Quarterly Report : September 2017

KEY POINTS:

 Matilda/Wiluna Gold Operation

  • Quarterly gold production totalled 15,619oz (Jun’17 Qtr 15,720oz)
  • Open pit cash inflows delayed due to:
    • M4 high grade ore access delayed due to geotechnical instability
    • Higher investment in waste movement in Sep’17 Qtr will result in lower stripping ratios and mining costs for balance of FY18
    • Open pits expected to be cash flow positive in Dec’17 quarter with more high grade ore to be mined
  • Underground mine cash flow positive
    • Record underground mined ore of 6,302oz (42,300t @ 4.7g/t)
  • Underground long-hole stopping ceased in mid Oct’17
  • Air leg mining continues to maintain lower risk mining method

Resources & Reserves

  • Resources increased to 65Mt @ 3.1g/t Au for 6.5moz
    • An increase of 27% in one year at a cost of A$7/oz
    • Adelaide Moonlight Resources currently being revised
  • Reserves increased to 15Mt @ 2.5g/t Au for 1.2moz
    • An increase of 115% in one year
    • Wiluna north pits Ore Reserves to be updated after 103% increase to Wiluna North Resource

PFS Expansion Study

  • Expansion Preliminary Feasibility Study (Expansion PFS) confirms robust economics for +200kozpa long mine life operation
    • LOM All in sustaining costs A$1,058/oz
    • IRR 123% and NPV8% 360M before tax @ A$1,600/oz gold price
  • Expansion Definitive Feasibility Study (Expansion DFS) well advanced

Corporate

  • $10m in cash and bullion at the end of the quarter
  • Gold sold during the quarter:  15,850oz @ A$1,601/oz
  • Hedge contracts in place at 30 September:  28,569oz @ A$1,651/oz
  • Re-financing process well advanced
  • Lind Partners back-up equity facility in place

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