Wesdome Reports First Quarter 2024 Financial Results
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Wesdome Gold Mines Ltd
TSX: WDO
OTCQX: WDOFF
www.wesdome.com
WESDOME REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS
Toronto, Ontario – May 8, 2024 – Wesdome Gold Mines Ltd. (TSX:WDO , OTCQX:WDOFF) (“Wesdome” or the
“Company”) today announced its results for the three months ended March 31, 2024 (“Q1 2024”). Preliminary
operating results for Q1 2024 were disclosed on April 15, 2024. Management will host a conference call tomorrow,
Thursday, May 9 at 10:00 a.m. Eastern Time to discuss this quarter’s results.
All amounts are expressed in Canadian dollars unless otherwise indicated.
Q1 2024 Highlights
• Consolidated gold production was 33,322 ounces at cash costs per ounce1 of $1,517 per ounce (US$1,125)
and all-in sustaining costs (“AISC”) per ounce1 of $2,226 (US$1,650).
• Net income increased to $10.7 million, or $0.07 per share, an increase of $ 11.1 million from the
corresponding period in 2023.
• Cash margin1 was $46.6 million, representing a 36% increase relative to the prior year quarter mainly due
to a higher Canadian dollar realized gold price and increase in ounces sold.
• Operating cash flow was $46.5 million, or $0.31 per share 1, $41.4 million higher than the corresponding
period in 2023 mainly due to the higher cash margin and an increase in cash from working capital changes.
• Free cash flow1 of $19.5 million was $39.0 million higher than the corresponding period in 2023 mainly due
to higher operating cash flow partially offset by an increase in capital expenditures.
• Available liquidity of $169.5 million, including $48.3 million in cash and $121.2 million of undrawn availability
under the Company’s revolving credit facility.
Anthea Bath, President and CEO, commented: “We delivered a solid first quarter on the back of higher-grade
material at Eagle River, as a result of short-term positive grade reconciliation and mine sequencing relative to plan.
As anticipated, in the second quarter we began processing higher grade material from Kiena Deep, which is
expected to trend upwards over the balance of the year and thereby drive margin expansion.
Exploration underpins our success, and we continue to identify new opportunities across both mine sites to unlock
value. This year’s extensive exploration program i s already yielding exciting results, including the intercept of high
grades near mine infrastructure at Kiena Deep and continued growth in the recently discover ed Falcon 311 and
300 zones.
Our balance sheet continues to strengthen with meaningful improvements in both cash and total liquidity in the first
quarter. We took advantage of increased cash flow in the quarter, reducing the amount outstanding on our revolving
credit facility by $10 million and putting us on track to repay the remaining balance by Q3.
Results to date are aligned with our expectations and the team is focused on execution and delivering on full-year
guidance and strategic objectives. We are well positioned to achieve higher production at declining unit costs with
increased free cash flow in 2024,” added Ms. Bath.
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Consolidated Financial and Operating Highlights
Q1 2024 Q1 2023
Financial Results
Revenue2 100,922 76,701
Cost of sales 78,679 61,418
Cash margin1 46,624 34,408
EBITDA1 40,675 26,124
Net income (loss) 10,708 (345)
Net income (loss) per share 0.07 (0.00)
Adjusted net income1 10,708 3,257
Adjusted net income per share1 0.07 0.02
Operating cash flow 46,502 5,120
Operating cash flow per share1 0.31 0.04
Net cash (used in) from financing activities (10,169) 9,688
Net cash used in investing activities (29,452) (22,933)
Free cash flow1 19,448 (19,597)
Free cash flow per share1 0.13 (0.14)
Operating Results
Gold produced (oz) 33,322 28,368
Gold sold (oz) 35,700 30,000
Average realized gold price1 ($/oz) 2,823 2,554
Average realized gold price1 (US$/oz) 2,093 1,888
Per ounce of gold sold:
Cost of sales ($/oz) 2,204 2,047
Cost of sales (US$/oz) 1,634 1,514
Cash costs1 ($/oz) 1,517 1,407
Cash costs1 (US$/oz) 1,125 1,040
All-in sustaining costs1 ($/oz) 2,226 1,977
All-in sustaining costs1 (US$/oz) 1,650 1,462
Financial Position
Cash 48,252 25,060
Working capital (1,033) (14,712)
Total assets 636,190 618,724
Current liabilities 86,209 93,878
Total liabilities 194,546 198,370
Notes:
1 Refer to the section in this press release entitled “Non-IFRS Performance Measures” for the reconciliation of these non -
IFRS measurements to the financial statements.
2 Revenues include insignificant amounts from the sale of by-product silver.
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Eagle River – Ontario
Eagle River Operating Results Q1 2024 Q1 2023
Ore milled (tonnes)
Eagle River 51,632 48,133
Mishi - 6,150
Total ore milled 51,632 54,283
Head grade (grams per tonne, “g/t”)
Eagle River 15.5 13.5
Mishi - 2.3
Total head grade 15.5 12.2
Average mill recoveries (%)
Eagle River 97.0 96.9
Mishi - 72.5
Total gold recovery 97.0 96.3
Gold production (ounces)
Eagle River 24,899 20,159
Mishi - 332
Total gold production 24,899 20,491
Gold sold (ounces)
Eagle River 27,360 23,659
Mishi - 341
Total gold sold 27,360 24,000
Production costs per tonne milled1 573 475
Costs per oz sold
Cash margin1 ($/oz) 1,605 1,353
Cost of sales ($/oz) 1,722 1,622
Cash costs1 ($/oz) 1,227 1,192
All-in sustaining costs1 ($/oz) 1,662 1,709
During Q1 2024, Eagle River produced 24,899 ounces of gold as compared to 20,491 ounces in Q1 2023 primarily
due to a 27% increase in head grade. Eagle River head grade in Q1 2024 was 15.5 g/t compared to 12.2 g/t in Q1
2023 as processing of higher-grade material drove outperformance compared to plan. Eagle River remains on track
to achieve its 2024 guidance for feed grade of 12.2 to 13.4 g/t. The overall recovery increased to 97.0% from 96.3%.
In Q1 2024, the mill processed 51,632 tonnes throughput from the underground mine as a standalone source of
ore from Eagle River mill, as compared to 54,283 tonnes including Mishi in Q1 2023.
Cost of sales in Q1 2024 was 21% higher than the corresponding period in 202 3 primarily due to an increase in
non-cash depletion and depreciation resulting from a larger depreciable asset base , a change in inventories, an
increase in the aggregate operating costs due to increased ore development metres, waste movement,
improvements made to strengthen the technical and site management teams, and an increase in total maintenance
expenses due to contract renewals.
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Q1 2024 cash costs of $1,227 (US$910) per ounce of gold sold increased by 3%, or $35 per ounce of gold sold, as
compared to $1,192 (US$881) in Q1 2023 primarily due to higher operating costs partially offset by an increase in
ounces sold.
Q1 2024 AISC of $1,662 (US$1,232) per ounce of gold sold decreased by 3% , or $47 per ounce, as compared to
$1,709 (US$1,264) in Q1 2023 primarily due to higher ounces sold offset by higher operating costs and sustaining
capital expenditures.
Kiena Mine - Quebec
Kiena Operating Results Q1 2024 Q1 2023
Ore milled (tonnes) 45,344 42,324
Head grade (g/t) 5.9 5.9
Average mill recoveries (%) 98.2 97.9
Gold production (ounces) 8,423 7,877
Gold sold (ounces) 8,340 6,000
Production costs per tonne milled1 466 426
Costs per oz sold
Cash margin1 ($/oz) 323 321
Cost of sales ($/oz) 3,774 3,736
Cash costs1 ($/oz) 2,470 2,267
All-in sustaining costs1 ($/oz) 4,078 3,048
During Q1 2024, the Kiena mine produced 8,423 ounces of gold as compared to 7,877 ounces of gold in Q1 2023
primarily due to a 7% increase in throughput. In Q1 2024, the mill processed 45,344 tonnes of throughput as
compared to 42,324 tonnes in Q1 2023. The Kiena grade remained the same at 5.9 g/t in Q1 2024 and Q1 2023.
Gold recovery increased slightly to 98.2% compared to 97.9% in the same period in 2023. In the second quarter
we began processing higher grade material from Kiena Deep, which is expected to trend upwards over the balance
of 2024.
Cost of sales in Q1 2024 was 40% higher than the corresponding period in 2023 primarily due to an increase in
non-cash depletion and depreciation resulting from a larger depreciable asset base, increase in the aggregate
operating costs due to a 7% increase in throughput and increased staffing levels required to support commercial
production, which was declared on December 1, 2022.
Q1 2024 cash costs of $2,470 (US$1,831) per ounce of gold sold increased by 9% or $203 per ounce of gold sold
as compared to $2,267 (US$1,676) in Q1 2023 primarily due to a higher proportion of fixed operating expenses.
Q1 2024 AISC of $4,078 (US$3,023) per ounce of gold sold increased by 34% or $1,030 per ounce as compared
to $3,048 (US$2,254) in Q1 2023 primarily due to a higher proportion of fixed operating expenses and higher
sustaining mining exploration and development costs in 2024. AISC per ounce is expected to decrease throughout
2024 due to increased accessibility and processing of higher-grade ore.
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In 2024, Kiena is expected to produce 80,000 to 90,000 ounces , with production back-end weighted to the second
half of the year, at cash costs of $875 to $975 per ounce and AISC of $1,475 to $1,625 (US$1,100 to US$1,225)
per ounce. Higher annual production levels reflect a declining production contribution from the Martin Zone relative
to higher grade ore from the Kiena Deep 129L horizon. Overall development performance subsequent to quarter
end has met internal expectations, with higher grade ore expected to be processed in the second quarter.
Exploration Updates
Eagle River Underground Mine
Development and Drilling
Ongoing underground drilling of the 300 East Zone has continued to confirm the continuity of the geometry and the
consistency of the high-grade mineralization down plunge. The 300 East Zone has now been extended to the 1,600
metre-level and remains open down plunge.
In October 2023, the Company announced the discovery of a second zone within the volcanic rocks west of the
mine diorite. This new zone, namely the Falcon 311 Zone, has been delineated to extend at least 200 metres along
plunge and nearly 100 metr es along strike, with potential to expand to surface almost 900 metres along plunge,
similar to the neighbouring Falcon 7 Zone.
Surface Exploration
Initial surface drilling within the volcanic rocks 150 metres east and down dip of the previously mined 2 Zone
intersected altered volcanic rocks with quartz veining and visible gold. One hole returned 233.0 g/t Au over 0.4
metres. Due to warmer temperatures this winter, 5,000 metres from the surface drilling was deferred until next year,
which will allow more surface structural mapping, IP and 3D modelling in the interim.
2024 Exploration Program Objectives
The Company has set out the following objectives for its 2024 exploration program at Eagle River:
• Deep drilling below 300E Zone with large step-outs to provide initial indication of mineralization at depth to
optimize future drilling and development, as well as convert the large inferred resource base at 300E Zone
to the indicated category and subsequently into reserves.
• Define and extend the recently discovered Falcon 311 Zone.
• Test volcanic rocks east of the mine diorite having similar potential to the Falcon zones previously
discovered west of the mine diorite proximal to the historic 2 Zone.
• Expand the recently drilled 6 Zone in the eastern portion of the mine diorite.
Kiena
The Kiena Deep A Zone now extends continuously from 1,100 metres to approximately 1,800 metres below surface.
More recently, drilling has been focused on the South Limb and the Footwall Zones and will continue to increase
as exploration platforms become more available with the deepening of the main Kiena ramp. Growth in resource
inventory in these areas has the potential to increase ounces per vertical met re and thereby provide opportunities
for operational flexibility and increasing production from each level. Recent drilling of the Footwall Zone returned a
reported 55.6 g/t Au over 3.5 m core length (25.7 g/t Au capped, 2.0 m true width) and from the South Limb 30.3
g/t Au over 5.8 m core length (17.7 g/t Au capped, 5.0 m true width).
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Initial reconnaissance drilling at the Wish area, approximately one kilometre east of the Kiena mine from the existing
33 level development has intersected narrow, high grade gold mineralization from quartz veining within a horizon
of competent basalt, in contact with sheared ultramafic rocks. These results, combined with historic hole 4344 (65.5
g/t Au over 1.0 m core length), have identified gold mineralization proximal to the contact over 300 met res along
strike.
Surface Exploration
Most recently surface drilling has focused on the Presqu’île Zone located two kilomet res west of the Kiena Mine.
With the necessary permits secured, the excavation of an exploration ramp from surface to access the near-surface
Presqu’île Zone has been underway since Q4 2023.
2024 Exploration Program Objectives
In 2024, the Company increased the exploration program at Kiena and set the following objectives:
• Follow up on prospective areas proximal to Martin and Shawkey zones and the Wish area from the 33-level
track drift where recent drilling results have intersected shearing and quartz veining with visible gold.
• Define and extend Kiena Deep Footwall and Hanging Wall zones. Both zones have previously returned
high grade results and require further definition and expansion.
• Drill test the depth potential of the Presqu’île Zone from surface.
• Convert existing Inferred resources at the Dubuisson Zone into the Indicated category.
Q1 2024 Conference Call and Webcast
Management will host a conference call and webcast to discuss the Company’s Q1 2024 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: Thursday, May 9, 2024 at 10:00 a.m. ET
Participant Call Link: https://register.vevent.com/register/BIb3d4c24682cc47be837474d560401483
Click on the call link above and complete the online registration form. Upon registering you
will receive the dial-in info and a unique PIN to join the call as well as an email confirmation
with the details.
Webcast Link: https://edge.media-server.com/mmc/p/788zurbf
Notes: 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 under the news and events
section of the Company’s website.
The financial statements and management discussion and analysis will be available on the Company’s website at
www.wesdome.com and on SEDAR+ www.sedarplus.ca.
About Wesdome
Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in
Ontario and the Kiena mine in Quebec. The Company’s primary goal is to responsibly leverage this operating
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platform and high -quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold
producer.
For further information, please contact:
Raj Gill, SVP, Corporate Development & Investor Relations
Trish Moran, VP, Investor Relations
Phone: +1 (416) 360-3743
E-Mail: [email protected]
To receive Wesdome’s news releases by email, please register on the Company website at www.wesdome.com
Responsibility for Technical Information
The technical and scientific information relating to exploration activities disclosed in this document was prepared
under the supervision of and verified and reviewed by Frederic Langevin, Eng, Chief Operating Officer of Wesdome,
and Michael Michaud, P.Geo., Senior Vice President, Exploration and Resources of Wesdome, and each a
"Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Data verification involves data input and review by senior project geologists at site, scheduled weekly and monthly
reporting to senior exploration management and the completion of project site visits by senior exploration
management to review the status of ongoing project activities and data underlying reported results. All drilling results
for exploration projects or supporting resource and reserve estimates referenced in this document have been
previously reported in news release disclosures by the Compa ny and have been prepared in accordance with NI
43-101 - Standards of Disclosure for Mineral Projects . The sampling and assay data from drilling programs are
monitored through the implementation of a quality assurance - quality control (“QA-QC”) program designed to follow
industry best practice.
Forward Looking Statements
This news release contains “forward-looking information” which involve a number of risks and uncertainties. Often,
but not always, forward -looking statements can be identified by the use of words such as “plans”, “expects”, “is
expected”, “budget”, “schedu led”, “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 achie vements 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.
Forward-looking statements or information contained in this press release include, but are not limited to, statements
or information with respect to the Company’s expectations around: production, costs and expenses, processing,
grade and recoveries; free cash flow generation in 2024 and 2025; the success and objectives of our exploration
programs and the price of gold and other commodities. Forward-looking statements and forward-looking information
by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, perfo rmance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by such forward -looking statements or
information.
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We have made certain assumptions about the forward -looking statements and information, including assumptions
around economic parameters relating to our mineral reserves and mineral resource estimates described herein.
Even though management believes that the assumptions made , and the expectations represented by such
statements or information, are reasonable in the circumstances, there can be no assurance that the forward-looking
statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond the
Company’s control.
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, u ncertainties 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 forwar d-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 of gold sold
• Cash costs per ounce of gold sold
• Production costs per tonne milled
• Cash margin
• All-in sustaining costs
• Free cash flow, operating cash flow per share and free cash flow per share
• Adjusted net income (loss) and adjusted net income (loss) per share
• Earnings before interest, taxes, depreciation and amortization