Wesdome Reports First Quarter 2025 Financial Results
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Wesdome Gold Mines Ltd
TSX: WDO
OTCQX: WDOFF
www.wesdome.com
WESDOME REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
Toronto, Ontario – May 13, 2025 – Wesdome Gold Mines Ltd. (TSX:WDO, OTCQX:WDOFF) (“Wesdome” or the
“Company”) today announced its financial results for the three months ended March 31, 2025 (“Q1 2025”).
Preliminary operating results for Q 1 2025 were disclosed in the Company’s press release dated April 10, 2025.
Management will host a conference call tomorrow, May 14, 2025 at 10:00 a.m. ET to discuss its results. All amounts
are expressed in Canadian dollars unless otherwise indicated.
Highlights
• Strong quarterly gold production and lower costs: Consolidated gold production was 45,692 ounces, a
37% increase compared to Q1 2024. Cost of sales per ounce sold decreased by 18% to US$923, while all-
in sustaining costs (“AISC”) per ounce sold1 declined 17% to US$1,366. The average realized price of gold
sold in Q1 2025 was US$2,882 per ounce.
• Expanding margins: Gross profit increased by 365% year-over-year to $103.4 million and cash margin 1
grew by 174% to $127.6 million.
• Record quarterly net income: Net income increased to $62.5 million, or $0.42 earnings per share, a nearly
fivefold increase from Q1 2024.
• Record quarterly EBITDA : EBITDA1 increased by 193% to $119.4 million or tripled relative to the prior
year quarter mainly due to an increase in ounces sold and a higher average realized price of gold sold.
• Record net cash from operating activities and free cash flow 1: In Q1 2025, n et cash from operating
activities was $80.2 million, or $0.53 per share3, while free cash flow1 was $47.5 million, or $0.32 per share.
• Increasing liquidity: As at March 31, 2025, liquidity stood at $317.9 million, including $167.9 million in
cash and $150.0 million of undrawn full capacity available under its revolving credit facility, up from $273.1
million as at December 31, 2024.
• Announced value -driven acquisition of Angus Gold in April: The strategic addition of Angus Gold,
which is expected to close by the end of June, will quadruple Eagle River’s land package. This is a highly
logical and strategic tuck-in transaction that brings together a contiguous land package between the Eagle
River mine and mill, enhancing the Company’s ability to unlock value through the drill bit.
Anthea Bath, President and Chief Executive Officer, commented: “The first quarter marked a strong start to the year
with record revenue, net income and free cash flow, demonstrating the quality of our operating platform . As an
unhedged producer, we are fully capturing the upside from higher gold prices , which has accelerated our cash
generation and strengthened our debt-free balance sheet. We remain on track to meet full-year guidance with higher
production expected in the second half of the year.
“Eagle River delivered another strong quarter, benefiting from high-grade material from the 300 Zone and a
drawdown of stockpiles . Results reflect greater operational execution and the successful implementation of 2024
initiatives that focused on increasing drilled and developed ore inventory, reducing dilution and cost discipline. The
QA/QC phase of the global resource model initiative is progressing well in support of a 2026 technical report.
“Production at Kiena nearly doubled over the first quarter of 2024, supported by a full quarter of ore contribution
from the high-grade Kiena Deep Zone, where initial stoping began in April 2024 and mining activities have ramped
up steadily. Reconciliation continues to trend well to block model grades . First ore from the Presqu’île Zone is on
track for Q2 and the 136-level horizon is targeting completion in early Q3 – both key to reducing grade variability
and improving operational flexibility over the medium-term.
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“A key pillar of Wesdome’s long -term value creation strategy continues to be exploration, focusing on extending
mine life, unlocking near -mine growth and identifying new regional opportunities on our underexplored land
packages. Building on our history of discovery and strong conversion rates, we are adopting a long-term, more
integrated and focused approach to target generation and ranking, prioritizing high-impact zones while improving
drilling efficiency through enhanced planning, contracting and execution.”
Consolidated Financial and Operating Highlights
In 000s, except per unit and per share amounts Q1 2025 Q1 2024 % Change
Financial results
Revenue2 187,618 100,922 86%
Cost of sales 60,024 54,298 11%
Gross profit 103,374 22,243 365%
Cash margin1 127,594 46,624 174%
EBITDA1 119,359 40,675 193%
Net income 62,473 10,708 483%
Earnings per share 0.42 0.07 480%
Adjusted net income1 62,473 10,708 483%
Adjusted net income per share1 0.42 0.07 480%
Net cash from operating activities 80,156 46,502 72%
Operating cash flow per share3 0.53 0.31 71%
Net cash from (used in) financing activities 1,346 (10,169) 113%
Net cash used in investing activities (36,665) (29,452) (24%)
Free cash flow1 47,505 19,448 144%
Free cash flow per share1 0.32 0.13 143%
Average 1 USD → CAD exchange rate 1.4350 1.3488 6%
Operating results
Gold produced (ounces) 45,692 33,322 37%
Gold sold (ounces) 45,300 35,700 27%
Per ounce of gold sold1
Cost of sales4 ($/oz) 1,325 1,521 (13%)
Cost of sales4 (US$/oz) 923 1,128 (18%)
Cash costs1 ($/oz) 1,320 1,517 (13%)
Cash costs1 (US$/oz) 920 1,125 (18%)
AISC1 ($/oz) 1,960 2,226 (12%)
AISC1 (US$/oz) 1,366 1,650 (17%)
Average realized price1 ($/oz) 4,136 2,823 47%
Average realized price1 (US$/oz) 2,882 2,093 38%
Financial position
Cash 167,934 48,252 248%
Working capital5 181,341 (1,033) n/a
Total assets 816,587 636,190 28%
Current liabilities 57,217 86,209 (34%)
Total liabilities 179,986 194,546 (7%)
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Eagle River – Ontario
Eagle River, which is located 50 kilometres due west of Wawa, Ontario, consists of an underground mine (producing
since 1995) and a 1,200 tonne per day mineral processing facility.
Eagle River Operating Results Q1 2025 Q1 2024 % Change
Ore milled (tonnes) 60,010 51,632 16%
Average head grade (g/t) 15.6 15.5 1%
Average mill recoveries (%) 96.3 97.0 (1%)
Gold production (oz) 28,999 24,899 16%
Gold sold (oz) 27,700 27,360 1%
Production costs per tonne milled1 ($) 595 526 13%
Costs per ounce of gold sold ($/oz)
Cash margin1 2,841 1,606 77%
Cost of sales4 1,332 1,230 8%
Cash costs1 1,327 1,227 8%
All-in sustaining costs1 1,918 1,662 15%
Costs per ounce of gold sold (US$/oz)
Cash margin1 1,980 1,190 66%
Cost of sales4 928 912 2%
Cash costs1 925 910 2%
All-in sustaining costs1 1,337 1,232 9%
Operating Highlights
During Q1 2025, Eagle River produced 28,999 ounces of gold as compared to 24,899 ounces in Q1 2024 primarily
due to a 16% increase in throughput due to stope sequencing and dilution control. As planned, during Q1 2025,
65% of tonnes produced were from two zones: 300 and 720F.
Average head grade for Q1 2025 was in -line year-over-year at 15.6 g/t as high -grade ore from the 300 Zone was
offset by processing lower grade stockpiles built up at the end of 2024.
Mill throughput of 60,010 tonnes was 16% higher than the first quarter of 2024 as prior year initiatives to increase
drilled and developed inventories started to deliver results. Daily throughput rose 18% year-over-year to 667 tonnes
in Q1 2025 up from 567 tonnes in Q1 2024.
Unit production costs of $595 per tonne increased by 13% over Q1 2024 due to higher labour and maintenance
costs, partially offset by higher processed tonnage.
Financial Highlights
In Q1 2025, Eagle River’s revenue increased by 49% to $115. 5 million from $77.5 million in Q1 2024 due to a
higher average realized price of gold sold as the number of ounces was in-line year-over-year.
Cost of sales in Q1 2025 was $36.9 million, an increase of 10% compared to the comparative period in 2024
primarily due to a $4.5 million increase in mine and mill operating costs driven by higher throughput and increased
royalties due to more ounces produced, partially offset by a change in inventory levels of $2.2 million.
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Cash costs per ounce of gold sold were $1,327 (US$925) in Q1 2025 compared to $1,227 (US$910) in Q1 2024
due to an increase in costs of sales.
In Q1 2025, AISC per ounce of gold sold increased by 15% to $1,918 (US$1,337) as compared to Q1 2024 due to
9% higher cash costs and 17% growth in sustaining capital expenditures.
Exploration Update
Drilling Continues to Delineate 300 Zone and Expand 6 Central Zone
Drilling in the 6 Central Zone confirm ed the continuation of mineralization down -plunge, demonstrating similar
thickness and grade. Located near existing infrastructure, the zone remains open at depth and continues to offer
the opportunity to establish another new high-grade mining front at intermediate depths. The expansion of 6 Central
underscores the strong potential for further discovery, reinforcing confidence in the long-term potential of the asset
and its ability to support Eagle River’s fill-the-mill organic growth strategy.
Updated interpretation of the 300 Zone indicates the presence of a sub -parallel structure, now referred to as the
300 Fold Zone . Early assays show consistent thickness and tenor of mineralization with down-plunge continuity
remaining open. Notably, this mineralization dips at a more moderate angle than the steeply dipping main 300 Zone,
a key observation that highlights the variability of the plunge of the shoots, giving opportunities for down -plunge
continuation of domains.
Surface Exploration
As part of the ongoing surface exploration program, an induced polarization survey was completed late in 2024 that
identified multiple anomalies closely associated with known deposits, indicating the potential for additional
mineralization to the west of the diorite. These findings confirm the long -term potential at Eagle River and outlined
several targets for further exploration. Drilling of the first anomaly commenced before the end 2024, and drilling
continued in 2025 with five holes completed to date. T he program intersected minor veins and mineralization, with
two of the holes returning anomalous intercepts. These results are currently being interpreted and will be discussed
further in the future.
Eleven surface holes were drilled at Birch Vein as part of a phase one program, evaluating historic rock chip values
associated with a splay of the northwest trending Eagle River Splay shear. Several holes intersected smoky quartz
veins with strong biotite alteration up to 0.5 metre thickness. The zone is considered a high priority area due to the
similar geological context to the Eagle River Mine (diorite with shearing either side), and further drilling and
geochemical sampling is planned.
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Kiena – Quebec
Kiena is a fully permitted, integrated mining and milling operation located on a 75 km² land package in the highly
prospective Val-d’Or district of Quebec. The site features a 930-metre production shaft and a mill with a permitted
capacity of 2,040 tonnes per day.
Kiena Operating Results Q1 2025 Q1 2024 % Change
Ore milled (tonnes) 48,690 45,344 7%
Average head grade (g/t) 10.8 5.9 83%
Average mill recoveries (%) 98.9 98.2 1%
Gold production (oz) 16,693 8,423 98%
Gold sold (oz) 17,600 8,340 111%
Production costs per tonne milled1 ($) 489 466 5%
Costs per ounce of gold sold ($/oz)
Cash margin1 2,778 323 759%
Cost of sales4 1,314 2,474 (47%)
Cash costs1 1,308 2,470 (47%)
All-in sustaining costs1 2,026 4,078 (50%)
Costs per ounce of gold sold (US$/oz)
Cash margin1 1,936 240 708%
Cost of sales4 916 1,834 (50%)
Cash costs1 912 1,831 (50%)
All-in sustaining costs1 1,412 3,023 (53%)
Operating Highlights
In Q1 2025, Kiena produced 16,693 ounces compared to 8,423 ounces in Q1 2024. The 98% increase in production
is due to the inclusion of high -grade ore from Kiena Deep, which came into production in mid -April 2024. In Q1
2025, all of the processed ore was from the high -grade Kiena Deep Zone. While it was planned that Q1 would be
the lowest production quarter of the year, there was also a delay in the sequencing of some key high-grade stoping
and development areas due to lower than planned equipment availability, which is being addressed.
Average head grade in the first quarter of 2025 increased by 83% to 10.8 g/t from 5.9 g/t in the comparative quarter
of 2024 despite the inclusion of some low-grade material from a recovered stope in March.
Average mill recoveries increased to 98.9% in Q1 2025 relative to 98.2% in the comparative quarter of 2024, mainly
due to higher average grade.
In Q1 2025, the mill processed 541 tonnes per day, up from 498 tonnes per day in the first quarter of 2024.
Associated production cost s per tonne increased by 5% to $489 over Q1 2024 due to higher mining and site
administration costs.
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Financial Highlights
Revenue at Kiena increased by 209% to $71.9 million from $23.3 million in Q1 2024 , due to a 111% increase in
ounces sold and a higher average realized price per ounce of gold sold.
Cost of sales in Q1 2025 was $23.1 million, an increase of 12% over the comparative period in 2024 primarily due
to a $3.3 million increase in mine operating costs, which was driven by 7% higher throughput and a 98% increase
in ounces produced, partially offset by a $0.8 million change in inventory levels.
Cash costs per ounce of gold sold in Q1 2025 were $1,30 8 (US$912), a decrease of 47% compared to $2,470
(US$1,831) in Q1 2024 primarily due to an increase in ounces sold.
AISC per ounce of gold sold decreased by 50% in Q1 2025 to $2,026 (US$1,412) from $4,078 (US$3,023) in Q1
2024 primarily due to a 111% increase in ounces sold and decreased sustaining capital expenditures partially offset
by an increase in aggregate mine operating costs.
Exploration Update
VC Zone Drilling Now Accessible from 109-Level and 134-Level Drilling Expected in Mid-2025
Drilling of the VC Zone from the new 109-level exploration drift continued during the quarter. The VC Zone is a top
priority for exploration in 2025 as it historically returned a high -grade intercept at the base of the mineralisation
wireframe, open at dep th, and demonstrates a mineralization style analogous to Kiena Deep. Drilling to date has
not been successful due to ground conditions between the drilling bay and the VC Zone. Options are being reviewed
to extend underground development to a more optimal location, which is expected to enable more effective drilling
of both the VC Zone and nearby North Zone targets.
Drilling at Kiena’s second drill bay – the 134-level exploration drift – is scheduled to commence in late May. This
represents a significant milestone as drill holes collared from the drift will cut the Kiena Deep and Footwall
mineralization at a more optimal intersection angle, improving true width estimates and providing stronger
geostatistical support for grade continuity and resource modeling . Infill and extension drilling from the 134 -level
platform will also facilitate targeting high -grade production replacement from 2027 onwards. Drill ing from the 134-
level drift is a top priority for H2 2025.
Kiena Deep Continues to Deliver
The ongoing exploration of the Kiena Deep Footwall zones from the 127 -level ramp, along with continued testing
of the Kiena Deep A Zones through infill drilling from the 127 -level remuck, continues to confirm the continuity of
the zone with promising results. Initial interpretations suggest that additional lenses may be delineated with further
drilling. The drill information is being incorporated into an updated lithostructural model and an updated mineral
resource, both of which will form the basis for the 2026 technical report.
33-Level Accessible for Drilling, Delineation of Presqu'île to Start
Rehabilitation of the 33 -level development to the east has allowed the establishment of more optimal drilling
platforms for the testing of Dubuisson, Duchesne and other 33 -level targets. Exploration drilling on level 33 in the
first quarter targeted the lateral extensions and down -plunge continuation of the No.22 Shawkey Zone. Holes
confirmed the continuity of the porphyry dyke associated to this zone with further drilling planned for 2025.
At Presqu'île, ramp development continues to advance and access to the Presqu’île orebody is well established.
Exploration and delineation drilling programs have been designed and surface drilling planned for Q2 2025.
Underground delineation drilling commen ced in early Q2 2025. In addition to delineation of the orebody ahead of
mining, exploration drilling will test extensions of the orebody as it remains open down -plunge.
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Presqu’île Project Update
First mine production from the Presqu’île orebody is expected in Q2 2025, which will allow for stockpiling prior to
processing in H2 2025. The bulk sample permit has been received and the mining permit is expected in the fourth
quarter. Infrastructure long-lead items have also been secured with crusher installation planned for Q3 and main
fan installation in 2026.
Conference Call and Webcast
Management will host a conference call and webcast to discuss the Company’s first quarter 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 14, 2025 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/291203613
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 financial statements and management’s discussion and analysis will be available on the Company’s website
at www.wesdome.com and on SEDAR+ www.sedarplus.ca the evening of Tuesday, May 13, 2025.
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 its operating platform
and high -quality brownfield and greenfield exploration pipeline to build a growing value -driven Canadian gold
producer.
Raj Gill Trish Moran
SVP, Corporate Development & Investor Relations VP, Investor Relations
Phone: +1.416.360.3743 Phone: +1.416.564.4290
E-Mail: [email protected] E-mail: [email protected]
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 Guy Belleau, P. Eng, Chief Operating Officer of the Company,
a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
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
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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 stronger expected production in the second half of 2025; the
Company’s position to deliver o n its full -year guidance; the timing of the release of a Technical Report for Eagle
River; the expected reduction in grade variability and improvement in operational flexibility at Kiena; the details,
components and approaches as part of the Company’s long-term value creation strategy; the exploration and drilling
prospects and future discovery potential of the 6 Central Zone at Eagle River; the exploration and drilling prospects
of the 300 Zone at Eagle River; the potential for additional mineralization to the west of the diorite at Eagle River;
exploration and drilling prospects of the VC Zone at Kiena; options to extend underground development at the VC
Zone and North Zone targets at Kiena; the expected commencement of drilling at Kiena’s second drill bay ; the
drilling and exploration prospects of the Kiena Deep Footwall zones and the potential for additional lenses to be
delineated; the planned drilling from the 33-level development at Kiena; the planned surface drilling of the Presqu’île
orebody; the com ponents and objectives of the exploration drilling of the Presqu’île orebody; the timing of the
expected first mine production from the Presqu’île orebody; the expected timing of the issuance of mining permits
for the Presqu’île orebody; and the expected timing of the crusher installation and main fan installation at Presqu’île.
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 c ause the actual results, performance 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.
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 news release 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 and production costs per tonne milled
• Cash margin and cash margin per ounce of gold sold
• Sustaining capital and growth capital
• AISC and AISC per ounce of gold sold
• Free cash flow and free cash flow per share
• Adjusted net income (loss) and adjusted net income (loss) per share
• EBITDA