Wesdome Announces Third Quarter 2017 Financial Results
`
PRESS
RELEASE
NOVEMBER 9 2017
TSX:WDO
WESDOME ANNOUNCES THIRD QUARTER 2017 FINANCIAL
RESULTS
Toronto, Ontario – November 9, 2017 – Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or
the “Company”) today announces third quarter 2017 (“Q3”) financial results. All figures are stated in
Canadian dollars unless otherwise noted.
Mr. Duncan Middlemiss, President and CEO commented, “ At Eagle River, head grades continue to
significantly improve over 2016. For the first 9 months of the year the mine has produced at 10.3
grams gold per tonne (“g/t”) compared to 7.8 g/t in 2016. We expect grades remain strong in the
fourth quarter and in 2018 as we finish developing higher grade stopes, such as the 303 Lens. As of
November 8, 2017, our cash position was $22.6 million, inclusive of $2.0 million in cash margin 1 from
the realization of the 5,981 ounces of gold in process at the quarter end. Cash flows are primarily being
reinvested in exploration at both the Eagle River and Kiena Complexes. These investments are
yielding excellent results, and setting the path forward for Eagle River to potentially increase tonnage
and working faces underground, displacing the lower grade Mishi ore for higher gold production and
margins in the near term.”
“Additionally, we are very excited to have resumed drilling the Kiena Deep in mid-October from the
exploration ramp. Drilling is progressing well; the shorter holes have all reached their intended targets
and the time to complete the holes is much quicker. We expect a second drill to be mobilized to the
Kiena Deep in early December. The ramp is expected to be fully completed in Q1 2018, confirming
our commitment to advancing Kiena Deep to the next level. As well, we are continuing to drill near
mine auxiliary targets, such as the immediately accessible S50 and VC Zones.”
“We are managing both exploration and development spending within the framework of our balance
sheet and cash flows, therefore discretionary spending at Moss Lake has been cut to focus efforts on
the further advanced, higher impact Eagle River and Kiena Complexes.”
2017 THIRD QUARTER HIGHLIGHTS
• Gold production of 15,493 ounces, with contribution of 13,313 ounces from Eagle and 2,181
ounces from Mishi (2016 - 15,667 ounces – 13,193 ounces from Eagle and 2,474 ounces from
Mishi).
• 2017 Guidance remains between 52,000 – 58,000 ounces (2016: 47,737 ounces produced).
Note:
1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS
measurements to the Financial Statements.
2 Before changes in working capital.
3 Numbers may not add due to rounding.
4 Per ounce of gold produced.
5 Please reference note 2(c) of the financial statements for a detailed explanation of the restatements of the
financial information the three months and nine months ended September 30, 2016.
• Total throughput of 83,058 tonnes averaging 903 tonnes per calendar day (“tpd”) (2016 – 80,277
tonnes averaging 873 tpd).
• Sold 13,069 ounces of gold at an average realized price of $1,619 (US$1,293) per ounce for revenue
of $21.2 million (2016 – 15,825 ounces at $1,740 (US$1,334) per ounce for revenue of $27.5
million).
• Production cash costs1 were $978 (US$780) per ounce of gold produced (2016 – $846(US$648)
per ounce of gold produced).
• Delivered mine operating profit1 of $8.3 million (2016 - $16.5 million).
• Net income of $0.3 million or nil on per share basis (2016 - $7.6 million or 0.06 per share).
• Operating cash flow (adjusted)1 of $6.9 million or $0.05 per share1 (2016 - $14.4 million or $0.11
per share).
• Free cash outflow 1 of $4.7 million compared to free cash flow in Q3 2016 of $5.7 million
decreased, as a result of the increased exploration activities at all the Company’s mining assets.
All-in sustaining costs per ounce (“AISC”) 1 of $1,369 (US$1,093) per ounce of gold produced
(2016 - $1,294 (US$992) per ounce of gold produced).
• Cash and cash equivalent at September 30, 2017 was $16.6 million. Cash position increased to
$22.6 million on November 8, 2017, inclusive of $2.0 million in cash margin 1 earned from the
realization of the 5,981 ounces of gold in process at the quarter end.
2017 Third Quarter Exploration and Corporate Development Highlights
• At Eagle, continued drilling has now traced the 300E structure from 750 metre depth to 1,000
metre depth, and remains open up and down plunge. Drilling highlights include 51.93 g/t Au
uncut (23.18 g/t Au cut) over 11.96 metres true width.
• Development to date on the 300E Zone has identified seven subzones on the 844 metre level.
The combined ore strike length of the subzones is 173.7 m with a weighted average width of 2.85
m and cut and uncut gold grades of 22.62 g/t Au and 34.79 g/t Au.
• Continued drilling to explore the 300W Zone has now traced the mineralization 300 metres up-
plunge and remains open to the west and up-plunge.
• Resource definition drilling at Mishi is now complete and returned positive results from two areas
located 600 metres and 1,700 metres west of existing open pit mining operations. Currently
assessing these occurrences and building t hem into a long term growth scenario for mining at
Mishi.
• A total of 150 metres was developed in the exploration ramp on 100 0 metre level at Kiena. The
development activities were temporarily suspended in early September following a fatality of a
contract worker. The site investigation has concluded and the development resumed in early
October. The first drill bay has been completed and drilling of Kiena Deep has begun.
• Also at Kiena, drilling has traced the VC Zone 200 metres below the 670 metre level. It remains
open to the west and at depth. Recent drilling returned 262.13 g/t Au or (17.70 g/t cut to 34.28
g/t) over 5.6 metres.
Note:
1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS
measurements to the Financial Statements.
2 Before changes in working capital.
3 Numbers may not add due to rounding.
4 Per ounce of gold produced.
5 Please reference note 2(c) of the financial statements for a detailed explanation of the restatements of the
financial information the three months and nine months ended September 30, 2016.
• At Moss Lake, drilling was completed along strike of the Moss Lake gold deposit to significantly
extend mineralization beyond the 2.5 kilometre known strike length. The initial drilling has
extended known mineralization over a strike length of 4.5 kilometres.
• New management team put in place at the end of the quarter to steer the Company to increase
production and profitability.
Financial Results – Three and Nine Months 2017 and 2016
Three Months ended September
30
Nine Months ended September
30
(in $000, except per share amounts) 2017 2016 2017 2016
Restated 5 Restated 5
Revenue 21,165 30,134 64,513 61,865
Mine operating profit 1 8,335 16,538 22,022 19,926
Net income (loss) 296 7,649 1,854 6,186
Net income (loss) adjusted1 2,655 8,138 4,884 5,693
Basic net income (loss) per
share 0.00 0.06 0.01 0.05
Basic net income (loss) per
share adjusted 1 0.02 0.06 0.04 0.05
Cash flows from operating
activities 2 4,523 13,875 15,165 15,974
Cash flows from operating
activities adjusted 1 6,882 14,364 18,195 15,481
Free cash flow 1 (4,688) 5,658 (13,572) (3,679)
Cash and cash equivalents 16,614 28,991 16,614 28,991
Working capital 12,934 20,208 12,934 20,208
Operational Results – Three and Nine Months 2017 and 2016
Three Months ended September
30
Nine Months ended September
30
2017 2016 2017 2016
Eagle tonnes milled 44,421 42,617 117,959 127,761
Mishi tonnes milled 38,638 37,660 114,396 107,953
Total tonnes milled 83,058 80,277 232,355 235,714
Eagle grade (g/t) 9.7 10.1 10.3 7.8
Mishi grade (g/t) 2.0 2.3 1.8 2.1
Eagle mill recovery (%) 96.1 95.6 95.9 93.1
Mishi mill recovery (%) 87.2 87.7 84.9 86.3
Eagle ounces produced 13,313 13,193 37,498 29,657
Mishi ounces produced 2,181 2,474 5,687 6,193
Note:
1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS
measurements to the Financial Statements.
2 Before changes in working capital.
3 Numbers may not add due to rounding.
4 Per ounce of gold produced.
5 Please reference note 2(c) of the financial statements for a detailed explanation of the restatements of the
financial information the three months and nine months ended September 30, 2016.
Ounces produced, Eagle 3 15,493 15,667 43,185 35,850
Ounces sold 13,069 15,825 38,419 35,190
Per ounce data:
Average realized price 1 1,619 1,740 1,656 1,684
Production cash costs 1 978 846 1,090 1,168
All-in-sustaining costs 1,4 1,369 1,294 1,522 1,681
Average 1 USD to CAD
exchange rate 1.2528 1.3047 1.3091 1.3217
USD equivalents:
Average realized price 1,293 1,334 1,265 1,274
Production cash costs 780 648 833 884
All-in-sustaining costs 1,4 1,093 992 1,163 1,272
The technical content of this release has been compiled, reviewed and approved by Marc -Andre
Pelletier, P. Eng, Chief Operating Officer and Michael Michaud, P.Geo., Vice President, Exploration
of the Company and both a "Qualified Person" as defined in National Instrument 43 -101 -Standards
of Disclosure for Mineral Projects
Wesdome Gold Mines 2017 Third Quarter Financial Results Conference Call:
North American Toll Free: + 1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Passcode: 2786049
Webcast link: https://edge.media-server.com/m6/p/redcuxsu
Webcast can also be accessed under the News and Events section of the Company’s website
(www.wesdome.com)
ABOUT WESDOME
Wesdome Gold Mines is in its 30 th year of continuous gold mining operations in Canada. The
Company is 100% Canadian focused with a pipeline of projects in various stages of development. The
Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River
Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its
brownfields asset, the Kiena Complex in Val d’Or, Quebec. The Kiena Complex is a fully permitted
former mine with a 930 metre shaft and 2,000 tonne per day mi ll. The Company has further upside
at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario , which is being
explored and evaluated to be developed in the appropriate gold price environment. The Company
has approximately 133 .9 million shares issued and outstanding and trades on the Toronto Stock
Exchange under the symbol “WDO.”
For further information, please contact:
Note:
1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS
measurements to the Financial Statements.
2 Before changes in working capital.
3 Numbers may not add due to rounding.
4 Per ounce of gold produced.
5 Please reference note 2(c) of the financial statements for a detailed explanation of the restatements of the
financial information the three months and nine months ended September 30, 2016.
Duncan Middlemiss or Lindsay Carpenter Dunlop
President and CEO VP Investor Relations
416-360-3743 ext. 29 416-360-3743 ext. 25
[email protected] [email protected]
8 King St. East, Suite 811
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: www.wesdome.com
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the future financial or operating
performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations)
of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-
looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements 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. The Company has included in this news release certain non-IFRS
performance measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per ounce reflect actual mine
operating costs incurred during the fiscal period divided by the number of ounces produced. These measures are not defined under IFRS and therefore should
not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in
accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in
accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow
Note:
1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS
measurements to the Financial Statements.
2 Before changes in working capital.
3 Numbers may not add due to rounding.
4 Per ounce of gold produced.
5 Please reference note 2(c) of the financial statements for a detailed explanation of the restatements of the
financial information the three months and nine months ended September 30, 2016.