Westgold Resources Ltd.

Westgold Resources Ltd. is a mid-tier gold producer headquartered in Perth, Australia, operating primarily in Australia. The company's portfolio consists of 8 projects, comprising 6 operating mines, 1 development, and 1 suspended project. Key assets include Beta Hunt, Big Bell, Bluebird-South Junction, and Great Fingall. The company's business model is centered on an owner-operator approach, providing significant cost control and operational flexibility across its asset base. This vertical integration is exemplified by the recent expansion of its in-house underground diamond drilling capacity, with a fleet of 13 rigs allowing for rapid deployment and superior productivity at industry-leading unit rates. The operational strategy involves utilizing multiple processing hubs that receive feedstock from a blend of sources, including underground operations and surface stockpiles, to manage mill throughput and optimize recovery. This integrated system allows the enterprise to monetize a wide spectrum of material grades and maintain consistent plant performance. A key competitive advantage is the ability to internally redeploy personnel and equipment between operations, as demonstrated by the strategic pause of one mine to bolster resources at larger, more profitable sites. This agility enables the organization to dynamically respond to geological opportunities and economic conditions, ensuring capital is allocated to the highest-return activities within its portfolio.

Strategic direction in fiscal year 2024 was transformational, pivoting to a core mantra of safe and profitable production. A primary objective is extending asset life through significant investment in exploration, with $25 million spent on drilling programs that successfully grew key systems and de-risked future production profiles. The growth strategy includes the disciplined development of high-grade, high-margin projects, with the board approving a new underground development in August 2023 that is expected to deliver significant value in fiscal year 2025. A key part of operational optimization involves pausing underperforming assets to reallocate capital and personnel to more profitable ventures. The company has also made a strategic decision to become 100% unhedged, providing shareholders with full exposure to commodity price movements. A major long-term initiative is the decarbonization of operations, evidenced by the commissioning of 4 new hybrid power stations to materially reduce emissions and fossil fuel consumption, which is projected to deliver significant cost savings. The recent merger with a peer company was a transformational transaction designed to create a mid-tier producer with enhanced scale, liquidity, and an expanded growth pipeline.

Executive leadership is guided by a Managing Director and CEO with nearly 3 decades of experience as a metallurgist and mineral economist, complemented by a Non-Executive Chair who is a former Attorney-General with extensive knowledge of legal and regulatory frameworks. The board's governance framework is supported by an Audit, Risk and Compliance Committee and a Remuneration and Nomination Committee (RNC), with the latter engaging external consultants to benchmark remuneration and ensure market competitiveness. In fiscal year 2024, the board approved significant remuneration adjustments, including a 22% base salary increase for the Managing Director and increases of 10% to 15% for other senior executives, to retain high-calibre talent. The management philosophy is strongly tied to performance, with short-term incentives based on safety, cost, production, and personal KPIs. Long-term incentives are linked to shareholder value creation through metrics including Relative Total Shareholder Return, Absolute Total Shareholder Return, Absolute Earnings Per Share, and Ore Reserve Growth, with vesting contingent on a 3-year performance period.

The organization's sustainability approach is founded on 5 core pillars: Leadership, Critical risk management, Operational discipline, Fit-for-purpose systems, and Resilient people. This strategy yielded tangible results in fiscal year 2024, with a notable 18% improvement in the Total Recordable Injury Frequency Rate (TRIFR) to 6.85 per million hours worked. A major decarbonization milestone was achieved with the commissioning of the fourth and final hybrid power station, part of an 82MW combined system of gas, solar, and battery infrastructure. This initiative is projected to decrease annual diesel consumption by 38 million litres and reduce carbon emissions by 56%. The company also enhanced its Mine Safety Management System framework in line with updated legislation, developing customized Project Management Plans and Principal Mining Hazard Management Plans to manage critical risks. Social responsibility is demonstrated through partnerships with local communities, including a collaboration with an Indigenous artist to create artwork that bridges ancestral history with the company's modern operations.

A transformational merger with TSX-listed Karora Resources Inc. was completed subsequent to the fiscal year-end on August 1, 2024, creating a significantly larger mid-tier producer. The transaction was funded through a combination of cash reserves and equity, with Karora shareholders receiving 2.524 Westgold fully paid ordinary shares, C$0.68 in cash, and 0.30 of a share in a new entity, Culico Metals Inc., for each Karora common share held. This merger resulted in Westgold gaining operational control and ownership of Karora's assets and securing a listing on the Toronto Stock Exchange. As part of the transaction, 2 Karora directors, Leigh Junk and Shirley In’t Veld, were appointed to the Westgold board. The group's corporate structure includes several wholly-owned subsidiaries that conduct its principal activities, including Aragon Resources Pty Ltd, Big Bell Gold Operations Pty Ltd, and Westgold Mining Services Pty Ltd. A new Canadian subsidiary, 1474429 B.C. Ltd, was also incorporated as part of the merger arrangement.