Wesdome Reports Strong Second Quarter 2026 Results and Reaffirms Full-Year Production and Cost Guidance
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Wesdome Gold Mines Ltd
TSX: WDO
OTCQX: WDOFF
www.wesdome.com
WESDOME REPORTS STRONG SECOND QUARTER 2026 RESULTS AND
REAFFIRMS FULL-YEAR PRODUCTION AND COST GUIDANCE
Toronto, Ontario – August 13, 2026 – Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX: WDOFF) (“ Wesdome”
or the “Company”) today announced its financial results for the three and six months ended June 30, 2026 (“ Q2
2026” and “H1 2026”). Preliminary operating results for Q 2 2026 were disclosed in the Company’s press release
dated July 13, 2026. Management will host a webcast tomorrow morning, August 14, 2026 at 10:00 a.m. ET to
discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q2 2026 Highlights
• Strong safety performance: High Potential Incident Frequency Rate declined 69% year-over-year to 0.67,
reflecting the strong commitment to safety across the organization . Total Recordable Incident Frequency
Rate of 1.67 in Q2 2026.
• Production and costs : Consolidated gold production for the second quarter was 4 3,824 ounces, a 2%
increase compared to Q2 2025. Q2 2026 cash costs per ounce of gold sold1 increased by 45% to US$1,342
and all-in sustaining costs (“AISC”) per ounce of gold sold1 increased by 15% to US$1,763 compared to Q2
2025.
• Revenue growth: Consolidated Q2 2026 revenue increased by 28% to $267 million compared to Q2 2025.
The average realized price of gold sold was US$4,365 per ounce in Q2 2026.
• Expanding margins : Gross profit increased by 22% year -over-year in Q 2 2026 to $1 61 million and
operating cash margin1 grew by 23% to $184 million.
• Net income: Q2 2026 net income of $94 million, or $0.64 earnings per share, an increase of $11.3 million
compared to Q2 2025.
• EBITDA1: EBITDA1 was $170 million in Q2 2026, a 23% increase relative to Q2 2025.
• Cash flow1: Q2 2026 net cash from operating activities was $88 million, or $0.59 per share3, with free cash
flow1 of $42 million, or $0.28 per share. Free cash flow1 decreased to $42 million, or $0.28 per share, from
$53 million, or $0.35 per share, in Q2 2025 driven by higher net income offset by a combined increase in
tax payments, receivables, supplies inventories, mine exploration and development and capital equipment
purchases.
• Strong liquidity position: As at June 30, 2026, the Company had liquidity of $746 million, including $391
million in cash and US$250 million of undrawn full capacity available under its revolving credit facility.
• Expanded capital returns: The Company is delivering capital returns to shareholders while preserving
flexibility to act opportunistically, within a framework that continues to prioritize fully funded organic
growth:
o Dividend declaration: On June 24, the Company declared a quarterly cash dividend of $0.0306
per common share or $0.1224 per common share on an annualized basis.
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o Share buyback expansion: Through Q2 2026, the Company purchased and cancelled 3.2 million
common shares for approximately $ 82 million at an average price of $2 5.66 per share. On June
24, 2026, the Company announced it was expanding its normal course issuer bid, authorizing the
purchase of an incremental 3 .0 million shares, bringing the total aggregate number of shares the
Company intends to repurchase up to approximately 9.0 million shares or 6% of its public float. In
July 2026, the Company repurchased an additional 1.8 million shares for approximately $46 million.
The total number of shares purchased at the end of July was 7.8 million shares.
• Updated technical reports confirm extended mine lives and growth potential at Ea gle River and
Kiena: Filed independent NI 43 -101 technical reports for Eagle River and Kiena, confirming 1.4 million
ounces of consolidated proven and probable reserves and 8-year reserve-based mine plans through 2033
at both operations, with significant organic growth potential from resource conversion and exploration
targets.
• Kiena ramp breakthrough achieved, enhancing operational flexibility : Kiena’s new ramp reached
surface in Q2 2026, establishing continuous ramp access that boosts underground materials and equipment
flexibility and enables the ongoing ventilation expansion project, expected to double mine ventilation
capacity to support production growth at Kiena.
• Discovery in Kiena Deep, Norbenite Footwall: As reported in the Company’s press release dated June
22, 2026, d rilling in Kiena Deep discovered a n ew parallel zone beyond the Norbenite Fault, previously
interpreted as barren footwall, highlighted by 6.9 g/t over 42.1 metres, confirming an entirely new
mineralized corridor, called the Norbenite Footwall, spanning at least 150 vertical metres. This discovery
represents a significant new exploration opportunity for future resource growth at Kiena.
Anthea Bath, President and Chief Executive Officer, commented: "Q2 2026 demonstrated the operational
momentum we have been building across both assets, giving us the confidence to reaffirm our full year production
and cost guidance.
"At Eagle River, the integration of global model ore into our fill -the-mill strategy is now a structural part of how we
run the mine. This approach is driving higher mill throughput and, as we move through the second half of the year ,
we expect grade improvement, keeping Eagle River firmly on track to deliver its full year production and cost targets.
"Kiena's performance this quarter was a genuine inflection point. Production increased 28% year over year with unit
costs in line with plan. In July we brought the first Presqu'île stope online, successfully adding another mining front
beyond Kiena Deep. Operating across multiple areas of the mine provides greater flexibility and reduces grade
variability, while ongoing operational improvements and optimization initiatives support a steady ramp -up in
production over time.
“Overall, it was a strong quarter with higher margins and robust EBITDA. Free cash flow was negatively impacted
by several items, most notably the timing of a $21 million prepaid tax installment. Based on our current forecasts,
we expect quarterly free cash flow to increase significantly over the balance of the year.
"Perhaps most importantly for investors, there is greater visibility into Wesdome's long -term value proposition. Our
June technical report update established eight -year reserve mine lives at both mines, providing a foundation for
production and cash flow while preserving significant upside from operational optimization, resource conversion
and exploration. Together with our strong balance sheet, we have the flexibility to invest in organic growth while
also returning capital through our quarterly dividend and expanded share buyback program. We have two long-life
assets, a clear pathway to grow production, and emerging district-scale opportunities around both operations. Our
focus now is on converting that potential into sustainable growth and increasing value per share ."
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Consolidated Financial and Operating Highlights
In 000s, except per units and per share amounts
Q2 2026 Q2 2025 H1 2026 H1 2025
Financial results Revenues² 266,764 208,548 566,557 396,166
Cost of sales 82,332 59,181 160,232 119,205
Gross profit 161,213 132,172 356,027 235,546
Operating cash margin¹ 184,432 149,367 406,325 276,961
EBITDA¹ 169,675 138,399 381,908 257,758
Net income 93,955 82,696 212,837 145,169
Earnings per share 0.64 0.55 1.43 0.97
Adjusted net income¹ 96,271 78,856 215,608 141,329
Adjusted net income per share¹ 0.65 0.52 1.45 0.94
Net cash from operating activities 87,538 100,920 249,359 181,076
Operating cash flow per share³ 0.59 0.67 1.67 1.21
Net cash (used in) from financing activities (81,766) (1,303) (130,152) 43
Net cash used in investing activities (45,475) (79,987) (82,145) (116,652)
Free cash flow¹ 41,772 52,924 167,634 100,428
Free cash flow per share¹ 0.28 0.35 1.13 0.67
Average USD/CAD exchange rates 1.3838 1.3841 1.3777 1.4095
Operating results Gold produced (ounces) 43,824 42,781 89,127 88,473
Gold sold (ounces) 44,100 45,900 89,700 91,200
Per ounce of gold sold¹ Cost of sales⁴ ($/oz) 1,867 1,289 1,786 1,307
Cost of sales⁴ (US$/oz) 1,349 932 1,297 927
Cash costs¹ ($/oz) 1,857 1,285 1,775 1,302
Cash costs¹ (US$/oz) 1,342 929 1,288 924
AISC¹ ($/oz) 2,439 2,115 2,382 2,038
AISC¹ (US$/oz) 1,763 1,528 1,729 1,446
Average realized price¹ ($/oz) 6,040 4,539 6,305 4,339
Average realized price¹ (US$/oz) 4,365 3,279 4,576 3,078
Financial position Cash 390,927 187,564 390,927 187,564
Working capital⁵ 402,149 199,273 402,149 199,273
Total assets 1,245,097 932,996 1,245,097 932,996
Current liabilities 68,190 71,166 68,190 71,166
Total liabilities 219,789 197,577 219,789 197,577
1. Refer to “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
2. Revenue includes $0.4 million for Q2 2026, $0.2 million for Q2 2025, $1.0 million for H1 2026 and $0.4 million for H1 2025, f rom the sale
of by-product silver.
3. Operating cash flow per share is calculated by dividing net cash from operating activities by basic weighted average number o f common
shares.
4. Cost of sales per ounce sold is calculated by dividing the cost of sales by the number of ounces sold.
5. Working capital is the sum of current assets less current liabilities on the statements of financial position.
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REVIEW OF OPERATING MINES
Eagle River (Ontario, Canada)
Operating and Financial Results
Q2 2026 Q2 2025 H1 2026 H1 2025
Eagle River operating results
Ore milled (tonnes) 72,439 48,623 144,170 108,633
Head grade (g/t) 9.7 16.9 11.1 16.2
Average mill recoveries (%) 96.2 96.7 96.5 96.5
Gold production (oz) 21,798 25,612 49,644 54,611
Gold sold (ounces) 22,300 27,000 49,650 54,700
Production costs per tonne milled¹ ($) 631 626 609 597
Costs per oz of gold sold ($/oz)
Operating cash margin¹ 3,770 3,332 4,377 3,083
Cost of sales 2,225 1,211 1,920 1,272
Cash costs¹ 2,218 1,207 1,911 1,268
All-in sustaining costs¹ 2,800 1,929 2,471 1,924
Costs per oz of gold sold (US$/oz)
Operating cash margin¹ 2,724 2,407 3,177 2,188
Cost of sales 1,608 875 1,395 903
Cash costs¹ 1,603 872 1,386 899
All-in sustaining costs¹ 2,023 1,394 1,794 1,365
1. Refer to the section entitled “Non -IFRS Performance Measures” for the reconciliation of non -IFRS measurements to the financial
statements.
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In $000s, except per unit and per share amounts Q2 2026 Q2 2025 H1 2026 H1 2025
Gold revenue from mining operation 133,537 122,551 312,172 238,001
Cost of sales
Mining 20,741 16,439 38,069 33,091
Processing 7,943 6,535 15,059 12,930
Site administration and camp costs 16,769 12,087 30,972 24,121
Change in inventories 247 (4,626) 3,628 (5,140)
Royalties 3,912 2,265 7,600 4,595
49,612 32,700 95,328 69,597
Silver revenue (148) (114) (471) (255)
Total cash costs 49,464 32,586 94,857 69,342
Cost of sales per ounce of gold sold 2,225 1,211 1,920 1,272
Cash cost per ounce of gold sold1 2,218 1,207 1,911 1,268
Operating cash margin1 84,073 89,965 217,315 168,659
All-in sustaining costs1
Sustaining mine exploration and development 6,098 8,850 14,720 16,417
Sustaining mine capital equipment 4,948 6,676 6,788 11,710
Sustaining tailings management facility 80 499 149 624
Corporate and general allocation 1,712 3,240 5,921 6,563
Payment of sustaining lease liabilities 128 233 253 569
62,430 52,084 122,688 105,225
All-in sustaining costs per ounce of gold1 2,800 1,929 2,471 1,924
Cost of sales per tonne milled1 685 673 661 641
Production costs per tonne milled1 631 626 609 598
Total capital expenditures 15,530 16,386 27,011 29,114
1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements
Operating Highlights
Eagle River gold production decreased by 15% to 21,798 ounces in Q2 2026 from 25,612 ounces in Q2 2025. The
decrease was in line with the Company’s plan in Q2 2026 and reflects the blending of Global Model ore as part of
Eagle River’s fill -the-mill strategy, which increased tonnes processed by 49%, partly offset by a 43% decrease in
average grade. The lower average grade reflects the addition of economic ounces and tonnes from the Global
Model and mine plan sequence in the quarter, which are additive to ounces from Eagle River’s high -grade ore.
Eagle River produced 49,644 ounces in the first half of 2026, a decrease of 9% compared to 54,611 ounces in the
first half of 2025. In the beginning of the first half of 2026, Eagle River commenced processing Global Model ore as
part of its fill-the-mill strategy, which drove a 33% increase in tonnes processed while reducing average grade by
43% in H1 2026 compared to H1 2025. In the second half of 2026, Eagle River will continue to incorporate Global
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Model ore into the mine plan sequence, resulting in increased mill throughput, expecting average grades to improve
relative to Q2 2026. Eagle River is on track to achieve its full-year production guidance for 2026.
Mill throughput of 72,439 tonnes in Q2 2026 was 49% higher than the second quarter of 2025 reflecting higher ore
and mill availability. Mill throughput of 144,170 tonnes during the first half of 2026 was 33% higher when compared
to the same period in 2025 as the initiatives to continue t o improve mine and mill productivity are yielding more
consistent tonnage delivery to leverage the capacity of the mill complex.
Driven by a 49% increase in tonnes processed in Q2 2026, production costs increased slightly to $631 per tonne
from $626 per tonne in Q2 2025, despite inflationary pressure on wages, supplies, fuel and insurance that have
been broadly felt across the industry. Q2 2026 costs also included one -time costs which impacted cost per tonne
by $45, whereas Q2 2025 benefited from higher i nventory levels, reducing the cost per tonne by $95. Production
costs per tonne in the first six months of 2026 increased by 2% to $609 per tonne compared to $598 per tonne in
the first six months of 2025, reflecting similar factors. Production costs are expected to start declining in the second
half of the year as several cost items incurred in Q2 2026 are not expected to recur and the cost benefits of the fill-
the-mill strategy become more apparent as mill throughput continues to increase and existing fixed costs are better
leveraged.
Financial Highlights
In Q2 2026, Eagle River’s gold revenue increased by 9% to $133.5 million from $122.6 million in Q2 2025 due to
the higher average realized price of gold sold, offset by a 17% decrease in ounces sold. During the first half of 2026,
Eagle River’s gold revenue increased by 31% to $312.2 million from $238.0 million in the same period in 2025 due
to the 49% increase in the average realized price of gold sold, partly offset by a 9% decrease in ounces sold.
Cost of sales in Q2 2026 was $49.6 million, an increase of 52% relative to the comparative period in 2025 primarily
due to a $5.7 million increase in mine and mill operating costs due to one -time costs, inflationary impacts,
contractors and maintenance cos ts, costs associated with increased royalties mainly due to higher average gold
price, and a change in inventory levels of $4.9 million.
Cost of sales for the first half of 2026 totaled $95.3 million, a 37% increase compared to the same period in 2025.
This was principally driven by a $7.1 million increase in mine and mill operating costs due to similar factors described
above and increased royalties from higher gold prices, further elevated by a $8.8 million change in inventory levels.
Cash costs per ounce of gold sold increased by 84% to $2,218 (US$1,603) per ounce sold in Q2 2026 from $1,207
(US$872) per ounce sold in Q2 2025 due to a 17% decrease in ounces sold and a 6% increase in throughput costs
due to one-time costs, inflationary impacts, contractors and maintenance costs. Similarly, cash costs per ounce of
gold sold increased by 51% to $1,911 (US$1,386) per ounce sold in the first half of 2026 from $1,268 (US$899) per
ounce sold in the comparative period in 2025 due to increased cost of sales and a 9% decrease in ounces sold.
In Q2 2026, AISC per ounce of gold sold increased by 45% to $2,800 (US$2,023) from $1,929 (US$1,394) in Q2
2025, due to the increase in cash costs per ounce sold partially offset by a 31% reduction in sustaining capital
expenditures due to timing and a 17% decrease in ounces sold.
During the first half of 2026, AISC per ounce of gold sold increased by 28% to $2,471 (US$1,794) per ounce sold
from $1,924 (US$1,365) per ounce sold in the same period in 2025, due to higher cash cost per ounce sold partially
offset by a 25% reduction in sustaining capital expenditures due to timing and a 9% decrease in ounces sold. In H2
2026, the rate of capital expenditures is expected to increase as Eagle River accelerates deferred development
and capital projects including the installation of a new ca mp and tailings management area construction. Higher
ounce production is expected to offset higher sustaining capex and result in lower AISC per ounce sold in the
second half of the year. Based on the current forecast for the balance of the year, Eagle Riv er’s AISC per ounce
sold is expected to fall within its full-year guidance range of $1,525 – $1,675 per ounce sold.
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Exploration Update
Expanding the 6 Central Zone
The 6 Central Zone is considered a priority exploration area given its intermediate depth, proximity to existing mine
infrastructure and geological similarities to the 300 Zone at comparable elevations. The zone remains underdrilled
and open down plunge and laterally. The 2026 program is designed to further define the geometry and continuity of
the high-grade mineralization and test its down-plunge extension, with approximately 9,600 metres planned for the
year. Recent results continue to support the interpretation that the high -grade trend extends at depth, and drilling
will continue in the second half of the year. Continued success could support future resource growth and provide
an additional source of high-grade ore at depths shallower than those currently being mined in the 300 Zone.
Growing the 800 Zone
Growth drilling continued during the quarter. Shears with quartz veining were logged in holes in -filling a gap in
drilling that coincided with potential up-plunge continuation of mineralization. The logging observations support the
structural and geologic continuation of the zone, with assays pending. Holes designed to test the down -plunge
continuation were deferred until later in the year. The 2026 exploration program is targeting to drill approximately
10,000 metres in the 800 Zone.
Growth Drilling in 700 Zone
Growth drilling evaluating the continuation of mineralization in the shallow parts of the mine, 350 Level, returned
assays with thickness and grades confirming continuation of the mineralization. Infill drilling as part of conversion
continues into the next quarter. Assays from drilling program are pending.
Global Model
The Global Model is a dynamic exploration framework that is continuously updated as new geological, drilling and
other technical information becomes available. New prospective areas are added for both conversion and growth
as the geological understanding o f the Eagle River system evolves, while areas that have been sufficiently drill -
tested, or are no longer considered priorities based on technical or geology considerations, are reprioritized.
The contribution of Global Model areas to the 2025 Mineral Reserve additions demonstrates how this systematic
process can progressively convert previously unrecognized or underutilized areas of the Eagle River mineralized
system into mineable inventory.
Global Model targets are integrated into Eagle River’s ongoing underground drilling programs, with typically two to
three of the mine’s four underground exploration drill rigs testing these areas. During the quarter, drilling continued
across several Global Model targets, including conversion drilling of Global Model Target 19 in the deeper portions
of the 300 Zone. Results continue to refine the geological interpretation and identify opportunities for resource
growth and conversion.
Surface Exploration
Surface holes tested an area of mineralization to the east of No Name Lake (NNL), where historic widely spaced
drill holes intersected mineralization. The surface holes were designed to infill and confirm continuation of NNL
mineralization. Results will be reported in the last quarter.
At North Diorite, a gradient array IP geophysical survey was completed, aimed at mapping out continuation of quartz
veins and sulphide rich horizons highlighted by previous work. Survey results are expected in the third quarter.
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At Dorset Main, Dorset West, and Cameron Iron Formation, drilling for geometallurgical sampling for leach and
recovery test work, and deportment studies, continued as part of overall deposit resource evaluation.
Helicopter-supported scout drilling was completed at Magnacon East, evaluating the sub-surface potential of quartz
veins that returned high -grade assays from rock chip samples collected during semi -regional structural mapping
program executed in 2025. The area is located approximately 3 km east of the historic Magna con mine.
Helicopter-supported scout drilling was also completed at Feather River, located approximately 8km east of
Magnacon mine. The holes were designed to evaluate the continuation of quartz veins and sulphide rich horizons
highlighted by previous work which included geologic mapping, local IP surveys, and scout drilling which returned
anomalous intercepts.
Surface drilling continued at Mishi open pit, evaluating the down -plunge potential of mineralization, and expanding
the continuation of near surface mineralization as part of overall resource evaluation. Results are expected to be
reported in Q4.
Final products of AI prospectivity mapping were also received during the quarter. ALS Canada Ltd. leveraged data
analytics, machine learning and numeric modelling to reprocess and level Eagle River’s geophysical, geologic and
geochemical data and incorpora te the information into their AI related workflow. The prospectivity work has
highlighted five new areas that have not been previously considered by the team, further expanding the pipeline of
regional exploration opportunities (see Figure 1 below).
Existing high priority work areas represent a combination of high grade (Entirety of Eagle River Deformation Zone,
Eagle River Splay/North Diorite) and bulk tonnage lower grade opportunities (Mishibishu – East and West of mines,
Dorset East and West, and Central block of Cameron Lake Iron Formation). The prospectivity mapping has flagged
an observation that the far east Eagle River Deformation Zone is of similar size to the Eagle River Mine area, and
as such warrants priority focus.
The five new prospectivity areas of interest include Feather River South – hosting two areas with minimal surface
work and understanding; Mishi West – at the convergence of Iron Lake Deformation Zone; North of Mishi – in a
strain shadow of intrusion and possible second thrust zone similar to the Mishibishu Deformation Zone; Rook Lake
West – in strain shadow west of Mishibishu Lake Intrusion, where Dorset Deformation Zone may be trending;
Southeast portion of Cameron Lake Iron Formation – a complex area with favorable host lithologies and structure.
Follow-up field programs to advance the existing high priority work areas, and the five new prospectivity areas of
interest will be designed, ranked and scheduled during workshops planned for the third quarter, with the results
incorporated into the Company's broader exploration targeting and prioritization process.