ANNUAL REPORT 2024
GROWING
A MAJOR
AUSTRALIAN
GOLD PRODUCER
Westgold is one of Australia’s
top five gold companies - with a
growing portfolio of mines and
processing facilities in two of
Western Australia’s most prolific
gold producing regions.
www.westgold.com.au
1
Our Purpose and Ambition
1
Values and Behaviours
2
Letter from the Chair
4
Financial Results
6
Our Annual Outputs
8
Our Operations
30
Directors’ Report
41
Remuneration Report (Audited)
56
Auditor’s Independence Declaration
57
Consolidated Statement of Comprehensive Income
58
Consolidated Statement of Financial Position
59
Consolidated Statement of Cash Flows
60
Consolidated Statement of Changes in Equity
61
Notes to the Consolidated Financial Statements
106 Consolidated Entity Disclosure Statement
107 Directors’ Declaration
108 Independent Auditor’s Report
113 Shareholder Information
115 Corporate Directory
CONTENTS
ARTIST – JANINE MONGOO
Westgold is proud to partner with
Ngoonooru Wadjari artist Janine
Mongoo, who has created beautiful
and powerful artwork that bridges
Indigenous history with Westgold's
operations. Based in Meekatharra,
Janine’s family connection to this land
stretches back many years.Known
as Mikadah, meaning ‘place of little
water’, Meekatharra's landscape has
nurtured generations of Aboriginal
Australians. The rich ecosystem
provided sustenance through bush
tucker – native plants and animals –
and vital water sources from soaks
and gnamma holes. Janine's artistic
spirit draws inspiration from this
deep ancestral connection and the
surrounding environment. Her works
bridge the gap between the ancient
traditions of her people and the
modern landscape.
THE ARTWORK
The three symbols in the middle of
Janine’s artwork represent Westgold’s
operations in the Murchison, and
the symbols around the circles are
people sitting around in community.
The larger outlying symbols represent
the Traditional Owner groups in the
area.
The gold dots represent Westgold
mine sites, tenements and
operations.
1
Westgold Resources Limited Annual Report 2024
OUR PURPOSE
AND AMBITION
Westgold’s purpose as an organisation
is to create intergenerational wealth by
leveraging our gold assets. In doing so
we aspire to:
– create shareholder value,
– contribute to our wider communities,
and
– provide opportunities for our team
to grow and succeed.
VALUES AND
BEHAVIOURS
Our values and behaviours guide how we
work with each other, our communities,
and external stakeholders. They speak to
the core aspirations of our organisation
and influence our actions and decisions.
Our values provide the framework that
holds us accountable, and with the
support of our staff, drives the culture
that will deliver 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
LETTER FROM THE CHAIR
A TRANSFORMATIONAL YEAR
Dear Shareholders,
It is my pleasure to present the
Westgold Resources Limited
(“Westgold” or “the Group”)
Annual Financial Report for the
financial year ended 30 June
2024 (FY24).
Westgold also committed to the
development of the iconic Great
Fingall mine at Cue. This historic
high grade mine (alongside the
Golden Crown mine) is one of the
only remaining high-grade reef
mines in Australia that has not seen
modern mining. The Westgold Board
approved the development of Great
Fingall in August 2023, development
commenced immediately, and this
mine will deliver high grade ounces
for our shareholders in FY25.
Our commitment to building a
long term, sustainable business
that minimises its impact on the
environment was evidenced in FY24
with the construction of four new
hybrid (gas-solar-battery) power
stations across our operations. The
first station was commissioned at
Tuckabianna in July 2023, with the
last of four stations commissioned
in FY24, materially reducing our
carbon emissions and fossil fuel
consumption.
Westgold announced a merger
with TSX listed Karora Resources
Inc in April 2024. This merger
brought together two similar sized,
owner-operator companies with
gold assets in Western Australia.
This transformational transaction
propels Westgold to +400,000oz pa
of production from mines across
the Murchison and Southern
Goldfields, diversifying our footprint
and expanding our operating team
to over 1,900 people.
Westgold will continue to focus on
its internal growth pipeline and this
pipeline has been expanded. The
company now has 3,200km2 of tenure
across two of Western Australia’s
most productive goldfields.
Importantly, we have the team and
equipment to unlock its value.
Our vision for Westgold going
forward remains clear. The expanded
Westgold aspires to become a
leading Australian gold miner that
is progressive, socially responsible
and a business that consistently
returns value to our shareholders
and stakeholders.
This is a journey and there remains
much that can be achieved. Westgold
now has a larger team of focused and
culturally aligned people who have
the vision and resources to make
Westgold a larger and more profitable
Australian gold company.
Thank you for your continued support.
Hon. Cheryl Edwardes AM
Non-Executive Chair
Leadership drives culture, culture
drives performance. FY24 has been
a transformational year for Westgold
and I’m proud to see the leadership
and culture now driving improved
performance in many business-
critical areas. Our mantra of safe
and profitable ounces is resonating
with our workforce and our team has
delivered both in FY24.
The business continues to improve
its key safety metrics and gain
momentum as it begins to deliver
against its corporate objectives. Six
quarters of positive cashflow whilst
making significant investments in
extending our mine lives is a delicate
balance. A resurgent gold price has
assisted our financial performance
and positioned the company to raise
its view towards faster growth.
During this year Westgold spent
$25M on drilling across its key
Murchison and Bryah assets. This
investment has unlocked significant
value and seen the Bluebird-South
Junction mine grow in stature.
Drilling continues at Bluebird-South
Junction and the extent of this system
continues to expand.
Drilling at the Starlight underground
mine has also successfully extended
the mine life, with grade lifting from
the Nightfall lode and encouraging
results from testing additional
lodes such as Waterbore and the
extensions of Starlight.
2
Westgold Resources Limited Annual Report 2024
3
Westgold Resources Limited Annual Report 2024
4
Westgold Resources Limited Annual Report 2024
YEAR END 30 JUNE 2024
FINANCIAL
RESULTS
Unless specifically noted, all dollar amounts
disclosed in this report are Australian Dollars
(A$ or AUD)
5
Westgold Resources Limited Annual Report 2024
GOLD SALES
227,691oz
(FY23: 256,009oz)
REVENUE
$716.5m
(FY23: $656.6m)
NET CASH FROM
OPERATIONS
$351.7m
(FY23: $168.4m)
NET PROFIT/(LOSS)
BEFORE TAX
$137.0m
(FY23: $13.9m)
NET PROFIT/(LOSS)
AFTER TAX
$95.2m
(FY23: $10.0m)
CLOSING CASH &
CASH EQUIVALENTS
$236.0m
(FY23: $176.4)
PROFIT/(LOSS)
PER SHARE
20.1c
(FY23: 2.11c)
NET ASSETS
$691.8m
(FY23: $598.3m)
AVERAGE HEDGE
GOLD PRICE
A$3,340/oz
(FY23: A$2,390/oz)
OUTSTANDING HEDGED
OUNCES AS AT 30 JUNE 2024
Nil ounces
(FY23: 10,000oz)
* Bullion is valued at closing spot price.
6
Westgold Resources Limited Annual Report 2024
YEAR END 30 JUNE 2024
OUR ANNUAL OUTPUTS
7
Westgold Resources Limited Annual Report 2024
GOLD PRODUCED
CASH COST
(C1)
ALL IN
SUSTAINING
COSTS
MURCHISON OPERATIONS
168,485oz
BRYAH OPERATIONS
58,752oz
GROUP
227,237oz
MURCHISON OPERATIONS
A$1,790/oz
BRYAH OPERATIONS
A$1,483/oz
GROUP
A$1,711/oz
MURCHISON OPERATIONS
A$2,281/oz
BRYAH OPERATIONS
A$1,883/oz
GROUP
A$2,178/oz
8
Westgold Resources Limited Annual Report 2024
OUR OPERATIONS
REVIEW OF OPERATIONS
Westgold Resources (ASX/TSX:
WGX) is a significant Australian
gold company – producing over
227,000oz of gold in FY24 (top end
of revised production guidance of
between 220,000oz and 230,000oz)
from its owner-operated portfolio of
established mines and processing
plants, at an All-In Sustaining Cost
(AISC) of $2,178/oz (at the lower end
of its revised guidance of between
$2,100/oz and $2,300/oz).
In August 2024, subsequent to
the period under review, Westgold
merged with TSX-listed Karora
Resources, near-doubling its
annual gold production capacity to
over 400,000oz when its mines in
development reach full production,
elevating the Company to the ranks
of Australia’s top five gold producers.
Figure 1. Map of Westgold’s operations in Western Australia
With more than 350 land titles
spanning ~3,200km2 across two of
Western Australia’s most prolific
goldfields – the Company has an
enviable pipeline of organic growth
options and exploration targets to
sustain its operations.
This unprecedented opportunity for
sustainable growth is underpinned
by Westgold’s profitable operations,
robust balance sheet and its highly
experienced Board of Directors,
management team, and skilled
workforce of some 1,900 people.
9
Westgold Resources Limited Annual Report 2024
10
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
MURCHISON
OPERATIONS
Westgold’s Murchison operations
are located around the towns of
Meekatharra and Cue in the mid-west
region of Western Australia and in
FY24 encompassed three operating
underground mines (Big Bell,
Bluebird South Junction and Paddy’s
Flat ), two mines in development
(Fender and Great Fingall) and two
processing hubs (the 1.6-1.8Mtpa
Bluebird plant at Meekatharra and
the 1.4Mtpa Tuckabianna plant near
Cue). Subsequent to the period under
review, Paddy’s Flat was paused,
and Fender has since achieved
commercial production.
Figure. Westgold’s Murchison operations
Great
Great
Northern
Northern
Highway
Highway
KATHARR
MEEKATHARRA
UE
CUE
D
Bluebird Mill 1.8Mtpa
Tuckabianna Mill 1.4Mtpa
South Emu
Bluebird
Paddy’s Flat
Big Bell
Fender
Triton
Comet
Great Fingall
/Golden Crown
D
BIG BELL
MINING AREA
CUDDINGWARRA
MINING AREA
DAY DAWN
MINING AREA
TUCKABIANNA
MINING AREA
REEDY’S
MINING AREA
NANINE
MINING AREA
YALOGINDA
MINING AREA
MEEKATHARRA
NORTH
MINING AREA
PADDY’S
FLAT
MINING AREA
600000E
600000E
650000E
650000E
550000E
7000000N
7000000N
7050000N
7050000N
6950000N
6950000N
DA94 MGA Zone 50
GDA94 MGA Zone 50
5
25
ometres
Kilometres
Westgold Tenements
Mine
Development Project
Processing Plant
Greenstones
Granite
LEGEND
D
In FY24, gold output from Westgold’s
Murchison operations was
168,485oz, representing 74% of the
Group’s production at a C1 Cash Cost
of $1,790/oz and an AISC of $2,281oz.
MEEKATHARRA
The Meekatharra operations are
located around the regional town of
Meekatharra, and include the historic
gold mining centres of Meekatharra
North, Paddy’s Flat, Yaloginda,
Nannine and Reedy’s.
The Meekatharra processing hub
incorporates the 1.6-1.8 Mtpa
Bluebird processing plant, a
420-person village, and associated
mining infrastructure required to
support mining operations. In FY24,
the Bluebird plant received ore from
the Paddy’s Flat (since paused)
and Bluebird – South Junction
underground mines, and surplus ore
from the Group’s Cue operations,
supplemented by lower grade,
stockpiled surface ore.
Meekatharra has a number of
advanced growth projects and
exploration targets which sustain
and extend gold production beyond
existing operations, including:
–
Extensions to the Bluebird
underground mine, including the
incorporation of the South Junction
orebody and potential inclusion of
the Polar Star extension;
–
Triton Deeps and Boomerang in the
Reedy Mining Area; and
–
New targets across the central
package where drilling below 100m
in depth is sparse, with advanced
targets including the GNH and
Paddy’s North deposits.
BLUEBIRD UNDERGROUND
MINE
Ongoing drilling during the reporting
period assisted this emerging
flagship operation to mine higher
grades for fewer tonnes, resulting
in improved profitability and cash
flow, delivering 452,000t at 3.7 g/t for
FY24. During the year under review,
a second decline was established at
Bluebird, to open more production
fronts to maintain output. Pleasingly,
the boundaries of the Bluebird and
South Junction system continue to
expand, and Westgold continues
to prioritise an extensive resource
drilling programme to grow the mine’s
footprint.
11
Westgold Resources Limited Annual Report 2024
Westgold spent $25M on drilling
across its key Murchison and
Bryah assets during the year. This
investment unlocked significant
value, and in particular saw the
Bluebird-South Junction mine grow
in stature, with the announcement
in April 2024 of an interim Mineral
Resource Estimate for the combined
system of 6.4Mt at 3.1g/t for 827koz
(refer ASX - Bluebird-South Junction
Increases to 6.4Mt at 3.1 g/t Au 16
April 2024).
This represented a half a million-
ounce increase in the Mineral
Resource of Bluebird – South
Junction, post nine months of
mining depletion at that time.
In conjunction with the programme
to better define the South Junction
opportunities, works to define the
parallel Polar Star lode, continue
into FY25.
At the close of the period, the
Bluebird mine plan was transitioning
to South-Junction’s large, bulk mining
areas, which will be the operational
focus over the coming half (H1
FY25). This strategy is expected to
re-optimise the Bluebird mining areas
and materially increase outputs, to a
rate of 1.2Mtpa from Bluebird-South
Junction by Q4 FY25.
PADDY’S FLAT
Westgold’s Paddy’s Flat underground
mine at Meekatharra has been a
significant contributor to the business
for many years, and in FY24 delivered
189,000t of ore at 2.9g/t.
Following completion of mining of the
large Prohibition lode however, the
mine was failing to meet profitability
metrics, with underperformance
driven both by a lack of drill data
across the Paddy’s Flat operation,
and the inherent complexity of this
large, yet under-drilled system.
In January 2024, an operational pause
was implemented, which saw Paddy’s
Flat personnel and equipment
redeployed to bolster resources
within the Company’s larger
operations, with mine production
from Fender supplementing, then
replacing, Paddy’s Flat during the
latter half of the year.
Paddy’s Flat has transitioned into an
exploration phase, targeting definition
of a 3-4 year optimised mine plan
prior to a restart decision.
Figure 3. South Junction Maiden Ore Reserve
en
Open
Open
Open
Open
Exploration
Target
Exploration Target
Bluebird Expansion
(Planned)
Bluebird North
Expansion
(Planned)
Bluebird North Lodes
Iron Bar Lodes
Polar Star Lodes
South Junction Lodes
South Junction Open Pit
Historical Production +400Koz Au
Bluebird Open Pit
Historical Production +600Koz Au
Existing Bluebird Workings
SOUTH JUNCTION
Maiden Ore Reserve
17500E
18000E
18500E
19000E
17500E
18000E
18500E
19000E
500mRL
-500mRL
-500mRL
0mRL
500mRL
0mRL
North
South
500
Metres
Depleted by UG Mining
Measured & Indicated Resources
Inferred Resources
LEGEND
24BLDD095
9.25m @ 3.79g/t Au
from 122m
24BLDD066
18.9m @ 3.65g/t Au
from 293m
24BLDD064
31.37m @ 5.55g/t Au from 122m
& 15.5m @ 4.62g/t from 158m
24SJDD021_W2
5.79m @ 2.39g/t Au, 4.70m @
4.58g/t & 20.94m @ 6.74g/t
Bluebird Mine
South Junction Mine
showing initial ore reserve
12
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
OPEN PIT AND LOW-GRADE
STOCKS
During the reporting period, Westgold
continued to monetise its inventory
of low grade and open pit stocks to
manage mill blend and throughput
requirements, along with trucking
excess Big Bell ore and stockpiles to
the Bluebird Mill.
CUE
The Cue operations are located
around the regional town of Cue and
encompass Westgold’s southern-
most group of Murchison assets. This
package includes two of Australia’s
most prolific past producers in the
Big Bell mine (2.6Moz) and the Great
Fingall mine (1.2Moz).
The Cue processing hub incorporates
the 1.4 Mtpa Tuckabianna processing
plant, a 148-person village at Big
Bell, a 266-person village at Cue and
associated mining infrastructure to
support mining operations.
The Tuckabianna plant receives
underground ore from the Big
Bell underground mine, with
supplementary feed provided by
lower grade surface stockpiles.
Following the completion of ramp up
and commencement of steady state
production in April 2022, Big Bell has
consistently delivered design levels,
producing 1.1Mt of ore at 2.1g/t
in FY24.
The Cue hub includes a number of
advanced development projects and
drill-ready exploration targets with
the potential to underwrite sustained
growth in gold production at the
operations, including:
–
Big Bell Deeps - high grade sublevel
open stopes located below the
existing sublevel cave;
–
Great Fingall and Golden Crown
– development commenced in
November 2023;
–
Fender Mine – a shallow
underground mine beneath
Westgold’s Fender open pit, which
commenced mining in October
2023;
–
Causton’s – on the Tuckabianna
trend, close to the mill and with high
potential for underground mining;
–
Additional shallow targets on the
Big Bell line of lode beneath the
700, 1600 and the Shocker pits; and
–
Open pit and underground targets
within the Cuddingwarra Mining
centre.
13
Westgold Resources Limited Annual Report 2024
BIG BELL UNDERGROUND MINE
Big Bell continued to perform well
during the year, producing 1,140kt
of ore at 2.15g/t. As planned, mined
grade varied as the mine plan
transitioned between the higher-
grade north side, and the lower-
grade, south side of the cave.
Big Bell’s next level, 710, also
commenced during the fourth quarter
of the period, allowing the North side
to re-start, albeit at comparatively
lower mining rates.
Development of the Big Bell Deeps
(the long hole open stoping area)
access decline progressed during
the period, culminating in the Final
Investment Decision in November
2023 with a view to significantly
extending the mine life, grade, and
production profile of the mine.
At the time of this report, the
commencement of stoping activity
at Big Bell Deeps was scheduled for
the second half of FY25.
Existing Cave
Pegmatite Intrusion
Ongoing
Sub-level
Caving
Operation
Initial 16
year mine life
Big Bell LHOS
3000N
4000N
3500N
3000N
4000N
3500N
-500mRL
-1000mRL
-500mRL
-1000mRL
North
South
0
250
etres
Metres
#
#
22BBDD0116B
24.5m @ 3.31g/t Au
from 543m
24BBDD0026
10.9m @ 3.81g/t Au
from 143m
Figure 4. Big Bell Mine Plan
14
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
Figure 5. Great Fingall Resource
GREAT FINGALL
During the period under review,
Westgold committed to the
development of the iconic Great
Fingall mine at Cue. Great Fingall is
one of the few remaining high-grade
reef mines in Australia which has not
been subject to a modern phase of
mining.
The Board approved the development
of Great Fingall in August 2023,
and development commenced
immediately.
First ore from Great Fingall is
expected in the latter half of FY25,
following an 18-month schedule
which will see development of a
decline down to the virgin reef 700m
below surface, under the old workings
of the historic mine.
At the end of FY24, the Project
was well-progressed, with
decline advance rates exceeding
assumptions in the Feasibility Study.
Phase one of the primary ventilation
circuit had also been completed,
with fans installed on the first large
diameter vent raise.
Dewatering of the Great Fingall and
Golden Crown workings continued
during the period, in preparation
for development under the historic
workings. At full production, the Great
Fingall mine will produce more than
45,000oz of gold per annum.
#
#
###
#
1.93m @ 6.37g/t from 787.77m
in 23GFDD001_W2
9.66m @ 4.38g/t from 793m
in 23GFDD001_W3
1.3m @ 12.15g/t from 827m
in 23GFDD001_W1
2.3m @ 4.56g/t from 886.7m
in 23GFDD001_W4
15.12m @ 4.31g/t from 796.78m
in 23GFDD002_W1
2.4m @ 8.15g/t from 798.05m
in 23GFDD002_W2
SCHEMATIC OBLIQUE SECTION
LOOKING NORTH
en
n
Current
Decline
-of
to
enCrow
Take-off
to
GoldenCrown
Historical UG Mine (1983-1996)
288koz @ 13.80g/t Au
Historical UG Mine (1891-1929)
1.2Moz @ 19.50g/t Au
OP Mine (1995-2018)
137koz @ 1.55g/t Au
UPPER FINGALL
LOWER FINGALL
Base of Current Mine Plan
Golden Crown
Great Fingall
900mRL
750mRL
600mRL
450mRL
300mRL
150mRL
0mRL
-150mRL
-300mRL
900mRL
750mRL
600mRL
450mRL
300mRL
150mRL
0mRL
-150mRL
-300mRL
East
West
500
Metres
Open Pit Void
Underground Void
Golden Crown Resource
Upper Great Fingall Resource
Lower Great Fingall Resource
LEGEND
15
Westgold Resources Limited Annual Report 2024
FENDER
Fender is located immediately south
of Big Bell. It was suspended from
production in early FY23 while the
Company restructured and optimised
its mining operations.
That rationalisation process released
essential equipment and personnel,
which, together with more favourable
economics, enabled development of
the Fender underground operations
to recommence in mid-September
2023, with first ore delivered to the
Bluebird Mill in October.
Ramp up was achieved during
the reporting period, with the
mine reaching steady state and
commercial production on 1 July
2024. In FY25, Fender ore will
displace lower grade stockpile feed
to the Bluebird Mill at approximately
330,000tpa @ 2.7g/t.
Mine Plan
Expansion
Potential
#
#
24FNDD0022
3.95m @ 5.89g/t Au
from 141m
24FNDD0017
11.29m @ 4.30g/t Au
from 45m
400N
500N
600N
700N
200N
100N
0N
300N
400N
500N
600N
700N
200N
100N
0N
300N
-100m
-100m
-200m
-200m
-300m
-300m
-400m
-400m
-500m
-500m
0mRL
0mRL
SW
NE
00
100
metres
metres
FY25
FY26
Mined
LEGEND
EXISTING PIT
FENDER
FY25 - Long Section
Figure 6. Fender FY25 Long section
16
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
BRYAH
Westgold’s Bryah operations
encompass the historic mining
centres of Fortnum, Horseshoe
and Peak Hill which collectively
have delivered approximately 2Moz
reported gold production. Mining
output is currently dominated by
the Starlight underground mine with
supplementary, free on surface
low grade stockpiles providing a
blended feedstock to the 0.9Mtpa
Fortnum carbon-in-leach (CIL)
processing plant.
The Fortnum processing hub hosts
a 200-person village, airstrip and
associated mining infrastructure
required to support mining
operations. Located approximately
150km northwest of Meekatharra,
the Bryah operations represent the
northernmost group of Westgold
assets, and in FY24 produced
58,752oz of gold at an AISC of $1,883.
In the year under review, the Starlight
mine plan was effectively reset, with
an intensive resource development
drilling program informing a 3-4
year mine plan. Three underground
diamond drill rigs were deployed,
focussed on resource definition
in the Nightfall zone both at depth
and crucially along strike where the
mineralisation remains open and
significant grades and widths of
mineralisation were encountered.
Additional lodes such as Waterbore
and the extensions of Starlight have
also delivered encouraging results.
With progressive development
confirming the continuation of the
high-grade lodes, an additional
development crew was mobilised in
February 2024, to accelerate access
to this expanding area of higher-grade
production to both increase grade
and increase the number of mining
areas in FY25.
17
Westgold Resources Limited Annual Report 2024
FORTNUM
MINING AREA
HORSESHOE
MINING AREA
PEAK HILL
MINING AREA
D
Starlight
Fortnum Mill 0.9Mtpa
Yarlarweelor
650000E
650000E
7150000N
7150000N
7200000N
7200000N
GDA94 MGA Zone 50
10
Kilometres
Current UG Mine
Potential OP Mine
Gold Processing Plant
Westgold Tenements
Proterozoic
Greenstones
Granite
LEGEND
D
Meekatharra
PERTH
Port
Hedland
W.A.
Figure 7. Westgold’s Bryah operations
Figure 8. Starlight FY25 LOM – Long Section
12000N
12250N
12500N
12750N
11500N
11250N
11750N
12000N
12250N
12500N
12750N
11500N
11250N
11750N
250m
0m
-500m
-250m
500mRL
250m
0m
-500m
-250m
500mRL
South
North
200
metres
FY25
FY26
FY27
FY28
FY29
FY30
Mined
LEGEND
EXISTING PIT
Resource Growth
Potential
Potential for offset
Starlight Mine sequence
Potential for offset
Starlight Mine sequence
Fortnum
Fault
Projection
Trev’s
Thrust
Projection
STARLIGHT
FY25 LOM - Long Section
#
#
#
#
#
#
#
WB1270RD02
6.46m @ 17.2g/t Au
from 136.5m
WB1270RD17
2.2m @ 27.35g/t Au
from 72.4m
NF1140GC127
9.95m @ 10.8g/t Au
from 69m
WB1270RD18
4.18m @ 8.28g/t Au
from 278.9m
NF1125RD06
26.35m @ 4.41g/t Au
from 201m
NF1125RD03
11.46m @ 5.58g/t Au
from 74m
NF1130RD11
16.39m @ 7.05g/t Au
from 272m
18
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
INVESTING IN
EXPLORATION
CAPACITY
In FY24 Westgold continued to invest
in extensive drilling across its priority
operations with up to 12 underground
and surface drill rigs operating across
the business during the year.
The focus remained on extending
mine planning horizons of the four key
operating mines, along with defining
opportunities in the shallow, upper
areas of Great Fingall.
Westgold has an extensive pipeline
of organic growth opportunities,
and during the year, optimisation
studies were progressed at a
number of previously paused assets.
The South Emu Triton underground
near Meekatharra was reviewed for
restart, along with shallow mining
opportunities in the upper areas of
Great Fingall with the potential to
be accessed without impacting the
decline advance to the virgin ore at
depth.
During the reporting period, Westgold
significantly enhanced its in-house
underground drilling capacity,
with the purchase of six additional
underground drill rigs expanding
its diamond drill rig fleet size to 13.
This investment allowed Westgold
to displace contract rigs conducting
drilling in parallel with Westgold’s
existing fleet.
Bringing all underground diamond
drilling activities in-house vastly
increases Westgold’s operating
flexibility. This capability allows rapid
deployment to ensure Westgold is
best placed to take advantage of
emerging geological opportunities,
and at the same time delivering
superior drilling productivity at
industry leading unit rates.
The additional rig capacity and agility
will be instrumental in expediting
priority projects such as Great
Fingall and South Junction - as drill
platforms open at these significant
development projects.
19
Westgold Resources Limited Annual Report 2024
FULL EXPOSURE
TO THE GOLD
PRICE
At the end of the financial year,
Westgold had no derivative contracts
outstanding and so entered FY25 as
a significant and 100% unhedged
Australian gold producer, fully
leveraged to the resurgent gold
price. At the time of this report the
record price of gold was ~A$3,800/
oz, as investors turned to the relative
safety of gold against the backdrop
of continuing global instability.
At the start of FY24, the Group had in
place 30,000oz of zero cost collars
comprising put options at $A2,700/
oz and call options at $A3,340/oz
for deliveries of 2,500oz per month
from July 2023 to June 2024, subject
to the put and call being struck. This
strategy protected the downside
of gold price volatility with the put
option only being triggered if the
gold price were to fall to A$2,700/
oz. The upside on this small volume
of production was also capped and
again, only triggered if the gold price
hit A$3,340/oz.
During the year, a total of 10,000oz of
call options were struck at A$3,340/
oz. The Zero Cost Collars concluded
at the end of 30 June 2024.
20
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
CHOOSING SAFETY
Westgold entered FY24 with
determination to consolidate its
improved performance from FY23
and to embed those key business
learnings toward a continuously
improving strategic approach.
Safety performance continued
to improve during the year,
with a Total Recordable Injury
Frequency Rate (TRIFR) of
6.85 per million hours worked
representing an improvement
of 18% for the full year.
No Significant Psychosocial Harm
Events were reporting during
the period, and the Significant
Environmental Incident
Frequency Rate remained at zero.
OUR OPERATIONS
REVIEW OF OPERATIONS
(CONTINUED)
Figure 9. Safety performance FY24
21
Westgold Resources Limited Annual Report 2024
FIVE CORE PILLARS OF SAFETY
Westgold’s health and safety
performance is underpinned by a
robust management system, clear
accountability, and a strong focus on
continuous improvement, informed
by regular reviews, audits, and
performance monitoring.
Safety leadership is embedded
at all levels of the organisation,
including clearly defined roles and
responsibilities, and a dedicated
health and safety team provides
guidance, support, and expertise to
the Company’s operations.
In FY24, a comprehensive
Environment, Health and Safety
(EH&S) Strategy was implemented,
founded on five core pillars:
–
Leadership: Visible and active
leadership at all levels of the
organisation.
–
Critical risk management:
Preventing significant impact risks
within our business.
–
Operational discipline: Having
the courage to do what we say we
will do.
–
Fit-for-purpose systems:
Establishing systems that are fit
for purpose and relevant to our
business.
–
Resilient people: Active
investment and increased focus on
employee health and wellbeing.
MINE SAFETY MANAGEMENT
SYSTEM FRAMEWORK
During the period – in line with
updated Western Australian Work
Health and Safety legislation –
Westgold significantly enhanced
and re-implemented its mine safety
management system framework to
provide a more streamlined and fit-
for-purpose approach to achieving,
improving and monitoring the desired
level of health and safety across the
business.
Customised Project Management
Plans and Principal Mining Hazard
Management Plans were developed
and implemented - aligned with the
new legislation. These documents
set out how Westgold will identify,
assess, control and manage critical
risks and principal mining hazards to
workers’ health and safety.
To evaluate the framework’s efficacy,
a gap analysis was conducted to
identify potential shortcomings and
areas for improvement. Potential
challenges such as resistance to
change and system integration
complexities were mitigated
through a number of measures,
including targeted training, change
management strategies, and
communication protocols.
FY25 will see continued
implementation and refinement of
safety and sustainability programs,
towards creating an ever-safer
work environment for all Westgold
employees.
Westgold celebrated its arrival on the Toronto Stock Exchange with Managing Director
and CEO Wayne Bramwell ringing the ceremonial bell to open the market.
SIGNIFICANT
EVENTS AFTER
THE BALANCE DATE
WESTGOLD AND
KARORA MERGER
Subsequent to the year end,
Westgold merged with Canadian TSX-
listed Karora Resources Inc. (Karora)
to create a globally investable,
mid-tier gold producer operating
exclusively in Western Australia,
with a conservative, combined initial
annual gold production capacity of
more than 400,000oz.
The primary Karora assets acquired in
the merger included its 100% interest
in the Beta Hunt Mine, its 100%
interest in the Higginsville processing
and gold mining operation, and its
Lakewood processing facility.
Following receipt of key approvals
for the transaction from the Ontario
Superior Court of Justice in Canada,
Karora shareholders, the Foreign
Investment Review Board and the
Takeovers Panel during July 2024,
the merger was formally completed
on 1 August 2024, when Westgold
commenced operational control and
ownership of the Karora operations
and assets.
The merger propelled Westgold
into the ranks of the ASX200, and
materially enhanced its capital
markets profile - with increased
scale, trading liquidity and quality
attractive to gold and generalist
investors across the Australian (ASX),
Canadian (TSX), and North American
(OTCQX) stock exchanges.
Funded through a combination of
cash reserves and equity, Karora
shareholders received 2.524
Westgold fully paid ordinary shares,
C$0.68 in cash, and 0.30 of a share
in Culico Metals Inc., a wholly owned
subsidiary of Karora, for each Karora
common share held at the closing of
the transaction.
Fair value of the share consideration
was $1,243 million and cash
consideration paid was $126 million.
The total consideration for the
transaction was $1,369 million.
22
Westgold Resources Limited Annual Report 2024
REVIEW OF OPERATIONS
(CONTINUED)
OUR OPERATIONS
OUR OPERATIONS
REVIEW OF OPERATIONS
(CONTINUED)
23
Westgold Resources Limited Annual Report 2024
SUSTAINABLE, SENSIBLE
The financial strength of Westgold’s
diverse mining operations allows it
to invest in Environmental, Social
and Governance outcomes that
also make good financial sense –
in line with the Company’s clear
commitment to delivering value for
shareholders.
In FY24 Westgold achieved a major
milestone in its decarbonisation
strategy, and in particular, its
practical action in response to
climate change, with the successful
completion and commissioning of the
Company’s fourth hybrid (solar/gas/
diesel) power station.
To date, Westgold has successfully
commissioned a combined 82MW of
hybrid power facilities, demonstrating
its commitment to sustainability and
cost reduction. This infrastructure,
combining gas, solar and battery
power, is set to deliver significant
environmental and financial benefits.
The new hybrid power solution
is expected to decrease diesel
consumption by 38 million litres
per annum, resulting in a significant
reduction of carbon emissions
by 56%.
The transition to hybrid power is
projected to deliver approximately
$60/oz in All-In Sustaining Costs
(AISC) savings, bolstering the
Company’s financial performance
and enhancing shareholder value.
This cost reduction is attributed to
the reduced reliance on diesel.
Westgold remains committed
to the evolution of its operations
– implementing change for the
betterment of its people and the
planet.
24
Westgold Resources Limited Annual Report 2024
Westgold released its annual update of Mineral Resource and Ore Reserve Estimates on the ASX on 23 September
2024. Shareholders should refer to that announcement for full detail including JORC 2012 appendices. The tables below
summarise them by operational area.
Table 1 – Gold Mineral Resource Estimates at 30 June 2024 for Westgold Operating Mines.
MURCHISON GOLD OPERATIONS
MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING – 30/06/2024
Measured
Indicated
Measured
and Indicated
Inferred
Total
Operating Mine
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Big Bell UG
4,022
3.07
397
7,965
3.33
853
11,988
3.24
1,250
5,927
3.11
593
17,914
3.20
1,842
Fender UG
95
3.22
10
201
3.05
20
297
3.10
30
345
3.33
37
642
3.23
67
Great Fingall UG
0
0.00
0
1,616
5.25
273
1,616
5.25
273
883
3.51
100
2,499
4.64
372
Golden Crown UG
0
0.00
0
333
6.18
66
333
6.18
66
944
5.14
156
1,277
5.41
222
Bluebird Group UG
304
4.09
40
4,368
3.03
425
4,672
3.10
465
6,032
2.55
495
10,705
2.79
960
Starlight UG
881
4.01
114
1,973
3.44
218
2,854
3.62
332
2,588
3.13
260
5,442
3.38
592
Total
5,303
3.29
561
16,457
3.51
1,855
21,760
3.45
2,415
16,719
3.05
1,641
38,479
3.28
4,056
SOUTHERN GOLDFIELDS GOLD OPERATIONS
MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING – 1/08/2024
Measured
Indicated
Measured
and Indicated
Inferred
Total
Operating Mine
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Two Boys
24
1.55
1
1,141
2.32
85
1,165
2.30
86
184
2.78
16
1,349
2.37
103
Pioneer
0
0.00
0
519
2.11
35
519
2.11
35
345
1.50
17
864
1.87
52
Beta Hunt
1,142
2.79
102
16,581
2.74
1,458
17,723
2.74
1,561
12,860
2.63
1,086
30,583
2.69
2,647
Total
1,166
2.76
104
18,241
2.69
1,579
19,407
2.70
1,682
13,388
2.60
1,119
32,795
2.66
2,801
OUR OPERATIONS
MINERAL RESOURCES
& ORE RESERVES
25
Westgold Resources Limited Annual Report 2024
Table 2 – Gold Mineral Resource Estimates at 30 June 2024 for Westgold Non-Operating Projects.
MURCHISON GOLD OPERATIONS
MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING – 30/06/2024
Measured
Indicated
Measured
and Indicated
Inferred
Total
Project
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Big Bell District
60
2.81
5
802
2.64
68
861
2.65
73
1,848
2.94
175
2,709
2.85
248
Cuddingwarra
85
1.66
5
1,600
1.63
84
1,685
1.63
88
597
1.50
29
2,282
1.59
117
Day Dawn District
58
1.73
3
1,068
2.04
70
1,126
2.02
73
1,043
1.78
60
2,169
1.91
133
Tuckabianna
267
3.54
30
3,448
2.78
308
3,715
2.84
339
2,899
2.63
245
6,614
2.75
584
Tuckabianna Stockpiles
81
2.09
5
3,627
0.70
81
3,709
0.73
87
0
0.00
0
3,709
0.73
87
Meekatharra North
0
0.00
0
97
1.98
6
97
1.98
6
75
2.11
5
172
2.04
11
Nannine
68
2.55
6
859
2.06
57
927
2.09
62
340
2.26
25
1,267
2.14
87
Paddy's Flat
376
3.67
44
10,641
1.65
564
11,017
1.72
608
2,574
1.93
160
13,591
1.76
768
Reedy's
430
3.77
52
3,225
2.58
267
3,656
2.72
319
9,191
2.54
750
12,846
2.59
1,069
Yaloginda District
53
2.59
4
4,128
1.47
195
4,181
1.49
200
5,879
1.40
265
10,060
1.44
464
Bluebird Stockpiles
350
1.34
15
0
0.00
0
350
1.34
15
0
0.00
0
350
1.34
15
Fortnum District
332
2.67
28
2,951
2.08
197
3,282
2.14
226
618
1.88
37
3,900
2.10
263
Horseshoe
0
0.00
0
1,266
2.09
85
1,266
2.09
85
183
1.43
8
1,449
2.01
93
Peak Hill
0
0.00
0
7,547
1.55
376
7,547
1.55
376
1,838
1.78
105
9,385
1.60
481
FGO Stockpiles
723
0.95
22
481
0.69
11
1,204
0.85
33
16
0.54
0
1,220
0.84
33
Total
2,884
2.39
221
41,741
1.77
2,370
44,625
1.81
2,591
27,100
2.14
1,864
71,724
1.93
4,455
SOUTHERN GOLDFIELDS GOLD OPERATIONS
MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING – 1/08/2024
Measured
Indicated
Measured
and Indicated
Inferred
Total
Project
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
Tonnes
('000s)
Grade
Ounces
Au
('000s)
HGO Central
931
2.94
88
2,442
2.74
215
3,373
2.80
303
1,519
2.91
142
4,892
2.83
445
HGO Greater
466
3.00
45
2,799
2.79
251
3,265
2.82
296
1,999
2.39
154
5,264
2.66
450
Mt Henry
11,042
1.19
424
10,172
1.16
378
21,214
1.18
802
2,565
1.28
106
23,779
1.19
907
HGO Stockpiles
373
0.40
5
1,568
0.76
38
1,940
0.69
43
0
0.00
0
1,940
0.69
43
BHO Stockpiles
47
2.09
3
0
0.00
0
47
2.09
3
0
0.00
0
47
2.09
3
Total
12,859
1.37
565
16,981
1.62
882
29,840
1.51
1,447
6,083
2.05
402
35,923
1.60
1,849
26
Westgold Resources Limited Annual Report 2024
Table 3 – Nickel Mineral Resource Estimates at 1 August 2024 for Beta Hunt.
BETA HUNT NICKEL OPERATIONS
MINERAL RESOURCE STATEMENT – ROUNDED FOR REPORTING – 1/08/2024
Measured
Indicated
Measured
and Indicated
Inferred
Total
Project
Tonnes
('000s)
Ni (%)
NiT
('000s)
Tonnes
('000s)
Ni (%)
NiT
('000s)
Tonnes
('000s)
Ni (%)
NiT
('000s)
Tonnes
('000s)
Ni (%)
NiT
('000s)
Tonnes
('000s)
Ni (%)
NiT
('000s)
Big Bell District
0
0.0%
0
749
2.8%
21
749
2.8%
21
499
2.7%
13
1,248
2.8%
35
Total
0
0.0%
0
749
2.8%
21
749
2.8%
21
499
2.7%
13
1,248
2.8%
35
Table 4 – Gold Ore Reserves at 30 June 2024 for Westgold Operating Mines.
MURCHISON GOLD OPERATIONS
ORE RESERVE STATEMENT – ROUNDED FOR REPORTING – 30/06/2024
Proven
Probable
Total
Operating Mine
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Big Bell UG
9,808
1.48
467
4,898
3.10
489
14,706
2.02
956
Fender UG
81
2.58
7
147
2.68
13
228
2.65
19
Great Fingall UG
0
0.00
0
1,895
4.20
256
1,895
4.20
256
Golden Crown UG
0
0.00
0
230
4.52
33
230
4.52
33
Bluebird Group UG
75
3.91
9
2,967
2.81
268
3,041
2.83
277
Starlight UG
676
2.56
56
972
2.36
74
1,647
2.44
129
Total
10,640
1.58
539
11,107
3.17
1,132
21,747
2.39
1,671
SOUTHERN GOLDFIELDS GOLD OPERATIONS
ORE RESERVE STATEMENT – ROUNDED FOR REPORTING – 1/08/2024
Proven
Probable
Total
Operating Mine
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Two Boys
0
0.00
0
0
0.00
0
0
0.00
0
Pioneer
0
0.00
0
135
2.30
10
135
2.30
10
Beta Hunt
304
2.69
26
5,940
2.70
516
6,244
2.70
542
Total
304
2.69
26
6,075
2.69
526
6,379
2.69
552
OUR OPERATIONS
MINERAL RESOURCES & ORE
RESERVES (CONTINUED)
27
Westgold Resources Limited Annual Report 2024
Table 5 – Gold Ore Reserves at 30 June 2024 for Westgold Non-Operating Projects.
MURCHISON GOLD OPERATIONS
ORE RESERVE STATEMENT – ROUNDED FOR REPORTING – 30/06/2024
Proven
Probable
Total
Project
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Big Bell District
0
0.00
0
59
2.98
6
59
2.98
6
Cuddingwarra
0
0.00
0
98
1.77
6
98
1.77
6
Day Dawn District
0
0.00
0
0
0.00
0
0
0.00
0
Tuckabianna
0
0.00
0
683
3.00
66
683
3.00
66
Tuckabianna Stockpiles
81
2.09
5
3,627
0.70
81
3,709
0.73
87
Meekatharra North
0
0.00
0
0
0.00
0
0
0.00
0
Nannine
0
0.00
0
262
1.93
16
262
1.93
16
Paddy's Flat
48
4.10
6
435
3.86
54
483
3.88
60
Reedy's
57
3.35
6
398
3.42
44
455
3.41
50
Yaloginda District
0
0.00
0
0
0.00
0
0
0.00
0
Bluebird Stockpiles
350
1.34
15
0
0.00
0
350
1.34
15
Fortnum District
0
0.00
0
429
1.85
26
429
1.85
26
Horseshoe
0
0.00
0
357
2.18
25
357
2.18
25
Peak Hill
0
0.00
0
0
0.00
0
0
0.00
0
FGO Stockpiles
723
0.95
22
481
0.69
11
1,204
0.85
33
Total
1,260
1.36
55
6,828
1.52
334
8,088
1.50
389
SOUTHERN GOLDFIELDS GOLD OPERATIONS
ORE RESERVE STATEMENT – ROUNDED FOR REPORTING – 1/08/2024
Proven
Probable
Total
Project
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
Tonnes
('000s)
Grade
Ounces
Au ('000s)
HGO Central District
132
2.20
9
512
3.02
50
644
2.85
59
HGO Greater
288
2.28
21
1,303
3.00
126
1,591
2.87
147
Mt Henry
7,208
1.30
301
3,622
1.37
160
10,830
1.32
461
HGO Stockpiles
298
0.80
8
569
0.80
15
867
0.80
22
BHO Stockpiles
47
2.09
3
0
0.00
0
47
2.09
3
Total
7,973
1.34
342
6,006
1.81
349
13,979
1.54
692
28
Westgold Resources Limited Annual Report 2024
OUR OPERATIONS
EXPLORATION RESULTS AND MINERAL RESOURCES ESTIMATES
The information in this report that relates to Exploration results and Mineral Resource Estimates is compiled by Westgold technical
employees and contractors under the supervision of Mr Jake Russell B.Sc. (Hons), who is a member of the Australian Institute of
Geoscientists and who has verified, reviewed and approved such information. Mr Russell is a full-time employee of the Company
and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the
activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and as a Qualified Person as defined in
the CIM Guidelines and National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Russell is an
employee of the Company and, accordingly, is not independent for purposes of NI 43-101. Mr Russell consents to and approves 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-term and long-term incentive plans of the Company.
Westgold confirms that it is not aware of any new information or data that materially affects the information included in the Westgold
Mineral Resource and Ore Reserve Estimates ASX announcement dated 23 September 2024, other than changes due to normal
mining depletion during the period prior to the publishing of this report and that all key inputs, assumptions and technical parameters
underpinning the estimates in the Westgold Mineral Resource and Ore Reserve Estimates ASX announcement continue to apply and
have not materially changed.
ORE RESERVES
The information in this report that relates to Ore Reserve is based on information compiled by Mr. Leigh Devlin B.Eng. FAusIMM,
who has verified, reviewed and approved such information. 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 JORC Code and as a Qualified Person as defined in the CIM Guidelines and NI 43-101. Mr Devlin consents
to and approves 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.
FORWARD LOOKING STATEMENTS
These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always,
forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”,
“believe”, “forecast”, “predict”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include,
without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction
commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause
the Company’s actual results, performance and achievements to differ materially from any future results, performance or
achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project
development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves,
political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues
and litigation.
Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future.
The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be
correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not
foreseen or foreseeable by the Company or management or beyond the Company’s control.
Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results,
performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable
control of the Company. In addition, the Company’s actual results could differ materially from those anticipated in these forward-
looking statements as a result of the factors outlined in the “Risk Factors” section of the Company’s continuous disclosure filings
available on SEDAR+ or the ASX, including, in the Company’s FY2023 Annual Report, half year report for 2024 or most recent
management discussion and analysis.
Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these
materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange
listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the
forward-looking statements or to advise of any change in events, conditions or circumstances.
COMPETENT/QUALIFIED
PERSON STATEMENTS
DISCLAIMER
Westgold Resources Limited has prepared this report based on information available to it. No representation or warranty, express or implied, is made as to the
fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this report. To the maximum extent permitted by
law, none of Westgold Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation,
any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this Report or its contents or
otherwise arising in connection with it.
Nothing in this report is or is to be taken to be an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of
any security, and neither this report nor anything in it or referenced within it shall form the basis of any contract or commitment whatsoever.
29
Westgold Resources Limited Annual Report 2024
FINANCIAL
REPORT
for the year ended 30 June 2024
FINANCIAL REPORT
30
Westgold Resources Limited Annual Report 2024
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 2024.
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of this report are as
follows. Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
Hon. Cheryl L Edwardes AM - Non-Executive Chair
(Appointed 28 March 2022)
Ms Edwardes is a highly credentialed and experienced company director and Chair. A solicitor by profession and former Attorney-
General for Western Australia, Minister for Environment and Minister for Labour Relations. Ms Edwardes has extensive experience
and knowledge of Western Australia’s legal and regulatory framework relating to mining projects, environmental, native title,
heritage and land access.
During the past three years, she has also served as a director of the following public listed companies:
–
Kalium Lakes Limited (appointed 25 November 2022; resigned 3 August 2023);
–
Red Hawk Mining Limited (appointed 17 June 2019);
–
Nuheara Limited (appointed 2 January 2020); and
–
Vimy Resources Limited (appointed 26 May 2014; resigned 4 August 2022).
Wayne C Bramwell - Managing Director & Chief Executive Officer
(Appointed Non-Executive Director 3 February 2020)
Mr Bramwell (BSc Extractive Metallurgy, Grad Dip Business, MSc (Min Econ)) is a metallurgist and mineral economist,
experienced director and mining executive with extensive project and corporate development, executive management and
governance expertise in precious and base metal companies spanning nearly three decades. He holds a Bachelor of Science
in Extractive Metallurgy, a Graduate Diploma in Business, a Master of Science in Mineral Economics and is a graduate of the
Australian Institute of Company Directors.
During the past three years, he has served as a director of the following public listed companies:
–
CZR Resources Limited (appointed 3 November 2020; resigned 19 February 2021);
–
Azure Minerals Limited (appointed 14 October 2020; resigned 19 February 2021);
–
Ardea Resources Limited (appointed 29 January 2018; resigned 3 July 2020);
–
Vimy Resources Limited (appointed 18 October 2021; resigned 4 August 2022); and
–
Deep Yellow Limited (appointed 4 August 2022; resigned 31 January 2023).
Fiona J Van Maanen - Non-Executive Director
(Appointed 6 October 2016)
Mrs Van Maanen is a CPA, holds a Bachelor of Business (Accounting) and a Graduate Diploma in Company Secretarial Practice.
Mrs Van Maanen has significant experience in corporate governance, financial management and accounting in the mining and
resources industry. Mrs Van Maanen serves on Westgold’s Audit, Risk and Compliance Committee and Remuneration and Nomination
Committee.
During the past three years, she has served as a director of Pantoro Limited (appointed 4 August 2020) and Wildcat Resources Limited
(appointed 1 June 2024).
Gary R Davison - Non-Executive Director
(Appointed 1 June 2021)
Mr Davison (FAusIMM (CP)), is a highly regarded mining engineer with over 45 years of worldwide mining experience. Gary holds a
Diploma in Engineering (Mining) and a Masters in Mineral and Energy Economics. He is also the Managing Director of Australia’s
premier mining consultancy Mining One Pty Ltd. Mr Davison serves on Westgold’s Audit, Risk and Compliance Committee and
Remuneration and Nomination Committee.
During the past three years, he has served as a director of Nagambie Resources Ltd (appointed 15 May 2019, resigned
8 September 2021).
31
Westgold Resources Limited Annual Report 2024
Julius L Matthys - Non-Executive Director
(Appointed 28 March 2022)
Mr Matthys has substantial corporate experience having spent more than 36 years in the resources sector. He has held senior
executive roles in large corporate entities including President of Worsley Alumina JV, Marketing Director at BHP Iron Ore,
Alumina and Aluminium. Mr Matthys was previously Chair of gold producer Doray Minerals Limited, managing its merger with
Silver Lake Resources. And was previously a Non-Executive Director of Quintis Ltd.
Mr Matthys has not held any public company directorships in the past three years.
David N Kelly - Non-Executive Director
(Appointed 5 November 2023)
Mr Kelly is a geologist with 35 years’ experience in exploration, operations management, mine planning, project evaluation,
business development and project finance. Most recently he was employed by Resolute Mining Limited as Executive General
Manager – Strategy and Planning, following 2 years as Chief Operating Officer.
Prior to joining Resolute, Mr Kelly was a Director of Optimum Capital, an independent advisory house servicing junior and
mid-tier miners. He previously worked with groups such as Consolidated Minerals Limited, WMC Resources Limited,
Central Norseman Gold Corporation, NM Rothschild and Sons and Investec Australia and has held several non-executive
directorships in mining and exploration companies, including Predictive Discovery, Renaissance Minerals and Turaco Gold.
On 1 January 2024, Mr. Kelly was appointed a non-executive director of Lefroy Exploration Limited (ASX:LEF). On 1 June 2024,
Mr. Kelly was appointed non-executive chairman of Lefroy Exploration Limited (ASX: LEF).
Leigh Junk - Non-Executive Director
(Appointed 1 August 2024)
Mr. Junk has more than 30 years of mining industry experience including in executive management and operational roles. Most
recently Mr. Junk was Managing Director, Australia for Karora Resources and prior to that, Mr. Junk was Managing Director of
Dacian Gold prior to its takeover by Genesis Minerals in 2022. Mr. Junk also served as Managing Director of Doray Minerals
until its merger with Silver Lake Resources in 2019.
Mr. Junk was a co-founder of Donegal Resources, a private company that successfully acquired and recommissioned several
Nickel operations in the Kambalda, Western Australia area, until it was sold to Canadian miner Brilliant Mining Corp in 2006.
Mr. Junk has been a Director of several public companies in the mining and financial sectors in both Australia and Canada.
Other than as stated above, Mr. Junk has not served as a Director of any other public listed companies in the three years
immediately before the financial year ended 30 June 2024.
Shirley In’t Veld - Non-Executive Director
(Appointed 1 August 2024)
Ms. In’t Veld has over 30 years of career experience in mining, renewables and energy sectors and is currently a Director of
Develop Global Ltd. Ms. In’t Veld was formerly Deputy Chair of CSIRO (Commonwealth Science and Industrial Research
Organisation) and a Director of NBN Co. Limited (National Broadband Network Co.), Northern Star Resources Limited, Perth
Airport, DUET Group, Asciano Limited and Alcoa of Australia Limited.
Ms. In’t Veld was also the Managing Director of Verve Energy (2007 - 2012) and, previously, served in senior roles at Alcoa of
Australia Limited, WMC Resources Ltd., Bond Corporation and BankWest Perth.
During the past three years, she has also served as a director of the following public listed companies:
–
Develop Global Limited (appointed 26 July 2021);
–
Alumina Limited (appointed 3 August 2020; resigned 31 July 2024);
–
Karora Resources Inc. (appointed 6 December 2021; resigned 31 July 2024);
–
APA Group Limited (appointed 19 March 2018, resigned 28 March 2024);
–
NBN Co. Limited (National Broadband Network Co.) (appointed 2 December 2015; resigned 1 December 2021).
COMPANY SECRETARY
Susan Park (Appointed 5 April 2022)
Ms Park is a governance professional with over 25 years’ experience in the corporate finance industry and extensive experience
in Company Secretary and Non-Executive Director roles in ASX, AIM and TSX listed companies. Ms Park holds a Bachelor of
Commerce from the University of Western Australia, is a Member of the Australian Institute of Chartered Accountants, a Fellow
of the Financial Services Institute of Australasia, a Graduate Member of the Australian Institute of Company Directors and a
Fellow of the Governance Institute of Australia. She is currently Company Secretary of several ASX listed companies.
for the year ended 30 June 2024
FINANCIAL REPORT
DIRECTORS’ REPORT
32
Westgold Resources Limited Annual Report 2024
INTERESTS IN THE SHARES AND PERFORMANCE RIGHTS OF THE COMPANY
As at the date of this report, the interests of the Directors in the shares and rights of the Company were:
Director
Fully Paid
Ordinary
Shares
Performance
Rights
Hon. CL Edwardes AM
6,122
–
WC Bramwell
50,000
1,348,209
FJ Van Maanen
435,521
–
GR Davison
–
–
JL Matthys
112,658
–
DN Kelly
–
–
L Junk1
3,197,928
–
S In’t Veld1
324,177
–
Total
4,126,406
1,348,209
1.
L Junk and S In’t Veld were appointed on 1 August 2024.
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 1,071 employees at 30 June 2024 (2023: 918).
CORPORATE OVERVIEW
Westgold is a progressive and innovative gold producer with a large and strategic land package in the Murchison and Bryah
regions of Western Australia. After listing on the ASX in December 2016 the company has consolidated over 1,300 km2 of
mining titles across three key business units. These units encompass the Fortnum operations (the Bryah region in the north),
the Meekatharra operations (in the centre of our tenure) and the Cue operations (in the south of our Murchison portfolio) and
are supported by Westgold’s wholly owned mining services unit.
The gold endowment of the region is extensive with the Murchison being one of the largest historic goldfields in Western
Australia. To date the Murchison has produced more than 10 million ounces of gold with Westgold reporting a total Mineral
Resource of 8.3 million ounces and 2.0 million ounces of gold in Ore Reserves (refer ASX announcement 11 September 2023).
During FY24, Westgold consolidated its operations to four underground mines and three processing plants and produced
227,237 ounces of gold from its Bryah and Murchison operations.
33
Westgold Resources Limited Annual Report 2024
CORPORATE STRUCTURE
Westgold’s corporate structure is depicted below.
WESTGOLD RESOURCES LIMITED
ACN 009 260 306
ARAGON RESOURCES PTY LTD
ACN 114 714 662
WESTGOLD MINING SERVICES
PTY LTD
ACN 080 756 172
BIG BELL GOLD OPERATIONS PTY LTD
ACN 090 642 809
1474429 B.C. LTD
BC1474429
100%
100%
100%
100%
OPERATING AND FINANCIAL REVIEW
OPERATING RESULTS
The Group’s full year gold production was 227,237 ounces (FY23: 257,116 ounces). Overall, the results reflect a year of
transition following a strategic review that saw the business reset its model to focus on safe and profitable gold production.
One underground operation was paused and Group expenditure and commercial processes reviewed.
These actions over the year are reflected in the following key measures:
–
Consolidated revenue increased by 9% to $716,472,565 (2023: $656,651,618);
–
Consolidated total cost of sales decreased by 11% to $559,496,779 (2023: $631,598,901);
–
Profit before income tax increased by 882% to $136,974,103 (2023: $13,949,469); and
–
Profit after income tax increased by 852% to $95,231,530 (2023: $10,003,484).
REVIEW OF FINANCIAL CONDITION
The Consolidated Statement of Cash Flows reflects a closing cash and cash equivalents of $236,039,162
(2023: $176,411,855).
Operating Activities
Group cash flow generated by operating activities increased on that of the previous year with a total inflow of $351,738,048
(2023: $168,433,218).
Investing Activities
Cash flows used in investing activities across the Group increased on that of the previous year with a total outflow of
$265,640,529 (2023: $158,074,095).
Cash flow applied to investing activities in the current year relate to key growth capital at the Big Bell underground mine, Great
Fingall underground mine, Starlight underground mine and the Bluebird underground mine, along with investment in the new
power stations for the Clean Energy Transition project (CET). Other capital investment was sustaining capital in all of the
operating underground mines to maintain developed tonnes and production output at similar levels.
Total capital investment in mine properties and development, exploration and evaluation expenditure and property, plant and
equipment during the current year was $271,867,207 (2023: $147,347,357), broken into key operations as follows:
–
Murchison $230,072,813 (2023: $119,132,722);
–
Bryah $41,794,394 (2023: $28,214,635); and
Capital commitments of $32,908,745 (2023: $26,168,651) existed at the reporting date, principally relating to the purchase of
plant and equipment.
Exploration activities continued at all operations during the year with $24,660,027 (2023: $18,909,901) expended.
for the year ended 30 June 2024
FINANCIAL REPORT
DIRECTORS’ REPORT
34
Westgold Resources Limited Annual Report 2024
Financing Activities
Net cash flows from financing activities amounted to an outflow of $26,470,212 (2023: outflow of $16,648,770).
–
The Group’s interest-bearing loans and borrowings increased to $54,609,452 (2023: $27,490,818) for additions to the mobile
mining fleet with the expanded growth activities.
SHARE ISSUES DURING THE YEAR
There has been no share issues during the year.
DIVIDENDS
The Board is pleased with the strong position of the Group and its ability to meet its commitments and under the dividend
policy has paid an interim unfranked dividend of 1.0 cent per share on 12 April 2024.
Subsequent to year end, the Company declared a fully franked dividend of 1.25 cents per share. The total amount of this
dividend has not been provided for in the 30 June 2024 Financial Statements.
REVIEW OF OPERATIONS
In FY24, Westgold delivered 227,237 ounces from its Murchison and Bryah operations whilst continuing to define, explore and
develop the next suite of mineral assets within the Westgold landholding.
Westgold remains the dominant gold mining company in the Bryah and Murchison region. The Company has ≈ 350 mining
titles covering 1,300 km2 across this highly prospective region and now operates four underground mines, three processing
plants and one underground mine in development.
Westgold is an owner-operator of all its underground mines. This vertical integration benefits Westgold by providing greater
cost control and operating flexibility across the Company’s assets.
Murchison Operations
The Murchison Operations are located around the regional towns of Meekatharra and Cue in the mid-west region of Western
Australia and incorporates the Meekatharra and Cue Gold Operations.
Revenue from the Murchison Operations improved to $533,226,721 (2023: $519,660,026) and segment profits increased to
$104,619,707 (2023: $17,108,595).
Gold output for the year was 168,485 ounces at a C1 Cash Cost of $1,790 per ounce and an AISC of $2,281 per ounce as
disclosed in the table on page 36.
Meekatharra Gold Operations (MGO)
MGO is located around the regional town of Meekatharra and encompasses Westgold’s central group of assets including the
historic gold mining centres of Meekatharra North, Paddy’s Flat, Yaloginda, Nannine and Reedy’s.
The MGO processing hub incorporates the 1.6-1.8 Mtpa Bluebird processing plant, a 420-person village, and associated
mining infrastructure required to support mining operations. The Bluebird plant receives underground ore Bluebird
underground mines, surplus ore from CGO and supplementary lower grade surface stockpiled ore.
In addition to current Mineral Resources and Ore Reserves, MGO has a number of exploration targets which should
underwrite sustainable gold production at the operations beyond existing targets, including:
–
Extensions to the Bluebird, along with the potential inclusion of South Junction;
–
Triton Deeps and Boomerang in the Reedy Mining Area; and
–
New targets across the central package where drilling under 100m in depth is sparse, with advanced targets including the
GNH and Gibraltar deposits.
35
Westgold Resources Limited Annual Report 2024
Cue Gold Operations (CGO)
CGO is located around the regional town of Cue and encompasses Westgold’s southern-most group of Murchison assets.
This package includes two of Australia’s most prolific past producers in the Big Bell mine (2.6 million ounces) and the Great
Fingall mine (1.2 million ounces).
The CGO processing hub incorporates the 1.4 Mtpa Tuckabianna processing plant, a 148-person village at Big Bell, a
266-person village at Cue and associated mining infrastructure to support mining operations.
The Tuckabianna plant receives underground ore from the large Big Bell underground, with supplementary feed provided by
lower grade surface stockpiles. Following the completion of ramp up and commencement of steady state production in April
2022, Big Bell has consistently delivered design levels, producing 1.1Mt of ore at 2.1g/t for 79koz contained ounces of gold in
FY24.
In addition to current Mineral Resources and Ore Reserves, CGO has a number of development projects and exploration
targets which should underwrite growth in gold production at the operations, including:
–
Big Bell Deeps – high grade sublevel open stopes located below the existing sublevel cave;
–
Great Fingall and Golden Crown – development commenced in November 2023;
–
Fender Mine – a shallow underground mine beneath Westgold’s Fender open pit, commenced mining in October 2023;
–
Caustons – on the Tuckabianna trend, close to the mill and high potential for underground mining;
–
Additional shallow targets on the Big Bell line of lode beneath the 700, 1600 and the Shocker pits; and
–
Open pit and underground targets within the Cuddingwarra Mining centre.
Bryah Operations
The Bryah Operations are centred upon the Fortnum Gold Operation (FGO). FGO is located within the Proterozoic age Bryah
Basin stratigraphy approximately 150 km northwest of Meekatharra and represents the northernmost group of Westgold
assets. These assets encapsulate the historic mining centres of Labouchere, Fortnum, Horseshoe and Peak Hill which
collectively has delivered approximately 2 million ounces of reported gold production.
The FGO processing hub incorporates the 0.9 Mtpa Fortnum carbon-in-leach (CIL) processing plant, a 200-person village,
airstrip and associated mining infrastructure required to support mining operations. Mining output is currently dominated by
the Starlight underground mine with supplementary, free on surface low grade stockpiles providing a blended feedstock to the
plant.
Gold output in FY24 was 58,752 ounces at a C1 Cash Cost of $1,483 per ounce and an all-in sustaining cost (AISC) of $1,883
per ounce as disclosed in the table on page 36.
The increase in the gold output and gold price, resulted in an overall increase in revenue to $183,245,844 (2023:
$136,991,592). Segment profits increased to $51,286,637 (2023: $7,944,123).
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;
–
Expansion of the Starlight underground mine to include the development of the Nightfall lode;
–
Open pit mining from the historic Yarlarweelor, Nathans and Labouchere mines;
–
The Regent and Messiah deposits; and
–
New targets within the proximate Peak Hill tenements.
for the year ended 30 June 2024
FINANCIAL REPORT
DIRECTORS’ REPORT
36
Westgold Resources Limited Annual Report 2024
Westgold Operating Performance by Operation
Year Ended 30 June 2024
MURCHISON
BRYAH
GROUP
PHYSICAL SUMMARY
Units
UG Ore Mined
t
1,853,083
590,053
2,443,136
UG Grade Mined
g/t
2.7
2.9
2.7
Ore Processed
t
2,708,874
772,891
3,481,765
Head Grade
g/t
2.2
2.5
2.3
Recovery
%
88
95
89
Gold Produced
oz
168,485
58,752
227,237
Gold Sold
oz
170,078
57,613
227,691
Achieved Gold Price
$/oz
3,135
3,135
3,135
COST SUMMARY
Mining
$/oz
929
826
903
Processing
$/oz
585
568
580
Admin
$/oz
140
114
134
Stockpile Adjustments
$/oz
136
(25)
94
C1 CASH COST (PRODUCED)1
$/oz
1,790
1,483
1,711
Royalties
$/oz
101
76
94
Corporate Costs
$/oz
34
77
45
Sustaining Capital
$/oz
356
247
328
ALL-IN SUSTAINING COSTS2
$/oz
2,281
1,883
2,178
37
Westgold Resources Limited Annual Report 2024
Year Ended 30 June 2023
MURCHISON
BRYAH
GROUP
PHYSICAL SUMMARY
Units
UG Ore Mined
t
2,256,023
687,395
2,943,418
UG Grade Mined
g/t
2.9
2.4
2.8
Ore Processed
t
2,822,282
802,753
3,625,035
Head Grade
g/t
2.5
2.2
2.5
Recovery
%
88
96
90
Gold Produced
oz
203,382
53,735
257,116
Gold Sold
oz
202,026
53,983
256,009
Achieved Gold Price
$/oz
2,556
2,556
2,556
COST SUMMARY
Mining
$/oz
1,052
1,083
1,058
Processing
$/oz
467
560
487
Admin
$/oz
104
120
107
Stockpile Adjustments
$/oz
64
17
54
C1 CASH COST (PRODUCED)1
$/oz
1,686
1,780
1,706
Royalties
$/oz
96
65
90
Corporate Costs
$/oz
26
55
32
Sustaining Capital
$/oz
163
203
172
ALL-IN SUSTAINING COSTS2
$/oz
1,971
2,103
1,999
1.
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.
2.
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.
CORPORATE
Gold Hedging
At the end of the financial year, the Group had no unrecognised sales contracts.
In FY24, the Group had in place 30,000oz of zero cost collars comprising put options at $2,700/oz and call options at $3,340/
oz for deliveries of 2,500oz per month from July 2023 to June 2024, subject to the put and call being struck. This strategy
protects the downside of gold price volatility with the put option only being triggered if the gold price falls to $2,700/oz. The
upside on this small volume of production is also capped and again, only triggered if the gold price hits $3,340/oz.
During FY24, a total of 10,000oz of call options were struck at $3,340/oz. The Zero Cost Collars has concluded at the end
of 30 June 2024 and Westgold has no derivative contracts outstanding as at 30 June 2024 and is now unhedged and fully
leveraged to the gold price.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Total equity increased to $691,801,106 (2023: $598,339,298). This included share based payments of $3,366,976.
for the year ended 30 June 2024
FINANCIAL REPORT
DIRECTORS’ REPORT
38
Westgold Resources Limited Annual Report 2024
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Merger between Westgold and Karora Resources Inc. (Karora)
Subsequent to the year end, the Company announced:
–
On 1 August 2024, the wholly owned subsidiary of Westgold (“AcquireCo”) acquired 100% of the issued and outstanding
common shares of Karora;
–
Karora is a multi-asset mineral resource company. The Corporation’s main assets are located in Western Australia and
comprise its 100% interest in the Beta Hunt Mine (“Beta Hunt”) which is owned by Karora (Beta Hunt) Pty Ltd.; its 100%
interest in the Higginsville processing and gold mining operation; and its Lakewood processing facility;
–
This merger creates a globally investable, mid-tier gold producer operating exclusively in Western Australia with a
combination of mining and processing assets, people and balance sheet. This includes the combination of operations across
Karora’s Beta Hunt and Higginsville properties and Westgold’s Murchison and Bryah properties, and is expected to create
synergies;
–
This merger enhanced capital markets profile with increased scale, trading liquidity and quality to be attractive to both gold
and generalist investors across ASX, TSX and OTCQX;
–
The formal completion of the transaction follows the receipt of key approvals for the transaction from the Ontario Superior
Court of Justice in Canada, including approval by the Karora shareholders, the Foreign Investment Review Board and the
Takeovers Panel during July 2024;
–
With the successful completion of the transaction, Westgold will exercise operational control and economic ownership at
Karora effective from 1 August 2024;
–
The consideration was funded through a combination of existing cash reserves and equity. Karora shareholders received
2.524 Westgold fully paid ordinary shares, C$0.68 in cash, and 0.30 of a share in Culico Metals Inc., a wholly-owned
subsidiary of Karora for each Karora common share held at the closing of the transaction;
–
Fair value of the share consideration was $1,243 million and cash consideration paid was $126 million. The total
consideration for the transaction was $1,369 million;
–
At the date of this report the initial business combination accounting is incomplete.
Dividends
Subsequent to period end, the Company declared a fully franked dividend of 1.25 cents (AUD) per share. The total amount of
the dividend has not been provided for in the 30 June 2024 Financial Statements.
Listed on the Toronto Stock exchange (TSX)
On 6 August 2024, Westgold’s shares commenced trading on TSX following the completion of the merger between Westgold
and Karora.
Appointment of new directors
On completion of the Merger, Karora Managing Director - Australia, Leigh Junk, and Karora Director Shirley In’t Veld have
been appointed to Westgold’s Board. Westgold Chair the Hon. Cheryl Edwardes AM will continue in her role, as will the other
members of the incumbent Westgold Board, including Managing Director and CEO, Wayne Bramwell.
Apart from the above, no matters or circumstances have arisen since the end of the year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial periods.
39
Westgold Resources Limited Annual Report 2024
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.
PERFORMANCE RIGHTS
Employee rights
During the year ended 30 June 2024, the Company granted 6,206,935 unlisted Performance Rights (WGXAG) to senior
management under the Employee Performance Rights Plan. Included in this issue were 760,541 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 2026) 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;
–
Ore Reserve 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)
Number of
shares
Exercise
Price
Expiry Date
Rights – Tranche 6 - Directors
385,233
Zero
1 October 2025
Rights – Tranche 6 - Employees
2,117,076
Zero
1 October 2025
Rights – Tranche 7 - Directors
760,541
Zero
1 October 2026
Rights – Tranche 7 - Employees
5,446,394
Zero
1 October 2026
Total
8,709,244
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.
for the year ended 30 June 2024
FINANCIAL REPORT
DIRECTORS’ REPORT
40
Westgold Resources Limited Annual Report 2024
Shares issued as a result of exercising performance rights
During the financial year no listed rights were converted to acquire fully paid ordinary shares in the Company, refer to Note 25
for further details.
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:
Directors1
Audit, Risk and Compliance
Committee
Remuneration and Nomination
Committee
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Hon. CL Edwardes AM
27
26
–
–
–
–
WC Bramwell
27
27
–
–
–
–
FJ Van Maanen
27
26
3
3
4
4
GR Davison
27
27
3
3
4
4
JL Matthys
27
27
3
3
4
4
DN Kelly
27
27
3
3
4
4
1.
L Junk and S In’t Veld were appointed on 1 August 2024.
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
JL Matthys – Chair
JL Matthys
FJ Van Maanen
GR Davison
GR Davison
DN Kelly
DN Kelly
for the year ended 30 June 2024
REMUNERATION REPORT (AUDITED)
41
Westgold Resources Limited Annual Report 2024
REMUNERATION REPORT (AUDITED)
This remuneration report (report) for the year ended 30 June 2024 (FY24) outlines the remuneration arrangements of the
Company and the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations.
This information has been audited as required by section 308(3C) of the Act. The report includes the following information:
CONTENTS
1.
Key Management Personnel
2.
Highlights for FY24
3.
Principles of Remuneration
4.
Remuneration Governance
5.
Executive Remuneration Structure for FY24
6.
Performance and Executive Remuneration Outcomes in FY24
7.
Executive Employment Arrangements
8.
Non-Executive Director (NED) Remuneration
9.
Details of Executive Remuneration
10. Additional Remuneration Disclosures
1. KEY MANAGEMENT PERSONNEL
The report details the remuneration arrangements for key management personnel (KMP) who are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group,
directly or indirectly, including:
–
Non-Executive Directors (NEDs); and
–
Executive directors and senior executives (collectively “the executives”).
Details of KMPs of the Company and Group and their movements during the year ended 30 June 2024 are set out below:
Name
Position
Term as KMP
(i)
Non-Executive Directors
Hon. CL Edwardes AM
Non-Executive Chair
Full Financial Year
FJ Van Maanen
Non-Executive Director
Full Financial Year
GR Davison
Non-Executive Director
Full Financial Year
JL Matthys
Non-Executive Director
Full Financial Year
DN Kelly
Non-Executive Director
Full Financial Year
(ii)
Managing Director
WC Bramwell
Managing Director (MD)
Full Financial Year
(iii)
Senior Executives
SH Heng
Chief Financial Officer (CFO)
Full Financial Year
PW Wilding
Chief Operating Officer (COO)
Full Financial Year
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
42
Westgold Resources Limited Annual Report 2024
2. HIGHLIGHTS FOR FY24
FY24 Remuneration
quantum review and
changes
10% to 22%
increase in base
salary
To support the Company’s growth plans focusing on enhanced profitability,
capital growth and shareholder returns and recognise ongoing expanding role
scope / responsibilities, the Board considered it critical to ensure executive
remuneration package is set at desired market position to support retention
and outperformance.
Within the above context, a KMP remuneration review was conducted in January
2024 whereby each incumbent’s remuneration package (including both fixed
and at-risk remuneration elements) was assessed against relevant external
market comparators, together with individual performance and capabilities,
impact on key results areas and internal relativity.
As a result, the following key remuneration changes were applied to ensure
appropriate alignment with desired market positioning policy for executive KMP:
–
the Managing Director (MD)’s base salary increased 22% from $531,450 to
$650,000 per annum during FY24, the incentive opportunity was adjusted
from 50% to 100% of fixed remuneration for short term incentive (STI), and
from 80% to 150% of fixed remuneration for long term incentive (LTI).
–
Other senior executives received annual base salary increases ranging from
10% to 15% of fixed remuneration. STI opportunity was adjusted from 40%
to 60% of fixed remuneration to ensure market alignment. LTI opportunity
remained at 80% of fixed remuneration.
These changes were considered appropriate to ensure a market competitive
remuneration package against relevant peers so that the Company continues
to attract and retain high calibre talent supporting the Company’s strategic and
business objectives and the creation of shareholder value.
See Section 9 Details of Executive Remuneration for more details.
Short Term Incentive
(“STI”) outcomes
62.5% to 75% of
maximum payout
The Board reviewed the KPI performance for FY24 and approved between
62.5% to 75% of STI payout. This payout was determined considering the
underlying core business performance and achievement of the key business
value drivers of Environmental, Health & Safety (stretch target achieved) and
All-in Cost (AIC) (target achieved), along with outperformance against of
personal KPIs linked to the execution of FY24 business plans.
The Production target was not achieved, primarily as a result of the operational
pause at the Paddy’s Flat underground at Meekatharra.
See Section 6.2 STI Outcomes for more details.
Long Term Incentive
(“LTI”) outcomes
50% of maximum
As a result of performance testing undertaken, the Board approved vesting of
the FY2022 LTI award at 50%. This was based on the achievement of 100% for
the relative Total Shareholder Return (TSR) hurdle (weighted 25%) and 100% for
the Absolute Earnings Per Share hurdle (weighted 25%), and 0% for the absolute
TSR and Ore Reserve Growth hurdles (weighted 50% in total).
See Section 6.3 LTI Outcomes for more details.
Non-Executive
Directors (NEDs)
remuneration
increases
3% to 11%
increase
As part of the above KMP remuneration review, the Board also reviewed the
NED fee structure and level against relevant peers (those of a similar nature,
commodity and mining cycle to Westgold) and approved the following policy
fee adjustments considering relevant benchmarking data and responsibilities of
individual members, effective 1 July 2023:
–
NED Chair base fee increased from $175,000 to $180,000 (3% increase from
FY23); and
–
NED member base fee increased from 95,000 to $105,000 (11% increase
from FY23).
See Section 8 Non-Executive Director (NED) Remuneration for more details.
43
Westgold Resources Limited Annual Report 2024
3. PRINCIPLES OF REMUNERATION
The Board aims to ensure that remuneration practices for KMP are:
–
competitive and reasonable, enabling the Company to attract and retain high calibre talent;
–
aligned to the Company’s strategic and business objectives;
–
transparent and easily understood, supporting the ease of communication and employee engagement; and
–
acceptable to shareholders, supporting the creation of shareholder value.
4. REMUNERATION GOVERNANCE
The KMP remuneration decision making is guided by the Company’s remuneration governance framework as follows:
The Board of Directors
(Board)
The Board take an active role in the governance and oversight of the Company’s remuneration
policies and have overall responsibility for ensuring that the Company’s remuneration
strategy aligns with the Company’s short and long-term business objectives and risk profile.
The Board considers the recommendations and considerations from the Remuneration
and Nomination Committee and approves the remuneration arrangements of executives
including fixed and variable remuneration and proposes the aggregate remuneration of NEDs
for shareholder approval and sets remuneration for individual NEDs.
Remuneration and
Nomination Committee
(RNC)
The Remuneration and Nomination Committee (RNC) is charged with formulating the
Group’s remuneration policy, reviewing each director’s remuneration and reviewing the
Managing Director’s remuneration recommendations for KMPs to ensure compliance with
the Remuneration Policy and consistency across the Group including:
–
remuneration levels and other terms of employment on an annual basis having regard to
relevant market conditions, qualifications and experience of the KMP, and performance
against targets set for each year where applicable; and
–
advising the Board on the appropriateness of remuneration packages structures of the
Company, given trends in comparative peer companies both locally and internationally,
with the overall objective of ensuring maximum stakeholder benefit from the retention
of a high calibre Board and executive team.
Recommendations of the RNC are put to the Board for approval.
The RNC charter can be found on the Company’s website at https://www.westgold.com.au/
about-us/corporate-governance.
External Remuneration
Consultants
To ensure the Committee is fully informed when making remuneration decisions, it may seek
external, independent remuneration advice on remuneration related issues.
In January 2024, the RNC engaged The Reward Practice Pty Ltd to undertake a benchmarking
exercise and review the existing remuneration arrangements of the Company’s KMPs
including Non-Executive Directors against relevant market data.
No remuneration recommendation was made in relation to this work.
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.
Clawback provision
If, in the opinion of the Board a KMP acts fraudulently or dishonestly, is in material breach
of their obligations to the Company, is knowingly involved in a material misstatement of
financial statements or engages in behaviour that results in the satisfaction of vesting
conditions in circumstances that in the reasonable opinion of the Board have caused or are
likely to cause long term detriment to the Company, then regardless of whether or not the
KMPs employment with the Company has terminated, the Board may:
–
deem any unexercised incentives of the KMP to have lapsed;
–
adjust the KMPs current or future performance-based remuneration; and
–
take any other action that the Board considers appropriate, including requiring any benefits
obtained under an Executive Incentive Plan by the KMP or their nominee to be returned,
repaid or cancelled or alter the outcome on them vesting.
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
44
Westgold Resources Limited Annual Report 2024
5. EXECUTIVE REMUNERATION STRUCTURE FOR FY24
5.1 Elements of remuneration in FY24
Remuneration levels for KMP are set to attract, retain and incentivise appropriately qualified and experienced executives.
The Company rewards executives with a level and mix of remuneration appropriate to their position, responsibilities and
performance, in a way that aligns with the business strategy. Executive remuneration structure comprises fixed remuneration
and performance linked remuneration including both Short Term Incentives (STI) and Long Term Incentives (LTI) designed
to reward KMP for meeting or exceeding their KPIs.
The following provides an overview of remuneration elements for executives over FY24. Detailed STI and LTI arrangements are
outlined in the Sections 5.2 and 5.3.
Element
Fixed remuneration
(FR)
Short-Term Incentives
STI
Long-Term Incentives
LTI
Purpose
Designed to reward for the
scope of the executive’s
role; the executive’s
skills, experience and
qualifications; and
individual performance
Part of the Company’s
Executive Incentive Plan,
represented the annual
component of the “at
risk” reward opportunity,
recognises and rewards
annual performance.
Part of the Company’s
Executive Incentive Plan,
refers to the longer term
“at risk” reward opportunity,
aligns remuneration with
the creation of shareholder
value over the long-term.
Delivery
Include base salary,
superannuation and other
applicable benefits
Delivered in cash upon the
successful achievement of
financial and non-financial
KPIs.
Delivered in the form of
performance rights subject
to meeting predetermined
performance and vesting
conditions.
Alignment to performance
Reviewed regularly
by the RNC to ensure
alignment to the market
and the Company’s stated
objectives
KPIs are chosen to
represent the key drivers of
short-term success for the
Company with reference
to Westgold’ long term
strategy
Performance conditions
used to determine the
vesting outcomes are linked
to shareholder wealth
creation and business
sustainability over the
long term
The table below provides the mix for fixed and “at risk” remuneration for executives at maximum opportunity level for the 2024
financial year:
Executive
Fixed
remuneration
STI (at risk)
LTI (at risk)
Managing Director
45%
30%
25%
Other Executives
56%
23%
21%
45
Westgold Resources Limited Annual Report 2024
5.2 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?
STI opportunity is set as a percentage of individual executive fixed remuneration:
–
MD: up to 100% (FY23: 50%)
–
Other executives: up to 60% (FY23 40%)
How is performance measured?
Performance is measured via a combination of company and individual Key Performance
Indicators (KPIs) reflecting the core drivers of the Company’s short-term performance
and providing a framework for delivering sustainable value to the Group and its
shareholders.
What KPIs were chosen?
The following KPIs are applicable for the FY24. 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.
–
KPI 1: Safety & Environmental Performance Targets (25%)
–
KPI 2: All-in Cost (AIC) relative to Targets (25%)
–
KPI 3: Gold production relative to Targets (25%)
–
KPI 4: Personal KPI (25%)
How STI award is determined?
Where applicable, each company KPI is set at target, and stretch levels resulting in
payout at 50% and 100% of the STI opportunity.
Individual executive performance against the relevant personal KPI is assessed into
“Does not meet expectations”, Partially meets expectations”, “Meets expectations”
and “Exceeds expectations” resulting in payout at 0%, 50%, 100% and 150% levels
respectively.
When is it paid?
The STI award is determined after the end of the financial year following a review of
performance over the year against the set KPIs by the RNC.
The Board approves the final STI award based on the assessment of performance and
the award is paid within three months following the end of the financial year.
What happens if an
executive leaves?
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 as 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; or
–
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).
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
46
Westgold Resources Limited Annual Report 2024
5.3 Long Term Incentive (LTI) arrangements
Under the LTI plan, annual grants of performance rights are made to executives to align remuneration with the creation of
shareholder value over a three-year performance period.
How is it paid?
Delivered in the form of Performance Rights (Rights), being a conditional right issued to
receive a share in the Company subject to performance.
How much can executives earn?
The LTI opportunity is expressed as a percentage of individual executive fixed
remuneration:
–
MD: up to 150% (FY23: 80%)
–
Other executives: up to 80% (FY23: 80%)
The number of Rights granted is determined based on individual fixed remuneration,
applicable LTI opportunity and a 5-day volume weighted average price (VWAP) up to
30 June 2023.
How is performance measured?
FY24 Performance Rights will vest and become exercisable three years after the grant
subject to the following performance conditions:
–
Growth in Relative Total Shareholder Return (25%)
–
Growth in Absolute Total Shareholder Return (25%)
–
Growth in Absolute Earnings Per Share (25%)
–
Ore Reserve Growth (25%)
A service condition also applies which requires executives to remain employed with the
Company over the three-year period from 1 July 2023 to 30 June 2026.
Relative Total Shareholder Return (RTSR) (25%)
The Relative TSR Rights are measured against a defined peer group of companies
over the performance period (1 July 2023 to 30 June 2026) which the Board considers
comparable to Westgold. The comparator group of companies for FY24 Rights
comprises of:
Bellevue Gold Limited
Red 5 Limited
Gold Road Resources Limited
Regis Resources Limited
Ramelius Resources Limited
Resolute Mining Limited
Genesis Minerals Limited
The vesting schedule for the RTSR measure is as follows:
RTSR
% of Rights to Vest
Below 50th percentile
0%
At 50th percentile
50%
Above 50th percentile and below 75th percentile
Pro-rata from 50% to 100%
75th percentile and above
100%
47
Westgold Resources Limited Annual Report 2024
Absolute Total Shareholder Return (ATSR) (25%)
The ATSR Rights will vest subject to the performance of the Company’s TSR over the
performance period. The ATSR will be measured by comparing the 30 day VWAP at grant
dated (1 July 2023) to the 30 day VWAP at the measurement date (30 June 2026).
The vesting schedule for the ATSR measure is as follows:
ATSR
% Rights to Vest
Below 15%
0%
Between 15% and up to 25%
Pro-rata from 50% to 75%
Between 25% and up to 50%
Pro-rata from 75% to 100%
Greater than 50%
100%
Absolute Earnings Per Share (AEPS) (25%)
The AEPS Rights will vest subject to the annual growth rate of the Company’s EPS over
the performance period. The AEPS will be measured by comparing the EPS (excluding
any non-recurring items) at the grant date (1 July 2023) to the EPS (excluding any
non-recurring items) at vesting date (30 June 2026).
The vesting schedule for the AEPS measure is as follows:
AEPS Performance
% Contribution to the
Number of Rights to Vest
Below 15%
0%
Between 15% and up to 25%
Pro-rata from 50% to 75%
Between 25% and up to 50%
Pro-rata from 75% to 100%
Greater than 50%
100%
Ore Reserve Growth (25%)
Ore Reserves Growth Rights will be measured based on the Reserve Statement as
reported at the end of the FY24 financial year under JORC guidelines.
Ore Reserve Performance
% Contribution to the
Number of Rights to Vest
Negative Growth
0%
Depletion Replaced
50%
Between depletion replaced and 10% increase
Pro-rata from 50% to 100%
Depletion replaced and 10% increase or greater
100%
When is performance
measured?
The measurement date is 30 June 2026.
What happens if an executive
leaves?
Where executives cease to be an employee of the Group:
–
due to resignation or termination for cause, then any unvested 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 Rights based
on performance over the period up to the date of cessation of employment; or
–
Unless the Board determines otherwise.
What happens if there is
a change of control?
If a matter, event, circumstance or transaction occurs that the Board reasonably believes
may lead to a change of control, the Board may in its discretion determine the treatment
and timing of any unvested Rights. If a change of control occurs and the Board hasn’t
made such a decision, all unvested rights will vest.
Are executives eligible for
dividends?
Executives are not eligible to receive dividends on unvested rights.
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
48
Westgold Resources Limited Annual Report 2024
6. PERFORMANCE AND EXECUTIVE REMUNERATION OUTCOMES IN FY24
6.1 Overview of Company performance over the past five years
The Company aims to align its executive remuneration to its strategic and business objectives and the creation of shareholder
wealth. The table below shows measures of the Group’s financial performance over the past five years as required by the
Corporations Act 2001.
30 June 20
30 June 21
30 June 22
30 June 23
30 June 24
Closing share price
$2.09
$1.88
$1.19
$1.44
$2.42
Profit/(loss) per share (cents)
8.65
18.16
(25.32)
2.11
20.11
Net tangible assets per share1
$1.24
$1.43
$1.24
$1.26
$1.46
Dividend per shares (cents)2
–
2
–
–
2.25
1
Net tangible assets per share include right of use assets and lease liabilities.
2
FY24 cash dividend of 2.25 cents per share comprising the final dividend for FY24 of 1.25 cents per share fully franked declared on 4 July 2024
to be paid 21 October 2024 and the interim dividend for FY24 of 1 cent per share unfranked declared in 29 February 2024 and paid on
12 April 2024.
6.2 STI outcomes
During the financial year a combination of financial and non-financial KPI were used to measure performance for STI rewards.
Following the assessment of these KPIs, the Board approved an STI outcome of between 62.5% to 75% for the KMP. The
following table outlines the achievement against set KPIs.
KPI
Weighting
Achieved
Weighted Outcome
Commentary for FY24
Environmental, Health
& Safety Performance,
assessed via Total
Recordable Injury
Frequency Rate (TRIFR)
and environmental
management
performance targets
20%
100%
20%
TRIFR of 6.84 improved by 18.28%
from Actual FY23 TRIFR of 8.37.
Score awarded of 100%.
5%
100%
5%
Exceptional environmental
management performance with
no significant incidents. Score
awarded of 100%.
Cost management
assessed via All In Costs
(AIC) relative to target
25%
50%
12.5%
All-in Costs were above Target by
1.4% with the underperformance
of Paddy’s Flat. Score awarded
of 50%.
Gold Production relative
to target
25%
0%
0%
Gold Production below Target with
the underperformance of Paddy’s
Flat and inclement weather events.
Score awarded of 0%.
Personal performance in
relation to execution of
business plans
25%
100% to 150%
25% to 37.5%
Individual personal performance
scores varied between target
performance and stretch
performance. Note that stretch
component for personal
performance can have a payout
of up to 150%.
Total
100%
62.5% to 75%
49
Westgold Resources Limited Annual Report 2024
The following table provides STI outcomes by executive for FY24:
Name
Position
STI Achieved
%
STI Awarded1
$
Maximum
potential
award
$
WC Bramwell
Managing Director
75
487,500
650,000
SH Heng
Chief Financial Officer
62.5
159,000
254,400
PW Wilding
Chief Operating Officer
62.5
183,000
292,800
Total
829,500
1,197,200
1.
Performance is measured based on a combination of the operational segment performance as well as overall Group performance. The FY24
STI awards were paid in August 2024.
6.3 LTI outcomes
The Managing Director WC Bramwell was granted 760,541 performance rights in November 2023. Senior Executives were
granted a total 569,118 performance rights in October 2023. Please refer to Section 10 for further details regarding these
grants.
Note performance rights granted during FY23 (Tranche 6) and FY24 (Tranche 7) are due for performance testing on 30 June
2025 and 30 June 2026 respectively.
The performance conditions of FY2022 LTI awards (Tranche 5) are summarised in the table below.
Metric
Weighting
Achieved
Commentary
Relative Total Shareholder
Return (“RTSR”)
25%
100%
The performance condition was met with the Company
placed in the 75th percentile against the comparator
group of companies for the FY2022 LTI Performance
Rights
Absolute Total Shareholder
Return (“ATSR”)
25%
–
The performance condition was not met with
the Company’s 30 day VWAP at 31 March 2024
outperforming 10% against the 30 day VWAP at 30 June
2021. The minimum condition is set at above 15%.
Absolute Earnings Per Share
(“AEPS”)
25%
100%
Performance condition met with the Company’s AEPS
at 31 March 2024 outperforming 60% against the EPS
at 30 June 2021
Operational Growth (via Ore
Reserves)
25%
–
The Ore Reserves (10% weighting) performance
condition was not met with the Company’s ore reserve
declining 8% between 30 June 2022 to 30 June 2023.
The Production Growth (15% weighting) performance
condition was not met with the Company’s cumulative
production growth declining 5% over 30 June 2021 to
30 June 2023.
Total
100%
50%
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
50
Westgold Resources Limited Annual Report 2024
7. EXECUTIVE EMPLOYMENT ARRANGEMENTS
A summary of the key terms of employment agreements for executives in place at 30 June 2024 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
Notice Period
Termination Payment1
WC Bramwell (Managing Director)
650,000
11%
6 months
Per ESA
SH Heng (Chief Financial Officer)
424,000
11%
3 months
Per ESA
PW Wilding (Chief Operating Officer)
488,000
11%
3 months
Per ESA
1
ESA refers to Westgold’s Executive Service Agreement
8. NON-EXECUTIVE DIRECTOR (NED) REMUNERATION
NED Fee 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
benchmarking data 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. 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
FY241
FY231
Non-Executive Chair
180,000
175,000
Non-Executive Director
105,000
95,000
1
Base fees are exclusive of superannuation.
51
Westgold Resources Limited Annual Report 2024
9. DETAILS OF EXECUTIVE REMUNERATION
Table 1: Remuneration for the year ended 30 June 2024
2024
Short term
Other
Post-
employment
Long term
benefits
Share-based
payment2
Total
Performance
related
%
Salary and
fees
Cash
bonus
Annual
leave
benefit
Non-
monetary
benefits3
Other
Fees
Termination
Payment
Super-
annuation1
Long
service
leave4
Performance
Rights
NON-EXECUTIVE
DIRECTORS
Hon. CL Edwardes AM
180,000
–
–
–
–
–
19,800
–
–
199,800
–
FJ Van Maanen
105,000
–
–
–
–
–
11,550
–
–
116,500
–
GR Davison
105,000
–
–
–
–
–
11,550
–
–
116,500
–
JL Matthys
105,000
–
–
–
–
–
11,550
–
–
116,500
–
DN Kelly
105,000
–
–
–
–
–
11,550
–
–
116,500
–
600,000
–
–
–
–
–
66,000
–
–
666,000
Managing Director
WC Bramwell
698,031
535,220
64,916
5,011
–
–
23,469
26,602
446,072
1,799,321
55
Senior Executives
SH Heng
419,941
209,477
42,441
5,011
–
–
28,017
13,420
198,339
916,646
45
PW Wilding
464,962
241,096
56,240
9,077
–
–
29,795
24,353
220,504
1,046,027
45
1,582,934
985,793
163,597
19,099
–
–
81,281
64,375
864,914
3,761,993
Totals
2,182,934
985,793
163,597
19,099
–
–
147,281
64,375
864,914
4,427,993
1.
Where employees have reached the maximum super contribution base, the amount of deemed super in excess of the maximum was paid out as salary at the employee’s election.
2.
Share-based payment remuneration represents the balances expensed under the accounting standards. In situations where an employee forfeits their share-based payment instruments
due to failure to meet service conditions, previously expensed amounts are reversed in profit or loss. Therefore, negative remuneration in this table represents these reversals, relative to the
employees’ previously expensed amounts.
3.
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.
4.
Long term benefits for accrued long service leave are the movements in the provision, net of any leave taken
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
52
Westgold Resources Limited Annual Report 2024
Table 2: Remuneration for the year ended 30 June 2023
2023
Short term
Other
Post-
employment
Long term
benefits
Share-based
payment6
Total
Performance
related
%
Salary and
fees
Cash
bonus
Annual
leave
benefit
Non-
monetary
benefits7
Other
Fees
Termination
Payment5
Super-
annuation4
Long
service
leave8
Performance
Rights
NON-EXECUTIVE
DIRECTORS
Hon. CL Edwardes AM
175,000
–
–
–
–
–
18,375
–
–
193,375
–
FJ Van Maanen
95,000
–
–
–
–
–
9,975
–
–
104,975
–
GR Davison
95,000
–
–
–
–
–
9,975
–
–
104,975
–
JL Matthys
95,000
–
–
–
–
–
9,975
–
–
104,975
–
DN Kelly1
61,908
–
–
–
–
–
6,500
–
–
68,408
–
521,908
–
–
–
–
–
54,800
–
–
576,708
Managing Director
WC Bramwell
559,461
209,680
40,871
4,666
–
–
32,150
14,857
171,013
1,032,698
37
Senior Executives
SH Heng
391,134
142,464
29,609
4,468
–
–
30,868
11,558
99,960
710,061
34
PW Wilding2
409,821
172,030
32,608
3,416
–
–
29,860
72,328
166,985
887,048
38
L Smith3
92,962
8,240
–
2,701
–
171,500
19,601
–
(219,665)
75,339
0
1,453,378
532,414
103,088
15,251
–
171,500
112,479
98,743
218,292
1,672,448
Totals
1,975,286
532,414
103,088
15,251
-
171,500
167,279
98,743
218,292
3,281,853
1.
DN Kelly was appointed on 5 November 2022.
2.
PW Wilding was appointed Chief Operating Officer on 11 October 2022.
3.
L Smith resigned on 2 November 2022.
4.
Where employees have reached the maximum super contribution base, the amount of deemed super in excess of the maximum was paid out as salary at the employee’s election.
5.
Additional discretionary termination payments were made on resignation.
6.
Share-based payment remuneration represents the balances expensed under the accounting standards. In situations where an employee forfeits their share-based payment instruments
due to failure to meet service conditions, previously expensed amounts are reversed in profit or loss. Therefore, negative remuneration in this table represents these reversals, relative to the
employees’ previously expensed amounts.
7.
Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.
8.
Long term benefits for accrued long service leave are the movements in the provision, net of any leave taken.
53
Westgold Resources Limited Annual Report 2024
10. ADDITIONAL REMUNERATION DISCLOSURES
Table 3: Rights and options over equity instruments granted as compensation
All rights and options refer to rights and options over ordinary shares of Westgold Resources Limited, which are exercisable on a one-for-one basis.
There were no options granted to KMPs as compensation during the current year.
Performance rights that were granted as remuneration to each KMP during the current year and in previous years and which have vested during or remain outstanding at
the end of the year are provided as follows:
Rights
Granted
Number of rights to
% Vested
during the
year
% Forfeited
during the year
Incentives
Grant Date
Fair Value at
Grant Date
Test Date
WC
Bramwell
SH Heng
PW Wilding
Short Term incentives
12 month service condition(i)
Tranche 5
RTSR
11/10/2021
$1.20
30/06/2024
50,609
25,281
25,607
50
50
ATSR
11/10/2021
$0.95
30/06/2024
50,609
25,281
25,607
50
50
AEPS
11/10/2021
$1.79
30/06/2024
50,609
25,281
25,607
50
50
Operational Growth
11/10/2021
$1.79
30/06/2024
50,609
25,281
25,607
50
50
Tranche 6
RTSR
04/10/2022
$0.572
30/06/2025
115,570
83,723
92,204
–
–
ATSR
04/10/2022
$0.361
30/06/2025
115,570
83,723
92,204
–
–
AEPS
04/10/2022
$0.855
30/06/2025
115,570
83,723
92,204
–
–
Operational Growth
04/10/2022
$0.855
30/06/2025
38,523
27,906
30,733
–
–
Tranche 7
RTSR
09/10/2023
$1.176
30/06/2026
190,135
66,148
76,132
–
–
ATSR
09/10/2023
$1.173
30/06/2026
190,135
66,148
76,132
–
–
AEPS
09/10/2023
$1.695
30/06/2026
190,135
66,148
76,132
–
–
Ore Reserve Growth
09/10/2023
$1.695
30/06/2026
190,135
66,148
76,132
–
–
Total
1,348,209
644,791
714,301
Value of rights granted during the year
$1,091,185
$379,623
$436,922
Notes
The maximum exposure of the performance rights approximates the fair value per right. Unless the Board determines otherwise, on cessation of employment, all unvested LTI awards, together with
any vested LTI awards that have not been exercised, will lapse.
The value of the share-based payments granted during the period is recognised in compensation over the vesting period of the grant. For details on the valuation of the options, including models and
assumptions used, please refer to Note 28.
In addition to a continuing employment service condition, vesting of the performance rights is conditional upon the Group achieving certain performance hurdles. Details of the performance criteria
are included in the long-term incentives discussion on Section 5.3 Long Term Incentive (LTI) arrangements.
The value of rights granted during the year is the fair value of the rights calculated at grant date. The total value of the rights granted is included in the table above. This amount is allocated to
remuneration over the vesting period (i.e. in years 1 July 2022 to 30 June 2025).
580,528 performance rights were exercised and converted into shares during the year, of which 202,995 were issued to KMPs with the balance of 377,533 issued to other employees.
for the year ended 30 June 2024
FINANCIAL REPORT
REMUNERATION REPORT (AUDITED)
54
Westgold Resources Limited Annual Report 2024
Table 4: Rights and options over equity instruments
The movement during the reporting period, by number of options and performance rights over ordinary shares in the Company
held, directly, indirectly or beneficially, by each key management person, including their related parties, is as follows:
Held at start
of period
Granted
as remuner-
ation
Exercised
Lapsed
Held at end
of period
30 June 2024
1 July 2023
30 June
2024
Total
Vested
Forfeited
Rights
WC Bramwell
587,668
760,541
–
–
1,348,209
202,435
101,219
101,216
SH Heng
380,198
264,590
–
–
644,788
101,123
50,562
50,561
PW Wilding
409,773
304,528
–
–
714,301
102,428
51,214
51,214
Total
1,377,639
1,329,659
–
–
2,707,298
405,986
202,995
202,991
Table 5: Shareholdings of key management personnel
Held at
1 July 2023
On exercise
of rights
Net change
other1
Held at
30 June 2024
NON-EXECUTIVE DIRECTORS
Hon. CL Edwardes AM
6,122
–
–
6,122
FJ Van Maanen
435,521
–
–
435,521
GR Davison
–
–
–
–
JL Matthys
112,658
–
–
112,658
DN Kelly
–
–
–
–
Managing director
WC Bramwell
50,000
–
–
50,000
Executives
SH Heng
20,000
–
–
20,000
PW Wilding
23,867
–
(23,867)
–
Total
648,168
–
(23,867)
624,301
1.
Unless stated otherwise, “Net change other” relates to on-market purchases and sales of shares. All equity transactions with KMP other than
those arising from the exercise of remuneration options have been entered into under terms and conditions no more favourable than those the
Group would have adopted if dealing at arm’s length.
Loans to key management personnel and their related parties
There were no loans to key management personnel during the years ended 30 June 2024 and 30 June 2023.
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 2024 and 30 June 2023.
End of Audited Remuneration Report.
for the year ended 30 June 2024
55
Westgold Resources Limited Annual Report 2024
DIRECTORS’ REPORT
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 2024 outlining the impacts, footprint and achievements of
the Group during 2024.
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES
Auditor’s Independence Declaration
The Directors received the Auditor’s Independence Declaration, as set out on page 56, 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 31):
–
Other assurance and agreed upon procedures services $241,520; and
–
Tax compliance and other services $94,187.
Signed in accordance with a resolution of the Directors.
Hon. Cheryl L Edwardes AM
Non-Executive Chair
Perth, 28 August 2024
FINANCIAL REPORT
56
Westgold Resources Limited Annual Report 2024
AUDITOR’S INDEPENDENCE DECLARATION
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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 2024, 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
Trevor Hammond
Partner
28 August 2024
for the year ended 30 June 2024
57
Westgold Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Notes
2024
2023
Revenue
5
716,472,565
656,651,618
Cost of sales
7(a)
(559,496,779)
(631,598,901)
Gross profit
156,975,786
25,052,717
Other income
6
12,209,600
8,723,939
Finance costs
7(b)
(4,679,953)
(2,457,285)
Other expenses
7(c)
(27,245,190)
(17,369,902)
Exploration and evaluation expenditure written off
18
(286,140)
–
Profit before income tax
136,974,103
13,949,469
Income tax expense
8
(41,742,573)
(3,945,985)
Net Profit for the year
95,231,530
10,003,484
Other comprehensive profit for the year, net of tax
–
–
Total comprehensive profit for the year
95,231,530
10,003,484
Total comprehensive profit attributable to:
members of the parent entity
95,231,530
10,003,484
95,231,530
10,003,484
EARNINGS PER SHARE ATTRIBUTABLE TO THE ORDINARY EQUITY
HOLDERS OF THE PARENT (CENTS PER SHARE)
Basic profit per share
9
20.11
2.11
Diluted profit per share
9
19.79
2.11
as at 30 June 2024
FINANCIAL REPORT
58
Westgold Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes
2024
2023
CURRENT ASSETS
Cash and cash equivalents
10
236,039,162
176,411,855
Trade and other receivables
11
6,845,501
6,854,911
Inventories
12
71,600,123
82,739,473
Prepayments
13
8,479,999
6,449,836
Other financial assets
14
1,649,443
4,149,443
Total current assets
324,614,228
276,605,518
NON-CURRENT ASSETS
Financial assets at fair value through profit and loss
15
8,010,952
8,157,712
Property, plant and equipment
16
204,459,735
140,903,171
Mine properties and development
17
364,254,621
258,787,650
Exploration and evaluation expenditure
18
147,861,258
123,487,370
Right-of-use assets
19
3,299,105
5,310,415
Total non-current assets
727,885,671
536,646,318
TOTAL ASSETS
1,052,499,899
813,251,836
CURRENT LIABILITIES
Trade and other payables
20
148,035,107
79,227,398
Provisions
21
14,788,299
11,809,258
Interest-bearing loans and borrowings
23
23,376,904
15,942,787
Total current liabilities
186,200,310
106,979,443
NON-CURRENT LIABILITIES
Provisions
22
71,012,521
66,274,692
Interest-bearing loans and borrowings
24
31,232,548
11,548,031
Deferred tax liabilities
8
72,253,414
30,110,372
Total non-current liabilities
174,498,483
107,933,095
TOTAL LIABILITIES
360,698,793
214,912,538
NET ASSETS
691,801,106
598,339,298
EQUITY
Issued capital
25
462,597,009
462,997,480
Accumulated profit/(losses)
26
27,419,534
(63,075,769)
Share-based payments reserve
27
20,290,932
16,923,956
Other reserves
27
181,493,631
181,493,631
TOTAL EQUITY
691,801,106
598,339,298
for the year ended 30 June 2024
59
Westgold Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes
2024
2023
OPERATING ACTIVITIES
Receipts from customers
716,472,565
656,651,618
Interest received
7,846,175
3,457,455
Receipts from other income
764,967
1,012,415
Payments to suppliers and employees
(371,154,034)
(491,001,745)
Interest paid
(2,191,625)
(1,686,525)
NET CASH FLOWS FROM OPERATING ACTIVITIES
10
351,738,048
168,433,218
INVESTING ACTIVITIES
Payments for property, plant and equipment
(46,550,479)
(45,273,252)
Payments for mine properties and development
(201,872,633)
(95,357,436)
Payments for exploration and evaluation
(24,660,027)
(18,909,901)
Payments for financial assets
(6,008,214)
(1,955,248)
Proceeds from sale of financial assets
15
8,632,232
476,062
Proceeds from performance bond facility
2,500,000
–
Payments for performance bond facility
–
(2,219,410)
Proceeds from sale of property, plant and equipment
2,318,592
5,165,090
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(265,640,529)
(158,074,095)
FINANCING ACTIVITIES
Payments of equipment loans
4(f)
(19,466,617)
(10,155,112)
Payments for lease liabilities
(2,267,368)
(6,493,658)
Payments for dividends
(4,736,227)
–
NET CASH FLOWS USED IN FINANCING ACTIVITIES
(26,470,212)
(16,648,770)
Net increase/(decrease) in cash and cash equivalents
59,627,307
(6,289,647)
Cash and cash equivalents at the beginning of the financial year
176,411,855
182,701,502
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
10
236,039,162
176,411,855
FINANCIAL REPORT
for the year ended 30 June 2024
60
Westgold Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued
capital
(Note 25)
Retained
Earnings
(accumulated
losses)
(Note 26)
Share-based
payments
reserve
(Note 27)
Equity
reserve
(Note 27)
Total Equity
2024
At 1 July 2023
462,997,480
(63,075,769)
16,923,956 181,493,631 598,339,298
Profit for the year
–
95,231,530
–
–
95,231,530
Other comprehensive income, net of tax
–
–
–
–
–
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR
NET OF TAX
–
95,231,530
–
–
95,231,530
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Share-based payments
–
–
3,366,976
–
3,366,976
Issue of share capital
–
–
–
–
–
Share issue costs, net of tax
(400,471)
–
–
–
(400,471)
Dividends paid
–
(4,736,227)
–
–
(4,736,227)
At 30 June 2024
462,597,009
27,419,534
20,290,932 181,493,631 691,801,106
2023
At 1 July 2022
463,468,148
(73,079,253)
15,884,931
181,493,631
587,767,457
Profit for the year
–
10,003,484
–
–
10,003,484
Other comprehensive income, net of tax
–
–
–
–
–
Total comprehensive profit for the year net of
tax
–
10,003,484
–
–
10,003,484
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Share-based payments
–
–
1,039,025
–
1,039,025
Issue of share capital
–
–
–
–
–
Share issue costs, net of tax
(470,668)
–
–
–
(470,668)
Dividends paid
–
–
–
–
–
At 30 June 2023
462,997,480
(63,075,769)
16,923,956
181,493,631
598,339,298
for the year ended 30 June 2024
61
Westgold Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
The financial report of Westgold Resources Limited for the year
ended 30 June 2024 was authorised for issue in accordance
with a resolution of the Directors on 28 August 2024.
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, Toronto Stock Exchange and the OTC
Best Market.
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 MATERIAL 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 2023. Other than the changes
described in Note 37, the accounting policies adopted are
consistent with those of the previous financial year.
(c) Basis of consolidation and business
combinations
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.
Business combinations are accounted for using the
acquisition method. The cost of an acquisition is measured
as the aggregate of the consideration transferred, which
is measured at acquisition date fair value, and the amount
of any non-controlling interests in the acquiree. For each
business combination, the Group elects whether to measure
the non-controlling interests in the acquiree at fair value or
at the proportionate share of the acquiree’s identifiable net
assets. Acquisition-related costs are expensed as incurred
and included in Acquisition and integration costs.
The Group determines that it has acquired a business
when the acquired set of activities and assets include an
input and a substantive process that together significantly
contribute to the ability to create outputs. The acquired
process is considered substantive if it is critical to the ability
to continue producing outputs, and the inputs acquired
include an organised workforce with the necessary skills,
knowledge, or experience to perform that process or it
significantly contributes to the ability to continue producing
outputs and is considered unique or scarce or cannot be
replaced without significant cost, effort, or delay in the
ability to continue producing outputs.
When the Group acquires a business, it assesses the
financial assets and liabilities assumed for appropriate
classification and designation in accordance with the
contractual terms, economic circumstances and pertinent
conditions as at the acquisition date.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
62
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(c) Basis of consolidation and business
combinations (continued)
If the business combination is achieved in stages, any
previously held equity interest is re-measured at its
acquisition date fair value and any resulting gain or loss is
recognised in profit or loss.
Any contingent consideration to be transferred by the acquirer
will be recognised at fair value at the acquisition date.
Contingent consideration classified as an asset or liability
that is a financial instrument and within the scope of AASB
9 Financial Instruments, is measured at fair value with the
changes in fair value recognised in the income statement.
Goodwill is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount
recognised for non-controlling interests, and any previous
interest held, over the fair value of the net identifiable assets
acquired and liabilities assumed. If the fair value of the net
assets acquired is in excess of the aggregate consideration
transferred, the Group re-assesses whether it has correctly
identified all of the assets acquired and all of the liabilities
assumed and reviews the procedures used to measure
the amounts to be recognised at the acquisition date. If
the reassessment still results in an excess of the fair value
of net assets acquired over the aggregate consideration
transferred, then the gain is recognised in profit or loss.
(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.
(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 - commodity forward
contracts
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.
63
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(g) Financial Instruments (continued)
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.
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. 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 REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
64
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(g) Financial Instruments (continued)
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.
Gains or losses on liabilities held for trading are recognised
in the statement of profit or loss and other comprehensive
income.
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) 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.
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 and discount rate, 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.
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.
(j) 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.
65
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(j) Property, plant and equipment (continued)
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(n) 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.
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.
(k) 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.
(l) 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.
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(n) 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.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
66
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(l) 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.
(m) 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.
(n) 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. 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.
67
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(n) Impairment of non-financial assets (continued)
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.
(o) 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.
(p) Lease liabilities
The Group has lease contracts for various items of mining
equipment, motor vehicles and buildings used in its
operations., 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 of the discount
on the lease liability. The Group recognises leases using the
incremental borrowing rate.
(q) 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.
(r) 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. 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 out turned and
the Group either instructs the refiner to purchase the out
turned 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.
(s) 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.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
68
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(t) 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.
(u) 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 28.
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.
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 rights is reflected as additional share
dilution in the computation of dilutive earnings per share.
(v) 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.
(w) 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.
69
Westgold Resources Limited Annual Report 2024
2. SUMMARY OF MATERIAL ACCOUNTING
POLICIES (CONTINUED)
(w) Other taxes (continued)
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.
(x) 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
–
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.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
70
Westgold Resources Limited Annual Report 2024
3. SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
(x) Income tax (continued)
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.
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(i). 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%
(2023: 2.5%), and changes in discount rates. The applicable
discount rates are based on the expected life of mine for each
operation, ranging between 7 to 10 years.
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.
71
Westgold Resources Limited Annual Report 2024
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 and resources
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.
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(n) for further discussion on the impairment
assessment process undertaken by the Group.
Share-based payment transactions
The fair value is determined by using an appropriate valuation,
using the assumptions as discussed in Note 28. 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.
Significant judgement in relation to recovery of
deferred tax assets
Judgement is required to determine whether deferred tax
assets are recognised in the statement of financial position.
Deferred tax assets, including those arising from unused
tax losses, require management to assess the likelihood
that the Group will generate sufficient taxable earnings in
the future periods in order to recognise and utilise those
deferred tax assets. Judgement is also required in respect of
the application of existing tax laws in each jurisdiction and to
identify uncertainties over income tax treatments.
Assumptions about the generation of future taxable profits
depend on management’s estimates of future cash flows.
These estimates of future taxable income are based on
forecast cash flows from operations. To the extent that
future cash flows and taxable income differ significantly from
estimates, the ability of the Group to realise the net deferred
tax assets recorded at the reporting date could be impacted.
Future changes in tax laws in the jurisdictions in which the
Group operates could also limit the ability of the Group to
obtain tax deductions in future periods.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
72
Westgold Resources Limited Annual Report 2024
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise receivables, trade and other payables, finance lease and equipment
loans, cash and cash equivalents, deposits, equity investments and derivatives.
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 material 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.
At the reporting date the Group’s exposure to interest rate risk for classes of financial assets and financial liabilities is set out below.
Floating
interest rate
Fixed interest
Non-interest
bearing
Total carrying
amount
2024
FINANCIAL ASSETS
Cash and cash equivalents
236,039,162
–
–
236,039,162
Trade and other receivables
–
–
906,749
906,749
Other financial assets
–
1,649,443
–
1,649,443
236,039,162
1,649,443
906,749
238,595,354
FINANCIAL LIABILITIES
Trade and other payables
–
–
(148,035,107)
(148,035,107)
Lease liabilities
–
(3,664,610)
–
(3,664,610)
Interest-bearing liabilities
–
(50,944,842)
–
(50,944,842)
–
(54,609,452)
(148,035,107) (202,644,559)
NET FINANCIAL ASSETS
35,950,795
73
Westgold Resources Limited Annual Report 2024
Floating
interest rate
Fixed interest
Non-interest
bearing
Total carrying
amount
2023
FINANCIAL ASSETS
Cash and cash equivalents
176,411,855
–
–
176,411,855
Trade and other receivables
–
–
995,927
995,927
Other financial assets
–
4,149,443
–
4,149,443
176,411,855
4,149,443
995,927
181,557,225
FINANCIAL LIABILITIES
Trade and other payables
–
–
(79,227,398)
(79,227,398)
Lease liabilities
–
(5,595,472)
–
(5,595,472)
Interest-bearing liabilities
–
(21,895,346)
–
(21,895,346)
–
(27,490,818)
(79,227,398)
(106,718,216)
NET FINANCIAL ASSETS
74,839,009
Interest rate risk exposure
Post tax profit higher (lower)
Other Comprehensive Income
higher (lower)
30 June 2024
30 June
2023
30 June 2024
30 June
2023
Judgements of reasonably possible movements:
+ 0.25% (25 basis points)
413,069
308,721
–
–
- 1.0% (100 basis points)
(1,652,274)
(1,234,883)
–
–
(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 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.
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Risk exposures and responses (continued)
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
74
Westgold Resources Limited Annual Report 2024
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Risk exposures and responses (continued)
(c) Price risk
Commodity Price Risk
The Group is exposed to the risk of fluctuations in the prevailing market prices for the gold and silver currently produced from its
operating mines. 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. Refer to Note 5
for details.
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 2024.
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:
Post tax profit higher (lower)
Other Comprehensive Income
higher (lower)
30 June 2024
30 June
2023
30 June 2024
30 June
2023
Judgements of reasonably possible movements:
Price + 20%
1,121,533
1,142,080
–
–
Price - 20%
(1,121,533)
(1,142,080)
–
–
(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 equipment loans.
The table below reflects all contractually fixed payables for settlement, repayment and interest resulting from recognised
financial liabilities as of 30 June 2024. Cash flows for financial liabilities without fixed amount or timing are based on the
conditions existing as 30 June.
The remaining contractual maturities of the Group’s financial liabilities are:
2024
2023
6 months or less
(160,298,601)
(89,588,752)
6 - 12 months
(10,322,503)
(6,581,340)
1 - 5 years
(33,588,015)
(12,612,272)
Over 5 years
–
–
(204,209,119)
(108,782,364)
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
75
Westgold Resources Limited Annual Report 2024
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
2024
FINANCIAL ASSETS
Cash and equivalents
236,039,162
–
–
–
236,039,162
Trade and other receivables
906,749
–
–
–
906,749
Other financial assets
1,649,443
–
–
–
1,649,443
238,595,354
–
–
–
238,595,354
FINANCIAL LIABILITIES
Trade and other payables
(148,035,107)
–
–
–
(148,035,107)
Lease liabilities
(916,262)
(407,385)
(3,011,735)
(4,335,382)
Interest-bearing loans
(11,347,232)
(9,915,118) (30,576,280)
–
(51,838,630)
(160,298,601) (10,322,503) (33,588,015)
–
(204,209,119)
NET INFLOW/(OUTFLOW)
78,296,753 (10,322,503) (33,588,015)
–
34,386,235
2023
FINANCIAL ASSETS
Cash and equivalents
180,928,394
–
–
–
180,928,394
Trade and other receivables
995,927
–
–
–
995,927
Other financial assets
4,149,443
–
–
–
4,149,443
186,073,764
–
–
–
186,073,764
FINANCIAL LIABILITIES
Trade and other payables
(79,227,398)
–
–
–
(79,227,398)
Lease liabilities
(1,640,546)
(776,749)
(4,190,794)
(6,608,089)
Interest–bearing loans
(8,720,808)
(5,804,591)
(8,421,478)
–
(22,946,877)
(89,588,752)
(6,581,340)
(12,612,272)
–
(108,782,364)
Net inflow/(outflow)
96,485,012
(6,581,340)
(12,612,272)
–
77,291,400
(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.
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Risk exposures and responses (continued)
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
76
Westgold Resources Limited Annual Report 2024
The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below.
Quoted
market price
(Level 1)
Valuation
technique
market
observable
inputs
(Level 2)
Valuation
technique
non-market
observable
inputs
(Level 3)
Total
2024
FINANCIAL ASSETS
Instruments carried at fair value
Listed investments
8,010,952
–
–
8,010,952
8,010,952
–
–
8,010,952
2023
FINANCIAL ASSETS
Instruments carried at fair value
Listed investments
8,157,712
–
–
8,157,712
8,157,712
–
–
8,157,712
(f) Changes in liabilities arising from financing activities
Opening
Cash flows
New leases
Reclassi-
fication
adjustment
Closing
Lease liability
2024
Current obligations
2,111,143
(2,267,368)
156,225
1,319,140
1,319,140
Non-current obligations
3,484,329
–
180,281
(1,319,140)
2,345,470
Total liabilities
5,595,472
(2,267,368)
336,506
–
3,664,610
2023
Current obligations
6,004,390
(6,493,657)
489,267
2,111,143
2,111,143
Non-current obligations
4,904,963
–
690,509
(2,111,143)
3,484,329
Total liabilities
10,909,353
(6,493,657)
1,179,776
–
5,595,472
Opening
Cash flows
Additions
Reclassi-
fication
adjustment
Closing
Interest bearing liability
2024
Current obligations
13,831,645
(19,466,617)
5,634,973
22,057,764
22,057,764
Non-current obligations
8,063,701
–
42,881,140
(22,057,764)
28,887,078
Total liabilities
21,895,346
(19,466,617)
48,516,113
–
50,944,842
2023
Current obligations
16,837,629
(10,155,112)
(6,682,516)
13,831,644
13,831,645
Non-current obligations
15,212,829
–
6,682,516
(13,831,644)
8,063,701
Total liabilities
32,050,458
(10,155,113)
–
–
21,895,346
4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Risk exposures and responses (continued)
77
Westgold Resources Limited Annual Report 2024
5. REVENUE
2024
2023
Sale of gold at spot
689,301,564
325,212,443
Sale of gold under forward contracts(1)
24,594,000
329,158,791
Sale of silver
2,577,001
2,280,384
Total revenue from contracts with customers
716,472,565
656,651,618
Disaggregated revenue per segment has been disclosed in Note 32.
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.
The Group had unrecognised gold forward contracts for 10,000 ounces at an average price of $2,459/oz ending in July 2023,
under which the Group delivered physical gold to settle in the year. During the year, the 10,000oz call options were struck at
$3,340/oz and this concludes the Zero Cost Collars. No new contract was entered during FY24.
Westgold is now fully leveraged to the gold price.
The transaction price allocated to remaining performance obligations under forward contracts not recognised at the balance
sheet date at 30 June 2024 is as follows:
2024
2023
Gold forward contracts
- Within 1 year
–
24,594,000
- 1 to 2 years
–
–
–
24,594,000
The amounts due are for delivery of gold which will be paid within 3 days of delivery.
6. OTHER INCOME
2024
2023
Interest income calculated using the effective interest rate method
8,031,790
3,447,526
Fair value gain/(loss) on remeasurement of financial assets
2,477,258
(186,504)
Net gain on sale of property, plant and equipment
935,585
4,448,016
Other income
764,967
1,014,901
Total other income
12,209,600
8,723,939
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
78
Westgold Resources Limited Annual Report 2024
7. EXPENSES
2024
2023
(A) COST OF SALES
Gold production
Salaries, wages expense and other employee benefits
189,562,334
160,623,325
Other production costs
211,818,329
295,008,423
Royalty expense
21,446,524
23,082,403
Depreciation and amortisation expense
Depreciation of non-current assets:
Plant and equipment
38,962,003
43,906,314
Buildings
2,152,512
1,986,122
Right-of-use assets
1,810,550
6,139,491
Amortisation of non-current assets:
Mine properties and development costs
93,744,527
100,852,823
Total cost of sales
559,496,779
631,598,901
(B) FINANCE COSTS
Interest expense
2,191,625
1,686,525
Unwinding of rehabilitation provision discount
2,488,328
770,760
Total finance costs
4,679,953
2,457,285
for the year ended 30 June 2024
FINANCIAL REPORT
79
Westgold Resources Limited Annual Report 2024
7. EXPENSES (CONTINUED)
2024
2023
(C) OTHER EXPENSES
Administration expenses
Employee benefits expense
Salaries and wages expense
15,361,924
8,198,787
Directors' fees and other benefits
600,000
576,708
Other employee benefits
243,061
165,478
Share-based payments expense
3,366,976
1,039,025
19,571,961
9,979,998
Other administration expenses
Consulting expenses
1,412,413
1,505,099
Subscriptions
716,880
1,028,757
Recruitment and relocation
332,690
437,108
Business development
2,468,615
759,619
Insurance
1,380,092
437,486
Travel and accommodation expenses
359,780
238,346
Other costs
80,415
2,055,863
6,750,885
6,462,278
Depreciation expense
Property plant and equipment
385,078
383,053
Right-of-use assets
537,266
544,573
922,344
927,626
Total other expenses
27,245,190
17,369,902
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
80
Westgold Resources Limited Annual Report 2024
8. INCOME TAX
2024
2023
(A) MAJOR COMPONENTS OF INCOME TAX EXPENSE:
Income Statement
Current income tax expense
Current income tax/(benefit) expense
14,006,126
(17,818,544)
Adjustment in respect of current income tax of previous years
-
-
Deferred income tax
Relating to origination and reversal of temporary differences
28,035,279
21,878,828
Adjustment in respect of prior year tax losses / DTA
(298,832)
(114,299)
Income tax expense
41,742,573
3,945,985
(B) AMOUNTS CHARGED OR CREDITED DIRECTLY TO EQUITY
Share issue costs
400,470
470,670
400,470
470,670
(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
136,974,103
13,949,469
Total accounting profit (loss) before income tax
136,974,103
13,949,469
At statutory income tax rate of 30% (2023: 30%)
41,092,231
4,184,840
Non-deductible expenses (non-assessable income)
949,174
(124,556)
Over in respect of prior years
(298,832)
(114,299)
INCOME TAX EXPENSE REPORTED IN THE INCOME STATEMENT
41,742,573
3,945,985
Tax expense
41,742,573
3,945,985
Income tax expense reported in the income statement
41,742,573
3,945,985
for the year ended 30 June 2024
FINANCIAL REPORT
81
Westgold Resources Limited Annual Report 2024
8. INCOME TAX (CONTINUED)
(D) DEFERRED INCOME TAX AT 30 JUNE RELATES TO THE FOLLOWING:
Consolidated Statement of
Financial Position
Consolidated Statement of
Comprehensive Income
2024
2023
2024
2023
Deferred tax liabilities
Exploration
(30,537,611)
(22,751,899)
7,785,712
6,213,216
Trade and other receivables
(195,829)
(639,932)
(444,103)
298,557
Prepayments
(27,839)
(10,141)
17,698
(6,253)
Deferred mining
(55,513,773)
(28,796,912)
26,716,861
(3,964,843)
Inventories
(11,809,399)
(10,905,583)
903,816
(59,349)
Property plant and equipment
(4,969,074)
(8,776,548)
(3,807,474)
1,019,038
Right of use assets
(989,732)
(1,593,125)
(603,393)
(1,651,286)
Net Loss on financial assets FVTPL
(600,107)
–
600,107
–
Gross deferred tax liabilities
(104,643,364) (73,474,140)
Deferred tax assets
Lease liabilities
1,099,383
1,678,642
579,259
1,594,164
Net gain on financial assets FVTPL
–
453,115
453,115
(30,044)
Accrued expenses
1,906,130
390,096
(1,516,034)
328,197
Provision for employee entitlements
7,004,352
4,637,450
(2,366,902)
182,620
Provision for rehabilitation
11,017,544
11,069,385
51,841
6,627,219
Borrowing costs
472,619
–
(472,619)
–
Business related costs
137,954
165,227
27,273
(3,048)
Capital raising costs
495,936
896,406
–
–
Recognised tax losses
10,256,032
24,073,447
13,817,415
(6,602,203)
Gross deferred tax assets
32,389,950
43,363,768
Net deferred tax liabilities
(72,253,414)
(30,110,372)
Income tax expense
41,742,573
3,945,985
(E) UNRECOGNISED LOSSES
At 30 June 2024, there are no unrecognised losses for the Group (2023: $nil).
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
82
Westgold Resources Limited Annual Report 2024
9. EARNINGS PER SHARE
The following reflects the data used in the basic and diluted earnings per share computations.
2024
2023
(A) EARNINGS USED IN CALCULATING EARNINGS PER SHARE
Net profit attributable to ordinary equity holders of the parent
95,231,530
10,003,484
Net profit attributable to ordinary equity holders of the parent
95,231,530
10,003,484
BASIC EARNINGS PER SHARE (CENTS)
20.11
2.11
20.11
2.11
EARNINGS USED IN CALCULATING EARNINGS PER SHARE
For diluted earnings per share:
Net profit attributable to ordinary equity holders of the parent (from basic EPS)
95,231,530
10,003,484
Net profit attributable to ordinary equity holders of the parent
95,231,530
10,003,484
Diluted profit per share (cents)
19.79
2.11
19.79
2.11
(B) WEIGHTED AVERAGE NUMBER OF SHARES
Weighted average number of ordinary shares for basic earnings per share
473,622,730
473,622,730
Effect of dilution:
Rights
7,702,197
–
Weighted average number of ordinary shares adjusted for the effect of dilution
481,324,927
474,744,530
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.
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.
for the year ended 30 June 2024
FINANCIAL REPORT
83
Westgold Resources Limited Annual Report 2024
10. CASH AND CASH EQUIVALENTS
2024
2023
Cash at bank and in hand
236,039,162
176,411,855
Cash and Cash Equivalents
236,039,162
176,411,855
CASH FLOW RECONCILIATION
Reconciliation of net profit after income tax to net cash flows from operating activities
Profit before income tax
95,231,530
10,003,484
Amortisation and depreciation
137,591,936
153,812,376
Income tax expense
41,742,573
3,945,984
Share based payments
3,366,976
1,039,025
Unwinding of rehabilitation provision discount
2,488,328
770,760
Net gain on disposal of property, plant and equipment
(935,585)
(4,448,016)
Fair value change in financial instruments (refer to Note 15)
(2,477,258)
186,504
Exploration and evaluation expenditure written off (refer to Note 18)
286,140
–
277,294,640
165,310,117
CHANGES IN ASSETS AND LIABILITIES
Decrease in inventories
11,139,349
13,342,615
Increase in trade and other receivables and prepayments
(2,020,751)
(754,936)
Increase/(decrease) in trade and other creditors
57,249,072
(8,790,126)
Increase/(decrease) in provisions
8,075,738
(674,452)
Net cash flows from operating activities
351,738,048
168,433,218
At 30 June 2024, the Group had available $105,169,978 (2023: $8,457,321) of undrawn borrowing facilities.
11. TRADE AND OTHER RECEIVABLES (current)
2024
2023
Statutory receivables
5,938,752
5,858,984
Other debtors
906,749
995,927
Total trade and other receivables
6,845,501
6,854,911
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, none of which were past due. The carrying amount of other
debtors approximate their fair value. Refer Note 4(b) for credit risk disclosures.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
84
Westgold Resources Limited Annual Report 2024
12. INVENTORIES (current)
2024
2023
Ore stocks at net realisable value
7,943,252
25,577,725
Gold in circuit at cost
11,932,566
16,293,902
Gold metal at cost
11,713,492
3,901,481
Stores and spares at cost
47,089,461
44,459,486
Provision for obsolete stores and spares
(7,078,648)
(7,493,121)
Total inventories at lower of cost and net realisable value
71,600,123
82,739,473
During the year there were $370,367 write-downs in inventories (2023: $nil) for the Group. This is included in cost of sales refer
to Note 7(a).
13. PREPAYMENTS (current)
2024
2023
Prepayments
8,479,999
6,449,836
8,479,999
6,449,836
Prepayments include insurances, software licenses and subscriptions.
14. OTHER FINANCIAL ASSETS (current)
2024
2023
Cash on deposit
1,649,443
4,149,443
1,649,443
4,149,443
The cash on deposit is interest bearing and is used as security for bank guarantees.
15. FINANCIAL ASSETS
2024
2023
Listed shares
8,010,952
8,157,712
8,010,952
8,157,712
MOVEMENT IN LISTED SHARES
At 1 July
8,157,712
6,799,309
Additions of listed shares
6,008,214
1,955,248
Proceeds on disposal of financial assets
(8,632,232)
(476,062)
Fair value gain/(loss) on remeasurement of financial assets
2,477,258
(120,783)
At 30 June
8,010,952
8,157,712
for the year ended 30 June 2024
FINANCIAL REPORT
85
Westgold Resources Limited Annual Report 2024
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 (Level 1).
Movement in investments during the year ended 30 June 2024 are as follows:
–
The Group has a 18.69% (2023: 0%) interest in Ora Gold Limited (OAU), which is involved in the exploration of gold and base
metals in Australia. OAU is listed on the Australian Securities Exchange (ASX: OAU). At the end of the year, the fair value of the
Group’s investment was $8,010,952 (2023: $nil) which is based on the quoted share price.
–
All Group’s investment in Musgrave Minerals Limited was sold during the year (2023: 2.48%). Musgrave is listed on the
Australian Securities Exchange (ASX: MGV) which is involved in the exploration of gold and base metals in Australia. At the
end of the year, the fair value of the Group’s investment was $nil (2023: $4,182,673) which is based on the quoted share
price.
–
All Group’s investment in Alto Metals Limited was sold during the year (2023: 11.58%). Alto is listed on the Australian
Securities Exchange (ASX: AME) which is involved in the exploration of gold and base metals in Australia. At the end of the
year, the fair value of the Group’s investment was $nil (2023: $3,975,039) which is based on the quoted share price.
16. PROPERTY, PLANT & EQUIPMENT
2024
2023
Plant and equipment
Gross carrying amount at cost
399,635,268
378,943,868
Accumulated depreciation and impairment
(305,092,863)
(284,067,365)
Net carrying amount
94,542,405
94,876,503
LAND AND BUILDINGS
Gross carrying amount at cost
33,509,365
26,774,075
Accumulated depreciation and impairment
(13,260,212)
(11,107,700)
Net carrying amount
20,249,153
15,666,375
Capital work in progress at cost
89,668,177
30,360,293
Total property, plant and equipment
204,459,735
140,903,171
MOVEMENT IN PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At 1 July net of accumulated depreciation
94,876,503
112,948,563
Transfer from capital work in progress
40,460,719
27,420,667
Disposals
(1,447,736)
(1,203,359)
Impairment write-down (refer to Note 17)
–
–
Depreciation charge for the year
(39,347,081)
(44,289,369)
At 30 June net of accumulated depreciation
94,542,405
94,876,503
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
86
Westgold Resources Limited Annual Report 2024
2024
2023
LAND AND BUILDINGS
At 1 July net of accumulated depreciation
15,666,375
17,353,283
Transfer from capital works in progress
6,735,291
299,212
Depreciation charge for the year
(2,152,513)
(1,986,120)
At 30 June net of accumulated depreciation
20,249,153
15,666,375
CAPITAL WORK IN PROGRESS
At 1 July
30,360,293
17,614,257
Additions
106,503,894
45,759,537
Transfer to mine properties (refer to Note 17)
–
(5,055,590)
Transfer to mine capital development (refer to Note 17)
–
(238,033)
Transfer to plant and equipment
(40,460,719)
(27,420,667)
Transfer to land and buildings
(6,735,291)
(299,212)
At 30 June
89,668,177
30,360,293
The carrying value of plant and equipment purchase under financing arrangements at 30 June 2024 is $37,423,518 (2023:
$29,485,283).
Assets under equipment loans are pledged as security for the related interest bearing liabilities (refer to Notes 23 and 24).
17. MINE PROPERTIES AND DEVELOPMENT
2024
2023
MINE PROPERTIES
Gross carrying amount at cost
389,709,333
368,689,838
Accumulated amortisation and impairment
(228,386,871)
(214,118,850)
Net carrying amount
161,322,462
154,570,988
MINE CAPITAL DEVELOPMENT
Gross carrying amount at cost
761,723,194
583,531,191
Accumulated amortisation and impairment
(558,791,035)
(479,314,529)
Net carrying amount
202,932,159
104,216,662
Total mine properties and development costs
364,254,621
258,787,650
16. PROPERTY, PLANT & EQUIPMENT (CONTINUED)
for the year ended 30 June 2024
FINANCIAL REPORT
87
Westgold Resources Limited Annual Report 2024
2024
2023
MOVEMENT IN MINE PROPERTIES AND DEVELOPMENT
MINE PROPERTIES
At 1 July net of accumulated amortisation
154,570,988
173,248,695
Additions
23,680,628
2,717,004
Transfer from capital work in progress (refer to Note 16)
–
5,055,589
Decrease in rehabilitation provision
(2,661,133)
(2,720,408)
Amortisation charge for the year
(14,268,021)
(23,729,892)
At 30 June net of accumulated amortisation
161,322,462
154,570,988
MINE CAPITAL DEVELOPMENT
At 1 July net of accumulated amortisation
104,216,662
90,554,862
Additions
178,192,005
90,510,400
Transfer from capital work in progress (refer to Note 16)
–
238,033
Amortisation charge for the year
(79,476,508)
(77,086,633)
At 30 June net of accumulated amortisation
202,932,159
104,216,662
The Group performed an assessment for impairment indicators as at 30 June 2024, and determined that there were no
impairment indicators for any of its cash-generating units (CGU) – Murchison CGO, Murchison MGO and Bryah. There is no
reversal of impairment for period ended 30 June 2024.
18. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation costs carried forward in respect of mining areas of interest
2024
2023
Pre-production areas
At cost less expenditure written off
147,861,258
123,487,370
Net carrying amount
147,861,258
123,487,370
MOVEMENT IN DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
At 1 July net of accumulated impairment
123,487,368 104,577,467
Additions
24,660,027
18,909,901
Expenditure written off
(286,140)
–
At 30 June net of accumulated impairment
147,861,255
123,487,368
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, there were $286,140 expenditure on exploration and evaluation of
mineral resources written off during the year (2023: $nil) to the profit and loss.
17. MINE PROPERTIES AND DEVELOPMENT (CONTINUED)
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
88
Westgold Resources Limited Annual Report 2024
19. RIGHT-OF-USE ASSETS
Group as a lessee
The Group has lease contracts for various items of mining equipment, power stations, 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:
Power
Stations
Premises
Mining
Equipment
Total
AS AT 1 JULY 2023
829,800
3,652,175
828,440
5,310,415
Additions
–
104,701
231,805
336,506
Disposals
–
–
–
–
Depreciation expense
(829,800)
(950,044)
(567,972)
(2,347,816)
As at 30 June 2024
–
2,806,832
492,273
3,299,105
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the
movements during the period:
2024
2023
AS AT 1 JULY
5,595,472
10,909,353
Additions
336,506
1,179,777
Disposals
–
–
Accretion of interest
347,240
622,347
Payments
(2,614,608)
(7,116,005)
As at 30 June
3,664,610
5,595,472
The following are the amounts recognised in profit or loss:
Depreciation expense for right-of-use assets
Included in cost of sales
1,810,550
6,139,491
Included in administration expenses (refer to Note 7)
537,266
544,573
Interest expense on lease liabilities
347,240
622,347
Total amount recognised in profit or loss
2,695,056
7,306,411
20. TRADE AND OTHER PAYABLES
2024
2023
Trade creditors(a)
67,838,171
29,262,357
Sundry creditors(b)
6,961,530
6,322,025
Accruals(b)
73,235,407
43,643,016
148,035,107
79,227,398
The carrying value of trade and other payables approximates the fair value.
(a)
Trade creditors are non-interest bearing and generally on 30-day terms.
(b)
Sundry creditors and accruals are non-interest bearing and generally on 30-day terms.
for the year ended 30 June 2024
FINANCIAL REPORT
89
Westgold Resources Limited Annual Report 2024
21. PROVISIONS (current)
2024
2023
Provision for annual leave
13,145,578
9,340,463
Provision for long service leave
1,642,721
2,468,795
14,788,299
11,809,258
22. PROVISIONS (non-current)
2024
2023
Provision for long service leave
8,559,542
3,648,908
Provision for rehabilitation(a)
62,452,979
62,625,784
71,012,521
66,274,692
(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 2033 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 inflation rate used in the calculation of the provision as at 30 June 2024 is 2.5% (2023: 2.5%). The discount rates used in
the calculation of the provision as at 30 June 2024 range from 4.06% to 4.28% (2023: range from 3.95% to 4.03%). Refer to
Note 3 for further detail.
(b) Non-current movements in provision for rehabilitation
2024
2023
At 1 July
62,625,785
66,669,167
Adjustment due to revised conditions
(1,852,815)
(2,857,865)
Changes in discount rates
(808,318)
(1,956,277)
Unwind of discount
2,488,328
770,760
At 30 June
62,452,980
62,625,785
23. INTEREST-BEARING LOANS AND BORROWINGS (current)
2024
2023
Lease liabilities
1,319,140
2,111,143
Equipment loans1
22,057,764
13,831,644
At 30 June
23,376,904
15,942,787
1
Represents current portion of equipment loans which have repayment terms of 36 months from inception.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
90
Westgold Resources Limited Annual Report 2024
24. INTEREST-BEARING LOANS AND BORROWINGS (NON-CURRENT)
2024
2023
Lease liabilities
2,345,470
3,484,329
Equipment loans1
28,887,078
8,063,702
At 30 June
31,232,548
11,548,031
1
Represents non-current portion of equipment loans which have repayment terms of 36 months from inception.
The weighted average interest rate is 6.28% per annum (2023: 7.91%).
The Group executed a Syndicated Facility Agreement (SFA) with ING Bank and Société Generale. The SFA provides the Group
with an A$100M revolving corporate facility with a three-year term, which the Group is able to utilise for general corporate
purposes. During the year ended 30 June 2024, the SFA remains undrawn.
This facility is subject to the fulfilment of financial covenants, as are commonly found in lending arrangements with financial
institutions. The Group regularly monitors its compliance with these covenants. As at 30 June 2024, none of the covenants
relating to this facility have been breached.
Assets pledged as security:
The carrying amounts of assets pledged as security for current and non-current interest-bearing liabilities:
Non-current
Equipment loans
PLANT AND EQUIPMENT
37,423,518
29,485,283
Total non-current assets pledged as security
37,423,518
29,485,283
Plant and equipment assets are pledged against liabilities for the term of the arrangement.
Future commitments in respect of interest bearing loans
Equipment loan commitments
The Company has equipment loans for various items of plant and machinery. The equipment loans have an average term of 36
months. Assets under equipment loans are pledged as security for the related interest bearing liabilities.
Equipment loans
Minimum
payments
Present value
of payments
2024
Within one year
21,262,350
22,057,764
After one year but not more than five years
30,576,280
28,887,078
Total minimum payments
51,838,630
50,944,842
Less amounts representing finance charges
(893,788)
–
Present value of minimum payments
50,944,842
50,944,842
for the year ended 30 June 2024
FINANCIAL REPORT
91
Westgold Resources Limited Annual Report 2024
24. INTEREST-BEARING LOANS AND BORROWINGS (non-current) (CONTINUED)
Non-current (continued)
Interest bearing liabilities
Minimum
payments
Present value
of payments
2023
Within one year
14,525,399
13,831,644
After one year but not more than five years
8,421,478
8,063,702
Total minimum payments
22,946,877
21,895,346
Less amounts representing finance charges
(1,051,531)
–
Present value of minimum payments
21,895,346
21,895,346
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
Minimum
lease
payments
Present value
of lease
payments
2024
Within one year
1,323,647
1,319,140
After one year but not more than five years
3,011,735
2,345,470
Total minimum lease payments
4,335,382
3,664,610
Less amounts representing finance charges
(670,772)
–
Present value of minimum lease payments
3,664,610
3,664,610
Lease liabilities
Minimum
lease
payments
Present value
of lease
payments
2023
Within one year
2,417,295
2,111,143
After one year but not more than five years
4,190,794
3,484,329
Total minimum lease payments
6,608,089
5,595,472
Less amounts representing finance charges
(1,012,617)
–
Present value of minimum lease payments
5,595,472
5,595,472
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
92
Westgold Resources Limited Annual Report 2024
25. ISSUED CAPITAL
2024
2023
(a) Ordinary Shares
Issued and fully paid
462,597,009
462,997,480
Number
$
(b) Movements in ordinary shares on issue
At 1 July 2022
473,622,730
463,468,148
Share issue costs, net of tax
–
(470,668)
At 30 June 2023
473,622,730
462,997,480
Share issue costs, net of tax
–
(400,471)
At 30 June 2024
473,622,730
462,597,009
(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) Performance Rights on issue
Unissued ordinary shares of the Company under performance rights at the date of this report are as follows:
Type
Expiry Date
Exercise
Price
Number of
performance
rights
Unlisted - Tranche 5(i)
30/06/2024
Nil
1,161,058
Unlisted - Tranche 6(i)
30/06/2025
Nil
2,502,309
Unlisted - Tranche 7(i)
30/06/2026
Nil
6,206,935
Total
9,870,302
(i)
Rights issued pursuant to the Westgold Resources Limited Employee Share Performance Rights Plan.
(f) Performance Rights conversions
No listed performance rights were exercised during the financial year (2023: 0).
2024
2023
(g) Capital management - gearing ratio
Gearing ratio
7.89%
4.59%
Debt(i)
54,609,452
27,490,818
Capital
691,801,106
598,339,298
(i)
Debt represents lease liabilities and equipment loans.
for the year ended 30 June 2024
FINANCIAL REPORT
93
Westgold Resources Limited Annual Report 2024
25. ISSUED CAPITAL (CONTINUED)
(g) Capital management - gearing ratio (continued)
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 2024 and 30 June
2023. 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 aim is to keep the gearing ratio between 5% and 20%.
(h) Dividends
2024
2023
(i) Ordinary shares
Interim ordinary unfranked dividend for FY24 of 1 cent (FY23: 0 cent) per fully paid ordinary
share paid on 12 April 2024
4,736,227
–
2024
2023
(ii) Dividends not recognised at the end of the reporting period
In addition to the above dividends, since year end the Directors have recommended
the payment of a fully franked final dividend of 1.25 cents per fully paid ordinary share
(2023 - 0 cent) as at 30 June 2024. The amount of the proposed dividend expected to be
paid on 11 October 2024 out of retained earnings at 30 June 2024, but not recognised as a
liability at year end, is
5,920,284
–
26. RETAINED EARNINGS (ACCUMULATED LOSSES)
2024
2023
At 1 July
(63,075,769)
(73,079,253)
Net profit in current year attributable to members of the parent entity
95,231,530
10,003,484
Dividends paid
(4,736,227)
-
At 30 June
27,419,534
(63,075,769)
27. RESERVES
Share-based
payments
reserve
Equity
reserve
Total
AT 30 JUNE 2022
15,884,931
181,493,631
197,378,562
Share-based payments
1,039,025
–
1,039,025
At 30 June 2023
16,923,956
181,493,631
198,417,587
Share-based payments
3,366,976
–
3,366,976
At 30 June 2024
20,290,932 181,493,631 201,784,563
Equity reserve
This reserve relates to the intercompany loans with Metals X Ltd written off on demerger of the Group.
Share-based payments reserve
This reserve is used to recognise the fair value of instruments issued to employees in relation to equity-settled share-based
payments.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
94
Westgold Resources Limited Annual Report 2024
28. SHARE-BASED PAYMENTS
(a) Recognised share-based payment expense
The expense recognised for services received during the year is shown in the table below:
2024
2023
EXPENSE ARISING FROM EQUITY-SETTLED SHARE-BASED PAYMENTS
3,366,976
1,039,025
The share-based payment plan is described below. There have been no cancellations or modifications to the plan during
2024, 2023, 2022, 2021 and 2020.
(b) Transactions settled using shares
There were no transactions settled using shares in the year ending 30 June 2024.
(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) 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 for Tranche 6 is 31 March 2025 and Tranche 7 is 30 June 2026.
–
The Performance Rights are subject to defined Performance Conditions as below:
Tranche 7
Tranche 6
Tranche 5
–
Growth in Relative Total Shareholder Return (RTSR)
25%
30%
25%
–
Growth in Absolute Total Shareholder Return (ATSR)
25%
30%
25%
–
Growth in Absolute Earnings Per Share (EPS)
25%
30%
25%
–
Ore Reserve Growth
25%
10%
–
–
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.
–
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.
for the year ended 30 June 2024
FINANCIAL REPORT
95
Westgold Resources Limited Annual Report 2024
28. SHARE-BASED PAYMENTS (CONTINUED)
(d) Performance rights (continued)
Summary of rights granted under the Employee Share and Option Plan
2024
Number
2024
WAEP
2023
Number
2023
WAEP
Outstanding at the beginning of the year
4,438,946
–
2,459,072
–
Granted during the year
6,206,935
–
3,159,585
–
Exercised during the year
–
–
(126,564)
–
Lapsed/forfeited during the year
(775,579)
–
(1,053,147)
–
Outstanding at the year end
9,870,302
–
4,438,946
–
Exercisable at the year end
–
–
–
–
The following table represents the outstanding balance as at 30 June 2024:
Grant Date
Vesting date
Expiry date
Exercise
price
Number of
Options /
Rights at
beginning of
the year
Options
lapsed /
forfeited
Options /
Rights
Issued /
(exercised)
Number of Options / Rights at
end of the year
On issue
Vested
RIGHTS - TRANCHE 5
11/10/2021
30/06/2024
30/06/2024
$0.00
202,435
–
–
202,435
–
11/10/2021
30/06/2024
30/06/2024
$0.00
958,623
–
–
958,623
–
Rights - Tranche 6
04/11/2022
30/06/2025
01/10/2025
$0.00
385,233
–
–
385,233
–
04/10/2022
30/06/2025
01/10/2025
$0.00
2,182,314
(65,238)
–
2,502,309
–
Rights - Tranche 7
09/10/2023
30/06/2026
01/10/2026
$0.00
–
–
760,541
760,541
09/10/2023
30/06/2026
01/10/2026
$0.00
–
–
5,446,394
5,446,394
Total
3,728,605
(65,238)
6,206,935
9,870,302
–
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 2024 is 1.69 years
(2023: 1.69 years).
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 (2023: $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 (2023: $0.62).
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
96
Westgold Resources Limited Annual Report 2024
28. SHARE-BASED PAYMENTS (CONTINUED)
(d) Performance rights (Rights) (continued)
Valuation of share-based payments
The fair value of the equity-settled share-based payments granted under the ESOP is estimated at the date of grant using
either a Black & Scholes or a Monte Carlo model, which takes into account factors including the exercise price, the volatility
of the underlying share price, the risk-free interest rate, the market price of the underlying share at grant date, historical and
expected dividends and the expected life of the option or right, and the probability of fulfilling the required hurdles.
–
Tranche 5 Rights vest subject to performance hurdles, measured for the period 1 July 2021 to 30 June 2024
–
Tranche 6 Rights vest subject to performance hurdles, measured for the period 1 July 2022 to 30 June 2025
–
Tranche 7 Rights vest subject to performance hurdles, measured for the period 1 July 2023 to 30 June 2026
The following table gives the assumptions made in determining the fair value of the rights granted in Tranche 7.
Grant date
09/10/2023
09/10/2023
09/10/2023
09/10/2023
RTSR
ATSR
AEPS
Ore Reserve
Growth
Expected volatility (%)
54%
54%
54%
54%
Risk-free interest rate (%)
4.08%
4.08%
4.08%
4.08%
Expected life of options (years)
2.75
2.75
2.75
2.75
Options exercise price ($)
$0.00
$0.00
$0.00
$0.00
Share price at grant date ($)
$1.43
$1.43
$1.43
$1.43
Fair value at grant date ($)
$1.18
$1.17
$1.70
$1.70
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.
29. COMMITMENTS
(a) Capital commitments
At 30 June 2024, the Group has capital commitments that relate principally to the purchase and maintenance of plant and
equipment for its mining operations.
Capital expenditure commitments
2024
2023
- Within one year
32,908,745
26,168,651
for the year ended 30 June 2024
FINANCIAL REPORT
97
Westgold Resources Limited Annual Report 2024
29. COMMITMENTS (CONTINUED)
(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.
2024
2023
Mineral tenement leases:
- Within one year
5,119,064
4,570,018
- After one year but not more than five years
19,192,620
17,816,763
- After more than five years
18,289,387
24,435,509
42,601,071
46,822,290
(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.
2024
2023
Royalties under contractual arrangements
21,446,524
23,082,403
30. CONTINGENT ASSETS AND LIABILITIES
(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 $1,649,443 (2023: $4,149,443). The bank guarantees are fully secured by
term deposits (refer to Note 14).
31. AUDITOR’S REMUNERATION
2024
2023
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
306,840
283,665
Fees for assurance services that are required by legislation to be provided by the auditor -
Special review
110,000
–
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.
241,520
8,320
Fees for other services:
- Tax compliance and others
85,867
67,854
Total auditor’s remuneration
744,227
359,839
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
98
Westgold Resources Limited Annual Report 2024
32. 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
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.
for the year ended 30 June 2024
FINANCIAL REPORT
99
Westgold Resources Limited Annual Report 2024
32. 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 2024 and 30
June 2023.
Murchison
Bryah
Other
Total
YEAR ENDED 30 JUNE 2024
External revenue
Sale of gold at spot
509,849,901
179,451,663
–
689,301,564
Sale of gold under forward contracts
20,904,900
3,689,100
–
24,594,000
Sale of Silver
2,471,921
105,081
–
2,577,001
Total segment revenue
533,226,722
183,245,844
–
716,472,565
RESULTS
Depreciation and amortisation
(101,207,749)
(35,461,844)
(922,344)
(137,591,937)
Exploration and evaluation expenditure written off
(158,614)
(127,526)
–
(286,140)
Segment profit/(loss) before impairment
104,619,707
51,286,637
(3,896,651)
152,009,693
Total assets
761,202,642
97,422,491
96,998
858,722,131
Total liabilities
(229,353,517)
(40,154,271)
–
(269,507,788)
Capital expenditure
(230,072,813)
(41,794,394)
–
(271,867,207)
YEAR ENDED 30 JUNE 2023
External revenue
Sale of gold at spot
257,000,212
68,213,756
–
325,213,968
Sale of gold under forward contracts
260,503,193
68,654,073
–
329,157,266
Sale of Silver
2,156,621
123,763
–
2,280,384
Total segment revenue
519,660,026
136,991,592
–
656,651,618
RESULTS
Depreciation and amortisation
(127,427,674)
(25,457,077)
(927,626)
(153,812,377)
Exploration and evaluation expenditure written off
–
–
–
–
Segment profit/(loss) before impairment
17,108,595
7,944,123
(2,457,285)
22,595,433
Total assets
531,858,864
78,496,658
98,285
610,453,807
Total liabilities
(136,040,060)
(34,087,935)
–
(170,127,995)
Capital expenditure
(119,132,722)
(28,214,635)
–
(147,347,357)
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
100
Westgold Resources Limited Annual Report 2024
32. OPERATING SEGMENTS (CONTINUED)
(a) Reconciliation of profit/(loss)
2024
2023
Segment profit
152,009,693
22,595,433
Corporate administration expenses
(27,245,190)
(17,369,902)
Corporate interest income
8,031,790
3,447,526
Corporate other income
764,967
1,014,901
Net gain/(loss) on fair value changes of financial assets
2,477,258
(186,504)
Net gain on disposal of assets
935,585
4,448,016
Total consolidated profit before income tax
136,974,103
13,949,470
(B) RECONCILIATION OF ASSETS
Segment operating assets
858,722,131
610,453,807
Unallocated corporate assets
Cash and cash equivalents
174,757,477
175,101,708
Trade and other receivables
709,394
548,612
Prepayments
4,814,461
953,768
Other financial assets
1,045,584
3,545,584
Financial assets (equity investments)
8,010,952
8,157,712
Property, plant and equipment
2,076,477
11,540,680
Right-of-use assets
2,363,424
2,949,966
Total consolidated assets
1,052,499,900
813,251,837
(C) RECONCILIATION OF LIABILITIES
Segment operating liabilities
269,507,788
170,127,995
Unallocated corporate liabilities
Trade and other payables
12,819,808
8,907,103
Provision for employee benefits
3,241,455
2,354,042
Interest-bearing loans and borrowings
2,876,328
3,413,026
Deferred tax liability
72,253,414
30,110,371
Total consolidated liabilities
360,698,793
214,912,537
(D) SEGMENT REVENUE FROM EXTERNAL CUSTOMERS
Segment revenue
716,472,565
656,651,618
Total revenue
716,472,565
656,651,618
for the year ended 30 June 2024
FINANCIAL REPORT
101
Westgold Resources Limited Annual Report 2024
32. OPERATING SEGMENTS (CONTINUED)
(d) Segment revenue from external customers (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.
2024
2023
Australia
716,472,565
656,651,618
Total revenue
716,472,565
656,651,618
The Group has three customers to which it sells gold and each account for 88%, 7% and 5% of this external revenue
respectively (2023: two customers for 50% and 50%).
(e) Segment non-current assets are all located in Australia.
33. KEY MANAGEMENT PERSONNEL
(a) Details of Key Management Personnel
Appointed
Resigned
(I) NON-EXECUTIVE DIRECTORS (NEDs)
Hon. CL Edwardes AM
Non-Executive Chair
28/03/2022
–
FJ Van Maanen
Non-Executive Director
06/10/2016
–
GR Davison
Non-Executive Director
01/06/2021
–
JL Matthys
Non-Executive Director
28/03/2022
–
DN Kelly
Non-Executive Director
05/11/2022
–
L Junk
Non-Executive Director
01/08/2024
–
S In't Veld
Non-Executive Director
01/08/2024
–
(II) MANAGING DIRECTOR
WC Bramwell
Managing Director
24/05/2022
–
(III) OTHER EXECUTIVES (KMPs)
SH Heng
Chief Financial Officer
02/08/2021
–
PW Wilding
Chief Operating Officer
11/10/2022
–
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, except the appointment of two new directors on 1 August 2024.
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
102
Westgold Resources Limited Annual Report 2024
33. KEY MANAGEMENT PERSONNEL (CONTINUED)
(b) Compensation of Key Management Personnel
2024
2023
Short term benefits
3,351,423
2,626,039
Other fees
–
–
Termination payments
–
171,500
Post-employment benefits
147,281
167,279
Other long-term benefits
64,375
98,743
Share-based payments
864,914
218,292
4,427,993
3,281,853
(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
Expiry date
Exercise price $
2024
2023
11/10/2021
30/06/2024
0.00
405,986
405,986
04/10/2022
01/10/2025
0.00
971,653
971,653
09/10/2023
01/10/2026
0.00
1,329,659
-
Total
2,707,298
1,377,639
34. 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
Country of incorporation
Ownership interest
2024
2023
ARAGON RESOURCES PTY LTD
Australia
100%
100%
Big Bell Gold Operations Pty Ltd
Australia
100%
100%
Westgold Mining Services Pty Ltd
Australia
100%
100%
1474429 B.C. Ltd
British Columbia, Canada
100%
–
(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 33.
for the year ended 30 June 2024
FINANCIAL REPORT
103
Westgold Resources Limited Annual Report 2024
34. RELATED PARTY DISCLOSURES (CONTINUED)
(d) Transactions with related parties
There were no related party transactions during the year.
INFORMATION RELATING TO WESTGOLD RESOURCES LIMITED (THE PARENT ENTITY)
2024
2023
Current assets
181,326,913
180,149,671
Total assets
536,766,679
445,506,661
Current liabilities
16,583,085
11,748,033
Total liabilities
18,937,591
14,674,169
Issued capital
462,597,009
462,997,479
Retained earnings/(accumulated losses)
30,384,364
(52,645,728)
Share-based payments reserve
20,290,933
16,923,957
Other reserves
4,556,783
4,556,783
Total Equity
517,829,089
431,832,491
Loss of the parent entity
(12,903,894)
(21,213,926)
Total comprehensive loss of the parent entity
(12,903,894)
(21,213,926)
35. 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
Nil
Contractual commitments by the parent entity for the acquisition of property, plant or equipment
Nil
FINANCIAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June 2024
104
Westgold Resources Limited Annual Report 2024
36. EVENTS AFTER THE BALANCE SHEET DATE
Merger between Westgold and Karora Resources Inc. (Karora)
Subsequent to the year end, the Company announced:
–
On 1 August 2024, the wholly owned subsidiary of Westgold (“AcquireCo”) acquired 100% of the issued and outstanding
common shares of Karora;
–
Karora is a multi-asset mineral resource company. The Corporation’s main assets are located in Western Australia and
comprise its 100% interest in the Beta Hunt Mine (“Beta Hunt”) which is owned by Karora (Beta Hunt) Pty Ltd.; its 100%
interest in the Higginsville processing and gold mining operation; and its Lakewood processing facility;
–
This merger creates a globally investable, mid-tier gold producer operating exclusively in Western Australia with a
combination of mining and processing assets, people and balance sheet. This includes the combination of operations across
Karora’s Beta Hunt and Higginsville properties and Westgold’s Murchison and Bryah properties, and is expected to create
synergies;
–
This merger enhanced capital markets profile with increased scale, trading liquidity and quality to be attractive to both gold
and generalist investors across ASX, TSX and OTCQX;
–
The formal completion of the transaction follows the receipt of key approvals for the transaction from the Ontario Superior
Court of Justice in Canada, including approval by the Karora shareholders, the Foreign Investment Review Board and the
Takeovers Panel during July 2024;
–
With the successful completion of the transaction, Westgold will exercise operational control and economic ownership at
Karora effective from 1 August 2024;
–
The consideration was funded through a combination of existing cash reserves and equity. Karora shareholders received
2.524 Westgold fully paid ordinary shares, C$0.68 in cash, and 0.30 of a share in Culico Metals Inc., a wholly-owned
subsidiary of Karora for each Karora common share held at the closing of the transaction;
–
Fair value of the share consideration was $1,243 million and cash consideration paid was $126 million. The total
consideration for the transaction was $1,369 million;
–
At the date of this report the initial business combination accounting is incomplete.
Dividends
Subsequent to period end, the Company declared a fully franked dividend of 1.25 cents (AUD) per share. The total amount of
the dividend has not been provided for in the 30 June 2024 Financial Statements.
Listed on the Toronto Stock exchange (TSX)
On 6 August 2024, Westgold’s shares commenced trading on TSX following the completion of the merger between Westgold
and Karora.
Appointment of new directors
On completion of the Merger, Karora Managing Director - Australia, Leigh Junk, and Karora Director Shirley In’t Veld have
been appointed to Westgold’s Board. Westgold Chair the Hon. Cheryl Edwardes AM will continue in her role, as will the other
members of the incumbent Westgold Board, including Managing Director and CEO, Wayne Bramwell.
Apart from the above, no matters or circumstances have arisen since the end of the year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial periods.
for the year ended 30 June 2024
FINANCIAL REPORT
105
Westgold Resources Limited Annual Report 2024
37. ACCOUNTING STANDARDS
New and amended standards and interpretations
The Group has adopted all Accounting Standards and Interpretations effective from 1 July 2023. 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 2023 but did not have a material impact on the consolidated financial
statements of the Group and, hence, have not been disclosed.
The standards and interpretations that have been issued or amended but not yet effective have not been early adopted by the
Group for the annual reporting period ended 30 June 2024.
The following Accounting Standards issued but not yet effective, are currently being assessed by Management.
–
AASB 18 Presentation and Disclosure in Financial Statements (Effective for annual reporting periods beginning on or after
1 January 2027)
–
IFRIC Agenda decisions in July 2024 – Disclosing revenue and expenses for reportable segments
The following Accounting Standards issued but not yet effective, have been assessed with no significant impact to the Group.
–
AASB 2021-5 Amendments to AASs – Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Effective
for annual reporting periods beginning on or after 1 January 2023)
–
AASB 17 Insurance Contracts (Effective for annual reporting periods beginning on or after 1 January 2023)
–
AASB 2021-2 Amendments to AASB 108 – Definition of Accounting Estimates (Effective for annual reporting periods
beginning on or after 1 January 2023)
–
AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or Non-current (Effective for annual reporting
periods beginning on or after 1 January 2024)
for the year ended 30 June 2024
106
Westgold Resources Limited Annual Report 2024
FINANCIAL REPORT
The consolidated entity disclosure statement below has been prepared in accordance with the requirements of the
Corporations Act 2001.
As at 30 June 2024
Entity name
Entity type
Body corporate country
of incorporation
Body corporate %
of share capital
held
Country of tax
residence
Westgold Resources Limited
Body corporate
Australia
Parent
Australia
Aragon Resources PTY LTD
Body corporate
Australia
100
Australia
Big Bell Gold Operations PTY LTD
Body corporate
Australia
100
Australia
Westgold Mining Services PTY LTD
Body corporate
Australia
100
Australia
1474429 B.C. Ltd
Body corporate
British Columbia, Canada
100
Australia
for the year ended 30 June 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
for the year ended 30 June 2024
107
Westgold Resources Limited Annual Report 2024
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 2024 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) the consolidated entity disclosure statement required by section 295(3A) of the Corporations Act is true and correct; and
(e) 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 2024.
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 35.
On behalf of the Board.
Hon. Cheryl L Edwardes AM
Non-Executive Chair
Perth, 28 August 2024
FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT
108
Westgold Resources Limited Annual Report 2024
INDEPENDENT AUDITOR’S REPORT
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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 2024, 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 material accounting policy information, the consolidated entity
disclosure statement 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 2024
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 the matter below, our description of how our audit addressed
the matter is provided in that context.
109
Westgold Resources Limited Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
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 this matter. 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 matter below, provide the basis for our audit opinion on the
accompanying financial report.
1.
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 2024 the Group’s consolidated statement of
financial position includes provisions of $62.5m 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.
We evaluated the assumptions and methodologies
used by the Group in determining their rehabilitation
obligations. 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
rehabilitation cost estimates.
►
With the assistance of our subject matter
specialists, we assessed the appropriateness of
the rehabilitation cost estimates.
►
Tested the mathematical accuracy of the
rehabilitation models and assessed the
appropriateness of the assumed timing of
cashflows, inflation and discount rate
assumptions.
►
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 2024 annual report, but does not include the financial report
and our auditor’s report thereon. We obtained the directors’ report that is 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 accordingly we do 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, 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.
FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT
110
Westgold Resources Limited Annual Report 2024
continued
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
a.
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and;
a.
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
ii.
The consolidated entity disclosure statement that is true and correct and is free of 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
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.
111
Westgold Resources Limited Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
►
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.
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.
continued
FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT
112
Westgold Resources Limited Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of Westgold Resources Limited for the year ended 30 June
2024, 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
28 August 2024
SHAREHOLDER INFORMATION
113
Westgold Resources Limited Annual Report 2024
SHAREHOLDER INFORMATION
(A) TOP 20 SHAREHOLDERS
Name
Units
% Units
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
319,669,751
33.90
2
CDS &CO
172,187,260
18.26
3
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
104,901,398
11.12
4
CITICORP NOMINEES PTY LIMITED
102,667,116
10.89
5
CEDE & CO
50,177,586
5.32
6
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
24,066,725
2.55
7
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
22,145,517
2.35
8
BNP PARIBAS NOMS PTY LTD
18,899,862
2.00
9
NATIONAL NOMINEES LIMITED
7,240,987
0.77
10
BNP PARIBAS NOMS PTY LTD
7,079,777
0.75
11
BNP PARIBAS NOMINEES PTY LTD
6,663,779
0.71
12
BNP PARIBAS NOMINEES PTY LTD
6,636,401
0.70
13
GOLDEN MILE MILLING PTY LTD
5,300,400
0.56
14
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSI EDA
4,710,776
0.50
15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
3,939,747
0.42
16
BNP PARIBAS NOMINEES PTY LTD
3,378,776
0.36
17
CITICORP NOMINEES PTY LIMITED
2,684,710
0.28
18
COMPUTERSHARE INVESTOR SERVICES INC TR THE UNEXCHANGED SHAREHOLDERS
OF KARORA RESOURCES INC
2,353,397
0.25
19
DEBORTOLI WINES PTY LIMITED
2,191,111
0.23
20
EVERBRIGHT SECURITIES INVESTMENT SERVICES (HK) LTD
2,000,000
0.21
TOTAL
868,895,076
92.13
(B) DISTRIBUTION OF FULLY PAID ORDINARY SHARES
Range
Total holders
Units
% Units
1 - 1,000
3,119
1,558,660
0.17
1,001 - 5,000
3,226
8,437,647
0.89
5,001 - 10,000
1,007
7,690,811
0.82
10,001 - 100,000
1,100
29,170,600
3.09
100,001 Over
92
896,251,972
95.03
TOTAL
8,544 943,109,690
100.00
(C) DISTRIBUTION OF EMPLOYEE PERFORMANCE RIGHTS EXPIRING 1 OCTOBER 2025
Range
Total holders
Units
% Units
1 - 1,000
–
–
–
1,001 - 5,000
–
–
–
5,001 - 10,000
–
–
–
10,001 - 100,000
6
379,198
15.15
100,001 Over
10
2,123,111
84.85
TOTAL
16
2,502,309
100.00
as at 27 September 2024
FINANCIAL REPORT
SHAREHOLDER INFORMATION
114
Westgold Resources Limited Annual Report 2024
(D) DISTRIBUTION OF EMPLOYEE PERFORMANCE RIGHTS EXPIRING 1 OCTOBER 2026
Range (size of parcel)
Total holders
Units
% Units
1 - 1,000
–
–
–
1,001 - 5,000
–
–
–
5,001 - 10,000
–
–
–
10,001 - 100,000
39
2,196,709
35.39
100,001 Over
22
4,010,226
64.61
TOTAL
61
6,206,935
100.00
(E) NUMBER OF HOLDERS WITH LESS THAN A MARKETABLE PARCEL OF ORDINARY SHARES
Minimum
Parcel Size
Holders
Units
Minimum $ 500.00 parcel at $ 2.7200 per unit
184
389
16,186
(F) SUBSTANTIAL SHAREHOLDERS
Number
of Shares
%
Date of
Notice
L1 Capital Pty Ltd
76,104,596
8.07
06/08/2024
Van Eck Associates Corporation
75,125,555
7.97
25/09/2024
Mitsubishi UFJ Financial Group, Inc.
61,689,989
6.54
28/08/2024
Vanguard Group
47,213,640
5.006
25/09/2024
(G) VOTING RIGHTS
The voting rights for each class of security on issue are:
Ordinary Fully Paid Shares
–
Each ordinary shareholder is entitled to one vote for each share held.
Unquoted Performance Rights
–
The holders of performance rights have no rights to vote at a general meeting of the Company.
continued
CORPORATE DIRECTORY
115
Westgold Resources Limited Annual Report 2024
CORPORATE DIRECTORY
DIRECTORS
Hon. Cheryl L Edwardes AM (Non-Executive Chair)
Wayne C Bramwell (Managing Director and Chief Executive Officer)
Fiona J Van Maanen (Non-Executive Director)
Gary R Davison (Non-Executive Director)
Julius L Matthys (Non-Executive Director)
David N Kelly (Non-Executive Director)
Leigh Junk (Non-Executive Director)
Shirley In’t Veld (Non-Executive Director)
COMPANY SECRETARY
Susan Park (Company Secretary)
SENIOR EXECUTIVES
Su Hau Heng (Chief Financial Officer)
Phillip Wilding (Chief Operating Officer)
REGISTERED OFFICE
Level 6, 200 St Georges Terrace
Perth WA 6000
P:
+61 8 9462 3400
E:
perth.reception@westgold.com.au
W: www.westgold.com.au
POSTAL ADDRESS
PO Box 7068
Cloisters Square WA 6850
SECURITIES EXCHANGE
Listed on the Australian Securities Exchange, Toronto Stock Exchange and the OTC Best Market
ASX Code: WGX
TSX Code: WGX
OTCQX Code: WGXRF
SHARE REGISTRY
Computershare Investors Services Pty Ltd
Level 17, 221 St Georges Terrace
Perth WA 6000
P:
+61 8 9323 2000
F:
+61 8 9323 2033
W: www.computershare.com
DOMICILE AND COUNTRY OF INCORPORATION
Australia
ABN
ABN 60 009 260 306
www.westgold.com.au