Wesdome Reports Record Quarterly EPS and Free Cash Flow for Q1 2026; Reaffirms 2026 Guidance
Wesdome Gold Mines Ltd
TSX: WDO OTCQX: WDOFF www.wesdome.com
WESDOME REPORTS RECORD QUARTERLY EPS AND FREE CASH FLOW FOR Q1 2026; REAFFIRMS 2026 GUIDANCE
Toronto, Ontario – May 12, 2026 – Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX: WDOFF) (“Wesdome” or the “Company”) today announced its financial results for the three months ended March 31, 2026 (“Q1 2026”). Preliminary operating results for Q1 2026 were disclosed in the Company’s press release dated April 14, 2026. Management will host a webcast tomorrow morning, May 13, 2026 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q1 2026 Highlights
- Improving safety performance: Total Recordable Incident Frequency Rate, a key safety performance indicator, was 0.35 in Q1 2026, marking an improvement from 0.40 in Q1 2025.
- Production and costs: Consolidated gold production for the first quarter was 45,303 ounces, a 1% decrease compared to Q1 2025. Q1 2026 cash costs per ounce of gold sold1 increased by 34% to US$1,236 and all-in sustaining costs (“AISC”) per ounce of gold sold1 increased by 25% to US$1,707 compared to Q1 2025.
- Strong revenue growth: Consolidated Q1 2026 revenue increased by 60% to $300 million compared to Q1 2025. The average realized price of gold sold was US$4,784 per ounce in Q1 2026.
- Expanding margins: Gross profit increased by 88% year-over-year in Q1 2026 to $195 million and operating cash margin1 grew by 74% to $222 million.
- Record net income: Q1 2026 net income increased by 90% to $119 million, or $0.79 earnings per share, compared to Q1 2025.
- EBITDA1 growth: EBITDA1 was $212 million in Q1 2026, a 77% increase relative to Q1 2025.
- Record free cash flow1: Q1 2026 net cash from operating activities doubled to $162 million, or $1.08 per share3, while free cash flow1 increased by 165% to $126 million, or $0.84 per share.
- Strong liquidity position: As at March 31, 2026, liquidity stood at $773 million, including $431 million in cash and US$250 million of undrawn full capacity available under the Company’s revolving credit facility. The Company’s liquidity as at December 31, 2025 was $697 million, including $354 million in cash.
- Normal course issuer bid: During Q1 2026, the Company purchased and cancelled 2,125,200 common shares for approximately $49 million at an average price of $23.06 per share. On April 28, 2026, the Company completed the first tranche of its normal course issuer bid, having repurchased a total of 3,013,300 shares since the inception of its normal course issuer bid in November 2025. Today, the Company announced that the Toronto Stock Exchange has approved the Company’s notice of intention to increase the number of common shares available for repurchase under its normal course issuer bid by up to an additional 3,000,000 shares.
- Exploration teach-in: The Company hosted an exploration teach-in on March 30th highlighting the Company's evolving exploration strategy and growing pipeline of targets across its large prospective land
packages, providing clearer insight into how Wesdome is methodically advancing resource growth, replacing reserves, and making new discoveries.
Anthea Bath, President and Chief Executive Officer, commented: "The year is off to a solid start, underpinned by disciplined execution, demonstrated performance improvements at Kiena, and a strong gold price environment that is translating into significant margin expansion per ounce. While cost pressures are becoming an industry-wide focus, we have identified targeted initiatives across areas such as procurement and productivity that are expected to moderate unit costs in the second half of the year. We are well positioned to deliver on our 2026 guidance.
"Eagle River continued to demonstrate consistent operational performance in the first quarter, with mill throughput averaging nearly 800 tonnes per day, supported by strong stope productivity, enhanced maintenance practices, and improved mobile fleet availability. Capital expenditures during the quarter were at their lowest point for the year, with investment expected to accelerate and peak in the third quarter as we advance planned improvements to camp and site infrastructure, reinforcing our long-term commitment to this cornerstone asset.
"Kiena is turning a corner. Last year’s initiatives undertaken to improve operational flexibility together with implementation of our new operating model are delivering measurable results by reducing unplanned delays and allowing us to mine multiple stopes concurrently. The first quarter ended on a strong note, and that momentum accelerated into April with production for the month exceeding 7,000 ounces. With the Presqu'île permit now in hand, high-grade ore is already being stockpiled, and we are pushing development rates higher. We remain firmly on track to drive meaningful growth in tonnage in the second half of the year.
"The first quarter marked another strong period for the Company, with robust free cash flow generation driving our cash position to more than $430 million. This financial strength supports a balanced capital allocation approach, including reinvestment in our operations, maintaining a strong balance sheet, and returning capital to shareholders. During the quarter, we spent approximately $49 million to repurchase shares in March and with the first phase of our buyback now complete, we are pleased to announce a second tranche of up to 3 million shares. This reflects our conviction in Wesdome's intrinsic value and our continued commitment to delivering shareholder returns.
"Looking ahead, our updated technical reports remain on track, with a news release expected in late June outlining updated life-of-mine plans at both operations based on proven and probable reserves and illustrating upside potential from ongoing exploration and optimization initiatives. We closed the quarter with an exploration teach-in designed to give the market a look at the substantial opportunity within our large land packages. With over 220 targets, many of which are in the higher-probability categories, it is clear there is a lot more to discover. The full picture is coming into focus, and we are looking forward to conveying the long-term vision we have for our assets at the end of June."
Consolidated Financial and Operating Highlights
In 000s, except per unit and per share amounts Q1 2026 Q1 2025
Financial results
| Revenues2 | 299,793 | 187,618 |
| Cost of sales | 77,900 | 60,024 |
| Gross profit | 194,814 | 103,374 |
| Operating cash margin1 | 221,893 | 127,594 |
| EBITDA1 | 211,533 | 119,359 |
| Net income | 118,882 | 62,473 |
| Earnings per share | 0.79 | 0.42 |
| Adjusted net income1 | 118,882 | 62,473 |
| Adjusted net earnings per share1 | 0.79 | 0.42 |
| Net cash from operating activities | 161,821 | 80,156 |
| Operating cash flow per share3 | 1.08 | 0.53 |
| Net cash used in financing activities | (48,386) | 1,346 |
| Net cash used in investing activities | (36,670) | (36,665) |
| Free cash flow1 | 125,862 | 47,505 |
| Free cash flow per share1 | 0.84 | 0.32 |
| Average USD/CAD exchange rates | 1.3715 | 1.4350 |
Operating results
Gold produced (ounces) 45,303 45,692 Gold sold (ounces) 45,600 45,300
Per ounce of gold sold1
| Cost of sales4($/oz) | 1,708 | 1,325 |
| Cost of sales4(US$/oz) | 1,246 | 923 |
| Cash costs1($/oz) | 1,695 | 1,320 |
| Cash costs1(US$/oz) | 1,236 | 920 |
| AISC1($/oz) | 2,342 | 1,960 |
| AISC1(US$/oz) | 1,707 | 1,366 |
| Average realized price1($/oz) | 6,561 | 4,136 |
| Average realized price1(US$/oz) | 4,784 | 2,882 |
Financial position
| Cash | 430,630 | 167,934 |
| Working capital5 | 408,677 | 181,341 |
| Total assets | 1,242,264 | 816,587 |
| Current liabilities | 81,232 | 57,217 |
| Total liabilities | 222,415 | 179,986 |
Eagle River (Ontario, Canada)
Operating and Financial Results
Q1 2026 Q1 2025
Eagle River Operating Results
| Ore milled (tonnes) | 71,731 | 60,010 |
| Head grade (g/t) | 12.5 | 15.6 |
| Average mill recoveries (%) | 96.7 | 96.3 |
| Gold production (oz) | 27,846 | 28,999 |
| Gold sold (ounces) | 27,350 | 27,700 |
| Production costs per tonne milled1($) | 577 | 595 |
Costs per oz of gold sold ($/oz)
| Operating cash margin1 | 4,872 | 2,841 |
| Cost of sales | 1,672 | 1,332 |
| Cash costs1 | 1,660 | 1,327 |
| All-in sustaining costs1 | 2,216 | 1,918 |
Costs per oz of gold sold (US$/oz)
| Operating cash margin1 | 3,552 | 1,980 |
| Cost of sales | 1,219 | 928 |
| Cash costs1 | 1,210 | 925 |
| All-in sustaining costs1 | 1,616 | 1,337 |
Gold revenue from mining operation 178,635 115,450
| Mining | 17,328 | 16,652 |
| Processing | 7,116 | 6,395 |
| Site administration and camp costs | 14,205 | 12,034 |
| Change in inventories | 3,381 | (514) |
| Royalties | 3,688 | 2,330 |
45,718 36,897
| Silver revenue | (323) | (141) |
| Total cash costs | 45,395 | 36,756 |
| Cost of sales per ounce of gold sold | 1,672 | 1,332 |
| Cash cost per ounce of gold sold1 | 1,660 | 1,327 |
| Operating cash margin1 | 133,240 | 78,694 |
All-in sustaining costs1
| Sustaining mine exploration and development | 8,622 | 7,568 |
| Sustaining mine capital equipment | 1,840 | 5,034 |
| Sustaining tailings management facility | 69 | 125 |
| Corporate and general allocation | 4,559 | 3,323 |
| Payment of sustaining lease liabilities | 125 | 336 |
60,610 53,142
| All-in sustaining costs per ounce of gold1 | 2,216 | 1,918 |
| Cost of sales per tonne milled1 | 637 | 615 |
| Production costs per tonne milled1 | 577 | 595 |
| Total capital expenditures | 11,481 | 12,727 |
Operating Highlights
During Q1 2026, Eagle River produced 27,846 ounces of gold as compared to 28,999 ounces in Q1 2025. This was primarily a function of scheduled mine sequence at slightly lower grades compared to Q1 2025 supplemented with stockpile to utilize mill capacity. Grades processed in Q1 2026 are aligned with planned grade from the mined areas.
Mill throughput of 71,731 tonnes in Q1 2026 was 20% higher than the first quarter of 2025 benefitting from improved productivity in the mill and greater ore availability. These rates are anticipated to be maintained throughout 2026 demonstrating the “fill the mill” strategy.
Q1 2026 production costs of $577 per tonne were 3% lower than the first quarter of 2025, primarily due to higher mill throughput leveraging incremental ore feed from stockpile and offsetting escalating input costs on labour, energy and fuel.
Financial Highlights
In Q1 2026, Eagle River’s gold revenue increased 55% to $178.6 million from $115.5 million in Q1 2025 due to a higher average realized price of gold sold, partially offset by a 1% reduction in ounces sold.
Cost of sales in Q1 2026 were $45.7 million, an increase of 24% relative to the comparative period in 2025 primarily due to a $3.6 million increase in mine and mill operating costs due to higher tonnes processed, which spread fixed costs over a larger production base and reduced unit costs resulting in a reduction in production cost per tonne, escalating costs of fuel and energy, a $3.9 million change in inventory levels and increased royalties mainly due to higher gold prices.
Q1 2026 cash costs per ounce of gold sold increased to $1,660 (US$1,210) per ounce sold from $1,327 (US$925) per ounce sold in Q1 2025 primarily due to an increase in cost of sales and fewer ounces sold in Q1 2026.
| In Q1 2026, AISC per ounce of gold sold increased by 16 | % | to | $2,216 (US$1,616) | per ounce sold as compared to | ||
| Q1 2025, due to a 1 | % decrease | in ounces sold in Q1 2026, and a 24% increase in total cash costs, partially offset | ||||
| by a 17% decrease in sustaining capital expenditures. |
Exploration Update
Drilling Continues to Expand 6 Central Zone
In the 6 Central Zone, growth drilling continues to confirm the down-plunge continuity of mineralization, demonstrating similar thickness and grade to previously reported intercepts. Located near existing infrastructure, the zone remains open at depth and provides the potential opportunity to establish another new high-grade mining front at intermediate depths.
Drilling for Growth in the 800 Zone
Growth drilling during the quarter had two primary objectives. The first objective was to target a near surface area (within 400 metres of surface) where a gap in drilling coincides with a projected up-plunge continuation of mineralization. The second objective focused on an area representing the projected down-plunge continuation of mineralization at depth. Early results support block model projections of grade. Drilling will continue into the second quarter.
Conversion and Growth Drilling in Falcon 311 Zone
Growth drilling evaluating the continuation of mineralization to the west and down-plunge to the southwest is ongoing, complementing conversion drilling of three global model targets. Assays remain pending, but preliminary results confirm the continuation of the mineralized domain in both directions at grades supporting block model results.
Global Model
Two underground rigs continued drilling global model targets in the quarter. These targets are well advanced and are a mixture of geologic potential with minor Inferred material. A total of five global model targets were drilled during the quarter including one target in the 711 Zone, one in the 300 Zone, and three in the Falcon 311 Zone. Drilling of deeper portions of the 300 Zone continued into the second quarter.
Surface Exploration
Surface drilling continued with one rig at the Dorset deposit, evaluating the potential link between Dorset Main and Dorset West, as well as down-plunge continuity. Geometallurgical sampling for leach and recovery test work, and deportment studies, continues as part of overall deposit resource evaluation.
Deep holes from surface testing down-plunge continuation of mineralization in the 800 and 6 Central zones commenced during the quarter. The 800 Zone hole ERS-2026-001-W1 was completed at 1701 metres. Results will be reported in the second quarter. The 6 Central hole ERS-2026-003-W1 still in progress.
At Abbey Lake, a gradient array IP geophysical survey was completed along an 8-kilometre trend, aimed at mapping out continuation of quartz veins and sulphide rich horizons highlighted by previous work, including geologic mapping, local IP surveys, and scout drilling. Survey results and reporting are expected in the second quarter, with drill programs scheduled for the third quarter.
Kiena (Quebec, Canada)
Operating and Financial Results
Q1 2026 Q1 2025
Kiena Operating Results
| Ore milled (tonnes) | 54,950 | 48,690 |
| Head grade (g/t) | 10.0 | 10.8 |
| Average mill recoveries (%) | 98.8 | 98.9 |
| Gold production (oz) | 17,457 | 16,693 |
| Gold sold (oz) | 18,250 | 17,600 |
| Production costs per tonne milled1($) | 591 | 489 |
Costs per oz of gold sold ($/oz)
| Operating cash margin1 | 4,858 | 2,778 |
| Cost of sales | 1,764 | 1,314 |
| Cash costs1 | 1,748 | 1,308 |
| All-in sustaining costs1 | 2,530 | 2,026 |
Costs per oz of gold sold (US$/oz)
| Operating cash margin1 | 3,542 | 1,936 |
| Cost of sales | 1,286 | 916 |
| Cash costs1 | 1,274 | 912 |
| All-in sustaining costs1 | 1,844 | 1,412 |
Gold revenue from mining operation 120,545 71,925
| Mining | 21,398 | 15,165 |
| Processing | 3,769 | 3,536 |
| Site administration and camp costs | 7,956 | 5,247 |
| Change in inventories | (939) | (821) |
32,184 23,127
| Silver revenue | (290) | (102) |
| Total cash costs | 31,894 | 23,025 |
| Cost of sales per ounce of gold sold | 1,764 | 1,314 |
| Cash cost per ounce of gold sold1 | 1,748 | 1,308 |
| Operating cash margin1 | 88,651 | 48,900 |
All-in sustaining costs1
7,403 7,357 Sustaining mine exploration and development Sustaining mine capital equipment 1,801 1,369 471 575 Sustaining tailings management facility 4,559 3,323 Corporate and general allocation Payment of sustaining lease liabilities 39 - 46,167 35,649
| All-in sustaining costs per ounce of gold1 | 2,530 | 2,026 |
| Cost of sales per tonne milled | 586 | 475 |
| Production costs per tonne milled1 | 591 | 489 |
| Capital expenditures | 24,584 | 19,588 |
Operating Highlights
In Q1 2026, Kiena produced 17,457 ounces, compared to 16,693 ounces produced in Q1 2025, which is driven by higher mine production, primarily from the addition of Presqu’île ore offsetting lower tonnage, at a higher grade, in Kiena Deep due to preventative maintenance on the hoist and mill reline in Q1 2026. Average grade in Q1 2026 was 10.0 g/t, slightly lower than 10.8 g/t in Q1 2025, and consistent with the reserve grade. Presqu’île ore grades are lower than Kiena Deep, with the balance between the two feed sources aligned with the plan.
Mill throughput of 54,950 tonnes in Q1 2026 was 13% higher than the first quarter of 2025 due to availability of additional mill feed from Presqu’île.
Production costs per tonne were $591 per tonne in Q1 2026, an increase from $489 per tonne in Q1 2025, driven by ongoing competitive pressures on labour pricing, additional contractors to support maintenance and operations to improve equipment reliability, fuel price increases, and investment in operating model development to provide a more stable and predictable operation. Presqu’île tonnes are all from development which is at a higher unit cost than production stoping contributing to the overall increase from Q1 2025. Several initiatives are underway to reduce unit operating costs at Kiena, including enhancements to operational execution aimed at increasing productivity and shortening stope cycle times. The availability of multiple stopes is expected to provide greater operational flexibility, reduce feed grade variability, and support the delivery of a more consistent mill feed.
Financial Highlights
In Q1 2026, Kiena’s gold revenue increased by 68% to $120.5 million from $71.9 million in Q1 2025, primarily due to a higher average realized price per ounce of gold sold and a 4% increase in ounces sold.
Cost of sales in Q1 2026 were $32.2 million, an increase of 39% over the comparative period in 2025. This increase was primarily due to a $9.2 million increase in mine operating costs due to higher tonnes milled in Q1 2026 and operating costs noted above.
Cash costs per ounce of gold sold in Q1 2026 were $1,748 (US$1,274) per ounce sold, an increase of 34% compared to $1,308 (US$912) per ounce sold in Q1 2025 primarily due to an increase in mine operating costs from higher tonnes milled in Q1 2026, partially offset by a 4% increase in ounces sold.
AISC per ounce of gold sold increased by 25% in Q1 2026 to $2,530 (US$1,844) per ounce sold from $2,026 (US$1,412) per ounce sold in Q1 2025 due to a 39% increase in total cash costs from higher tonnes milled in Q1 2026 and a 4% increase in sustaining capital expenditures, partially offset by a 4% increase in ounces sold.
Progress at Presqu’île Zone
Presqu’île zone mining permit was received in January 2026, with a total of 2,404 ounces produced during the quarter. Ramp access to the Presqu’île orebody is advancing well with several levels now in ore as preparation for stoping accelerates towards first production in Q2.
The exploration ramp development pace has increased from 2025 and progressed as per the budget in Q1 with breakthrough scheduled before the end of Q2 2026.
Stope delineation drilling at lower levels commenced, along with development of new drill platforms at deeper levels to support the 2026 delineation program. Surface exploration drill programs have been rescheduled to quarter three, to support re-prioritisation of drill testing surface targets.
Exploration Update
Exploration programs continue to demonstrate strong potential for reserve replacement and resource growth at both assets, with multiple targets advancing across the portfolio.
109-Level Exploration Drift
With development of the 109-level exploration drift extension completed in the first quarter, drilling of the VC Zone commenced during the last weeks of March and will continue into the second and third quarters. The VC Zone historically returned a high-grade intercept at the base of the mineralization wireframe, is open at depth and demonstrates a mineralization style analogous to Kiena Deep.
Drilling From 134-Level
Ongoing exploration of the Kiena Deep A and Kiena Deep Footwall zones from the 134-level ramp continues to confirm the continuity of the zones. Drilling from this platform and a second drill rig, will continue for the next two quarters.
Drilling from the first drill bay on the 134-level exploration drift focused on deep holes (over 600 metres) evaluating the potential continuation of mineralization intersected by historic hole 6752W10, which intersected high-grade mineralization over a broad interval on the other side of the Norbenite Fault from Kiena Deep A. Progress has been hampered by poor ground conditions in the Norbenite Fault, which the holes have to traverse. Drilling is planned to continue into the second quarter.
Drilling from the second drill bay on the 134-level exploration drift targeting the B Zone lenses continued during the quarter targeting potential down-plunge continuation of a higher grade ‘shoot’ highlighted from interpretation of structure and assay results from holes completed in 2025. Further drilling is planned for the third quarter.
33-Level Accessible for Drilling
Exploration drilling on 33-Level in the quarter targeted magnetic geophysical anomalies around the Dubuisson deposit. Three attempts to test beneath the Dubuisson deposit at 900 metres vertical depth failed to reach the target. Holes were terminated in poor ground conditions hosted by sheared schistose units between felsic intrusive units. This area will be tested by the barge drilling program in the summer. A magnetic low feature to the south of Dubuisson was being tested by a deep hole (over 600 metres). The hole is expected to be completed in the second quarter.
Surface Exploration
There were two rigs active during Kiena’s winter drilling program, with drilling terminating at the end of March due to weather conditions. Both rigs focused on drilling deep geologic holes in the southern portion of the property, south of the Dubuisson township. Results will be reported in the second quarter.
2026 Guidance
The Company remains on track to achieve its 2026 production and cost guidance as outlined in the table below:
| Unit | Eagle River | Kiena | Consolidated Guidance |
|---|---|---|---|
| Production Gold production (oz) Grade (g/t) Operating Costs & Expenses Depreciation and depletion ($M) Corporate and general1 ($M) Exploration and evaluation2 ($M) Cash costs3,4 (US$/oz) All-in sustaining costs3,4 (US$/oz) Capital Investment Sustaining capital3 ($M) Growth capital3 ($M) | 105,000 – 115,000 13.0 – 14.0 $55 $15 $15 $1,050 – 1,150 $1,525 – 1,675 $60 $45 | 75,000 – 90,000 8.0 – 9.5 $75 $15 $15 $1,025 – 1,175 $1,525 – 1,750 $50 $50 | |
| 180,000 – 205,000 | |||
| 10.0 – 12.0 | |||
| $130 | |||
| $30 | |||
| $30 | |||
| $1,050 – 1,150 | |||
| $1,525 – 1,700 | |||
| $110 | |||
| $95 | |||
| Total capital investment ($M) | $105 | $100 | $205 |
1. Consolidated guidance for 2026 corporate and general costs excludes an estimated $9 million in stock-based compensation. Corporate general and administrative costs of $30 million is allocated equally to each mine and is included in the Company’s calculation of all-in sustaining costs.
2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses and are not included in all-in sustaining costs.
3. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
4. Based on a USD/CAD exchange rate of $1.34.
Webcast
Management will host a webcast to discuss the Company’s financial and operating results. A question-and-answer session will follow management’s prepared remarks. Details of the webcast are as follows:
Date and time: Wednesday, May 13, 2026 at 10:00 a.m. ET
Dial-in numbers: To access the call by telephone, dial 1.646.968.2525 or 1.888.596.4144 (toll-free). The event passcode is: 8215935. Please allow up to 10 minutes to be connected.
Webcast link: https://events.q4inc.com/attendee/584921644 Pre-registration is required for this event. It is recommended you join 10 minutes prior to the start of the event. The webcast can also be accessed from the home page of the Company’s website at www.wesdome.com.
The Company’s financial statements and management’s discussion and analysis will be available at www.wesdome.com and on SEDAR+ www.sedarplus.ca the evening of Tuesday, May 12, 2026.
About Wesdome
Wesdome is a Canadian-focused gold producer with two high-grade underground assets, Eagle River in Northern Ontario and Kiena in Val-d’Or, Québec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a value-driven mid-tier gold producer.
For More Information
Raj Gill Trish Moran SVP, Corporate Development & Investor Relations Vice President, Investor Relations Phone: +1.416.360.3743 Phone: +1.416.564.4290 Email: [email protected] Email: [email protected]
Technical Disclosure
The technical and geoscientific content of this press release have been reviewed, and approved by Barbara Rose, P. Eng, Director, Engineering & Operations and Breanne Beh, P.Geo, Director Surface and Greenfields Exploration both of whom are the Company’s "Qualified Persons" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which is based on expectations, estimates, projections, and interpretations as of the date of this release. Forward-looking information includes, without limitation, statements or information with respect to: the timing of the webcast to discuss the Q1 2026 operating results; the initiatives targeted to moderate unit costs in the second half of the year; the Company being well positioned to deliver on its 2026 guidance; the investment at Eagle River expected to accelerate and peak in the third quarter; the Company remaining firmly on track to drive meaningful growth in tonnage in the second half of the year; the Company’s updated technical reports remaining on track, with a news release expected in late June 2026, along with its expected contents and what they are anticipated to illustrate; mill throughput rates at Eagle River anticipated to be maintained throughout 2026; the 6 Central Zone providing the potential opportunity to establish another new high-grade mining front at intermediate depths; the expectation that drilling for growth in the 800 zone will continue in the second quarter; results from the 800 Zone hole ERS-2026-001-W1 being reported in the second quarter; survey results and reporting from surveys done at Abbey Lake expected in the third quarter, with drill programs scheduled for the third quarter; the expectation that the availability of multiple stopes at Kiena will provide greater operational flexibility, reduce feed grade variability, and support the delivery of a more consistent mill feed; the scheduled breakthrough of the exploration ramp at Presqu’île; exploration programs continuing to demonstrate strong potential for reserve replacement and resource growth at both assets; planned drilling on the 134-level exploration drift planned to continue into the second quarter; further drilling targeting the B Zone lenses planned for the third quarter; 33-level area being tested by the barge drilling program in the summer, with the historic hole expected to be completed in the second quarter; exploration results being reported in the second quarter; and the Company remaining on track to achieve its 2026 production and cost guidance as set out in the table on page 10 of this release.
These forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors including those risk factors discussed in the sections titled “Cautionary Note Regarding Forward Looking Information” and “Risks and Uncertainties” in the Company’s most recent Annual Information Form. Readers are urged to carefully review the detailed risk discussion in our most recent Annual Information Form which is available on SEDAR+ and on the Company’s website.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Non-IFRS Performance Measures
Wesdome uses non-IFRS performance measures throughout this MD&A as it believes that these generally accepted industry performance measures provide a useful indication of the Company’s operational performance. These non-IFRS performance measures do not have standardized meanings defined by IFRS and may not be comparable to information in other gold producers’ reports and filings. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
The non-IFRS performance measures include:
- Average realized price per ounce of gold sold
- Cash costs and cash costs per ounce of gold sold
- Production costs per tonne milled
- Operating cash margin and operating cash margin per ounce of gold sold
- Sustaining capital and growth capital
- AlSC and AISC per ounce of gold sold
- Free cash flow and free cash flow per share
- Adjusted net income and adjusted net earnings per share
• EBITDA