WEST WITS MINING LIMITED West Wits Mining Limited ABN 89 124 894 060
Annual report - 30 June 2021
Contents
Directors' report ....................................................................................................................................... 24
Auditor's Independence Declaration ........................................................................................................ 40
Consolidated statement of profit or loss and other comprehensive income ............................................ 41
Consolidated statement of financial position ........................................................................................... 42
Consolidated statement of changes in equity ........................................................................................... 43
Consolidated statement of cash flows ...................................................................................................... 44
Directors' declaration ............................................................................................................................... 72
Independent auditor's report to the members ......................................................................................... 73
Shareholder information .......................................................................................................................... 77
Corporate Directory
Directors
Mr Michael Quinert Non-Executive Chairman
Mr Jac van Heerden Managing Director
Mr Hulme Scholes Non-Executive Director
Dr Andrew Tunks
Non-Executive Director (resigned on 19 November 2020)
Mr Peter O'Malley
Non-Executive Director
Mr Timothy Chapman
Non-Executive Director (appointed 19 November 2020)
Joint Company Secretaries
Mr Simon Whyte
Mr Paul Godfrey (appointed 6 September 2021)
Principal registered office in Australia
Level 6, 400 Collins Street
Melbourne VIC 3000 Australia
Share and debenture register Automic Pty Ltd
Level 5 126 Phillip Street Sydney NSW 2000 +61 2 9698 5414
Auditor
William Buck
Level 20, 181 William Street Melbourne VIC 3000
Solicitors
QR Lawyers
Level 6, 400 Collins Street Melbourne VIC 3000 Australia
Bankers
National Australia Bank Level 2, 330 Collins Street Melbourne VIC 3000
Websitehttp://www.westwitsmining.com/
Chairman's letter
Dear Fellow Shareholders,
On behalf of the Board of Directors, I am pleased to present the 2021 Annual Report for West Wits Mining Limited (ASX: WWI).
The word Qala means to start, or start anew. West Wits' kick-off project is located at Qala Shallows, a name which provides an excellent metaphor for the Company's rejuvenation of an established resource in one of the world's oldest gold mining cities.
Qala Shallows falls within West Wits' broader Witwatersrand Basin Project ("WBP"), which is revitalising an already well-mined location using a modern technical approach in a region steeped in gold mining tradition and expertise. The resulting business model is uniquely streamlined and has allowed West Wits to shift into operational mode - after significant background work - according to an accelerated schedule.
Our WBP is located fifteen kilometres west of the Johannesburg city centre, and its reefs have all been previously successfully mined using old-era technologies and processes. The results of Qala Shallows' recently released Definitive Feasibility Study ("DFS") indicate a Proved Ore Reserve of 830,000t, a 17-year Life-Of-Mine project and a steady-state production of 53 000oz per annum for 10 years. All this for what is only the first stage of our overall project at the WBP.
The fact that local operators are very familiar with the characteristics of Johannesburg's reefs creates a high quality surrounding eco system for the West Wits operation, resulting in unusually low CAPEX costs. In addition, the WBP has immediate access to experienced and cost-effective service providers for tailings, refinery and other central process elements, creating an attractive All-In Sustaining Costs ("AISC") paradigm.
As is detailed within this Annual Report, West Wits had to work hard to secure the license to mine this particular location, as befits a quality long term resource. While the scope of the initial license was less than the original prospecting area applied for, our application to begin the process of obtaining a new Prospecting Right has been formally accepted by the South African Department of Mineral Resources and Energy ("DMRE"). We anticipate that - subject to the granting of the new prospecting right - a significant portion of the old resource, which was restated by the DMRE to reflect a smaller surface, will be re-introduced to further increase the current and already significant global Mineral Resource Estimate of 3.55 million ounces at 4.26 g/t gold.
The granting of the Mining Right and recent release of the Qala Shallows DFS have seen the many administrative, relationship, governance and logistical strides taken in the year under review which spur a rapid shift from prospecting to production status. Following the release of the DFS, Qala Shallows' project development commenced in September 2021. We expect production to commence in early 2022.
Qala Shallows is the first of five West Wits project stages set to roll out at the Witwatersrand Basin. Our other WBP targets will be going through their own DFS processes in the coming months, and we expect most DFS results to have been announced by the second quarter of 2022. Given the history of the area and the established knowledge as to the quality of these resources, we anticipate similarly strong results as to Qala Shallows, which bodes well for the future of the WBP as a whole.
West Wits is also making positive strides at its Mt Cecelia Project in Western Australia, starting fresh in a new mining area that is generating significant industry excitement for the positivity of its recent prospecting results.
The SkyTEM HEM survey identified eight exploration targets, with the later ground based MLTEM survey confirming four of those as high-priority targets. A maiden drilling program is planned for commencement in 2022. As a 100% owned greenfield project, Mt Cecelia is in many ways a mirror image of the rejuvenation of an established site taking place at the Witwatersrand Basin. As this Annual Report makes clear, this is a fundamentally attractive exploration project with every prospect of establishing itself as a profitable long-term operation.
Together, Mt Cecelia and the Witwatersrand Basin Project position West Wits as an increasingly attractive investor proposition. The release of the Qala Shallows DFS has empowered the Company to engage comprehensively with financial institutions. West Wits now enjoys a range of attractive finance options, and has the option to utilise a
Chairman's letter (continued)
combination of capital raising on the ASX and debt funding (following a mixed approach in both Australia and South Africa). Other instruments, such as streaming, are also under consideration.
The strength of West Wits' investment profile was affirmed during the reporting period by the decision from cornerstone investor, Wingfield, to covert 100% of the convertible notes to West Wits shares, effectively removing $1.17 million (US) of debt from the balance sheet and establishing Wingfield as a major shareholder and key West Wits strategic investor. On the basis of recent positive developments in both regions of operation we expect similarly firm commitments from other investors.
As is reflected in both the Australian and South African operational reviews, the period under review was very much one of laying foundations, following necessary processes and building key relationships. It gives me great satisfaction to report that the Company was successful in these unglamorous yet essential endeavours, and as of September 2021 is moving quickly towards production status in the key WBP project.
Given the uncertainty permeating the global economy - fuelled in no small part by the ongoing COVID-19 pandemic - I believe West Wits' success in moving with such surety from prospecting to production speaks volumes about the commitment and expertise of Managing Director Jac van Heerden and his team. Our foundations have been laid, and laid well, and West Wits is now set to deliver strong returns to shareholders and investors.
On behalf of the Board of Directors, I would like to offer sincere thanks to the entire West Wits team for many significant achievements during the period under review. Your hard work and commitment have positioned the Company to do much positive business in the years ahead.
Thank you for your ongoing interest and support of West Wits.
For and on behalf of the Board
Michael Quinert Non-Executive Chairman West Wits Mining Ltd
30 September 2021
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West Wits Mining Limited published this content on 20 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2022 01:04:02 UTC.
