesting date 
(30 June 2024).

The vesting schedule for the ATSR measure is as follows:

Absolute TSR Performance

Below 15%

Between 15% and up to 25%

Between 25% and up to 50%

Greater than 50%

% Contribution to the Number of 
Employee Rights to Vest

0%

Pro-rata from 50% to 75%

Pro-rata from 75% to 100%

100%

Absolute Earnings Per Share Performance Condition

The AEPS Performance Rights (25% of total Rights) will vest subject to the annual 
growth rate of the Company’s EPS over the service period. The AEPS will be measured 
by comparing the EPS (excluding any non-recurring items) at the grant date to the EPS 
(excluding any non-recurring items) at vesting date (30 June 2024). 

The vesting schedule for the AEPS measure is as follows:

Absolute EPS Performance

Below 15%

Between 15% and up to 25%

Between 25% and up to 50%

Greater than 50%

% Contribution to the Number of 
Employee Rights to Vest

0%

Pro-rata from 50% to 75%

Pro-rata from 75% to 100%

100%

36

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED)How is performance measured? Operational Growth Performance Conditions

The Operation Growth Performance Rights (25% of total Rights) will be measured by a 
combination of Ore Reserve Growth (10%) and Production Growth (15%).

Ore Reserves will be measured based on the Reserve Statement as reported at the end 
of the FY2022 financial year under JORC guidelines.

Production Growth will be measured as the cumulative annual growth rate over the 
service period.

The vesting schedule for the Ore Reserves measure is as follows:

Ore Reserve Performance

Negative Growth

Depletion Replaced

% Contribution to the Number of 
Employee Rights to Vest

0%

50%

Between depletion replaced and 10% increase

Pro-rata from 50% to 100%

Depletion replaced and 10% increase or 
greater

100%

The vesting schedule for the Production Growth measure is as follows:

Production Growth Performance

% Contribution to the Number of 
Employee Rights to Vest

Negative Growth

5% growth

0%

50%

Above 5% per annum growth and below 10% per 
annum growth

Pro-rata from 50% to 100%

10% per annum growth or greater

100%

Tranche 5

The measurement date is 31 March 2024 unless otherwise determined by the Board.

Where executives cease to be an employee of the Group:

 –

 due to resignation or termination for cause, then any unvested Performance Rights 
will automatically lapse on the date of the cessation of employment; or

 – due to redundancy, ill health, death or other circumstances approved by the 

Board, the executive will generally be entitled to a pro-rata number of unvested 
Performance Rights based on achievement of the performance measures over the 
performance period up to the date of cessation of employment; 

 – unless the Board determines otherwise.

When is performance 
measured?

What happens if an executive 
leaves?

Westgold Resources Limited Annual Report 2022

37

6.  PERFORMANCE AND EXECUTIVE REMUNERATION OUTCOMES

Remuneration earned by executives in 2022
The actual remuneration earned by executives in the year ended 30 June 2022 is set out in the Table on page 40. This 
provides shareholders with a view of the remuneration paid to executives for performance in FY2021 year.

Use of board discretion over remuneration outcomes
During the year the Remuneration and Nomination Committee 

 Considered the appropriateness of awarding STI in relation to performance outcomes and market conditions; 

 –
 – Reviewed the personal KPIs for all senior executives in line with the short term incentive arrangements; and
 – Determined the appropriate total remuneration packages for new appointments of senior executives to ensure alignment 

to the market and the Company’s stated objectives.

STI performance and outcomes
A combination of financial and non-financial measures was used to measure performance for STI rewards. As a result of the 
Group’s performance against those measures STIs rewarded for the FY2022 as disclosed in the Table on page 34, were paid 
in August 2022.

LTI performance and outcomes
Performance Rights were granted in FY2021 (Tranche 4) and FY2022 (Tranche 5). All LTI’s are subject to performance 
hurdles. 

 –
 –

 Tranche 4 has a three-year vesting period ending in June 2023.
Tranche 5 has a three-year vesting period ending in June 2024.

The Managing Director WC Bramwell was granted 202,435 Tranche 5 LTI’s in October 2021.

Senior Executives were granted a total 697,172 Tranche 5 LTI’s in October 2021.

For further details of Performance Rights granted, cancelled, lapsed and vested refer to Table 3 below.

Overview of Company performance
The table below sets out information about Westgold’s earnings and movements in shareholder wealth for the past six years 
up to and including the current financial year.

30 June 173

30 June 183

30 June 193

30 June 20

30 June 21

30 June 22

Closing share price

Profit (loss) per share (cents)

Net tangible assets per share1

Dividend paid per shares (cents)2

$1.84

5.18

$0.98

–

$1.85

(0.34)

$1.12

–

$1.88

3.74

$1.14

–

$2.09

8.65

$1.24

–

$1.88

18.16

$1.43

2

$1.19

(25.32)

$1.24

–

1. 
2. 
3. 

Net tangible assets per share include right of use assets and lease liabilities.
FY21 cash dividend of 2 cents per share declared on 30 August 2021 and paid on 15 October 2021.
The comparatives have not been adjusted for changes due to the adoption of AASB 15, AASB 16 and AASB 9.

Securities Trading Policy
The Westgold Securities Trading Policy applies to all employees and directors. The policy prohibits employees from dealing 
in Westgold securities while in possession price sensitive information regarding the Company that is not generally available.

38

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED)7.  EXECUTIVE EMPLOYMENT ARRANGEMENTS
A summary of the key terms of employment agreements for executives in place at 30 June 2022 is set out below. There is no 
fixed term for executive service agreements and all executives are entitled to participate in the Company’s STI and LTI plans. 
The Company may terminate employment agreements immediately for cause, in which the executive is not entitled to any 
payment other than the value of fixed remuneration and accrued leave entitlements up to the termination date.

Name

Base Salary $ Superannuation

WC Bramwell (Managing Director)

SH Heng (Chief Financial Officer)

PW Wilding (A/Chief Operating Officer) 

L Smith (Company Secretary & General Counsel)

500,000

300,000

420,000

275,000

10%

10%

10%

10%

Notice 
Period

3 months

3 months

3 months

3 months

Termination Payment

Per Nes

Per NES

Per NES

Per NES

 –

 NES are National Employment Standards as defined in the Fair Work Act 2009 (Cth), which outline the minimum 
termination benefits based on years of service.

 – WC Bramwell resigned as Non-Executive Director on 31 July 2021 and was appointed as an Executive Director on 

1 August 2021.

 – WC Bramwell resigned as Executive Director on 23 May 2022 and was appointed as Managing Director on 24 May 2022.
 –
 – PW Wilding was appointed as A/Chief Operating Officer on 24 May 2022.

SH Heng appointed as Chief Financial Officer on 2 August 2021.

Westgold Resources Limited Annual Report 2022

39

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Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Westgold Resources Limited Annual Report 2022

41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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42

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Westgold Resources Limited Annual Report 2022

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44

Westgold Resources Limited Annual Report 2022

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1

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 2: Shareholdings of key management personnel (including nominees)

Directors

Hon. CL Edwardes AM1

WC Bramwell

FJ Van Maanen

GR Davison

JL Matthys1

PG Cook2

PB Schwann3 

Executives

SH Heng4

PW Wilding5 

L Smith

DA Fullarton6

A Buckingham6

Total

Balance 
held at
1 July 2021

On exercise 
of options

Net change 
other7

Balance  
held at 
30 June 
2022

–

34,150

435,521

–

–

10,596,241

–

–

51,344

5,985

10,000

–

–

–

–

–

–

–

–

–

6,122

6,122

15,850

50,000

–

–

435,521

–

112,658

112,658

(785,126)

9,811,115

–

–

10,000

10,000

51,001

(74,868)

27,477

16,840

42,501

57,785

(15)

22,810

(4,889)

47,612

(57,785)

–

11,133,241

168,127

(778,053)

10,523,315

1. 
2. 
3. 
4. 
5. 
6. 
7. 

Appointed on 28 March 2022.
Resigned on 28 March 2022 (balances provided as at his resignation date).
Resigned on 26 July 2022.
Appointed on 2 August 2021.
Appointed on 24 May 2022.
Resigned on 24 May 2022.
Represents acquisition or disposal of shares on market.

Westgold Resources Limited Annual Report 2022

45

Table 3: Option holdings of key management personnel (including nominees)

Balance at 
beginning of 
year 
1 July 2021

Granted as 
remuneration

Exercised

Lapsed 

Balance at 
end of year 
30 June  
2022

Not vested 
and not 
exercisable

Vested and 
exercisable

Options

Directors

Hon. CL Edwardes 
AM

WC Bramwell

FJ Van Maanen

GR Davison

JL Matthys

PG Cook

PB Schwann

Executives

SH Heng

PW Wilding

L Smith

DA Fullarton

A Buckingham

–

–

–

–

–

387,316

–

–

–

202,435

–

–

–

–

–

101,123

–

–

–

–

–

–

–

–

–

–

–

–

–

(387,316)

–

–

–

–

202,435

202,435

–

–

–

–

–

–

–

–

–

–

101,123

101,123

165,452

102,428

(51,001)

(23,867)

193,012

193,012

109,168

95,484

(16,841)

(16,840)

170,971

170,971

231,480

203,698

(42,501)

(392,677)

242,690

194,439

(57,785)

(379,344)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Total

1,136,106

899,607

(168,127)

(1,200,045)

667,541

667,541

Loans to key management personnel and their related parties
There were no loans to key management personnel during the years ended 30 June 2022 and 30 June 2021.

Other transactions to key management personnel and their related parties
There are no other transactions with key management personnel during the years ended 30 June 2022 and 
30 June 2021.

End of Audited Remuneration Report.

46

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT REMUNERATION REPORT (AUDITED)CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the Company 
support and have adhered to the principles of Corporate Governance. The Company’s corporate governance key 
statements, frameworks, policies and charters are all available on the Company’s website at:

www.westgold.com.au/site/about-us/corporate-governance

ENVIRONMENTAL , SOCIAL AND GOVERNANCE (ESG) REPORTING
The Company intends to release a Sustainability Report in October 2022 outlining the impacts, footprint and achievements 
of the Group during 2022. 

AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES

Auditor’s Independence Declaration
The Directors received the Auditor’s Independence Declaration, as set out on page 48, from Ernst & Young.

NON-AUDIT SERVICES
The following non-audit services were provided by the entity’s auditor, Ernst & Young. The Directors are satisfied that 
the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the 
Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence 
was not compromised.

Ernst & Young received or are due to receive the following amounts for the provision of non-audit services (refer to Note 32):

Tax compliance and other services

$

2,200

Signed in accordance with a resolution of the Directors.

Hon. Cheryl Edwardes AM 
Independent Non-Executive Chair

Perth, 25 August 2022

Westgold Resources Limited Annual Report 2022

47

 
AUDITOR’S INDEPENDENCE DECLARATION 

Ernst & Young 
11 Mounts Bay Road 
Perth  WA  6000  Australia 
GPO Box M939   Perth  WA  6843 

  Tel: +61 8 9429 2222 
Fax: +61 8 9429 2436 
ey.com/au 

Auditor’s independence declaration to the directors of Westgold Resources 
Limited 

As lead auditor for the audit of the financial report of Westgold Resources Limited for the financial 
year ended 30 June 2022, I declare to the best of my knowledge and belief, there have been: 

a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in 

relation to the audit;  

b. No contraventions of any applicable code of professional conduct in relation to the audit; and 

c. No non-audit services provided that contravene any applicable code of professional conduct in 

relation to the audit. 

This declaration is in respect of Westgold Resources Limited and the entities it controlled during the 
financial year. 

Ernst & Young 

T S Hammond 
Partner 
Perth 
25 August 2022 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

TH:LT:WGX:010 

48

Westgold Resources Limited Annual Report 2022

FINANCIAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT 
OF COMPREHENSIVE INCOME   

Continuing operations

Revenue

Cost of sales

Gross profit 

Other income

Finance costs

Other expenses

Impairment of mine properties and property plant and equipment

Net (loss) gain on fair value changes of financial assets

Exploration and evaluation expenditure written off

Profit (loss) before income tax from continuing operations

Income tax benefit (expense)

Net Profit for the year 

Other comprehensive profit for the year, net of tax

Total comprehensive profit for the year

Total comprehensive profit attributable to:

members of the parent entity

Earnings per share attributable to the ordinary equity holders of the 
parent (cents per share)

Basic profit per share

Continuing operations

Diluted profit per share

Continuing operations

Notes

2022

2021

5

7(a)

6

7(b)

7(c)

17

15

18

8

647,576,618

571,170,198

(620,300,818)

(455,456,036)

27,275,800

115,714,162

4,663,417

2,292,234

(1,398,660)

(347,475)

(12,967,460)

(10,881,936)

(175,535,410)

–

(2,014,040)

5,202,140

(110,165)

(86,058)

(160,086,518)

111,893,067

48,967,227

(35,141,187)

(111,119,291)

76,751,880

–

–

(111,119,291)

76,751,880

(111,119,291)

76,751,880

(111,119,291)

76,751,880

9

9

(25.32)

18.16

(25.32)

18.12

Westgold Resources Limited Annual Report 2022

49

for the year ended 30 June 2022FINANCIAL REPORT FINANCIAL REPORT

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

Notes

2022

2021

10

11

12

13

14

15

16

17

18

19

20

21

23

25

22

24

8

26

27

28

28

182,701,502

150,684,029

7,122,734

7,466,095

96,082,089

59,129,368

5,427,078

1,930,033

4,035,977

1,149,449

293,263,436

222,464,918

6,799,309

6,423,091

147,916,103

166,748,178

263,803,557

407,335,920

104,577,467

89,738,936

10,814,702

7,258,887

533,911,138

677,505,012

827,174,574

899,969,930

88,017,524

83,783,431

13,066,226

11,405,262

22,842,019

22,962,067

–

–

123,925,769

118,150,760

69,669,839

20,117,792

77,118,556

22,113,771

25,693,717

75,226,536

115,481,348

174,458,863

239,407,117

292,609,623

587,767,457

607,360,307

463,468,148

364,077,523

(73,079,253)

46,522,657

15,884,931

15,266,496

181,493,631

181,493,631

587,767,457

607,360,307

CURRENT ASSETS

Cash and cash equivalents

Trade and other receivables

Inventories

Prepayments

Other financial assets

Total current assets

NON-CURRENT ASSETS

Financial assets at fair value through profit and loss

Property, plant and equipment

Mine properties and development

Exploration and evaluation expenditure

Right-of-use assets

Total non-current assets

TOTAL ASSETS

CURRENT LIABILITIES

Trade and other payables

Provisions

Interest-bearing loans and borrowings

Unearned income

Total current liabilities

NON-CURRENT LIABILITIES

Provisions

Interest-bearing loans and borrowings

Deferred tax liabilities

Total non-current liabilities

TOTAL LIABILITIES

NET ASSETS

EQUITY

Issued capital

Retained earnings (accumulated losses)

Share-based payments reserve

Other reserves

TOTAL EQUITY

50

Westgold Resources Limited Annual Report 2022

as at 30 June 2022FINANCIAL REPORT CONSOLIDATED STATEMENT OF FINANCIAL POSITION  FINANCIAL REPORT

 CONSOLIDATED STATEMENT OF CASH FLOWS 

OPERATING ACTIVITIES

Receipts from customers

Interest received

Receipts from other income

Payments to suppliers and employees

Interest paid

Income tax refunded 

Notes

2022

2021

647,576,036

570,971,358

220,263

3,080,832

333,794

1,957,496

(469,372,796)

(322,933,634)

(1,648,881)

(1,240,191)

–

53,126

Net cash flows from operating activities

10

179,855,454

249,141,949

INVESTING ACTIVITIES

Payments for property, plant and equipment

Payments for mine properties and development

Payments for exploration and evaluation

Payment for financial assets

Proceeds from sale of financial assets

Payments for performance bond facility

Proceeds from sale of property, plant and equipment

Net cash flows used in investing activities

FINANCING ACTIVITIES

(37,738,519)

(32,351,779)

(150,540,448)

(182,395,512)

(18,190,290)

(14,249,778)

(2,390,258)

(5,986,129)

15

–

17,765,178

(780,584)

–

8,630,810

3,412,695

(201,009,289)

(213,805,325)

Payment of hire purchase arrangements

4(f)

(28,133,801)

(22,245,203)

Payment for lease liabilities

Proceeds from share issue

Payments for share issue costs

Payments for dividends

Net cash flows from (used in) financing activities

Net increase in cash and cash equivalents

(9,037,306)

(8,346,056)

26(b)

100,800,000

8,373,750

(4,132,800)

(6,324,785)

–

–

53,171,308

(22,217,509)

32,017,473

13,119,115

Cash and cash equivalents at the beginning of the financial year

150,684,029

137,564,914

Cash and cash equivalents at the end of the year

10

182,701,502

150,684,029

Westgold Resources Limited Annual Report 2022

51

for the year ended 30 June 2022FINANCIAL REPORT CONSOLIDATED STATEMENT OF CASH FLOWS   CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

Retained 
Earnings 
(accumulated 
losses)  
(Note 27)

Share-based 
payments 
reserve  
(Note 28)

Issued 
capital  
(Note 26)

Equity 
reserve
(Note 28)

Total Equity

364,077,523 46,522,657

15,266,496 181,493,631 607,360,307

–

–

–

–

102,957,835

(3,567,210)

(111,119,291)

–

(111,119,291)

–

–

–

–

–

–

618,435

–

–

–

–

(8,482,619)

–

–

–

–

(111,119,291)

–

(111,119,291)

618,435

– 102,957,835

–

–

(3,567,210)

(8,482,619)

463,468,148 (73,079,253)

15,884,931

181,493,631 587,767,457

356,130,055 (30,229,223)

14,466,364

181,493,631 521,860,827

–

–

–

–

8,373,750

(426,282)

76,751,880

–

76,751,880

–

–

–

–

–

–

800,132

–

–

–

–

–

–

–

–

76,751,880

–

76,751,880

800,132

8,373,750

(426,282)

364,077,523

46,522,657

15,266,496

181,493,631 607,360,307

2022

At 1 July 2021

Loss for the year

Other comprehensive income, net of tax

Total comprehensive loss for the year net of tax

Transactions with owners in their capacity as 
owners

Share-based payments

Issue of share capital

Share issue costs, net of tax

Dividends paid

At 30 June 2022

2021

At 1 July 2020

Profit for the year

Other comprehensive income, net of tax

Total comprehensive profit for the year net 
of tax

Transactions with owners in their capacity 
as owners

Share-based payments

Issue of share capital

Share issue costs, net of tax

At 30 June 2021

52

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.  CORPORATE INFORMATION
The financial report of Westgold Resources Limited for 
the year ended 30 June 2022 was authorised for issue 
in accordance with a resolution of the Directors on 
25 August 2022.

Westgold Resources Limited (the Company or the Parent) 
is a for profit company limited by shares incorporated in 
Australia whose shares are publicly traded on the Australian 
Securities Exchange.

The nature of the operations and principal activities of the 
Group are described in the Directors Report.

The address of the registered office is Level 6, 
200 St Georges Terrace, Perth WA 6000.

2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES

(a)  Basis of Preparation
The financial report is a general-purpose financial 
report, which has been prepared in accordance with 
the requirements of the Corporations Act 2001 and 
Australian Accounting Standards and other authoritative 
pronouncements of the Australian Accounting Standards 
Board.

The financial report has been prepared on a historical cost 
basis, except for certain financial assets, which have been 
measured at fair value through profit or loss.

The financial report is presented in Australian dollars.

(b)  Statement of compliance
The financial report complies with Australian Accounting 
Standards as issued by the Australian Accounting 
Standards Board and also International Financial Reporting 
Standards (IFRS) as issued by the International Accounting 
Standards Board.

Adoption of new accounting standards
In the current year, the Group has adopted all of the new 
and revised Standards and Interpretations issued by the 
Australian Accounting Standards Board (the AASB) that are 
relevant to its operations and effective for annual reporting 
periods beginning on 1 July 2021. Other than the changes 
described in Note 38, the accounting policies adopted are 
consistent with those of the previous financial year.

(c)  Basis of consolidation
The consolidated financial statements comprise the 
financial statements of the parent entity and its subsidiaries 
(the Group) as at 30 June each year. Control is achieved 
when the Group is exposed, or has rights, to variable returns 

from its involvement with the investee and has the ability 
to affect those returns through its power over the investee. 
Specifically, the Group controls an investee if and only if the 
Group has:

 –

 –

 –

 Power over the investee (existing rights that give it 
the current ability to direct the relevant activities of 
the investee);
 Exposure, or rights, to variable returns from its 
involvement with the investee; and
The ability to use its power over the investee to affect its 
returns.

When the Group has less than a majority of the voting 
or similar rights of an investee, the Group considers all 
relevant facts and circumstances in assessing whether it 
has power over an investee, including:

 –

The contractual arrangement with the other vote 
holders of the investee;

 – Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
 –

The Group re-assesses whether it controls an investee if 
facts and circumstances indicate that there are changes to 
one or more of the three elements of control. Consolidation 
of a subsidiary begins when the Group obtains control over 
the subsidiary and ceases when the Group loses control 
of the subsidiary. Assets, liabilities, income and expenses 
of a subsidiary acquired or disposed of during the year are 
included in the Consolidated Statement of Comprehensive 
Income from the date the Group gains control until the date 
the Group ceases to control the subsidiary.

When necessary, adjustments are made to the financial 
statements of subsidiaries to bring their accounting 
policies into line with the Group’s accounting policies. All 
intercompany transactions between members of the Group 
are eliminated in full on consolidation.

(d)  Foreign currency translation

Functional and presentation currency
The Group’s consolidated financial statements are 
presented in Australian (A$), which is also the parent 
entity’s functional currency. The Group does not have any 
foreign operations.

Transactions and balances
Transactions in foreign currencies are initially recorded 
in the functional currency by applying the exchange rates 
ruling at the date of the transaction. Monetary assets and 
liabilities denominated in foreign currencies are translated 
at the rate of exchange at the reporting date.

All exchange differences are taken to the profit or loss.

Westgold Resources Limited Annual Report 2022

53

for the year ended 30 June 2022FINANCIAL REPORT 2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(e)  Operating segments
An operating segment is a component of an entity that 
engages in business activities from which it may earn 
revenues and incur expenses (including revenues and 
expenses relating to transactions with other components 
of the same entity), whose operating results are regularly 
reviewed by management to make decisions about 
resources to be allocated to the segment and assess its 
performance and for which discrete financial information is 
available. This includes start-up operations which are yet to 
earn revenues. Management will also consider other factors 
in determining operating segments such as the existence 
of a line manager and the level of segment information 
presented to the board of directors.

Operating segments have been identified based on 
the information provided by management to the Board of 
Directors. The Group aggregates two or more operating 
segments when they have similar economic characteristics. 
Operating segments that meet the quantitative criteria as 
prescribed by AASB 8 are reported separately. However, 
an operating segment that does not meet the quantitative 
criteria is still reported separately where information about 
the segment would be useful to users of the financial 
statements.

Information about other business activities and operating 
segments that are below the quantitative criteria are 
combined and disclosed in a separate category for “all other 
segments”.

(f)  Cash and cash equivalents
Cash and cash equivalents in the consolidated statement 
of financial position comprise cash at bank and in hand and 
short-term deposits that are readily convertible to known 
amounts of cash and which are subject to an insignificant 
risk of changes in value.

(g)  Financial Instruments

Financial instruments - initial recognition and 
subsequent measurement
A financial instrument is any contract that gives rise to 
a financial asset of one entity and a financial liability or 
equity instrument of another entity. Certain commodity 
contracts are accounted for as executory contracts and not 
recognised as financial instruments as these contracts were 
entered into and continue to be held for the purpose of 
the delivery of gold bullion in accordance with the Group’s 
expected sale requirements (see Note 5). 

Financial assets

Initial recognition and measurement
Financial assets are classified at initial recognition, and 
subsequently measured at amortised cost, or fair value 
through profit or loss or fair value through OCI.

The classification of financial assets at initial recognition 
that are debt instruments depends on the financial asset’s 
contractual cash flow characteristics and the Group’s 
business model for managing them. With the exception of 
trade receivables, the Group initially measures a financial 
asset at its fair value plus, in the case of a financial asset 
not at fair value through profit or loss, transaction costs. In 
order for a financial asset to be classified and measured at 
amortised cost, it needs to give rise to cash flows that are 
‘solely payments of principal and interest (SPPI)’ on the 
principal amount outstanding. This assessment is referred 
to as the SPPI test and is performed at an instrument level. 

Trade receivables that do not contain a significant 
financing component or for which the Group has applied 
the practical expedient for contracts that have a maturity 
of one year or less, are measured at the transaction price 
determined under AASB 15.

The Group’s business model for managing financial assets 
refers to how it manages its financial assets in order to 
generate cash flows. The business model determines 
whether cash flows will result from collecting contractual 
cash flows, selling the financial assets, or both.

Subsequent measurement
For purposes of subsequent measurement, the Group’s 
financial assets are classified in these categories:

 – Financial assets at amortised cost (debt instruments)
 – Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt 
instruments)
The Group’s financial assets at amortised cost include cash, 
short-term deposits, and trade and other receivables. The 
Group measures financial assets at amortised cost if both of 
the following conditions are met:

 –

 –

The financial asset is held within a business model with 
the objective to hold financial assets in order to collect 
contractual cash flows, and
The contractual terms of the financial asset give rise on 
specified dates to cash flows that are solely payments 
of principal and interest on the principal amount 
outstanding

Financial assets at amortised cost are subsequently 
measured using the effective interest rate (EIR) method 
and are subject to impairment. Interest received is 
recognised as part of other income in the Consolidated 
Statement of Comprehensive Income. Gains and losses are 
recognised in profit or loss when the asset is derecognised, 
modified or impaired.

54

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(g)  Financial Instruments (continued)

Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include 
financial assets held for trading, financial assets designated 
upon initial recognition at fair value through profit or loss, 
or financial assets mandatorily required to be measured 
at fair value, i.e., where they fail the SPPI test. Financial 
assets are classified as held for trading if they are acquired 
for the purpose of selling or repurchasing in the near term. 
Derivatives, including separated embedded derivatives, are 
also classified as held for trading unless they are designated 
as effective hedging instruments. Financial assets with 
cash flows that do not pass the SPPI test are required to be 
classified, and measured at fair value through profit or loss, 
irrespective of the business model. 

Notwithstanding the criteria for debt instruments to be 
classified at amortised cost or at fair value through OCI, 
as described above, debt instruments may be designated 
at fair value through profit or loss on initial recognition if 
doing so eliminates, or significantly reduces, an accounting 
mismatch.

Financial assets at fair value through profit or loss are 
carried in the statement of financial position at fair value 
with net changes in fair value recognised in profit or loss.

Impairment of financial assets
The Group recognises an allowance for ECLs for all debt 
instruments not held at fair value through profit or loss. 
ECLs are based on the difference between the contractual 
cash flows due in accordance with the contract and all the 
cash flows that the Group expects to receive, discounted 
at an approximation of the original EIR. The expected cash 
flows will include cash flows from the sale of collateral 
held or other credit enhancements that are integral to the 
contractual terms. ECLs are recognised in two stages. For 
credit exposures for which there has not been a significant 
increase in credit risk since initial recognition, ECLs are 
provided for credit losses that result from default events 
that are possible within the next 12-months (a 12-month 
ECL). 

For those credit exposures for which there has been a 
significant increase in credit risk since initial recognition, 
a loss allowance is required for credit losses expected over 
the remaining life of the exposure, irrespective of the timing 
of the default (a lifetime ECL).

For trade receivables, the Group applies the simplified 
approach in calculating ECLs, as permitted by AASB 9. 
Therefore, the Group does not track changes in credit 
risk, but instead, recognises a loss allowance based on the 
financial asset’s lifetime ECL at each reporting date (see 
Note 3). For any other financial assets carried at amortised 
cost (which are due in more than 12 months), the ECL is 
based on the 12-month ECL. 

The 12-month ECL is the proportion of lifetime ECLs that 
results from default events on a financial instrument that 
are possible within 12 months after the reporting date. 
However, when there has been a significant increase in 
credit risk since origination, the allowance will be based on 
the lifetime ECL. When determining whether the credit 
risk of a financial asset has increased significantly since 
initial recognition and when estimating ECLs, the Group 
considers reasonable and supportable information that is 
relevant and available without undue cost or effort. 

This includes both quantitative and qualitative information 
and analysis, based on the Group’s historical experience 
and informed credit assessment including forward-looking 
information.

The Group considers a financial asset in default when 
contractual payments are 90 days past due. However, 
in certain cases, the Group may also consider a financial 
asset to be in default when internal or external information 
indicates that the Group is unlikely to receive the 
outstanding contractual amounts in full before taking 
into account any credit enhancements held by the Group. 
A financial asset is written off when there is no reasonable 
expectation of recovering the contractual cash flows and 
usually occurs when past due for more than one year and 
not subject to enforcement activity.

At each reporting date, the Group assesses whether 
financial assets carried at amortised cost are credit-
impaired. A financial asset is credit-impaired when one 
or more events that have a detrimental impact on the 
estimated future cash flows of the financial asset have 
occurred.

Financial Liabilities

Initial recognition and measurement
Financial liabilities are classified, at initial recognition, 
as financial liabilities at fair value through profit or loss, 
loans and borrowings, and payables as appropriate.

All financial liabilities are recognised initially at fair value 
and, in the case of loans and borrowings and payables, net 
of directly attributable transaction costs.

The Group’s financial liabilities include trade and other 
payables, loans and borrowings.

Subsequent measurement

Financial liabilities at fair value through profit or 
loss
Financial liabilities at fair value through profit or loss include 
financial liabilities held for trading and financial liabilities 
designated upon initial recognition as at fair value through 
profit or loss.

Financial liabilities are classified as held for trading if they 
are incurred for the purpose of repurchasing in the near 
term. This category also includes derivative financial 
instruments entered into by the Group that are not 
designated as hedging instruments in hedge relationships.

Westgold Resources Limited Annual Report 2022

55

2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(g)  Financial Instruments (continued)
Gains or losses on liabilities held for trading are recognised 
in the statement of profit or loss and other comprehensive 
income.

Expected decommissioning and rehabilitation costs are 
based on the discounted value of the estimated future cost 
of detailed plans prepared for each site. Where there is a 
change in the expected decommissioning and restoration 
costs, the value of the provision and any related asset are 
adjusted, and the effect is recognised in profit or loss on a 
prospective basis over the remaining life of the operation.

Loans, borrowings, and trade and other payables
After initial recognition, interest-bearing loans and 
borrowings and trade and other payables are subsequently 
measured at amortised cost using the EIR method. 
Gains and losses are recognised in the statement 
of comprehensive income when the liabilities are 
derecognised, as well as through the EIR amortisation 
process.

Amortised cost is calculated by taking into account any 
discount or premium on acquisition and fees or costs 
that are an integral part of the EIR. The EIR amortisation 
is included as finance costs in the statement of 
comprehensive income.

This category generally applies to interest-bearing loans 
and borrowings and trade and other payables.

(h)  Inventories
Inventories are valued at the lower of cost and net realisable 
value.

Cost includes expenditure incurred in acquiring and 
bringing the inventories to their existing condition and 
location and is determined using the weighted average cost 
method.

(i)  Borrowing costs
Borrowing costs directly attributable to the acquisition, 
construction or production of a qualifying asset (i.e. an 
asset that necessarily takes a substantial period of time 
to get ready for its intended use or sale) are capitalised 
as part of the cost of that asset. All other borrowing costs 
are expensed in the period they occur. Borrowing costs 
consist of interest and other costs that an entity incurs in 
connection with the borrowing of funds.

( j)  Rehabilitation costs
The Group is required to decommission and rehabilitate 
mines and processing sites at the end of their producing 
lives to a condition acceptable to the relevant authorities.

The expected cost of any approved decommissioning or 
rehabilitation programme, discounted to its net present 
value, is provided when the related environmental 
disturbance occurs. The cost is capitalised when it gives 
rise to future benefits, whether the rehabilitation activity 
is expected to occur over the life of the operation or at the 
time of closure. The capitalised cost is amortised over the 
life of the operation and the increase in the net present 
value of the provision for the expected cost is included in 
financing expenses. 

The estimated costs of rehabilitation are reviewed annually 
and adjusted as appropriate for changes in legislation, 
technology or other circumstances. Cost estimates are not 
reduced by potential proceeds from the sale of assets or 
from plant clean up at closure.

(k)  Property, plant and equipment
Property, plant and equipment is stated at historical cost 
less accumulated depreciation and any impairment in value.

Capital work-in-progress is stated at cost and comprises 
all costs directly attributable to bringing the assets under 
construction ready to their intended use. Capital work-in-
progress is transferred to property, plant and equipment at 
cost on completion.

Depreciation is calculated on a straight-line basis over the 
estimated useful life of the asset, or where appropriate, over 
the estimated life of the mine.

Major depreciation periods are:

 – Mine specific plant and equipment is depreciated using 
– the shorter of life of mine and useful life. Useful life 
ranges from 2 to 25 years.

 – Buildings – the shorter of life of mine and useful life. 

Useful life ranges from 5 to 40 years.

 – Office plant and equipment is depreciated at 33% per 

annum for computers and office machines and 20% per 
annum for other office equipment and furniture.

Impairment
The carrying values of property, plant and equipment 
are reviewed for impairment when events or changes in 
circumstances indicate the carrying value may not be 
recoverable.

For an asset that does not generate largely independent 
cash inflows, the recoverable amount is determined for the 
cash-generating unit to which the asset belongs.

If any such indication exists and where the carrying values 
exceed the estimated recoverable amount, the assets or 
cash-generating units are written down to their recoverable 
amount. Refer to Note 2(o) for further discussion on 
impairment testing performed by the Group.

Derecognition
An item of property, plant and equipment is derecognised 
upon disposal or when no future economic benefits are 
expected to arise from the continued use of the asset.

56

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(k)  Property, plant and equipment (continued)
Any gain or loss arising on derecognition of the asset 
(calculated as the difference between the net disposal 
proceeds and the carrying amount of the item) is included 
in the profit and loss in the period the item is derecognised.

Recoverable amount is determined for an individual asset, 
unless the asset does not generate cash inflows that are 
largely independent of those from other assets or groups 
of assets. When the carrying amount of an asset or CGU 
exceeds its recoverable amount, the asset is considered 
impaired and is written down to its recoverable amount. 
Refer to Note 2(o) for further discussion on impairment 
testing performed by the Group.

Stripping (waste removal) costs
As part of its mining operations, the Group incurs stripping 
(waste removal) costs both during the development phase 
and production phase of its operations. Stripping costs 
incurred in the development phase of a mine, before the 
production phase commences (development stripping), 
are capitalised as part of the cost of constructing the 
mine and subsequently amortised over its useful life using 
a unit of production (UOP) method. The capitalisation 
of development stripping costs ceases when the mine/
component is commissioned and ready for use as intended 
by management.

Stripping activities undertaken during the production 
phase of a surface mine (production stripping) are 
accounted for as set out below. After the commencement 
of production, further development of the mine may 
require a phase of unusually high stripping that is similar in 
nature to development phase stripping. The cost of such 
stripping is accounted for in the same way as development 
stripping (as outlined above).

Production stripping is generally considered to create 
two benefits, being either the production of inventory 
or improved access to the ore to be mined in the future. 
Where the benefits are realised in the form of inventory 
produced in the period, the production stripping costs 
are accounted for as part of the cost of producing those 
inventories.

Where the benefits are realised in the form of improved 
access to ore to be mined in the future, the costs are 
recognised as a non-current asset, referred to as a ‘stripping 
activity asset’, if the following criteria are met:

 – Future economic benefits (being improved access to the 

 –

 –

ore body) are probable
The component of the ore body for which access will be 
improved can be accurately identified
The costs associated with the improved access can be 
reliably measured

If any of the criteria are not met, the production stripping 
costs are charged to profit or loss as operating costs as they 
are incurred.

(l)  Exploration and evaluation expenditure
Expenditure on acquisition, exploration and evaluation 
relating to an area of interest is carried forward at cost 
where rights to tenure of the area of interest are current 
and:

 –

 –

it is expected that expenditure will be recouped through 
successful development and exploitation of the area of 
interest or alternatively by its sale; and/or
exploration and evaluation activities are continuing in 
an area of interest but at reporting date have not yet 
reached a stage which permits a reasonable assessment 
of the existence or otherwise of economically 
recoverable reserves.

A regular review is undertaken of each area of interest 
to determine the appropriateness of continuing to 
carry forward costs in relation to that area of interest. 
Where uncertainty exists as to the future viability of certain 
areas, the value of the area of interest is written off to the 
profit and loss or provided against.

Impairment
The carrying value of capitalised exploration and evaluation 
expenditure is assessed for impairment on a regular 
basis or whenever impairment indicators are present. 
When information becomes available suggesting that 
the recovery of expenditure which had previously been 
capitalised is unlikely or that the Group no longer holds 
tenure, the relevant capitalised amount is written off to 
the profit or loss in the period when the new information 
becomes available. 

(m) Mine properties and development
Expenditure on the acquisition and development of mine 
properties within an area of interest are carried forward 
at cost separately for each area of interest. This includes 
the costs associated with waste removal (stripping costs) 
in the creation of improved access and mining flexibility in 
relation to the ore to be mined in the future. Accumulated 
expenditure is amortised over the life of the area of interest 
to which such costs relate on a production output basis. 

A regular review is undertaken of each area of interest 
to determine the appropriateness of continuing to carry 
forward costs in relation to that area of interest.

Impairment
The carrying value of capitalised mine properties and 
development expenditure is assessed for impairment 
whenever facts and circumstances suggest that the 
carrying amount of the asset may exceed its recoverable 
amount.

Westgold Resources Limited Annual Report 2022

57

2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(m)  Mine properties and development 

(continued)

In identifying components of the ore body, the Group 
works closely with the mining operations personnel for 
each mining operation to analyse each of the mine plans. 
Generally, a component will be a subset of the total ore 
body, and a mine may have several components. The mine 
plans, and therefore the identification of components, can 
vary between mines for a number of reasons.

These include, but are not limited to the type of commodity, 
the geological characteristics of the ore body, the 
geographical location, and/or financial considerations. 
Given the nature of the Group’s operations, components 
are generally either major pushbacks or phases and they 
generally form part of a larger investment decision which 
requires board approval.

The stripping activity asset is initially measured at cost, 
which is the accumulation of costs directly incurred to 
perform the stripping activity that improves access to the 
identified component of ore, plus an allocation of directly 
attributable overhead costs. 

If incidental operations are occurring at the same time as 
the production stripping activity, but are not necessary for 
the production stripping activity to continue as planned, 
these costs are not included in the cost of the stripping 
activity asset.

If the costs of the inventory produced and the stripping 
activity asset are not separately identifiable, a relevant 
production measure is used to allocate the production 
stripping costs between the inventory produced and 
the stripping activity asset. This production measure is 
calculated for the identified component of the ore body 
and is used as a benchmark to identify the extent to which 
the additional activity of creating a future benefit has taken 
place. The Group uses the expected volume of waste 
extracted compared with the actual volume for a given 
volume of ore production of each component.

The stripping activity asset is accounted for as an addition 
to, or an enhancement of, an existing asset, being the 
mine asset, and is presented as part of ’Mine properties’ in 
the statement of financial position. This forms part of the 
total investment in the relevant cash generating unit(s), 
which is reviewed for impairment if events or changes of 
circumstances indicate that the carrying value may not be 
recoverable. 

The stripping activity asset is subsequently depreciated 
using the UOP method over the life of the identified 
component of the ore body that became more accessible 
as a result of the stripping activity. Economically 
recoverable reserves, which comprise proven and probable 
reserves, are used to determine the expected useful life of 
the identified component of the ore body. The stripping 
activity asset is then carried at cost less depreciation and 
any impairment losses.

(n)   Non-current assets and disposal groups 

held for sale and discontinued operations
Non-current assets and disposal groups are classified as 
held for sale and measured at the lower of their carrying 
amount and fair value less costs of disposal if their carrying 
amount will be recovered principally through a sale 
transaction. They are not depreciated or amortised. For 
an asset or disposal group to be classified as held for sale it 
must be available for immediate sale in its present condition 
and its sale must be highly probable.

An impairment loss is recognised for any initial or 
subsequent write-down of the asset (or disposal group) 
to fair value less costs to sell. A gain is recognised for 
any subsequent increases in fair value less costs to sell 
of an asset (or disposal group), but is not in excess of any 
cumulative impairment loss previously recognised. 

A gain or loss not previously recognised by the date of 
the sale of the non-current asset (or disposal group) is 
recognised as the date of de-recognition.

A discontinued operation is a component of the Group 
that has been disposed of or is classified as held for sale 
and that represents a separate major line of business 
or geographical area of operations, is part of a single 
coordinated plan to dispose of such a line of business or 
area of operations, or is a subsidiary acquired exclusively 
with a view to resale. The results of discontinued operations 
are presented separately on the face of the Consolidated 
Statement of Comprehensive Income and the assets 
and liabilities are presented separately on the face of the 
Consolidated Statement of Financial Position.

(o)  Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is 
an indication that an asset may be impaired. If any indication 
exists, or when annual impairment testing for an asset is 
required, the Group estimates the asset’s recoverable 
amount. An asset’s recoverable amount is the higher of an 
asset’s or cash-generating unit’s (CGU) fair value less costs 
of disposal (FVLCD) and its value in use (VIU). 

Recoverable amount is determined for an individual asset, 
unless the asset does not generate cash inflows that are 
largely independent of those from other assets or groups 
of assets. When the carrying amount of an asset or CGU 
exceeds its recoverable amount, the asset is considered 
impaired and is written down to its recoverable amount. 

In assessing VIU, the estimated future cash flows are 
discounted to their present value using a pre-tax discount 
rate that reflects current market assessments of the 
time value of money and the risks specific to the asset or 
CGU. In determining FVLCD, recent market transactions 
are taken into account. If no such transactions can be 
identified, an appropriate valuation model is used.

The Group bases its impairment calculation on detailed 
budgets and forecasts, which are prepared separately for 
each of the Group’s CGUs to which the individual assets are 
allocated, based on the life-of-mine plans. 

58

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(o)   Impairment of non-financial assets 

(continued)

The estimated cash flows are based on expected future 
production, metal selling prices, operating costs and 
forecast capital expenditure based on life-of-mine plans. 

VIU does not reflect future cash flows associated with 
improving or enhancing an asset’s performance, whereas 
anticipated enhancements to assets are included in FVLCD 
calculations.

of the discount on the lease liability. The Group recognises 
leases entered into after 1 July 2019 using the interest rate 
implicit in the lease.

(r)  Interest revenue
Revenue is recognised using the effective interest method. 
This is a method of calculating the amortised cost of a 
financial asset and allocating the interest income over the 
relevant period using the effective interest rate, which is the 
rate that exactly discounts estimated future cash receipts 
through the expected life of the financial asset to the net 
carrying amount of the financial asset.

Impairment losses of continuing operations, including 
impairment on inventories, are recognised in the profit and 
loss. For such properties, the impairment is recognised 
in other comprehensive income up to the amount of any 
previous revaluation.

For assets, an assessment is made at each reporting date 
to determine whether there is an indication that previously 
recognised impairment losses no longer exist or have 
decreased. If such indication exists, the Group estimates 
the asset’s or CGU’s recoverable amount. A previously 
recognised impairment loss is reversed only if there has 
been a change in the assumptions used to determine the 
asset’s recoverable amount since the last impairment loss 
was recognised. The reversal is limited so that the carrying 
amount of the asset does not exceed its recoverable 
amount, nor exceed the carrying amount that would have 
been determined, net of depreciation, had no impairment 
loss been recognised for the asset in prior years. Such 
reversal is recognised in profit or loss.

(p) Provisions
Provisions are recognised when the Group has a present 
obligation (legal or constructive) as a result of a past event, 
it is probable that an outflow of resources embodying 
economic benefits will be required to settle the obligation 
and a reliable estimate can be made of the amount of the 
obligation.

Provisions are measured at the present value of 
management’s best estimate of the expenditure required 
to settle the present obligation at the reporting date. 
The discount rate used to determine the present value 
reflects current market assessments of the time value of 
money and the risks specific to the liability. The increase 
in the provision resulting from the passage of time is 
recognised in finance costs.

(q)  Lease liabilities
The Group has lease contracts for various items of mining 
equipment, motor vehicles and buildings used in its 
operations. Upon adoption of AASB 16, all leases with the 
exception of short term (under 12 months) and low value 
leases, are recognised on the balance sheet as a right-of-
use asset and a corresponding interest-bearing liability. 
Lease costs are recognized in the income statement over 
the lease term in the form of depreciation on the right-of-
use asset and finance charges representing the unwinding 

(s)  Revenue from contracts with customers
Revenue from contracts with customers is recognised 
when control of the goods or services are transferred to 
the customer at an amount that reflects the consideration 
to which the Group expects to be entitled in exchange for 
those goods or services. The Group has concluded that it 
is the principal in its revenue contracts because it typically 
controls the goods or services before transferring them to 
the customer.

Gold bullion sales
For bullion sales, most of this is sold under a long-term 
sales contract with the refiner and forward sale agreements 
with with Citibank N.A. The only performance obligation 
under the contract is the sale of gold bullion. Revenue 
from bullion sales is recognised at a point in time when 
control passes to the buyer. This generally occurs after 
the unrefined doré is outturned and the Group either 
instructs the refiner to purchase the outturned fine 
metal or advises the refiner to transfer the gold to the 
bank by crediting the metal account of the bank. As all 
performance obligations are satisfied at that time, there are 
no remaining performance obligations under the contract. 
The transaction price is determined at transaction date and 
there are no further adjustments to this price.

A contract liability is the obligation to transfer goods or 
services to a customer for which the Group has received 
consideration from the customer. If a customer pays 
consideration before the Group transfers goods or services 
to the customer, a contract liability is recognised when 
the payment is made, or the payment is due (whichever 
is earlier). Contract liabilities are recognised as revenue 
when the Group performs under the contract. The Group 
applies the practical expedient to not adjust the promised 
consideration for the effects of a significant financing 
component where the period between the transfer of the 
refined gold to a customer and the receipt of the advance 
is one year or less. For long-term advances from customers 
the transaction price is discounted, using the rate that 
would be reflected in a separate transaction between the 
Group and its customers at contract inception, to take into 
consideration the significant financing component.

Westgold Resources Limited Annual Report 2022

59

2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(s)   Revenue from contracts with customers 

(continued)

Mining and contracting services
Mining and contracting services is the provision of 
equipment and personnel to carry out mining activities on 
behalf of the customer. 

These contracts are assessed to have multiple performance 
obligation as each equipment and service are capable 
of being distinct and separately identifiable. Revenue is 
recognised over time as the customer simultaneously 
receives and consumes the benefits provided by the Group 
as the services are rendered. 

The transaction price for each contract is based on an 
agreed schedule of rates to which the Group is entitled.

(t)  Earnings per share
Basic earnings per share is calculated as net profit 
attributable to members of the parent, adjusted to exclude 
any costs of servicing equity (other than dividends) and 
preference share dividends, divided by the weighted 
average number of ordinary shares, adjusted for any bonus 
element.

Diluted earnings per share is calculated as net profit 
attributable to members of the parent adjusted for:

 –

 –

cost of servicing equity (other than dividends) and 
preference share dividends;
the after-tax effect of dividends and interest associated 
with dilutive potential ordinary shares that have been 
recognised; and

 – other non-discriminatory changes in revenues or 

expenses during the period that would result from 
the dilution of potential ordinary shares divided by 
the weighted average number of ordinary shares and 
dilutive potential ordinary shares; adjusted for any bonus 
element.

(u)  Issued capital
Issued and paid-up capital is recognised at the fair value of 
the consideration received by the Group. Any transaction 
costs arising on the issue of ordinary shares are recognised 
directly in equity as a reduction in the proceeds received.

(v)  Share-based payment transactions
The Group provides benefits to employees (including 
Directors) in the form of share-based payment transactions, 
whereby employees render services in exchange for shares 
or rights over shares (equity-settled transactions). The 
Group has one plan in place that provides these benefits. 
It is the Long-Term Incentive Plan (LTIP) which provides 
benefits to all employees including Directors.

In valuing equity-settled transactions, no account is taken 
of any vesting conditions (such as service conditions), 
other than conditions linked to the price of the shares 
of Westgold Resources Limited (market conditions) 
if applicable.

The cost of these equity-settled transactions with 
employees is measured by reference to the fair value at the 
date at which they are granted. The fair value is determined 
by using either a Black & Scholes or a Monte Carlo model as 
appropriate. Further details of which are given in Note 29.

The cost of equity-settled transactions is recognised, 
together with a corresponding increase in equity, over the 
period in which the performance and/or service conditions 
are fulfilled (the vesting period), ending on the date on 
which the relevant employees become fully entitled to the 
award (the vesting date).

At each subsequent reporting date until vesting, the 
cumulative charge to the consolidated statement of 
comprehensive income is the product of (i) the grant date 
fair value of the award; (ii) the current best estimate of 
the number of awards that will vest, taking into account 
such factors as the likelihood of employee turnover during 
the vesting period and the likelihood of non-market 
performance conditions being met; and (iii) the expired 
portion of the vesting period.

The charge to profit and loss for the period is the cumulative 
amount as calculated above, less the amounts already 
charged in previous periods. There is a corresponding 
credit to equity.

Until an award has vested, any amounts recorded are 
contingent and will be adjusted if more or fewer awards vest 
than were originally anticipated to do so. Any award subject 
to a market condition is considered to vest irrespective of 
whether or not the market condition is fulfilled, provided 
that all other conditions are satisfied.

If a non-vesting condition is within the control of the Group, 
Company or the employee, the failure to satisfy the 
condition is treated as a cancellation. If a non-vesting 
condition within the control of neither the Group, Company 
nor employee is not satisfied during the vesting period, 
any expense for the award not previously recognised is 
recognised over the remaining vesting period, unless the 
award is forfeited.

If the terms of an equity-settled award are modified, as a 
minimum an expense is recognised as if the terms had not 
been modified. An additional expense is recognised for any 
modification that increases the total fair value of the share-
based payment arrangement, or is otherwise beneficial to 
the employee, as measured at the date of modification.

If an equity-settled award is cancelled, it is treated as if it 
had vested on the date of cancellation, and any expense not 
yet recognised for the award is recognised immediately.

60

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(v)   Share-based payment transactions 

(continued)

However, if a new award is substituted for the cancelled 
award and designated as a replacement award on the date 
that it is granted, the cancelled and new award are treated 
as if they were a modification of the original award, as 
described in the previous paragraph. The dilutive effect, 
if any, of outstanding options is reflected as additional share 
dilution in the computation of dilutive earnings per share.

(w) Employee benefits

Wages, salaries, sick leave and other short-term 
benefits
Liabilities for wages and salaries, including non-monetary 
benefits, accumulating sick leave and other short-term 
benefits expected to be settled wholly within 12 months of 
the reporting date are recognised in respect of employees’ 
services up to the reporting date. They are measured at the 
amounts expected to be paid when  
the liabilities are settled. 

Long service leave
The liability for long service leave is recognised and 
measured as the present value of expected future 
payments to be made in respect of services provided by 
employees up to the reporting date using the projected 
unit credit method. Consideration is given to the 
expected future wage and salary levels, experience of 
employee departure and periods of service. Expected 
future payments are discounted using market yields at 
the reporting date on high quality corporate bonds with 
terms to maturity and currencies that match, as closely as 
possible, the estimated future cash outflows.

Superannuation
Contributions made by the Group to employee 
superannuation funds, which are defined contribution 
plans, are charged as an expense when incurred.

(x)  Other taxes
Revenues, expenses and assets are recognised net of 
the amount of GST except:

 – when the GST incurred on purchase of goods or services 

is not recoverable from the taxation authority, in 
which case the GST is recognised as part of the cost of 
acquisition of the asset or as part of the expense item as 
applicable; and
receivables and payables, which are stated with the 
amount of GST included.

 –

The net amount of GST recoverable from, or payable 
to, the taxation authority is included as part of 
receivables or payables in the Consolidated Statement 
of Financial Position.

Cash flows are included in the Consolidated Statement 
of Cash Flows on a gross basis and the GST component of 
cash flows arising from investing and financing activities, 
which is recoverable from, or payable to, the taxation 
authority is classified as operating cash flows.

Commitments and contingencies are disclosed net 
of amounts of GST recoverable from, or payable to, 
the taxation authority.

(y)  Income tax
Current income tax assets and liabilities for the current and 
prior periods are measured at the amount expected to be 
recovered from, or paid to, the taxation authorities. The tax 
rates and tax laws used to compute the amount are those 
that are enacted or substantively enacted at the reporting 
date in the countries where the Group operates and 
generates taxable income.

Current income tax relating to items recognised directly 
in other comprehensive income or equity is recognised in 
other comprehensive income or equity and not in profit or 
loss. Management periodically evaluates positions taken in 
the tax returns with respect to situations where applicable 
tax regulations are subject to interpretation and establishes 
provisions where appropriate.

Deferred tax is provided for using the full liability 
balance sheet approach.

The tax rates and tax laws used to compute the amount of 
deferred tax assets and liabilities are those that are enacted 
or substantively enacted at the reporting date in the 
countries where the Group operates and generates taxable 
profits. 

Deferred tax liabilities are recognised for all taxable 
temporary differences except to the extent that the 
deferred tax liability arises from:

 –
 –

 –

the initial recognition of goodwill;
the initial recognition of an asset or liability in a 
transaction that is not a business combination and, 
at the time of the transaction, affects neither the 
accounting profit nor taxable profit (or tax loss); and
taxable temporary differences associated with 
investments in subsidiaries, associates and interests in 
joint ventures when the timing of the reversal of the 
temporary differences can be controlled by the Group 
and it is probable that the temporary differences will not 
reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible 
temporary differences, including carry-forward tax losses 
and tax credits, to the extent that it is probable that taxable 
profit will be available against which the deductible 
temporary differences can be utilised except when:

 –

the deferred tax asset relating to the deductible temporary 
difference arises from the initial recognition of an asset or 
liability in a transaction that is not a business combination 
and, at the time of the transaction, affects neither the 
accounting profit nor taxable profit (or tax loss); and

Westgold Resources Limited Annual Report 2022

61

2. 

 SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES (CONTINUED)

(y)  Income tax (continued)
 –

the deductible temporary difference is associated with 
investments in subsidiaries, associates and interests in 
joint ventures and it is not probable that the temporary 
difference will reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed 
at each reporting date and reduced to the extent that it 
is no longer probable that sufficient taxable profit will be 
available to allow all or part of the deferred tax asset to be 
utilised.

Unrecognised deferred tax assets and deferred tax 
liabilities are reassessed at each reporting date and are 
recognised to the extent that they satisfy the requirements 
for recognition.

Deferred tax assets and deferred tax liabilities are offset 
only if a legally enforceable right exists to set off current 
tax assets against current tax liabilities and the deferred 
tax assets and deferred tax liabilities relate to income taxes 
levied by the same taxation authority on the same taxable 
entity.

Income taxes relating to transactions recognised 
outside profit and loss (for example, directly in other 
comprehensive income or directly in equity) are also 
recognised outside profit and loss.

Tax consolidation 
Westgold Resources Limited and its wholly owned 
Australian resident subsidiaries formed a tax consolidated 
group (the Tax Group) with effect from 1 December 2016. 
Members of the Tax Group have entered into a tax sharing 
agreement, which provides for the allocation of income 
tax liabilities between members of the Tax Group should 
the parent, Westgold Resources Limited, default on its tax 
payments obligations.

The Group has applied the group allocation approach 
in determining the appropriate amount of current taxes 
and deferred taxes to allocate to members of the tax 
consolidated group. Members of the tax consolidated 
group have entered into a tax funding agreement. The tax 
funding agreement provides for the allocation of current 
taxes to members of the tax consolidated group. 

The allocation of taxes under the tax funding agreement 
is recognised as an increase/decrease in the controlled 
entities intercompany accounts with the tax consolidated 
group head company, Westgold Resources Limited. The 
nature of the tax funding agreement is such that no tax 
consolidation adjustments are required.

3. 

 SIGNIFICANT ACCOUNTING 
JUDGEMENTS, ESTIMATES AND 
ASSUMPTIONS

The preparation of the financial statements requires 
management to make judgements, estimates and 
assumptions that affect the reported amounts in 
the financial statements. Management continually 
evaluates its judgements and estimates in relation to assets, 
liabilities, contingent liabilities, revenue and expenses. 
Management bases its judgements and estimates on 
historical experience and on other various factors it 
believes to be reasonable under the circumstances, 
the result of which form the basis of the carrying values of 
assets and liabilities that are not readily apparent from other 
sources.

Management has identified the following critical 
accounting policies for which significant judgements have 
been made as well as the following key estimates and 
assumptions that have the most significant impact on the 
financial statements. Actual results may differ from these 
estimates under different assumptions and conditions 
and may materially affect financial results or the financial 
position reported in future periods.

Further details of the nature of these assumptions and 
conditions may be found in the relevant notes to the 
financial statements.

Significant judgements
 – Revenue from contracts with customers

Judgement is required to determine the point at 
which the customer obtains control of gold. Factors 
including transfer of legal title, transfer of significant 
risks and rewards of ownership and the existence of a 
present right to payment for the gold typically result in 
control transferring upon allocation of the gold to the 
customers’ account.

 – Mine properties and development - stripping costs
Significant judgement is required to distinguish 
between development stripping and production 
stripping and to distinguish between the production 
stripping that relates to the extraction of inventory and 
that which relates to the creation of a stripping activity 
asset.

Once the Group has identified its production stripping 
for each surface mining operation, it identifies the 
separate components of the ore bodies for each of 
its mining operations. An identifiable component 
is a specific volume of the ore body that is made 
more accessible by the stripping activity. Significant 
judgement is required to identify and define these 
components, and also to determine the expected 
volumes (e.g., in tonnes) of waste to be stripped and ore 
to be mined in each of these components.

62

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS3. 

 SIGNIFICANT ACCOUNTING 
JUDGEMENTS, ESTIMATES AND 
ASSUMPTIONS (CONTINUED)

Significant judgements (continued)

These assessments are undertaken for each individual 
mining operation based on the information available 
in the mine plan. The mine plans and, therefore, the 
identification of components, will vary between mines 
for a number of reasons. These include, but are not 
limited to, the type of commodity, the geological 
characteristics of the ore body, the geographical 
location and/or financial considerations.

Judgement is also required to identify a suitable 
production measure to be used to allocate production 
stripping costs between inventory and any stripping 
activity asset(s) for each component. The Group 
considers that the ratio of the expected volume 
(e.g., in tonnes) of waste to be stripped for an expected 
volume (e.g., in tonnes) of ore to be mined for a specific 
component of the ore body, is the most suitable 
production measure. Furthermore, judgements and 
estimates are also used to apply the UOP method 
in determining the depreciable lives of the stripping 
activity asset(s).

There are a number of uncertainties inherent in 
estimating the carrying value of mine properties and 
development and assumptions that are valid at the 
time of estimation may change significantly when new 
information becomes available. Changes in the forecast 
price of commodities, exchange rates, production costs 
or recovery rates may change the economic status of 
reserves and may ultimately, result in the requirement to 
restate the carrying value.

Significant accounting estimates and 
assumptions

Determination of mineral resources and ore 
reserves
The determination of reserves impacts the accounting for 
asset carrying values, depreciation and amortisation rates 
and provisions for mine rehabilitation. The Group estimates 
its mineral resource and reserves in accordance with the 
Australian code for Reporting of Exploration Results, 
Mineral Resources and Ore Reserves 2012 (the JORC 
code). The information on mineral resources and ore 
reserves were prepared by or under the supervision of 
Competent Persons as defined in the JORC code. The 
amounts presented are based on the mineral resources and 
ore reserves determined under the JORC code.

There are numerous uncertainties inherent in estimating 
mineral resources and ore reserves and assumptions that 
are valid at the time of estimation may change significantly 
when new information becomes available.

Changes in the forecast prices of commodities, exchange 
rates, production costs or recovery rates may change 
the economic status of reserves and may ultimately, result 
in the reserves being restated.

Mine rehabilitation provision
The Group assesses its mine rehabilitation provision on 
an annual basis in accordance with the accounting policy 
stated in Note 2(j). In determining an appropriate level of 
provision consideration is given to the expected future 
costs to be incurred, the timing of those future costs 
(largely dependent on the life of mine) and the estimated 
level of inflation. The ultimate rehabilitation costs are 
uncertain, and cost estimates can vary in response to many 
factors, including estimates of the extent and costs of 
rehabilitation activities, technological changes, regulatory 
changes, timing, cost increases as compared to the inflation 
rate of 2.5% (2021: 2.2%), and changes in discount rates. 
The applicable discount rates are based on the expected 
life of mine for each operation.

The expected timing of expenditure can also change, for 
example in response to changes in reserves or production 
rates. These uncertainties may result in future actual 
expenditure differing from the amounts currently provided. 
Therefore, significant estimates and assumptions are 
made in determining the provision for mine rehabilitation. 
As a result, there could be significant adjustments to 
the provisions established which would affect future 
financial result. The provision at reporting date represents 
management’s best estimate of the present value of the 
future rehabilitation costs required.

Impairment of capitalised exploration and 
evaluation expenditure
The future recoverability of capitalised exploration and 
evaluation expenditure is dependent on various factors, 
including whether the Group decides to exploit the related 
area interest itself or, if not, whether it successfully recovers 
the related exploration and evaluation asset through sale.

Factors that could impact the future recoverability include 
the level of reserves and resources, future technological 
changes, which could impact the cost of mining, future 
legal changes (including changes to environmental 
restoration obligations) and changes to commodity prices.

To the extent that capitalised exploration and evaluation 
expenditure is determined not to be recoverable in the 
future, profits and net assets will be reduced in the period in 
which this determination is made.

In addition, exploration and evaluation expenditure is 
capitalised if activities in the area of interest have not yet 
reached a stage that permits a reasonable assessment of 
the existence or otherwise of economically recoverable 
reserves. To the extent it is determined in the future that 
this capitalised expenditure should be written off, profits 
and net assets will be reduced in the period in which this 
determination is made.

Westgold Resources Limited Annual Report 2022

63

3. 

 SIGNIFICANT ACCOUNTING 
JUDGEMENTS, ESTIMATES AND 
ASSUMPTIONS (CONTINUED)

Significant accounting estimates and 
assumptions (continued)

Life of mine method of amortisation and 
depreciation
Estimated economically recoverable reserves are used 
in determining the depreciation of mine-specific assets. 
This results in a depreciation charge proportional to 
the depletion of the anticipated remaining life-of-mine 
production. The life of each item, which is assessed at least 
annually, has regard to both its physical life limitations and 
present assessments of economically recoverable reserves 
of the mine property at which the asset is located. Changes 
in estimates are accounted for prospectively.

These calculations require the use of estimates and 
assumptions, including the amount of recoverable reserves 
and estimates of future capital expenditure. The calculation 
of the UOP rate of depreciation could be impacted to 
the extent that actual production in the future is different 
from current forecast production based on economically 
recoverable reserves, or if future capital expenditure 
estimates change. Changes to economically recoverable 
reserves could arise due to changes in the factors or 
assumptions used in estimating reserves, including:

 –

The effect on economically recoverable reserves for 
differences between actual commodity prices and 
commodity price assumptions
 – Unforeseen operational issues.

From 1 January 2022, the Group has used total ounces 
produced in calculating its amortisation of mine properties, 
which was previously calculated based on production from 
reserves. The change coincides with the development of 
the Big Bell underground mine which reached commercial 
production during the second half of the year. The change 
resulted in an increase to amortisation of $25,131,673 
compared to the amortisation that would have been 
recorded under the approach previously used and is 
considered to more accurately reflect the future pattern 
of usage of the mine development assets for the Group’s 
current operations.

Impairment of capitalised mine development 
expenditure, property, plant and equipment
The future recoverability of capitalised mine development 
expenditure, property, plant and equipment is dependent 
on a number of factors, including the level of proved 
and probable reserves, and the likelihood of progressive 
upgrade of mineral resources in to reserves over time.  
In addition, consideration is given to future technological 
changes, which could impact the cost, future legal 
changes (including changes to environmental restoration 
obligations), and changes in commodity prices.  
Non-financial assets are reviewed for impairment if there 
is any indication that the carrying amount may not be 
recoverable.

When applicable, FVLCD is estimated based on discounted 
cash flows using market based commodity prices and 
foreign exchange rate assumptions, estimated quantities 
of recoverable minerals, production levels, operating costs 
and capital requirements, based on the relevant CGU’s 
life-of-mine (LOM) plans. 

Consideration is also given to analysts’ valuations. The fair 
value methodology adopted is categorised as Level 3 in the 
fair value hierarchy.

In determining the VIU, future cash flows for each CGU (i.e. 
each mine site) are prepared utilising management’s latest 
estimates of:

 –

 –
 –
 –
 –

the quantities of ore reserves and mineral resources for 
which there is a high degree of confidence of economic 
extraction;
royalties and taxation;
future production levels;
future commodity prices; 
future cash costs of production and development 
expenditure; and

 – other relevant cash inflows and outflows.

Cash flow scenarios for a range of commodity prices 
and foreign exchange rates are assessed using internal 
and external market forecasts, and the present value of 
the forecast cash flows is determined utilising a pre-tax 
discount rate.

The Group’s cash flows are most sensitive to movements in 
commodity price, expected quantities of ore reserves and 
mineral resources and key operating costs. In particular, 
CGO, MGO and FGO are most sensitive to expected 
quantities of ore reserves and mineral resources to be 
extracted and therefore the estimated future cash inflows 
resulting from the sale of product produced is dependent 
on these assumptions. Variations to the expected cash 
flows, and the timing thereof, could result in significant 
changes to any impairment losses recognised, if any, which 
in turn could impact future financial results. 

To the extent that capitalised mine development 
expenditure is determined not to be recoverable in 
the future, this will reduce profit in the period in which 
the Group makes this determination. Capitalised mine 
development expenditure is assessed for recoverability in 
a manner consistent with property, plant and equipment as 
described below. 

Refer to Note 2(o) for further discussion on the impairment 
assessment process undertaken by the Group.

Provision for expected credit losses (ECLs) 
on trade receivables and other short-term 
receivables carried at amortised cost
The Group uses a provision matrix to calculate ECLs for 
trade and other short-term receivables carried at amortised 
cost. The provision rates are based on days past due.

64

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS3. 

 SIGNIFICANT ACCOUNTING 
JUDGEMENTS, ESTIMATES AND 
ASSUMPTIONS (CONTINUED)

Significant accounting estimates and 
assumptions (continued)
The provision matrix is initially based on the Group’s 
historical observed default rates. The Group calibrates 
the matrix to adjust the historical credit loss experience 
with forward-looking information. For instance, if forecast 
economic conditions are expected to deteriorate over 
the next year, which can lead to an increased number of 
defaults, the historical default rates are adjusted. At every 
reporting date, the historical observed default rates are 
updated and changes in the forward-looking estimates are 
analysed.

The assessment of the correlation between historical 
observed default rates, forecast economic conditions and 
ECLs is a key estimate. The amount of ECLs is sensitive 
to changes in circumstances and of forecast economic 
conditions. The Group’s historical credit loss experience 
and forecast of economic conditions may also not be 
representative of customer’s actual default in the future.

Share-based payment transactions
The Group measures the cost of equity-settled transactions 
with employees by reference to the fair value of the equity 
instruments at the date at which they are granted. The fair 
value is determined by using an appropriate valuation, using 
the assumptions as discussed in Note 29. The accounting 
estimates and assumptions relating to equity-settled 
share-based payments would have no impact on the 
carrying amounts of assets and liabilities in the next annual 
reporting period but may impact expenses and equity.

Estimating the incremental borrowing rate 
Where the Group cannot readily determine the interest 
rate implicit in its leases, it uses the relevant incremental 
borrowing rate (IBR) to measure lease liabilities. The IBR 
is the rate of interest that the Group would have to pay to 
borrow over a similar term, and with a similar security, the 
funds necessary to obtain an asset of a similar value to the 
right-of-use asset in a similar economic environment. 

Significant judgement in determining the lease 
term of contracts with renewal options
The Group determines the lease term as the non-
cancellable term of the lease, together with any periods 
covered by an option to extend the lease if it is reasonably 
certain to be exercised, or any periods covered by an option 
to terminate the lease, if it is reasonably certain not to be 
exercised.

Significant judgement in relation to future cash 
flow
The Group has several lease contracts relating to premises 
and power stations that include extension and termination 
options. These options are negotiated by management to 
provide flexibility in managing the leased-asset portfolio 
and align with the Group’s business needs. Management 
exercises significant judgement in determining whether 

these extension and termination options are reasonably 
certain to be exercised. For renewal options that were 
reasonably certain to be exercised, these have been 
included in the calculation of right-of-use assets and lease 
liabilities.

4. 

 FINANCIAL RISK MANAGEMENT 
OBJECTIVES AND POLICIES

The Group’s principal financial instruments comprise 
receivables, trade and other payables, finance lease 
and hire purchase contracts, cash and cash equivalents, 
deposits and equity investments.

Risk exposures and responses
The Group manages its exposure to key financial risks in 
accordance with the Group’s financial risk management 
policy. The objective of the policy is to support the delivery 
of the Group’s financial targets while protecting future 
financial security.

The main risks arising from the Group’s financial 
instruments are interest rate risk, credit risk, equity price 
risk and liquidity risk. The Group uses different methods 
to measure and manage different types of risks to which 
it is exposed. These include monitoring levels of exposure 
to interest rate, foreign exchange risk and assessments 
of market forecasts for interest rate, foreign exchange 
and commodity prices. Ageing analysis and monitoring of 
receivables are undertaken to manage credit risk, liquidity 
risk is monitored through the development of future rolling 
cash flow forecasts.

The board reviews and agrees policies for managing each of 
these risks as summarised below.

Primary responsibility for identification and control of 
financial risks rests with the Board. The Board reviews and 
agrees policies for managing each of the risks identified 
below, including for interest rate risk, credit allowances and 
cash flow forecast projections.

Details of the significant accounting policies and methods 
adopted, including the criteria for recognition, the basis of 
measurement and the basis on which income and expenses 
are recognised, in respect of each class of financial asset, 
financial liability and equity instrument are disclosed in 
Note 2 to the financial statements.

(a)  Interest rate risk
The Group’s exposure to risks of changes in market interest 
rates relate primarily to the Group’s interest-bearing 
liabilities and cash balances. The level of debt is disclosed 
in Notes 23 and 24. The Group’s policy is to manage its 
interest cost using fixed rate debt. Therefore, the Group 
does not have any variable interest rate risk on its debt. The 
Group constantly analyses its interest rate exposure. Within 
this analysis, consideration is given to potential renewals 
of existing positions, alternative financing positions and 
the mix of fixed and variable interest rates. There is no 
significant exposure to changes in market interest rates at 
the reporting date.

Westgold Resources Limited Annual Report 2022

65

4. 

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

Risk exposures and responses (continued)
At the reporting date the Group’s exposure to interest rate risk for classes of financial assets and financial liabilities is set out 
below.

2022

Financial assets

Cash and cash equivalents

Trade and other receivables

Financial assets at fair value through profit and loss

Other financial assets

Financial liabilities

Trade and other payables

Lease liabilities

Interest-bearing liabilities

Net financial assets

2021

Financial assets

Cash and cash equivalents

Trade and other receivables

Financial assets at fair value through profit and loss

Other financial assets

Financial liabilities

Trade and other payables

Lease liabilities

Interest-bearing liabilities

Net financial assets

Floating 
interest rate

Fixed interest

Non-interest 
bearing

Total carrying 
amount

142,701,502

40,000,000

–

182,701,502

–

–

–

–

–

7,122,734

7,122,734

6,799,309

6,799,309

1,930,033

–

1,930,033

142,701,502

41,930,033 13,922,043

198,553,578

–

–

–

–

– (88,017,524)

(88,017,524)

(10,909,353)

(32,050,458)

–

–

(10,909,353)

(32,050,458)

(42,959,811) (88,017,524)

(130,977,335)

67,576,243

150,684,029

–

–

–

–

–

–

–

150,684,029

7,466,095

7,466,095

6,423,091

6,423,091

1,149,449

–

1,149,449

150,684,029

1,149,449

13,889,186

165,722,664

–

–

–

–

–

(83,783,431)

(83,783,431)

(7,338,534)

(37,737,304)

–

–

(7,338,534)

(37,737,304)

(45,075,838)

(83,783,431)

(128,859,269)

36,863,395

66

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS4. 

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

Interest rate risk exposure

Judgements of reasonably possible movements:

+ 1.0% (100 basis points)

- 1.0% (100 basis points)

Post tax profit higher (lower)

Other Comprehensive Income 
higher (lower)

30 June 
2022

30 June  
2021

30 June 
2022

30 June  
2021

1,278,911

1,054,788

(1,278,911)

(1,054,788)

–

–

–

–

(b)  Credit risk
Credit risk arises from the financial assets of the Group, which comprises cash and cash equivalents, trade and other 
receivables, financial assets representing listed shares and other financial assets held as security and loans. Cash and cash 
equivalents are held with National Australia Bank, which is an Australian Bank with an AA- credit rating (Standard & Poor’s).

The Group’s exposure to credit risk arises from potential default of the counter party, with the maximum exposure equal to 
the carrying amount of the financial assets (as outlined in each applicable note).

The Group does not hold any credit derivatives to offset its credit exposure.

The Group trades only with recognised, creditworthy third parties and as such collateral is not requested nor is it the Group’s 
policy to securitise its trade and other receivables. 

Receivable balances are monitored on an ongoing basis with the result that the Group does not have a significant exposure 
to bad debts.

Significant concentrations of credit risk are in relation to cash and cash equivalents with Australian banks.

(c)  Price risk

Equity Security Price Risk
The Group’s operations were exposed to equity security price fluctuations arising from investments in equity securities. 
Refer to Note 15 for details of equity investments at fair value through profit or loss held at 30 June 2022.

The Group has equity investments, which have shown volatility in price movements over the year. If security prices varied by 
20%, with all other variables held constant, the impact on post tax profits and equity at 30 June, is reflected below:

Judgements of reasonably possible movements:

Price + 20% 

Price - 20% 

Post tax profit higher (lower)

Other Comprehensive Income 
higher (lower)

30 June 
2022

30 June  
2021

30 June 
2022

30 June  
2021

951,903

899,233

(951,903)

(899,233)

–

–

–

–

(d)  Liquidity risk
Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to repay the 
financial liabilities as and when they fall due.

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of hire purchase 
arrangements.

The table below reflects all contractually fixed payables for settlement, repayment and interest resulting from recognised 
financial liabilities as of 30 June 2022. Cash flows for financial liabilities without fixed amount or timing are based on the 
conditions existing as 30 June.

Westgold Resources Limited Annual Report 2022

67

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

4. 
The remaining contractual maturities of the Group’s financial liabilities are:

6 months or less

6 - 12 months

1 - 5 years

Over 5 years

2022

2021

(100,990,852) (97,943,429)

(11,321,798)

(9,402,276)

(21,558,211) (22,875,599)

– 

– 

(133,870,861) (130,221,304)

Maturity analysis of financial assets and liabilities based on management’s expectation 

The risk implied from the values shown in the table below reflects a balanced view of cash inflows and outflows. Leasing 
obligations, trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing 
operations such as property, plant, equipment and investments of working capital e.g. inventories and trade receivables. 
To monitor existing financial assets and liabilities, as well as to enable effective controlling of future risks, management 
monitors its Group’s expected settlement of financial assets and liabilities on an ongoing basis.

<6 months

6-12 months

1-5 years

>5 years

Total

2022

Financial assets 

Cash and equivalents

Trade and other receivables

Other financial assets

Financial liabilities

Trade and other payables

Lease liabilities

Interest-bearing loans

183,178,708

7,122,734

1,930,033

192,231,475

(88,017,524)

–

–

–

–

–

–

–

–

–

–

(3,685,953)

(2,887,530)

(5,879,451)

–

–

–

–

–

–

183,178,708

7,122,734

1,930,033

192,231,475

(88,017,524)

(12,452,934)

(9,287,375)

(8,434,268) (15,678,760)

– (33,400,403)

Net inflow/(outflow)

91,240,623

(11,321,798)

(21,558,211)

(100,990,852)

(11,321,798)

(21,558,211)

2021

Financial assets 

Cash and equivalents

Trade and other receivables

Other financial assets

Financial liabilities

Trade and other payables

Lease liabilities

Interest-bearing loans

Net inflow/(outflow)

151,074,769

7,466,095

1,149,449

159,690,313

(83,783,431)

–

–

–

–

–

–

–

–

–

–

(4,308,744)

(1,315,528)

(1,941,010)

(9,851,254)

(8,086,748) (20,934,589)

(97,943,429)

(9,402,276)

(22,875,599)

61,746,884

(9,402,276)

(22,875,599)

–

–

–

–

–

–

–

–

–

–

–

(133,870,861)

58,360,614

151,074,769

7,466,095

1,149,449

159,690,313

(83,783,431)

(7,565,282)

(38,872,591)

(130,221,304)

29,469,009 

68

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS4. 

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(e)  Fair values
For all financial assets and liabilities recognised in the Consolidated Statement of Financial Position, carrying amount 
approximates fair value unless otherwise stated in the applicable notes.

The methods for estimating fair value are outlined in the relevant notes to the financial statements.

The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Level 1 – the fair value is calculated using quoted prices in active markets.

Level 2 – the fair value is estimated using inputs other than quoted prices included in level 1 that are observable for the asset 
or liability, either directly (as prices) or indirectly (derived from price).

Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table 
below.

2022

Financial assets

Instruments carried at fair value

Listed investments

2021

Financial assets

Instruments carried at fair value

Listed investments

Valuation 
technique 
market 
observable 
inputs  
(Level 2)

Valuation 
technique 
non-market 
observable 
inputs  
(Level 3)

Quoted 
market price 
(Level 1)

Total

6,799,309

6,799,309

6,423,091

6,423,091

–

–

–

–

–

–

–

–

6,799,309

6,799,309

6,423,091

6,423,091

Westgold Resources Limited Annual Report 2022

69

4. 

 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

(f)  Changes in liabilities arising from financing activities

Opening

Cash flows

New leases

Reclassi- 
fication 
adjustment

Closing

Lease liability

2022

Current obligations 

Non-current obligations 

Total liabilities

2021

Current obligations 

Non-current obligations 

Total liabilities

Interest bearing liability

2022

Current obligations 

Non-current obligations 

Total liabilities

2021

Current obligations 

Non-current obligations 

Total liabilities

5,469,969

(9,037,306)

3,567,337

6,004,390 6,004,390

1,868,565

–

9,040,788 (6,004,390) 4,904,963

7,338,534

(9,037,306)

12,608,125

–

10,909,353

7,425,093

(8,346,056)

920,963

5,469,969

5,469,969

4,797,566

–

2,540,968

(5,469,969)

1,868,565

12,222,659

(8,346,056)

3,461,931

–

7,338,534

Opening

Cash flows

Additions

Reclassi- 
fication 
adjustment

Closing

17,492,098 (28,133,801)

10,641,703

16,837,629

16,837,629

20,245,206

–

11,805,252 (16,837,629)

15,212,829

37,737,304 (28,133,801) 22,446,955

– 32,050,458

16,309,721

(22,245,203)

5,935,482

17,492,098

17,492,098

9,294,070

–

28,443,234

(17,492,098) 20,245,206

25,603,791

(22,245,203)

34,378,716

–

37,737,304

70

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS5.  REVENUE 

Sale of gold at spot

Sale of gold under forward contracts(1) 

Mining and contracting services

Total revenue from contracts with customers

2022

2021

336,730,400 386,888,429

310,846,218

184,212,700

–

69,069

647,576,618

571,170,198

Disaggregated revenue per segment has been disclosed in Note 33. 

No revenue was recognised during the year for performance obligations satisfied in previous periods.

1. 

Gold sold under forward contracts

The Group’s operations are exposed to commodity price fluctuations. The Group has a commodity risk management 
hedging policy that authorises management to enter into price protection contracts to ensure revenue streams up to 60% 
of gold sales for up to three years of forecast production. 

At the end of the financial year, the Group had unrecognised sales contracts for 148,000 ounces at an average price of 
$2,396 per ounce ending in July 2023, under which the Group will deliver physical gold to settle.

The transaction price allocated to remaining performance obligations under forward contracts not recognised at the 
balance sheet date at 30 June 2022 is as follows:

Gold forward contracts

- Within 1 year

- 1 to 2 years

The amounts due are for delivery of gold which will be paid within 3 days of delivery.

6.  OTHER INCOME

Interest income calculated using the effective interest rate method

Net gain on sale of assets

Other income

Total other income

2022

2021

330,707,005

179,148,738

23,964,276

153,556,062

354,671,281 332,704,800

2022

2021

266,150

334,738

1,316,434

–

3,080,833

1,957,496

4,663,417

2,292,234

Westgold Resources Limited Annual Report 2022

71

7.  EXPENSES 

(a) Cost of sales

Gold production

Salaries, wages expense and other employee benefits

Other production costs

Write down in value of inventories to estimated net realisable value

Royalty expense

Contract mining services

Salaries, wages expense and other employee benefits

Mining and contracting service costs

Depreciation and amortisation expense

Depreciation of non-current assets:

Property, plant and equipment

Buildings

Right-of-use assets

Amortisation of non-current assets:

  Mine properties and development costs

Total cost of sales

(b) Finance costs

Interest expense

Capitalised borrowing costs to qualifying asset

Unwinding of rehabilitation provision discount

Total finance costs

2022

2021

175,906,269

158,441,833

218,314,978

129,580,548

10,252,203

6,175,664

23,537,397

21,922,481

–

–

54,126

3,155

54,409,633

52,350,718

2,095,532

1,883,586

8,249,706

7,482,892

127,535,100

77,561,033

620,300,818 455,456,036

1,648,881

1,587,326

(1,145,680)

(1,587,326)

895,459

1,398,660

347,475

347,475

The development of the Big Bell Underground Mine is deemed to be a qualifying asset and interest expenses of $1,145,680 
(2021: $1,587,326) have therefore been capitalised to the underlying qualifying asset. The rate used to determine the 
amount of borrowing costs eligible for capitalisation was 3.91% (2021: 4.16%).

72

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
7.  EXPENSES (CONTINUED)

(c) Other expenses

Administration expenses

Employee benefits expense

Salaries and wages expense

  Directors' fees and other benefits

  Other employee benefits

Share-based payments expense

Other administration expenses

  Consulting expenses

Travel and accommodation expenses

  Other costs

Depreciation expense

Property plant and equipment

Right-of-use assets

Total administration expenses

Other expenses

Net loss on sale of assets

Total other expenses

8.  INCOME TAX

(a) Major components of income tax expense:

Income Statement

Current income tax expense

  Current income tax (benefit) expense

Adjustment in respect of current income tax of previous years

Deferred income tax

Relating to origination and reversal of temporary differences 

Adjustment in respect of prior year tax losses / DTA

Income tax for continuing and discontinuing operations

(b) Amounts charged or credited directly to equity

Share issue costs

2022

2021

6,555,882

5,171,086

377,746

477,552

87,033

71,664

618,435

800,132

7,639,096

6,520,434

2,170,807

1,477,317

92,200

83,184

2,174,658

895,838

4,437,665

2,456,339

374,671

335,981

516,028

516,028

890,699

852,009

12,967,460

9,828,782

–

–

1,053,154

1,053,154

12,967,460

10,881,936

2022

2021

(10,632,327)

8,157,254

–

–

(39,878,133)

26,811,823

1,543,233

172,111

(48,967,227)

35,141,188

(565,590)

426,282

(565,590)

426,282

Westgold Resources Limited Annual Report 2022

73

 
 
 
 
 
 
 
 
8.  INCOME TAX (CONTINUED)

(c)  A reconciliation of income tax benefit and the product of accounting loss before 
income tax multiplied by the Group’s applicable income tax rate is as follows:

Accounting profit (loss) before tax from continuing operations

Total accounting profit (loss) before income tax

At statutory income tax rate of 30% (2021: 30%)

Non-assessable income

Under (over) in respect of prior years

Income tax (benefit) expense reported in the income statement

Tax expense from continuing operations

Income tax (benefit) expense reported in the income statement

(d) Deferred income tax at 30 June relates to the following:

2022

2021

(160,086,518)

111,893,067

(160,086,518)

111,893,067

(48,025,955)

33,567,920

(459,389)

(124,779)

(481,883)

1,698,047

(48,967,227)

35,141,188

(48,967,227)

35,141,188

(48,967,227)

35,141,188

Deferred tax liabilities

Exploration

Consolidated Statement of 
Financial Position

Consolidated Statement of 
Comprehensive Income

2022

2021

2022

2021

(16,538,683)

(11,469,917) 5,068,766

3,645,931

Trade and other receivables

(341,375)

(676,017)

(334,642)

67,278

  Net gain on financial assets AFVTP

423,071

(181,141)

(604,212)

(3,718,859)

Prepayments

  Deferred mining

Inventories

(16,394)

(11,839)

4,555

(6,991)

(32,761,755)

(76,471,436) (44,697,446)

15,875,854

(10,964,932)

(8,703,078)

2,261,854

3,011,739

Property plant and equipment

(7,729,115)

(5,986,013)

2,730,867

6,277,076

Gross deferred tax liabilities

(67,929,183) (103,499,441)

Deferred tax assets

Accrued expenses

718,292

834,674

116,382

(300,557)

Provision for employee entitlements

4,820,069

4,104,863

(715,206)

(617,029)

Provision for rehabilitation

Business related costs

  Capital raising costs

Recognised tax losses

Gross deferred tax assets

Net deferred tax liabilities

  Deferred tax expense 

17,696,605

14,086,706 (3,609,899)

2,557,203

162,179

63,028

(99,151)

20,177

1,367,076

801,486

(565,590)

426,282

17,471,245

8,382,148

(9,089,097)

8,329,365

42,235,466

28,272,905

(25,693,717) (75,226,536)

(49,532,819) 35,567,469

(e) Unrecognised losses
At 30 June 2022, there are no unrecognised losses for the Group (2021: nil).

74

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
9.  EARNINGS PER SHARE
The following reflects the data used in the basic and diluted earnings per share computations.

(a) Earnings used in calculating earnings per share

Net profit (loss) attributable to ordinary equity holders of the parent

Net profit attributable to ordinary equity holders of the parent

Basic earnings (loss) per share (cents)

Earnings used in calculating earnings per share

For diluted earnings per share:

2022

2021

(111,119,291)

76,751,880

(111,119,291)

76,751,880

(25.32)

(25.32)

18.16

18.16

Net profit (loss) attributable to ordinary equity holders of the parent (from basic EPS)

Net profit attributable to ordinary equity holders of the parent

(111,119,291)

76,751,880

(111,119,291)

76,751,880

Diluted profit (loss) per share (cents)

Continuing operations

(b) Weighted average number of shares

(25.32)

(25.32)

18.12

18.12

Weighted average number of ordinary shares for basic earnings per share

438,907,701 422,637,346

Effect of dilution:

Share options

Rights1

–

–

441,278

557,582

Weighted average number of ordinary shares adjusted for the effect of dilution

438,907,701 423,636,207

Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the 
weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the profit 
attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during 
the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential 
ordinary shares into ordinary shares. 

The Company has included rights on issue in the calculation of dilutive earnings per share for the current financial period. 

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date 
and the date of authorisation of these financial statements. 

1. 

  The Company had 2,332,508 share options on issue that are excluded from the calculation of diluted loss per share for the current 
financial period.

Westgold Resources Limited Annual Report 2022

75

 
 
10. CASH AND CASH EQUIVALENTS

Cash at bank and in hand

Short-term deposits

Cash at bank and in hand

CASH FLOW RECONCILIATION

Reconciliation of net profit after income tax to net cash flows from operating activities

Profit (loss) after income tax

Amortisation and depreciation 

Provisional gold sales (refer to Note 25)

Income tax (benefit) expense 

Share based payments

Unwinding of rehabilitation provision discount

Net loss (profit) on disposal of property, plant and equipment

Fair value change in financial instruments (refer to Note 15)

Impairment of mine properties and property plant and equipment (refer to Note 17)

Exploration and evaluation expenditure written off (refer to Note 18)

Changes in assets and liabilities

(Increase) decrease in inventories

Increase in trade and other receivables and prepayments

Increase in trade and other creditors

Increase in provisions

Net cash flows from operating activities

2022

2021

142,701,502 150,684,029

40,000,000

–

182,701,502 150,684,029

(111,119,291)

76,751,880

193,180,670 140,130,238

–

(198,841)

(48,967,227)

35,141,187

618,435

800,132

895,459

347,475

(1,316,434)

1,053,154

2,014,040

(5,202,140)

175,535,410

–

110,165

86,058

210,951,227

248,909,143

(36,952,721)

(15,181,202)

(1,047,740)

(954,066)

4,520,668

14,258,184

2,384,020

2,109,890

179,855,454

249,141,949

At 30 June 2022, the Group had available $3,156,781 (2021: $5,988,078) of undrawn borrowing facilities.

11.  TRADE AND OTHER RECEIVABLES (current)

Statutory receivables

Other debtors

Total trade and other receivables

2022

2021

6,453,347

6,738,159

669,387

727,936

7,122,734

7,466,095

Statutory receivables comprises of GST input tax credits and diesel fuel rebates.

Other debtors are non-interest bearing and generally have a 30-60 day term. 

All trade and other receivables are classed as recoverable in full. The carrying amount of other debtors approximate their fair 
value. Refer Note 4(b) for credit risk disclosures. 

76

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS12. INVENTORIES (current)

Ore stocks at net realisable value

Gold in circuit at cost

Gold metal at cost

Stores and spares at cost

Provision for obsolete stores and spares

Total inventories at lower of cost and net realisable value

2022

2021

37,699,414

13,906,060 

20,870,066

15,529,300 

– 

161,235 

44,208,485

34,250,915 

(6,695,876)

(4,718,142)

96,082,089

59,129,368

During the year there were write-downs in inventories of $10,252,203 (2021: $6,175,664) from continuing operations for the 
Group. This is included in cost of sales refer to Note 7(a). 

13.  PREPAYMENTS (current)

Prepayments

14.  OTHER FINANCIAL ASSETS (current)

Cash on deposit

The cash on deposit is interest bearing and is used as security for bank guarantees.

15. FINANCIAL ASSETS

Listed shares - Australian 

Movement in Listed Shares

At 1 July 

Additions of listed shares

Proceeds on disposal of financial assets

  Net gain (loss) on fair value changes of financial assets 

At 30 June

Movement in Royalties Receivable

At 1 July

  Net gain on financial assets at FVTPL

Settlement of Mount Marion lithium royalty

Settlement of Buldania royalty

At 30 June

2022

2021

5,427,078

4,035,977

5,427,078

4,035,977

2022

2021

1,930,033

1,149,449

1,930,033

1,149,449

2022

2021

6,799,309

6,423,091

6,799,309

6,423,091

6,423,091

–

2,390,258

5,986,129

–

(265,178)

(2,014,040)

702,140

6,799,309

6,423,091

– 13,000,000

–

4,500,000

– (17,500,000)

–

–

–

–

Westgold Resources Limited Annual Report 2022

77

 
 
 
 
15. FINANCIAL ASSETS (CONTINUED)

Listed shares
These financial assets consist of investments in ordinary shares. The fair value of equity investments at fair value through 
profit or loss has been determined directly by reference to published price quotations in an active market.

Movement in investments during the year ended 30 June 2022 are as follows:

 –

 –

The Group has a 1.01% (30 June 2021: 0.26%) interest in Musgrave Minerals Limited, which is involved in the exploration 
of gold and base metals in Australia. Musgrave is listed on the Australian Securities Exchange (ASX: MGV). At the end of 
the period, the fair value of the Group’s investment was $1,335,747 (30 June 2021: $513,889) which is based on the quoted 
share price. 
The Group has a 14.78% (2021: 14.11%) interest in Alto Metals Limited which is involved in the exploration of gold and base 
metals in Australia. Alto is listed on the Australian Securities Exchange (ASX: AME). At the end of the year, the fair value of 
the Group’s investment was $5,463,561 (2021: $5,909,201) which is based on the quoted share price.

16. PROPERTY, PLANT & EQUIPMENT

Plant and equipment

  Gross carrying amount at cost

Accumulated depreciation 

Impairment write down

Net carrying amount

Land and buildings

  Gross carrying amount at cost

Accumulated depreciation and impairment

Net carrying amount

Capital work in progress at cost

Total property, plant and equipment

Movement in property, plant and equipment

Plant and equipment

At 1 July net of accumulated depreciation

Transfer from capital work in progress

  Disposals

Impairment write-down (refer to Note 17)

  Depreciation charge for the year

At 30 June net of accumulated depreciation

78

Westgold Resources Limited Annual Report 2022

2022

2021

377,434,401 349,487,807

(259,429,136) (208,263,726)

(12,401,251)

112,948,563

141,224,081

26,474,862

24,398,325

(9,121,579)

(7,026,047)

17,353,283

17,372,278

17,614,257

8,151,819

147,916,103

166,748,178

141,224,081

135,415,999

46,224,414

62,953,599

(7,314,376)

(4,458,817)

(12,401,251)

–

(54,784,305) (52,686,700)

112,948,563

141,224,081

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
16. PROPERTY, PLANT & EQUIPMENT (CONTINUED)

Land and buildings

At 1 July net of accumulated depreciation

Transfer from capital works in progress

  Depreciation charge for the year

At 30 June net of accumulated depreciation

Capital work in progress

At 1 July

Additions

Transfer to mine properties (refer to Note 17)

Transfer to mine capital development (refer to Note 17)

Transfer to plant and equipment

Transfer to property

At 30 June

2022

2021

17,372,278

17,911,488

2,076,537

1,344,375

(2,095,532)

(1,883,585)

17,353,283

17,372,278

8,151,819

8,565,545

60,185,474 66,730,495

(898,122)

(1,687,813)

(1,523,963)

(1,158,434)

(46,224,414) (62,953,599)

(2,076,537)

(1,344,375)

17,614,257

8,151,819

The carrying value of plant and equipment purchase under financing arrangements at 30 June 2022 is $34,874,588 
(2021: $43,054,511). 
Assets under hire purchase contracts are pledged as security for the related interest bearing liabilities (refer to Notes 23 
and 24).

17.  MINE PROPERTIES AND DEVELOPMENT

Development areas

  Gross carrying amount at cost

Net carrying amount

Mine properties

  Gross carrying amount at cost

Accumulated amortisation and impairment

Impairment write down

Net carrying amount

Mine capital development

  Gross carrying amount at cost

Accumulated amortisation

Impairment write down

Net carrying amount

Total mine properties and development costs

Movement in mine properties and development

Development areas 

At 1 July

At 30 June

2022

2021

–

–

–

–

363,637,652

314,945,512

(71,721,289)

(42,821,170)

(118,667,668)

–

173,248,695 272,124,342

492,782,758 394,338,003

(357,761,405) (259,126,425)

(44,466,491)

–

90,554,862

135,211,578

263,803,557 407,335,920

–

–

–

–

Westgold Resources Limited Annual Report 2022

79

 
 
 
 
 
 
 
 
 
 
17.  MINE PROPERTIES AND DEVELOPMENT (CONTINUED)

Mine properties

At 1 July net of accumulated amortisation

Additions

Transfer from capital work in progress (refer to Note 16)

Transfer from mine capital development

Transfer from exploration (refer to Note 18)

  Decrease in rehabilitation provision

Amortisation charge for the year

Impairment write-down

At 30 June net of accumulated amortisation

Mine capital development

At 1 July net of accumulated amortisation

Additions

Transfer from capital work in progress (refer to Note 16)

Transfer from exploration (refer to Note 18)

Transfer to capital development

Amortisation charge for the year

Impairment write-down

At 30 June net of accumulated amortisation

IMPAIRMENT OF MINE PROPERTIES AND DEVELOPMENT

Murchison CGO CGU

  Mine properties

  Mine capital development

Murchison MGO CGU

  Mine properties

  Mine capital development

Property Plant and Equipment (refer to Note 16)

Bryah FGO CGU

  Mine properties

  Mine capital development

Property Plant and Equipment (refer to Note 16)

Impairment loss before income tax

2022

2021

272,124,342 188,949,938

51,886,544

92,956,156

898,122

1,687,813

3,455,983

1,851,824

1,518,725

1,051,234

(9,067,232)

(2,157,420)

(28,900,121)

(12,215,203)

(118,667,667)

–

173,248,695 272,124,342

135,211,578

109,563,191

98,653,906

89,439,356

1,523,963

1,158,434

1,722,869

2,248,251

(3,455,983)

(1,851,824)

(98,634,979) (65,345,830)

(44,466,492)

–

90,554,862

135,211,578

2022

2021

107,892,672 

1,530,969 

5,815,456

19,833,030

10,637,100

4,959,539

23,102,493

1,764,151

175,535,410

-

-

-

-

-

-

-

-

-

80

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.  MINE PROPERTIES AND DEVELOPMENT (CONTINUED)

Results of impairment testing
Mine Properties and development

Westgold is a dynamic, growth oriented Western Australian gold miner and is unique in the Australian gold sector as an 
owner operator. Westgold’s operations are comprised of:

 –
 –

the Bryah Operations at Fortnum (FGO)
the Murchison Operations at Meekatharra (MGO) and Cue (CGO)

These operations are the Cash Generating Units of the Group as they each operate independent of the other. A Cash 
Generating Unit (CGU) is defined as the smallest group of assets that includes the assets and generates cash flows that are 
largely independent of the cash inflows from other assets or group of assets.

In assessing whether an impairment is required, the carrying value of the asset or CGU is compared with its recoverable 
amount. The recoverable amount is the higher of the CGU’s fair value less costs of disposal (FVLCD) and value in use 
(VIU). Given the nature of the Group’s activities, information on the fair value of an asset is usually difficult to obtain unless 
negotiations with potential purchasers or similar transactions are taking place. Consequently, the VIU for each CGU has 
been estimated based on discounted future estimated cash flows (expressed in real terms) expected to be generated 
from the continued use of the CGUs using market-based commodity price and exchange assumptions. Production and 
cost assumptions were derived from estimated quantities of recoverable minerals, production levels, operating costs and 
capital requirements, and its eventual disposal, based on the CGU latest life of mine (LOM) plans. These cash flows were 
discounted using a real post-tax discount rate that reflects the weighted average cost of capital of the Group.

Estimates of quantities of recoverable minerals, production levels, operating costs and capital requirements are generated 
as part of the Group’s planning process, including LOM plans, one-year budgets and CGU-specific studies.

This assessment is in accordance with the relevant accounting standards taking into consideration the current outlook for 
gold prices, increasing supply chain cost pressures including diesel fuel, consumables, labour costs and interest rates while 
maintaining the production, processing and recovery assumptions. 

The non-cash impairment charge of $175,535,410 (2021: $Nil) is a result of the cost pressures described above, the Big Bell 
mine carrying value being significantly greater than the initial expected project development costs, the South Emu Triton 
and Starlight underground mines not producing the required economic returns coupled with the cessation of open pit 
mining. 

Key Assumptions
The table below summarises the key assumptions used in the 2022 year end carrying value assessments.

Assumption

Gold price ($/oz)

Inflation rate

Discount rate 

Value

A$2,400/oz nominal

2.5% per annum

5.5% real post tax

Gold prices
The gold price assumption of A$2,400/oz nominal was estimated with reference to the FY23 Budget gold price which took 
into consideration the average hedge price for Westgold and the current spot price including ranges of external market 
forecasts for USD gold and FX rate based on a consensus view of market experts.

Inflation rate
The long-term inflation rate used to convert the nominal AUD gold price to real was 2.5% which is based on the RBA target 
for monetary policy in Australia to achieve an inflation rate within the range of 2% to 3% on average, over time.

Westgold Resources Limited Annual Report 2022

81

17.  MINE PROPERTIES AND DEVELOPMENT (CONTINUED)

Discount rate
In determining the fair value of CGU’s, the future real cashflows are discounted using rates based on the Group’s estimated 
after tax real weighted average cost of capital with a mid-point of 5.5%.

Operating and capital costs 
Life of mine operating and capital cost assumption are based on the Group’s latest budget and life-of-mine plans.

Sensitivity Analysis
After recognising the asset impairment and write down for the Murchison and Bryah, and using the assumption and 
methodology above, the recoverable value of the Murchison and Bryah have been assessed as being equal to their carrying 
amount at 30 June 2022.

Any variation in the key assumptions going forward will impact the recoverable value of the CGU’s. If the variation in an 
assumption has a negative impact on recoverable value, it could indicate a requirement for additional impairment of 
non-current assets for either or both the Murchison and Bryah CGU’s.

Murchison CGO Sensitivity Analysis
It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on 
the recoverable amount of the Murchison CGO CGU as at 30 June 2022.

Murchison CGO

10% change in gold price ($/oz.)

1% change in inflation rate

1% change in discount rate

10% change in operating cost

Increase in key assumption 
$m

Decrease in key assumption 
$m

138

(50)

(14)

(92)

(138)

53

14

92

Murchison MGO Sensitivity Analysis
It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on 
the recoverable amount of the Murchison MGO CGU as at 30 June 2022.

Murchison MGO

10% change in gold price ($/oz.)

1% change in inflation rate

1% change in discount rate

10% change in operating cost

Increase in key assumption
$m

Decrease in key assumption 
$m

89

(19)

(4)

(82)

(89)

20

4

82

82

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS17.  MINE PROPERTIES AND DEVELOPMENT (CONTINUED)

Bryah Sensitivity Analysis
It is estimated that changes in key assumptions, in isolation, would have the following approximate (increase or decrease) on 
the recoverable amount of the Bryah FGO CGU as at 30 June 2022

Bryah -FGO

10% change in gold price ($/oz.)

1% change in inflation rate

1% change in discount rate

10% change in operating cost

Increase in key assumption
$m

Decrease in key assumption 
$m

44

(10)

(2)

(36)

(44)

11

2

36

18. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation costs carried forward in respect of mining areas of interest

Pre-production areas

At cost less expenditure written off

Net carrying amount

Movement in deferred exploration and evaluation expenditure

At 1 July net of accumulated impairment

Additions

Transferred to mine properties (refer to Note 17)

Transferred to mine capital development (refer to Note 17)

Expenditure written off - continuing operations

At 30 June net of accumulated impairment

2022

2021

104,577,467

89,738,936

104,577,467

89,738,936

89,738,936

78,874,701

18,190,290

14,249,778

(1,518,725)

(1,051,234)

(1,722,869)

(2,248,251)

(110,165)

(86,058)

104,577,467

89,738,936

The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful 
development and commercial exploitation or sale of the respective mining areas. During the year, a review was undertaken 
for each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of 
interest. In assessing the carrying value of all of the Group’s projects, certain expenditure on exploration and evaluation 
of mineral resources has not led to the discovery of commercially viable quantities of mineral resources. As a result, 
exploration and evaluation expenditure of $110,165 (2021: $86,058) was written off to the profit and loss. The amount 
relates to tenements which were written down to nil as the expenditure did not result in the discovery of commercially viable 
quantities of mineral resources and as a result no future benefits are expected.

Westgold Resources Limited Annual Report 2022

83

 
 
 
 
 
19.  RIGHT- OF-USE ASSETS

Group as a lessee
AASB 16 Leases requires the recognition of right-of-use assets for the remaining term of the current leases for office 
premises and the warehouse facility, as well as the power stations at the various mine sites. 

The Group has lease contracts for various items of mining equipment, motor vehicles and buildings used in its operations. 
Leases of mining equipment generally have lease terms between three and seven years, while motor vehicles and buildings 
generally have lease terms between three and five years. 

The Group also has certain leases of assets with lease terms of 12 months or less and leases of office equipment with low 
value. The Group applies the short-term lease and lease of low-value assets recognition exemptions for these leases.

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

As at 1 July 2021

Additions

  Disposals

  Depreciation expense

As at 30 June 2022

Power 
Stations

Premises

Mining 
Equipment

Total

4,399,668

2,033,218

826,001

7,258,887

8,632,818

3,494,392

194,339

12,321,549

–

–

–

–

(7,282,955)

(924,880)

(557,899)

(8,765,734)

5,749,531

4,602,730

462,441

10,814,702

Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the 
movements during the period:

As at 1 July 

Additions

  Disposals

Accretion of interest

Payments

As at 30 June

The following are the amounts recognised in profit or loss:

  Depreciation expense for right-of-use assets

Included in cost of sales

Included in administration expenses (refer to Note 7)

Interest expense on lease liabilities

Less interest expense capitalised to qualifying asset

Total amount recognised in profit or loss

The interest expense of these lease liabilities has been capitalised to the qualifying assets.

2022

2021

7,258,887

11,942,577

12,321,549

3,322,262

–

(7,032)

271,572

347,136

(9,037,306)

(8,346,056)

10,814,702

7,258,887

8,249,706

7,482,892

516,028

516,028

271,572

347,136

(158,195)

(347,136)

8,879,111

7,998,920

84

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
20. TRADE AND OTHER PAYABLES

Trade creditors (a)

Sundry creditors and accruals (b)

The carrying value of trade and other payables approximates the fair value.

(a) 
(b) 

Trade creditors are non-interest bearing and generally on 30-day terms.
Sundry creditors and accruals are non-interest bearing and generally on 30-day terms. 

21. PROVISIONS (current)

Provision for annual leave

Provision for long service leave

22. PROVISIONS ( non-current)

Provision for long service leave

Provision for rehabilitation (a)

2022

2021

47,637,236 44,573,485

40,380,288

39,209,946

88,017,524

83,783,431

2022

2021

10,865,164

9,262,707

2,201,062

2,142,555

13,066,226

11,405,262

2022

2021

3,000,672

2,277,616

66,669,167

74,840,940

69,669,839

77,118,556

(a)  Provision for rehabilitation
The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on a 
discounted basis at the time of developing the mines and installing and using those facilities. The rehabilitation provision 
represents the present value of rehabilitation costs relating to mine sites, which are expected to be incurred up to 2030, 
which is when the producing mine properties are expected to cease operations. These provisions have been created based 
on the Group’s internal estimates. Assumptions based on the current economic environment have been made, which 
management believe is a reasonable basis upon which to estimate the future liability.

These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual 
rehabilitation costs will ultimately depend upon future market prices for the necessary rehabilitation works required that 
will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation is likely to depend on when the 
mines cease to produce at economically viable rates. This, in turn, will depend upon future gold prices, which are inherently 
uncertain.

The discount rates used in the calculation of the provision as at 30 June 2022 range from 3.34% to 3.58% (2021: range from 
0.90% to 1.37%). Refer to Note 3 for further detail.

(b)  Current and non-current movements in provision for rehabilitation

At 1 July 

Adjustment due to revised conditions

  Unwind of discount

At 30 June

2022

2021

74,840,940 76,650,886

(9,067,232)

(2,157,420)

895,459

347,474

66,669,167

74,840,940

Westgold Resources Limited Annual Report 2022

85

 
23. INTEREST-BEARING LOANS AND BORROWINGS (current)

Lease liabilities

Hire purchase arrangements

At 30 June

2022

2021

6,004,390

5,469,969

16,837,629

17,492,098

22,842,019

22,962,067

Represents current portion of hire purchase arrangements which have repayment terms of 36 months from inception.

24. INTEREST-BEARING LOANS AND BORROWINGS (non-current)

Lease liabilities

Hire purchase arrangements

At 30 June

2022

2021

4,904,963

1,868,565

15,212,829 20,245,206

20,117,792

22,113,771

Represents non-current portion of hire purchase arrangements which have repayment terms of 36 months from inception.

The weighted average interest rate is 3.91% per annum (2021: 4.16%).

Assets pledged as security:
The carrying amounts of assets pledged as security for current and non-current interest-bearing liabilities:

Non-current

Hire purchase arrangements

Plant and equipment

Total non-current assets pledged as security

2022

2021

34,874,588

49,177,558

34,874,588

49,177,558

Plant and equipment assets are pledged against liabilities for the term of the arrangement.

Future commitments in respect of interest bearing loans

Hire purchase commitments
The Company has hire purchase contracts for various items of plant and machinery. The hire purchase contracts have an 
average term of 36 months. Assets under hire purchase contracts are pledged as security for the related interest bearing 
liabilities. 

Interest bearing liabilities

2022

Within one year

After one year but not more than five years

Total minimum payments 

Less amounts representing finance charges

Present value of minimum payments

86

Westgold Resources Limited Annual Report 2022

Minimum 
payments

Present value 
of payments

17,721,643

16,837,629

15,678,760 15,212,829

33,400,403 32,050,458

(1,349,945)

–

32,050,458 32,050,458

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS24. INTEREST-BEARING LOANS AND BORROWINGS (non-current) (CONTINUED)

Non-current (continued)

Interest bearing liabilities

2021

Within one year

After one year but not more than five years

Total minimum payments 

Less amounts representing finance charges

Present value of minimum payments

Minimum 
payments

Present value 
of payments 

17,938,002

17,492,098

20,934,589 20,245,206

38,872,591

37,737,304

(1,135,287)

–

37,737,304

37,737,304

Lease liabilities
AASB 16 Leases requires the recognition of right-of-use assets for the remaining term of the current leases for office 
premises and the warehouse facility, as well as the power stations and equipment at the various mine sites. 

Lease liabilities

2022

Within one year

After one year but not more than five years

Total minimum lease payments 

Less amounts representing finance charges

Present value of minimum lease payments

Lease liabilities

2021

Within one year

After one year but not more than five years

Total minimum lease payments 

Less amounts representing finance charges

Present value of minimum lease payments

25. UNEARNED INCOME

Provisional gold sales

Movement in provisional gold sales

At 1 July 

Provisional gold sales at 30 June

At 30 June

Minimum 
lease 
payments

Present 
value of lease 
payments

6,573,483

6,004,390

5,879,451

4,904,963

12,452,934 10,909,353

(1,543,581)

-

10,909,353 10,909,353

Minimum 
lease 
payments

Present 
value of lease 
payments

5,624,272

5,469,969

1,941,010

1,868,565

7,565,282

7,338,534

(226,748)

-

7,338,534

7,338,534

2022

2021

–

–

–

–

–

–

–

198,841

(198,841)

–

This represents gold sold on provisional outturns on 30 June 2021.

Westgold Resources Limited Annual Report 2022

87

26. ISSUED CAPITAL

(a)  Ordinary Shares

Issued and fully paid

(b)  Movements in ordinary shares on issue

At 1 July 2020

Issued share capital on conversion of listed options

Share issue costs, net of tax

At 30 June 2021

Issued share capital on conversion of listed options

Issued share capital under dividend reinvestment plan

Issued share capital 

Share issue costs, net of tax

At 30 June 2022

2022

2021

463,468,148

364,077,523

Number

$

420,230,270

356,130,055

3,694,936

8,373,750

–

(426,282)

423,925,206

364,077,523

332,332

–

1,365,192

2,157,835

48,000,000 100,800,000

–

(3,567,210)

473,622,730

463,468,148

(c)  Terms and conditions of contributed equity
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote 
per share at shareholder meetings. In the event of winding up the Company the holders are entitled to participate in the 
proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Effective 
1 July 1998, the Corporations legislation in place abolished the concepts of authorised capital and par share values. 
Accordingly, the Parent does not have authorised capital nor par value in respect of its issued shares.

(d)  Escrow restrictions
There are no current escrow restrictions on the issued capital of the Company.

(e)  Options on issue
Unissued ordinary shares of the Company under option at the date of this report are as follows:

Type

Unlisted - Tranche 4(i)

Unlisted - Tranche 5(i)

Unlisted - Tranche 5(i)

Total

Expiry Date

30/06/2023

30/06/2024

30/06/2024

(i) 

Rights issued pursuant to the Westgold Resources Limited Employee Share and Option Plan.

Exercise 
Price

Number of 
options

Nil

Nil

Nil

762,080

202,435

1,367,993

2,332,508

88

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
26. ISSUED CAPITAL (CONTINUED)

(f)  Option conversions
332,332 listed options were exercised during the financial year (2021: 3,694,936).

(g)  Capital management - gearing ratio

Gearing ratio

Debt

Capital

2022

2021

7.31%

7.42%

42,959,811

45,075,838

587,767,457 607,360,307

Capital includes issued capital and all other equity reserves attributable to the equity holders of the parent for the 
purpose of the Group’s capital management. The primary objective of the Group’s capital management is to ensure that it 
maintains a strong credit rating and healthy capital ratios in order to support its business and maximise the shareholder’s 
value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and 
the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may return capital to 
shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended 
30 June 2022 and 30 June 2021. The Group monitors capital using a gearing ratio, which is debt divided by the aggregate of 
equity. The Group includes in its net debt, interest bearing loans and borrowings. The Group’s policy is to keep the gearing 
ratio between 5% and 20%. 

27. RETAINED EARNINGS (ACCUMULATED LOSSES)

At 1 July 

Net profit (loss) in current year attributable to members of the parent entity

Dividends paid

At 30 June 

28. RESERVES

At 30 June 2020

Share-based payments

At 30 June 2021

Share-based payments

At 30 June 2022

2022

2021

46,522,657 (30,229,223)

(111,119,291)

76,751,880

(8,482,619)

–

(73,079,253) 46,522,657

Share-based 
payments 
reserve

Equity 
reserve

Total

14,466,364

181,493,631

195,959,995

800,132

–

800,132

15,266,496

181,493,631

196,760,127

618,435

–

618,435

15,884,931

181,493,631 197,378,562

Equity reserve
This reserve relates to the intercompany loans with Metals X Ltd written off on demerger of the Group and includes tax 
consolidated adjustments.

Share-based payments reserve
This reserve is used to recognise the fair value of options issued to employees in relation to equity-settled share-based 
payments.

Westgold Resources Limited Annual Report 2022

89

29. SHARE-BASED PAYMENTS

(a)  Recognised share-based payment expense 
The expense recognised for services received during the year is shown in the table below:

Expense arising from equity-settled share-based payments

2022

2021

618,435

800,132

The share-based payment plan is described below. There have been no cancellations or modifications to the plan during 
2022, 2021, 2020 and 2019.

(b) Transactions settled using shares
There were no transactions settled using shares in the year ending 30 June 2022.

(c)  Employee share and option plan
Under the Employee Share and Option Plan (ESOP), grants are made to senior executives and other staff members who 
have made an impact on the Group’s performance. ESOP grants are delivered in the form of share options or performance 
rights which vest over periods as determined by the Board of Directors.

(d)  Share options and performance rights

Zero Exercise Price Options (ZEPO)
Unlisted employee options are issued to senior management under the Employee Share Option Plan, the principal terms 
being:

The Employee Options have been issued for nil consideration;

 –
 – Each Employee Option carries an entitlement to one fully paid ordinary share in the Company for each Employee Option 

vested;

 – Vesting only occurs after the end of the Performance Periods (30 June 2020 and 30 June 2021) and the number of 

Employee Options that vest (if any) will depend on:
 – Growth in Return on Capital Employed over the Performance Periods (ROCE) (50%); and
 –

Total Shareholder Return relative to the S&P/All Ordinaries Gold Index over the Performance Periods (50%).

 – Unvested Employee Options lapse on cessation of a holder’s employment with Westgold;
 – Any Employee Options that do not vest after the end of the Performance Periods will automatically lapse; and
 – No amount is payable by a holder of Employee Options in respect of the shares allocated upon vesting of the Employee 

Option.

Performance Rights (Rights)
Unlisted Employee Performance Rights are issued to senior management under the Employee Share Option Plan, the principal terms 
being:

The Performance Rights have been issued for nil consideration.

 –
 – Exercise Price of a Performance Right is nil
 –
 –

The Performance Rights measurement date is 31 March 2023 and 31 March 2024
The Performance Rights are subject to defined Performance Conditions
 – Growth in Relative Total Shareholder Return (RTSR) (25%);
 – Growth in Absolute Total Shareholder Return (ATSR) (25%);
 – Growth in Absolute Earnings Per Share (EPS) (25%); and
 – Operational Growth (25%).
Subject to the terms contained in this Offer, the Performance Rights will not be transferable in whole or in part (except, 
in the case of the Performance Right holder’s death, by his or her legal personal representative).
The Company will issue fully paid ordinary Shares ranking pari passu with the issued ordinary shares once the 
Performance Rights have vested.
The Company will apply for listing on the ASX of the resultant Shares of the Company issued upon vesting of any 
Performance Rights.

 –

 –

 –

 – A Performance Rights holder cannot participate in dividends or bonus issues, with respect to those Performance Rights, 

unless those Performance Rights are vested.

90

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS29. SHARE-BASED PAYMENTS (CONTINUED)

(d)  Share options and performance rights (continued)
 – A Performance Rights holder does not have any right to participate in new issues of securities in the Company made to 

 –

shareholders with respect to those Performance Rights.
The Board has the right to vary the entitlements of Participants to take account of the effect of capital reorganisations, 
bonus issues or rights issues.

 – No amount is payable by a holder of Performance Rights in respect of the shares allocated upon vesting of the 

Performance Rights.

Summary of options and rights granted under the Employee Share and Option Plan

Outstanding at the beginning of the year

Granted during the year

Exercised during the year

Lapsed/forfeited during the year

Outstanding at the year end

Exercisable at the year end

2022
Number

2022
WAEP

2021
Number

2021
WAEP

2,213,898

2,128,138

(205,768)

(1,677,196)

2,459,072

–

0.00

0.00

0.00

0.00

0.00

0.00

5,107,698

1,520,181

(3,694,936)

(719,045)

2,213,898

–

1.64

0.00

2.29

0.00

0.00

0.00

The following table represents the outstanding balance as at 30 June 2022:

Grant Date Vesting date Expiry date

ZEPO - Tranche 2

Exercise 
price

Number of 
Options / 
Rights 

Options 
lapsed / 
forfeited

Options 
/Rights 
Issued / 
(exercised)

Number of Options / Rights 
at end of the year

On issue

Vested

10/05/2019 30/06/2021 30/06/2023

$0.00

205,768

–

(205,768)

ZEPO - Tranche 3

07/05/2020 30/06/2022 30/06/2022

07/05/2020 30/06/2022 30/06/2022

$0.00

$0.00

153,810

(153,810)

–

367,820

(241,256)

(126,564)

Rights - Tranche 4

24/11/2020 30/06/2023 30/06/2023

$0.00

233,506

(233,506)

24/11/2020 30/06/2023 30/06/2023

$0.00

1,252,994

(490,914)

–

–

–

–

–

–

762,080

Rights - Tranche 5

11/10/2021

30/06/2024 30/06/2024

11/10/2021

30/06/2024 30/06/2024

$0.00

$0.00

–

–

–

202,435

202,435

(557,710)

1,925,703

1,367,993

205,768

–

126,564

-

–

–

–

Total

2,213,898

(1,677,196)

1,795,806

2,332,508

332,332

Weighted average remaining contractual life of share-based payments
The weighted average remaining contractual life for the share-based payments outstanding as at 30 June 2022 is 1.68 years 
(2021: 1.76 years).

Westgold Resources Limited Annual Report 2022

91

 
 
29. SHARE-BASED PAYMENTS (CONTINUED)

(d)  Share options and performance rights (continued)

Range of exercise price of share-based payments
The range of exercise price for share-based payments outstanding at the end of the year is $0.00 (2021: $0.00).

Weighted average fair value of share-based payments
The weighted average fair value of share-based payments granted during the year was $1.43 (2021: $1.77).

Valuation of share-based payments
The fair value of the equity-settled share-based payments granted under the ESOP is estimated at the date of grant using 
either a Black & Scholes or a Monte Carlo model, which takes into account factors including the exercise price, the volatility 
of the underlying share price, the risk-free interest rate, the market price of the underlying share at grant date, historical and 
expected dividends and the expected life of the option or right, and the probability of fulfilling the required hurdles.

 –
 –
 –

Tranche 3 Options vest subject to performance hurdles, measured for the period 1 July 2019 to 30 June 2022
Tranche 4 Rights vest subject to performance hurdles, measured for the period 1 July 2020 to 30 June 2023
Tranche 5 Rights vest subject to performance hurdles, measured for the period 1 July 2021 to 30 June 2024

The following table gives the assumptions made in determining the fair value of the rights granted in Tranche 5.

Grant date

11/10/2021

11/10/2021

11/10/2021

11/10/2021

Expected volatility (%)

Risk-free interest rate (%)

Expected life of options (years)

Options exercise price ($)

Share price at grant date ($)

Fair value at grant date ($)

RTSR

54%

ATSR

54%

Operational 
Growth

54%

AEPS

54%

0.24%

0.24%

0.24%

0.24%

2.7

2.7

2.7

2.7

$0.00

$0.00

$0.00

$0.00

$1.84

$1.20

$1.84

$0.95

$1.84

$1.79

$1.84

$1.79

The effects of early exercise have been incorporated into the calculations by using an expected life for the option that 
is shorter than the contractual life based on historical exercise behaviour, which is not necessarily indicative of exercise 
patterns that may occur in the future. The expected volatility was determined using a historical sample of the Company’s 
share price over a three-year period. The resulting expected volatility therefore reflects the assumptions that the historical 
volatility is indicative of future trends, which may also not necessarily be the actual outcome.

92

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS30. COMMITMENTS

(a)  Capital commitments
At 30 June 2022, the Group has capital commitments that relate principally to the purchase and maintenance of plant and 
equipment for its mining operations.

Capital expenditure commitments

- Within one year

2022

2021

17,715,233

19,360,999

(b) Mineral tenement lease commitments 
The Company has commercial leases over the tenements in which the mining operations are located. These tenement 
leases have a life of between six months and twenty-one years. In order to maintain current rights to explore and mine the 
tenements, the Group is required to perform minimum exploration work to meet the expenditure requirements specified by 
the relevant state governing body. There are no restrictions placed on the lessee by entering into these contracts.

Mineral tenement leases:

- Within one year

- After one year but not more than five years

- After more than five years

2022

2021

4,395,253

4,158,593

17,132,795

16,361,419

23,423,341

25,743,066

44,951,389

46,263,078

(c)  Other commitments
The Group has obligations for various expenditures such as royalties, production-based payments and exploration 
expenditure. Such expenditures are predominantly related to the earning of revenue in the ordinary course of business.

Royalties paid under contractual arrangements

31.  CONTINGENT ASSETS AND LIABILITIES

2022

2021

23,537,397

21,922,481

(i)  Bank guarantees and rental deposits
The Group has a number of bank guarantees and rental deposits in favour of various government authorities and service 
providers. These primarily relate to office leases and environmental and rehabilitation bonds at the various projects. The 
total amount of these guarantees at the reporting date is $1,930,033 (2021: $1,149,449). The bank guarantees are fully 
secured by term deposits (refer to Note 14).

Westgold Resources Limited Annual Report 2022

93

 
 
 
32. AUDITOR’S REMUNERATION

Amounts received or due and receivable by Ernst & Young (Australia) for:

Fees for auditing the statutory financial report of the parent covering the group and auditing 
the statutory financial reports of any controlled entities

282,825

280,800

2022

2021

Fees for other assurance and agreed upon procedures services and other legislation or 
contractual arrangements where there is discretion as to whether the service is provided by 
the auditor or another firm. 

Fees for other services:

- Tax compliance

Total auditor’s remuneration

–

3,640

2,200

22,174

285,025

306,614

33. OPERATING SEGMENTS
For management purposes, the Group is organised into operating segments determined by the location of the mineral being 
mined or explored, as these are the sources of the Group’s major risks and have the most effect on rates of return.

Reportable segments
The Group comprises the following reportable segments

Reference

Segment

Nature

FGO

Bryah Operations

Mining, treatment, exploration and development of gold assets

MGO & CGO Murchison Operations

Mining, treatment, exploration and development of gold assets

Other

Other

Exploration and development of other mineral assets and contract mining 
services

General
Executive management monitors the operating results of its operating segments separately for the purpose of making 
decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating 
profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, 
certain income and expenses (see below) are managed on a consolidated basis and are not allocated to operating 
segments. All other adjustments and eliminations are part of the detailed reconciliations presented further below.

Unallocated income and costs
Finance income and fair value gains and losses on financial assets are not allocated to individual segments as the underlying 
instruments are managed on a Group basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are 
also managed on a Group basis. Corporate charges comprise non-segmental expenses such as head office expenses 
and interest costs. Corporate charges are not allocated to operating segments. Refer to reconciliation segment results to 
consolidated results.

94

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS33. OPERATING SEGMENTS (CONTINUED)

Other disclosures
Capital expenditure consists of additions of property, plant and equipment, mine properties and development and 
exploration and evaluation expenditure including assets from the acquisition of subsidiaries.

The following table presents revenue and profit information for reportable segments for the years ended 30 June 2022 and 
30 June 2021. 

Murchison

Bryah

Other

Total

Year ended 30 June 2022

External revenue

Sale of gold at spot

247,763,992

88,966,408

Sale of gold under forward contracts

241,594,540

69,251,678

Mining and contracting services

–

–

Total segment revenue 

489,358,532

158,218,086

Results

–

–

–

-

336,730,400

310,846,218

–

647,576,618

Depreciation and amortisation

(143,564,220)

(48,725,750)

(890,699)

(193,180,669)

Exploration and evaluation expenditure written off

(89,016)

(21,149)

–

(110,165)

Segment profit (loss) before impairment

9,462,740

17,702,894

(1,398,659)

25,766,975

557,446,050

73,580,723

44,059

631,070,832

(167,705,275)

(35,871,982)

(42,705)

(203,619,962)

(201,562,547)

(37,456,499)

–

(239,019,046)

Total assets

Total liabilities

Capital expenditure

Year ended 30 June 2021

External revenue

Sale of gold at spot

288,031,479

98,856,950

Sale of gold under forward contracts

142,408,449

41,804,251

Mining and contracting services

–

–

Total segment revenue

430,439,928

140,661,201

Results

–

–

386,888,429

184,212,700

69,069

69,069

69,069

571,170,198

Depreciation and amortisation

(107,864,453)

(31,413,778)

(852,009)

(140,130,240)

Exploration and evaluation expenditure written off

(76,635)

(9,423)

–

(86,058)

Segment profit (loss)

Total assets

Total liabilities

Capital expenditure

72,773,776

42,842,540

(335,687)

115,280,629

617,171,498

123,621,044 

32,465

740,825,007

(174,222,689)

(36,025,281)

(14,632)

(210,262,602)

(228,372,804)

(37,817,451)

–

(266,190,255)

Westgold Resources Limited Annual Report 2022

95

33. OPERATING SEGMENTS (CONTINUED)

(a)  Reconciliation of profit (loss)

Segment profit (loss)

Corporate administration expenses

Corporate interest income

Corporate other income

Net gain (loss) on fair value changes of financial assets

Net gain (loss) on disposal of assets

2022

2021

25,766,975

115,280,629

(12,967,460)

(9,828,782)

266,150

334,738

3,080,833

1,957,496

(2,014,040)

5,202,140

1,316,434

(1,053,154)

Impairment of mine properties and property plant and equipment

(175,535,410)

Total consolidated profit (loss) from continuing operations before income tax

(160,086,518)

111,893,067

(b) Reconciliation of assets

Segment operating assets

Unallocated corporate assets

Cash and cash equivalents

Trade and other receivables

Prepayments

Other financial assets

Financial assets (equity investments)

Property, plant and equipment

Right-of-use assets

Total consolidated assets

(c) Reconciliation of liabilities

Segment operating liabilities

Unallocated corporate liabilities

Trade and other payables

Provision for employee benefits

Interest-bearing loans and borrowings

Deferred tax liability

Total consolidated liabilities

(d) Segment revenue from external customers

Segment revenue

Total revenue

96

Westgold Resources Limited Annual Report 2022

631,070,832

740,825,007

181,738,509

149,545,568

458,822

912,144

1,326,174

57,478

700,969

795,590

6,799,309

6,423,091

1,374,246

1,106,052

3,494,538

516,175

827,174,574

899,969,930

203,619,962

210,262,602

4,045,805

3,914,097

2,482,343

2,644,100

3,565,290

562,288

25,693,717

75,226,536

239,407,117

292,609,623

647,576,618

571,170,198

647,576,618

571,170,198

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS33. OPERATING SEGMENTS (CONTINUED)
Revenue from external customers by geographical locations is detailed below. Revenue is attributable to geographical 
location based on the location of the customers. The Company does not have external revenues from external customers 
that are attributable to any foreign country other than as shown.

Australia

Total revenue

2022

2021

647,576,618

571,170,198

647,576,618

571,170,198

The Group has two customers to which it sells gold and each account for 52% and 48% of this external revenue respectively 
(2021: 68% and 32%). 

(e)  Segment non-current assets are all located in Australia.

34. KEY MANAGEMENT PERSONNEL

(a)  Details of Key Management Personnel

(i) Non-Executive Directors (NEDs)

Hon. CL Edwardes AM

Non-Executive Chair

28/03/2022

–

WC Bramwell

Non-Executive Director

03/02/2020

31/07/2021

Appointed

Resigned

FJ Van Maanen

Non-Executive Director

GR Davison

JL Matthys

PG Cook

Non-Executive Director

Non-Executive Director

Non-Executive Chair

PB Schwann1

Non-Executive Director

(ii) Executive Directors

WC Bramwell

WC Bramwell

PG Cook

Executive Director

Managing Director

Executive Chair

(iii) Other Executives (KMPs)

SH Heng

PW Wilding

L Smith

DA Fullarton

Chief Financial Officer

A/Chief Operating Officer

Company Secretary

Chief Executive Officer 

A Buckingham

Chief Operating Officer 

06/10/2016

01/06/2021

28/03/2022

01/08/2021

02/02/2017

01/08/2021

24/05/2022

19/03/2007

02/08/2021

24/05/2022

30/12/2019

01/07/2020

01/10/2019

–

–

–

28/03/2022

–

23/05/2022

–

31/07/2021

–

–

–

24/05/2022

24/05/2022

1. 

PB Schwann resigned as an Independent Non-Executive Director on 26 July 2022.

There are no other changes of the key management personnel after the reporting date and before the date the financial 
report was authorised for issue. 

Westgold Resources Limited Annual Report 2022

97

34. KEY MANAGEMENT PERSONNEL (CONTINUED)

(b) Compensation of Key Management Personnel

Short term benefits

Other fees

Termination payments

Post-employment benefits

Other long-term benefits

Share-based payment

2022

2021

2,664,040

2,470,589

14,373

135,820

728,876

–

208,138

129,445

40,498

(130,843)

41,250

441,116

3,525,082

3,218,220

(c)  Loans to Key Management Personnel
There were no loans to key management personnel during the current or previous financial year.

(d)  Interest held by Key Management Personnel under the Long-Term Incentive Plan
Performance Rights held by key management personnel under the long-term incentive plan to purchase ordinary shares:

Grant date

10/05/2019

07/05/2020

24/11/2020

11/10/2021

Total

Expiry date

30/06/2023

30/06/2022

30/06/2023

30/06/2024

Exercise price $

2022

2021

0.00

0.00

0.00

0.00

–

–

56,530

275,003

166,071

639,121

501,470

–

667,541

970,654

35. RELATED PARTY DISCLOSURES

(a)  Subsidiaries
The consolidated financial statements of the Group include Westgold Resources Limited and the subsidiaries listed in the 
following table:

Name

Aragon Resources Pty Ltd

Big Bell Gold Operations Pty Ltd

Westgold Mining Services Pty Ltd1

1. 

Previously Minterra Pty Ltd 

Country of 
incorporation

Australia

Australia

Australia

Ownership interest

2022

100%

100%

100%

2021

100%

100%

100%

98

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS35. RELATED PARTY DISCLOSURES (CONTINUED)

(b)  Ultimate parent
Westgold Resources Limited is the ultimate parent entity.

(c)  Key management personnel
Details relating to key management personnel, including remuneration paid, are included in Note 34.

(d)  Transactions with related parties

Services provided by Westgold Resources Limited to Castile Resources Ltd

Amount owing by Castile Resources Ltd at 30 June

Services provided to Westgold Resources Limited by Castile Resources Ltd

Amount owing by Westgold Resources Ltd at 30 June

PG Cook was the non-executive chair of Castile Resources Ltd during the financial period.

There were no other related party transactions for the year ending 30 June 2022.

2022

4,967

490

2021

14,000

4,730

–

–

(104,869)

(12,286)

36. INFORMATION RELATING TO WESTGOLD RESOURCES LIMITED (THE PARENT ENTITY)

Current assets

Total assets

Current liabilities

Total liabilities

Issued capital

Retained earnings (accumulated losses)

Share-based payments reserve

Other reserves

Total Equity

Profit (loss) of the parent entity1 

Total comprehensive profit of the parent entity

1. 

Includes $27m elimination of intercompany receivable on sale of subsidiary.

2022

2021

184,435,649

151,099,603

462,571,498

378,493,869

6,680,412

7,115,222

10,093,436

7,120,484

463,468,149

364,077,524

(31,431,802)

(12,527,418)

15,884,932

15,266,496

4,556,783

4,556,783

452,478,062

371,373,385

(11,379,797)

(21,867,361)

(11,379,797)

(21,867,361)

Westgold Resources Limited Annual Report 2022

99

36.  INFORMATION RELATING TO WESTGOLD RESOURCES LIMITED (THE PARENT ENTITY) 

(CONTINUED)

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries.
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785, Westgold and its wholly owned 
subsidiaries entered into a deed of cross guarantee on 28 November 2016 (the Guarantee). The effect of the Guarantee is 
that Westgold has guaranteed to pay any deficiency in the event of winding up of any controlled entity which is a party to 
the Guarantee or if they do not meet their obligations under the terms of any debt subject to the Guarantee. The controlled 
entities which are parties to the Guarantee have given a similar guarantee in the event that Westgold is wound up or if it 
does not meet its obligations under the terms of any debt subject to the Guarantee.

The Consolidated Statement of Financial Position and Consolidated Statement of Comprehensive Income for the closed 
group is not different to the Group’s Statement of Financial Position and Statement of Comprehensive Income.

Other contingent liabilities of the parent entity

Contractual commitments by the parent entity for the acquisition of property, plant or equipment

Nil

Nil

37. EVENTS AFTER THE BALANCE SHEET DATE
There have been no other significant events after the balance date.

38. ACCOUNTING STANDARDS

New and amended standards and interpretations
The Group has adopted all Accounting Standards and Interpretations effective from 1 July 2021. The accounting policies 
adopted are consistent with those of the previous financial year. 

Several new and amended Accounting Standards and Interpretations applied for the first time from 1 July 2021 but did not 
have an impact on the consolidated financial statements of the Group and, hence, have not been disclosed.

100

Westgold Resources Limited Annual Report 2022

for the year ended 30 June 2022FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDIRECTORS’ DECLARATION

In accordance with a resolution of the Directors of Westgold Resources Limited, I state that:

In the opinion of the Directors:

(a)   the financial statements and notes of the Company and of the Group are in accordance with the Corporations Act 2001, 

including:

(i) 

 giving a true and fair view of the Company’s and the Group’s financial position as at 30 June 2022 and of their 
performance for the year ended on that date; and

(ii)   complying with the Australian Accounting Standards (including the Australian Accounting Interpretations) and 

Corporations Regulations 2001; and

(b)   the financial statements and notes also comply with International Financial Reporting Standards as disclosed in 

Note 2(b) and;

(c)   there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due 

and payable; and

(d)   this declaration has been made after receiving the declarations required to be made to the Directors in accordance with 

section 295A of the Corporations Act 2001 for the financial year ended 30 June 2022.

As at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group will be 
able to meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross Guarantee 
identified in Note 36.

On behalf of the Board.

Hon. Cheryl L Edwardes AM 
Non-Executive Chair

Perth, 25 August 2022

Westgold Resources Limited Annual Report 2022

101

for the year ended 30 June 2022FINANCIAL REPORT DIRECTORS’ DECLARATION        
 
INDEPENDENT AUDITOR’S REPORT

Ernst & Young 
11 Mounts Bay Road 
Perth  WA  6000  Australia 
GPO Box M939   Perth  WA  6843 

  Tel: +61 8 9429 2222 
Fax: +61 8 9429 2436 
ey.com/au 

Independent auditor’s report to the members of Westgold Resources 
Limited   

Report on the audit of the financial report 

Opinion 
We have audited the financial report of Westgold Resources Limited (the Company) and its 
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position 
as at 30 June 2022, the consolidated statement of comprehensive income, consolidated statement of 
changes in equity and consolidated statement of cash flows for the year then ended, notes to the 
financial statements, including a summary of significant accounting policies, and the directors’ 
declaration. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations 
Act 2001, including: 

a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2022 

and of its consolidated financial performance for the year ended on that date; and 

b.

Complying with Australian Accounting Standards and the Corporations Regulations 2001. 

Basis for opinion 
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 
those standards are further described in the Auditor’s responsibilities for the audit of the financial 
report section of our report. We are independent of the Group in accordance with the auditor 
independence requirements of the Corporations Act 2001 and the ethical requirements of the 
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional 
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the 
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with 
the Code.  

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 
for our opinion. 

Key audit matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in 
our audit of the financial report of the current year. These matters were addressed in the context of 
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide 
a separate opinion on these matters. For each matter below, our description of how our audit 
addressed the matter is provided in that context. 

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. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

TH:LT:WGX:009 

102

Westgold Resources Limited Annual Report 2022

FINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT        
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 2 2 

1. Impairment assessment of non-current assets 

Why significant 

How our audit addressed the key audit matter 

At 30 June 2022, the Group had non-current assets 
of $422,534,362 comprising capitalised development 
and mine properties expenditure, property, plant and 
equipment and right of use assets (refer to Notes 16, 
17 and 19 of the financial report). 

At the end of each reporting period, the Group 
exercises judgment in determining whether there is 
any indication of impairment of these assets. If any 
such indicators exist, the Group estimates the 
recoverable amount of the applicable assets. The 
Group assessed whether any indicators of impairment 
were present at 30 June 2022 and concluded that an 
indicator or indicators of impairment were present in 
respect of its Murchison CGO, Murchison MGO and 
Bryah FGO cash generating units (CGUs). An 
impairment loss of $109,423,641 for the Murchison 
CGO CGU, $36,285,586 for the Murchison MGO CGU 
and $29,826,183 for the Bryah FGO CGU was 
recognised for the year ended 30 June 2022 (refer to 
Note 17 of the financial report). 

We considered this to be a key audit matter because 
of the: 

► Significant judgment involved in determining 

whether indicators of impairment were present. 

► Significant judgment and estimates involved in 

the determination of the recoverable amount of 
the CGUs, including assumptions relating to 
future gold prices, 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. 

We evaluated the Group’s assessment as to the 
presence of any indicators of impairment. Our audit 
procedures included the following: 

► Comparison of the Group’s market 

capitalisation relative to its net assets. 

► Reading operational reports, board reports, 
minutes and market announcements. 

► Consideration of changes to reserves and 

resources and other macro-economic factors 
including the gold price and discount rates. 

Our audit procedures related to the impairment 
assessment made by the Group following the 
identification of impairment indicators 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 the inputs used 
to formulate them. 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, 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 latest Board 
approved budgets and 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 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

Westgold Resources Limited Annual Report 2022

103

 
 
 
 
Page 3 3 

Why significant 

How our audit addressed the key audit matter 

experts, and assessed whether key economic 
assumptions were consistent with those used 
elsewhere in the financial report. 

► Assessed the impact of a range of sensitivities 
to the economic assumptions underpinning the 
Group's impairment assessment. 

► Assessed the adequacy of the Group's 

disclosures in the financial report relating to 
impairment. 

2.  Amortisation of mine properties and development costs  

Why significant 

How our audit addressed the key audit matter 

As at 30 June 2022 the Group had capitalised mine 
properties and development costs amounting to 
$263,803,557 (refer to Note 17 of the financial 
report).  

We evaluated the assumptions and methodologies 
used by the Group in their calculations of 
amortisation of capitalised mine properties and 
development costs.  

As disclosed in Note 3 of the financial report, these 
costs are amortised on a units of production basis, 
based on production during the period and an 
estimate of the remaining reserves and resources to 
be mined. 

The amortisation calculations require considerable 
judgement and estimation in relation to the estimated 
reserves and resources (used as the denominator in a 
“actual tonnes mined” calculation) of the mines and 
the estimate of future costs (included in the 
numerator in a “actual tonnes mined” calculation) 
required to extract these reserves and resources for 
each underground mine. 

Accordingly, this creates a risk the amortisation rates 
are inappropriate, resulting in an expense profile that 
does not reflect the pattern of consumption of the 
assets’ future economic benefits. 

This was considered to be a key audit matter due to 
the judgment and estimation involved. 

Our audit procedures included the following: 

•

•

•

•

•

•

Assessed the qualifications, competence and 
objectivity of the Group’s internal experts, the 
work of whom, formed the basis of the Group’s 
estimates on the reserves and resources and the 
future costs used in the amortisation 
calculations. 

Assessed the application of reserves and 
resources in the amortisation models by 
comparing them to the latest published 
statement and underlying mining records. 

Assessed the reasonableness of the future costs 
included in the amortisation calculations with 
reference to historical costs incurred and the 
mine plans approved by the Group’s internal 
experts. 

Evaluated the consistency of application of the 
Group’s amortisation methodology on its 
capitalised mine properties and development 
assets across the mine sites. 

Tested the mathematical accuracy of the 
amortisation models. 

Assessed the adequacy of the Group's disclosures 
in the financial report relating to amortisation. 

3. Rehabilitation and restoration provisions 

Why significant 

How our audit addressed the key audit matter 

As a consequence of its operations, the Group incurs 
obligations to restore and rehabilitate the 
environment at its mine sites. Rehabilitation activities 
are governed by local legislative requirements. As at 
30 June 2022 the Group’s consolidated statement of 
financial position includes provisions of $66,669,167 

We evaluated the assumptions and methodologies 
used by the Group in determining their rehabilitation 
obligations. Our audit procedures included the 
following: 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

104

Westgold Resources Limited Annual Report 2022

continuedFINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT        
 
 
 
Page 4 4 

Why significant 

How our audit addressed the key audit matter 

in respect of such obligations (refer to Note 22 of the 
financial report). 

•

Estimating the costs associated with these future 
activities requires considerable judgment in relation 
to factors such as timing of the rehabilitation, the 
costs associated with the rehabilitation activities and 
economic assumptions such as discount rates and 
inflation rates. 

Accordingly, this was considered to be a key audit 
matter. 

Assessed the qualifications, competence and 
objectivity of the Group’s experts, the work of 
whom, formed the basis of the Group’s 
rehabilitation cost estimates. 

• With the assistance of our subject matter 

specialists, we assessed the appropriateness of 
the rehabilitation cost estimates 

•

•

Tested the Group’s calculation of the present 
values of the rehabilitation liabilities considering 
the estimated timing of when the cash flows will 
be incurred by reference to the most appropriate 
inflation and discount rates. 

Assessed the adequacy of the Group's disclosures 
in the financial report relating to rehabilitation 
obligations. 

Information other than the financial report and auditor’s report thereon 

The directors are responsible for the other information. The other information comprises the 
information included in the Company’s 2022 annual report other than the financial report and our 
auditor’s report thereon. We obtained the corporate directory, the directors’ report and the letter 
from the chair that are to be included in the annual report, prior to the date of this auditor’s report, 
and we expect to obtain the remaining sections of the annual report after the date of this auditor’s 
report.  

Our opinion on the financial report does not cover the other information and we do not and will not 
express any form of assurance conclusion thereon, with the exception of the Remuneration Report 
and our related assurance opinion. 

In connection with our audit of the financial report, our responsibility is to read the other information 
and, in doing so, consider whether the other information is materially inconsistent with the financial 
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.  

If, based on the work we have performed on the other information obtained prior to the date of this 
auditor’s report, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard. 

Responsibilities of the directors for the financial report 

The directors of the Company are responsible for the preparation of the financial report that gives a 
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 
and for such internal control as the directors determine is necessary to enable the preparation of the 
financial report that gives a true and fair view and is free from material misstatement, whether due to 
fraud or error. 

In preparing the financial report, the directors are responsible for assessing the Group’s ability to 
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

Westgold Resources Limited Annual Report 2022

105

 
 
 
 
 
 
Page 5 5 

going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or have no realistic alternative but to do so. 

Auditor’s responsibilities for the audit of the financial report 

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 
audit conducted in accordance with the Australian Auditing Standards will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material 
if, individually or in the aggregate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of this financial report. 

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional 
judgment and maintain professional scepticism throughout the audit. We also: 

► Identify and assess the risks of material misstatement of the financial report, whether due to 

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit 
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not 
detecting a material misstatement resulting from fraud is higher than for one resulting from 
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal control. 

► Obtain an understanding of internal control relevant to the audit in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the Group’s internal control.  

► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 

estimates and related disclosures made by the directors. 

► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting 
and, based on the audit evidence obtained, whether a material uncertainty exists related to 
events or conditions that may cast significant doubt on the Group’s ability to continue as a going 
concern. If we conclude that a material uncertainty exists, we are required to draw attention in 
our auditor’s report to the related disclosures in the financial report or, if such disclosures are 
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up 
to the date of our auditor’s report. However, future events or conditions may cause the Group to 
cease to continue as a going concern.  

► Evaluate the overall presentation, structure and content of the financial report, including the 

disclosures, and whether the financial report represents the underlying transactions and events 
in a manner that achieves fair presentation. 

► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or 

business activities within the Group to express an opinion on the financial report. We are 
responsible for the direction, supervision and performance of the Group audit. We remain solely 
responsible for our audit opinion. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

106

Westgold Resources Limited Annual Report 2022

continuedFINANCIAL REPORT INDEPENDENT AUDITOR’S REPORT        
 
 
 
Page 6 6 

We communicate with the directors regarding, among other matters, the planned scope and timing of 
the audit and significant audit findings, including any significant deficiencies in internal control that we 
identify during our audit. 

We also provide the directors with a statement that we have complied with relevant ethical 
requirements regarding independence, and to communicate with them all relationships and other 
matters that may reasonably be thought to bear on our independence, and where applicable, actions 
taken to eliminate threats or safeguards applied. 

From the matters communicated to the directors, we determine those matters that were of most 
significance in the audit of the financial report of the current year and are therefore the key audit 
matters. We describe these matters in our auditor’s report unless law or regulation precludes public 
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter 
should not be communicated in our report because the adverse consequences of doing so would 
reasonably be expected to outweigh the public interest benefits of such communication. 

Report on the audit of the Remuneration Report 

Opinion on the Remuneration Report 

We have audited the Remuneration Report included in directors’ report for the year ended 30 June 
2022. 

In our opinion, the Remuneration Report of Westgold Resources Limited for the year ended 30 June 
2022, complies with section 300A of the Corporations Act 2001. 

Responsibilities 

The directors of the Company are responsible for the preparation and presentation of the 
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our 
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in 
accordance with Australian Auditing Standards. 

Ernst & Young 

T S Hammond 
Partner 
Perth 
25 August 2022 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

Westgold Resources Limited Annual Report 2022

107

 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDER INFORMATION       

as at 19 September 2022

(A) TOP 20 QUOTED SHAREHOLDERS 

Name

Units

% Units

1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

201,353,227

2 CITICORP NOMINEES PTY LIMITED

3

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

4 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

5 BNP PARIBAS NOMS PTY LTD 

6 MR COLIN PETROULAS

7 NATIONAL NOMINEES LIMITED

8 AJAVA HOLDINGS PTY LTD

9 BNP PARIBAS NOMINEES PTY LTD 

10 MR RICHARD FARLEIGH

11 MR PETER GERARD COOK

12 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM

13 BNP PARIBAS NOMS PTY LTD 

14 SUN HUNG KAI INVESTMENT SERVICES LIMITED 

15 UBS NOMINEES PTY LTD

16 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA

17 ALL-STATES FINANCE PTY LIMITED

18 AJAVA HOLDINGS PTY LTD

19 DEBORTOLI WINES PTY LIMITED

20 OAKSOUTH PTY LTD

(B) DISTRIBUTION OF QUOTED ORDINARY SHARES 

59,435,213

46,818,126

27,196,563

18,049,724

7,125,000

6,122,550

6,003,812

4,989,320

4,578,597

2,727,848

2,259,717

2,085,954

2,000,000

1,953,854

1,786,128

1,711,670

1,545,536

1,421,111

1,191,250

42.51

12.55

9.89

5.74

3.81

1.50

1.29

1.27

1.05

0.97

0.58

0.48

0.44

0.42

0.41

0.38

0.36

0.33

0.30

0.25

Range (size of parcel)

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 Over

TOTAL

Total holders

Units

2,715

1,380,133

3,164

8,232,727

1,003

7,646,708

1,210

31,254,195

123 425,108,967

8,215 473,622,730

(C) NUMBER OF HOLDERS WITH LESS THAN A MARKETABLE PARCEL OF ORDINARY 
SHARES

Total unmarketable parcels at $500 parcel at $0.8200 per unit

610

552,668

108

Westgold Resources Limited Annual Report 2022

(D) SUBSTANTIAL SHAREHOLDERS

Ruffer (London)

L1 Capital (Melbourne)

Global Alpha Capital Management (Montreal)

Invesco (Oppenheimer Funds) (New York)

* As at 6 September 2022

(E) VOTING RIGHTS 
The voting rights for each class of security on issue are:

Number 
of Shares

35,290,111

32,818,175

32,277,129

26,648,560

%

7.45

6.93

6.81

5.63

Ordinary Fully Paid Shares
 – Each ordinary shareholder is entitled to one vote for each share held.

Unquoted Employee Options
 –

The holders of options have no rights to vote at a general meeting of the Company.

(F) UNQUOTED EQUITY SECURITIES 

ASX Code

WGXAE

WGXAF

TOTAL

Security  
Description

Number of 
Securities

Performance Rights Expiring 30 June 2023

762,080

Performance Rights Expiring 30 June 2024

1,570,428

2,332,508

Westgold Resources Limited Annual Report 2022

109

 
CORPORATE DIRECTORY

DIRECTORS
Hon. Cheryl L Edwardes AM (Non-Executive Chair) 
Wayne C Bramwell (Managing Director) 
Fiona J Van Maanen (Non-Executive Director) 
Gary R Davison (Non-Executive Director) 
Julius L Matthys (Non-Executive Director)

COMPANY SECRETARY
Lisa Smith 
Susan Park (Joint Company Secretary)

SENIOR EXECUTIVES
Su Hau Heng (Chief Financial Officer) 
Phillip Wilding (A/Chief Operating Officer)

REGISTERED OFFICE
Level 6, 200 St Georges Terrace 
Perth WA 6000

Phone: +61 8 9462 3400 
Email: reception@westgold.com.au

Website: www.westgold.com.au

POSTAL ADDRESS
PO Box 7068  
Cloisters Square  
WA 6850

SECURITIES EXCHANGE
Listed on the Australian Securities Exchange 
ASX Code: WGX

SHARE REGISTRY

Computershare Investors Services Pty Ltd
Level 11, 172 St Georges Terrace 
Perth WA 6000

Phone: +61 3 9415 4000 
Fax: +61 3 6473 2500

Website: www.computershare.com

DOMICILE AND COUNTRY OF INCORPORATION
Australia

ABN 
ABN 60 009 260 306

110

Westgold Resources Limited Annual Report 2022

CORPORATE DIRECTORY 
www.westgold.com.au