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Westgold Resources Limited

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September 16, 2024 at 3:30 PM (MDT)|Broadmoor Hotel & Resort

Wayne Bramwell

Managing Director and Chief Executive Officer

Mr Bramwell is a metallurgist, mineral economist and experienced company director with extensive project and corporate development expertise across precious and base metal companies spanning nearly three decades. He holds a Bachelor of Science in Extractive Metallurgy, a Graduate Diploma in Business, a Master of Science in Mineral Economics and is a graduate of the Australian Institute of Company Directors (GAICD).

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We, we could drill quickly. We had access to, to increase the production scale drilling in our mind is what we've been doing in our merch and business for two years has unlocked significant value. We're taking the exact same strategy to the southern goldfields unleashing the drill team of which yesterday, we mobilized a second drill rig to be a hunt which I'll talk to a little bit shortly. Fletcher. This is the prize within inside the Beta hunt mine. The A zone and western flanks are both systems which Kora have been man mining for four or five years. The Fletcher zone was actually identified in 2016. It wasn't followed up until 2023. And on the closure of the merger, that ore body, which we see is two kilometers long, only had 32 holes into it. The previous operators had been drilling this thing slowly with one rig. As of yesterday, we've mobilized a second rig. A third rig will be on site. We've got access into this ore body. One of the other benefits of the previous ownership was they'd actually pushed the drill drive across the Fletcher which is 300 m away from the existing infrastructure. So what do we have here yesterday? We announced to the market that we s for the first time, an exploration target for Fletcher, which we see as 23 to 27 million tons between 2.1 to 2.5 g for 1.6 to 2.1 million ounces. Let's just think about that. The Western Flank zone which you can see to the in the middle of the picture is 1.6 million ounces 300 m to the West Fletcher as an expiration target. 1.6 to 2.1 lightly drilled and within by the end of this week, three drill rigs will be attacking the southern one kilometer of this two kilometer system. We now pivot back to our Murchison business and the engine room of our northern business is this thing. Bluebird South Junction. The history of this pack of this mine is really interesting to me. Hopefully, it's interesting to you two open pits collectively mined a million ounces. West gold started a small underground mine in 2021 and within two years has moved the Bluebirds underground from 250,000 tons per annum up to 500,000 tons per annum. We started drilling one side of the mine called South Junction. At the beginning of the year, quickly announced a resource and a maiden reserve and we will be bringing, we actually started sting the south junction side of this mine a month ago, the run rate for this mine will be 1.2 million tons by early in the new year. The Bluebird South Junction system is really a set of stacked loads and and something which the market is slowly warming to is understanding the scale of this mine. We've spoken a lot about Bluebird. We've been releasing a lot of drill data on South Junction. The next load which will be going to development will be polar star, taking a, a cross section through the South junction mine starts to explain better. We hope what we see here. The small scale mine we started Bluebird 250,000 tons per annum. We got to half a million tons per annum from what is quite AAA narrow system. The South junction side larger has the ability to take this ore body from half a million to 1.2 million tons per annum. We expect that run rate to be hit early in the new year. How big is the system? We don't know yet, but we keep drilling and we've currently got five rigs still drilling this system two on the surface three underground. And we see much more opportunity in in South Junction. This is becoming the engine room of the north and sits within less than one kilometer from our processing plant exploration. I'm a metaller just by background, but I'm really starting to get f get the exploration vibe and I don't see exploration expenditure as expenditure. I see it as an investment across the expanded business. West gold now controls 3200 kilometers of some of western Australia's most prospective gold fields. Fy 25 we're committed to spending us $33 million in exploration. 60% of that will go into our Southern goldfields business, something which we got as a part of the transaction with Kora was nearly 2000 square kilometers of exploration tenure and a processing plant within the Higginsville package. This is fascinating in ST in itself and the fact that there are three mineralized structures running through our tenure here which pretty much controls 80 million ounces of gold. A which is through the all eastern goldfields of Western Australia, all three of those systems, Travis is our package and this package really has seen very little exploration in the last 10 to 15 years. We're super excited about Higginsville because there are walk up targets here. We've got 10 targets which we're prioritizing now. And what we can see within the Higginsville package is, it's Elephant Country. No-one's drilled here for 10 to 15 years of any and I done any significant drilling. This is an area wide open for exploration success. This is the last slide whip slide 21. And if I can just recap about what the Tsxasx West Gold looks like now is this, as I said, the business is about scale with scale. If you can leverage that capital and drive your costs down, you set up the business to become sustainably profitable and generate higher shareholder returns. Fy 25 for us is a significant year for capital investment. Setting up this business to become a much larger producer than the 400,000 ounces that we start with. We are top five A sx, we are unhedged. We're within the top 10 TSX listed producers. And let's just say we're aspirational. The merger with Kora was significant for us, it doubled the scale of our business overnight. And for us, we had a, a view about the southern gold fields which now we've built a strategic beachhead in Australia is our home and people keep asking me about M and A and will we go overseas? And the answer is no, our management reach in this company is small and our expertise is in Western Australia. So we won't be doing any overseas transactions. We see the ability to through the internal pipeline of growth targets. We have to make this business much larger. We are unhedged and sold gold this week at 30 7-Eleven or 3800. The price keeps moving around and these are numbers which I never thought we would be putting into a spreadsheet in my, my professional life. The business is strong. The growth potential organically is strong and our focus will remain on generating returns for our shareholders whip. That is West Gold Tsxasx listed. Thanks very much Wayne. We have a couple of minutes. Yes, we, we have a couple of minutes, Wayne. So if you just stay there for a second, if there are any questions from the floor, please raise your hand appropriately and somebody will find you with a mic. In the meantime, Wayne, given the merger with Kora, I'm assuming you've probably got a military precision 100 day plan. A absolute absolutely whip., 100 day plan in terms of integration looks like this. I think today is the sixth week of owning these assets. The plan really is simple for the 1st 30 days. We said that we would descend upon the Southern Goldfields assets. Watch, listen, learn, identify where the gaps and opportunities were but not touch the business that 30 days finished in all August September, we're now starting to make changes to the business down there in terms of driving cost out of the business, which we think there's significant opportunities and start to deploy some of our resources. Case in point, first of the West gold drill rigs arrived at Beta hunt yesterday and went down the hole second one this week. So really the plan is 30 days to watch, listen and learn. Next 30 days start to make changes. And by 100 days, both the northern and Southern businesses are integrated, which in some sense, has been quite easy to date and the fact that we, we're integrating two Australian operating teams, they all speak the same. They all think the same., the Kora business in the South has been undercapitalized. We bring capital and equipment. Ok. We got two minutes. One more Wayne. Congratulations. Just quick. One for me. Where are you on a hedge book? Are you thinking about doing anything there? And capital management? Obviously, you've done a fantastic job and great to see sort of free cash flow. What are you thinking about capital returns to shareholders and dividend yields? Damo. Thanks for that question. I mean, in fy 24 we changed our dividend policy. We actually paid out twice what our policy was to our shareholders and none of them gave it back. So even though it might have been seen, seem small, it was a start and shows a maturing of the business, we are committed to basically finding that balance between investing our capital back in the business to keep it growing, but also returning capital to the shareholders. So capital returns, capital management, capital allocation are something.


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