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, 202 6, 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 30 th highlighting the
Company's evolving exploration strategy and growing pipeline of targets across its large prospective land
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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 $49 million to repurchase shares in March and with the first phase of
our buyback now complete, we are pleased to announce a second tranche of up to 3 million shares . This reflects
our conviction in Wesdome's intrinsic value and our continued commitment to delivering shareholder returns.
"Looking ahead, our updated technical reports remain on track, with a news release expected in late June outlining
updated life -of-mine plans at both operations based on proven and probable reserves and illustrating upside
potential from ongoing exploration and optimization initiatives. We closed the quarter with an exploration teach -in
designed to give the market a look at the substantial opportunity within our large land packages. With over 220
targets, many of which are in the higher -probability categories, it is clear there is a lot more to discover. The full
picture is coming into focus, and we are looking forward to conveying the long -term vision we have for our assets
at the end of June."
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Consolidated Financial and Operating Highlights
In 000s, except per unit and per share amounts Q1 2026 Q1 2025
Financial results
Revenues2 299,793 187,618
Cost of sales 77,900 60,024
Gross profit 194,814 103,374
Operating cash margin1 221,893 127,594
EBITDA1 211,533 119,359
Net income 118,882 62,473
Earnings per share 0.79 0.42
Adjusted net income1 118,882 62,473
Adjusted net earnings per share1 0.79 0.42
Net cash from operating activities 161,821 80,156
Operating cash flow per share3 1.08 0.53
Net cash used in financing activities (48,386) 1,346
Net cash used in investing activities (36,670) (36,665)
Free cash flow1 125,862 47,505
Free cash flow per share1 0.84 0.32
Average USD/CAD exchange rates 1.3715 1.4350
Operating results
Gold produced (ounces) 45,303 45,692
Gold sold (ounces) 45,600 45,300
Per ounce of gold sold1
Cost of sales4 ($/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$/oz) 4,784 2,882
Financial position
Cash 430,630 167,934
Working capital5 408,677 181,341
Total assets 1,242,264 816,587
Current liabilities 81,232 57,217
Total liabilities 222,415 179,986
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Eagle River (Ontario, Canada)
Operating and Financial Results
Q1 2026 Q1 2025
Eagle River Operating Results
Ore milled (tonnes) 71,731 60,010
Head grade (g/t) 12.5 15.6
Average mill recoveries (%) 96.7 96.3
Gold production (oz) 27,846 28,999
Gold sold (ounces) 27,350 27,700
Production costs per tonne milled1 ($) 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
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In 000s, except per unit and per share amounts Q1 2026 Q1 2025
Gold revenue from mining operation 178,635 115,450
Cost of sales
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.
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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.
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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
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In 000s, except per unit and per share amounts Q1 2026 Q1 2025
Gold revenue from mining operation 120,545 71,925
Cost of sales
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
Sustaining mine exploration and development 7,403 7,357
Sustaining mine capital equipment 1,801 1,369
Sustaining tailings management facility 471 575
Corporate and general allocation 4,559 3,323
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