Westgold Tops Up Its Working Capital By $20.85 Million Gold Pre-Pay Addition

  • Nov 20, 2018 AEDT
  • Team Kalkine
Westgold Tops Up Its Working Capital By $20.85 Million Gold Pre-Pay Addition

Westgold Resources Limited (ASX: WGX) (Westgold) is happy to inform its investors that it has added around $20.85 million to its working capital as well as the minor addition of funds in the form of hedging with its counterparty Citibank Ltd.

The GPP for the group got expanded by 12,500 ounces at a net price of $1,668.28/oz excluding the fee part. As a result of this, the working capital of the group increased by $20.85 million.  Also, this amount will be repaid by delivering 1,250 ounces of gold from the month of September 2019 till June 2020 on a monthly basis.

At present Westgold has hedged its position by delivering 80,500 ounces of gold at an average forward price of $1740.77 per ounce until the month of August 2019. The company also need to make a gold pre-payment for 22,591 ounces of gold with an average receive price of $1640.78 per ounce which is repayable at 1,250 ounces on a monthly basis which will begin from January 2019.

Throughout the journey, the company has given a negative performance. Since its inception, the performance of the company is -33.14%. The 1-year performance of the company is -38.50%. Since the last month, the performance of the company is positive which is 4.55%.

In the FY2018, as a result of an increase in the cost of sales, the company has incurred a gross loss of $33,380,140. The loss for the year after meeting all the taxes were $41,387,675. At the end of the year, the net loss for the company was $1,171,059. The total asset of the company was $667,282,468 and the total liabilities was $261,466,307. This indicates that the company is in the position to clear its long-term obligations. The total current asset of the company was $156,698,545 and the total current liabilities was $127,298,935. This indicates that the company is in the position to meet its short-term obligations and its working capital. The total shareholder's equity is $405,816,161. There was a net cash inflow from the operating activities of amount $14,710,955. The major cash outflow under this category was due to the payment made to the suppliers and the employees, the interest and the income tax which was paid.

There was a net cash of $96,762,714 paid through the investing activities. The major source of cash outflow was the payment which was made for property, plant and equipment, payment for mine properties and development, payment for exploration and evaluation, payment for available for sale financial assets and the acquisition of the subsidiary. There was a net cash inflow through the financing activities worth $88,361,144. The major source of cash outflow was due to the payment of finance lease, Repayment of related party borrowings, cost related to the issue of shares. By the end of the year, the net cash and cash equivalent were $73,446,753.

At present, November 20, 2018, the market price of the share is A$1.155 (AEST: 3:14 pm) with the market capitalization of A$417.58 million. Since morning there is an increase in the share price by 0.435%. Through the charts, we can see that the moving average convergence divergence line (MACD line) is moving above the signal line in the upward direction indicating a chance of a further increase in the share price.


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