Wesdome Reports Third Quarter 2024 Financial Results
Wesdome Gold Mines Ltd
TSX: WDO
OTCQX: WDOFF
www.wesdome.com
WESDOME REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS
Toronto, Ontario – November 6, 2024 – Wesdome Gold Mines Ltd. (TSX:WDO , OTCQX:WDOFF) (“Wesdome”
or the “Company”) today announced its results for the three and nine months ended September 30, 2024 (“Q 3
2024” and “YTD 2024”). Preliminary operating results for Q3 2024 and YTD 2024 were disclosed in the Company’s
press release dated October 17, 2024. Management will host a conference call tomorrow, November 7, 2024 at
10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q3 2024 Highlights
• Consolidated gold production was 45,109 ounces, a 62% increase over the prior year quarter, at cost of
sales per ounce sold of $1,7831,4 (US$1,308), cash costs per ounce sold1 of $1,214 (US$890) and all -in
sustaining costs (“AISC”) per ounce sold1 of $1,920 (US$1,408). The average realized price of gold sold
was $3,420 (US$2,508) per ounce.
• Net income increased to $ 39.0 million, or $0.26 earnings per share, an increase of $ 42.2 million from the
corresponding quarter in 2023 and $9.9 million, or $0.07 earnings per share, from Q2 2024.
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)1 increased to $84.6 million or by
more than 6.5 times relative to the prior year quarter mainly due to an increase in ounces sold, a higher
average realized price of gold sold and lower cash costs.
• Net cash flow from operating activities increased to $61.0 million, or $0.41 operating cash flow per share1,3,
$15.9 million higher than the prior year quarter mainly due to a higher average realized price of gold sold.
• Cash of $82.5 million has nearly doubled since year end, resulting in a vailable liquidity at the end of the
third quarter of $232.5 million including cash and $150.0 million of undrawn full capacity available under
the Company’s revolving credit facility.
• Free cash flow 1 increased to $30.8 million, or $0.21 per share, compared to $10.7 million, or $0. 07 per
share, in the corresponding period in 2023 mainly due to higher average realized price of gold sold, partially
offset by an increase in capital expenditures.
• Consolidated 2024 production guidance range has been narrowed to between 166,000 and 176,000
ounces of gold, while increasing cash costs per ounce sold to $1,225 to $1,300 and AISC per ounce sold1
to $1,975 to $2,100 (US$1,445 to US$1,525).
• During the quarter, the Company announced the appointments of Guy Belleau as Chief Operating Officer
and Ronald “Jono” Lawrence as Senior Vice President, Exploration and Resources. Subsequent to quarter
end, Philip C. Yee was appointed Independent Director and Chair of the Audit Committee .
Anthea Bath, President and Chief Executive Officer, commented: “Wesdome delivered a strong third quarter with
sequential improvement over the first two quarters of the year. Higher production at lower costs have led to strong
operating cash flow and another free cash flow1 record, with notable improvements seen across most performance
metrics compared to the prior year quarter. Our dedicated teams at Eagle River and Kiena have been instrumental
in this success, while upholding our commitment to health, safety, and environmental stewardship .
“Wesdome’s financial position has strengthened considerably . Compared to year end , o ur cash position has
doubled, we have eliminated our bank debt and increased our available liquidity by nearly $ 80 million. We will
continue to use our financial strength to de-risk future mine plans by accelerating the rate of capital spend on mine
development and exploration and making additional infrastructure investments to support our fill the mill strategy.
“Looking ahead, preliminary plans for 2025 continue to de -risk our medium -term outlook and point to growing
production levels at lower costs relative to this year.”
- 2 -
Consolidated Financial and Operating Highlights
In 000s, except per unit and per share amounts Q3 2024 Q3 2023 YTD 2024 YTD 2023
Financial results
Revenue2 146,852 69,696 375,573 230,952
Cost of sales 76,512 71,450 229,301 216,916
Gross profit (loss) 70,340 (1,754) 146,272 14,036
Cash margin1 94,635 22,233 217,498 85,363
EBITDA1 84,600 12,933 193,138 61,077
Net income (loss) 38,999 (3,248) 78,842 (8,607)
Earnings (loss) per share 0.26 (0.02) 0.53 (0.06)
Adjusted net income (loss)1 39,196 (2,573) 79,039 (4,330)
Adjusted net income (loss) per share1 0.26 (0.02) 0.53 (0.03)
Net cash from operating activities 60,976 45,076 164,561 64,175
Operating cash flow per share1,3 0.41 0.30 1.10 0.44
Net cash from (used in) financing activities 449 (2,370) (39,050) 7,367
Net cash used in investing activities (29,607) 33,191 (84,367) (73,145)
Free cash flow1 30,838 10,672 78,723 (14,204)
Free cash flow per share1 0.21 0.07 0.53 (0.10)
Average 1 USD → CAD exchange rate 1.3637 1.3414 1.3603 1.3456
Operating results
Gold produced (ounces) 45,109 27,760 122,466 87,120
Gold sold (ounces) 42,900 27,000 118,600 89,000
Average realized price1 ($/oz) 3,420 2,579 3,163 2,592
Average realized price1 (US$/oz) 2,508 1,923 2,325 1,926
Per ounce of gold sold1
Cost of sales1,4 ($/oz) 1,783 2,646 1,933 2,437
Cost of sales1,4 (US$/oz) 1,308 1,973 1,421 1,923
Cash costs1 ($/oz) 1,214 1,755 1,329 1,633
Cash costs1 (US$/oz) 890 1,308 977 1,214
AISC1 ($/oz) 1,920 2,711 2,032 2,293
AISC1 (US$/oz) 1,408 2,021 1,493 1,704
Financial position
Cash 82,515 31,582 82,515 31,582
Working capital 69,413 (18,839) 69,413 (18,839)
Total assets 684,736 605,364 684,736 605,364
Current liabilities 61,062 87,577 61,062 87,577
Non-current liabilities 110,269 93,404 110,269 93,404
Total liabilities 171,331 180,981 171,331 180,981
1 Refer to the section in this press release entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
2 Revenue includes insignificant amounts from the sale of by-product silver.
3 Operating cash flow per share is calcated by dividing net cash from activities by the weighted average number of shares.
4 Costs of sales per ounce of gold sold is calculated by dividing the cost of sales by the number of ounces sold.
- 3 -
Eagle River – Ontario
Eagle River Operating Results Q3 2024 Q3 2023 YTD 2024 YTD 2023
Ore milled (tonnes)
Eagle River 57,984 55,153 162,168 167,958
Mishi - - - 6,150
Total ore milled 57,984 55,153 162,168 174,108
Head grade (grams per tonne, "g/t")
Eagle River 13.1 11.9 13.4 12.1
Mishi - - - 2.3
Total head grade 13.1 11.9 13.4 12.1
Average mill recoveries (%)
Eagle River 97.0 96.7 96.8 96.7
Mishi - - - 72.5
Total gold recovery 97.0 96.7 96.8 96.7
Gold production (oz)
Eagle River 23,688 20,391 67,859 63,395
Mishi - - - 332
Total gold production 23,688 20,391 67,859 63,727
Gold sold (oz)
Eagle River 21,340 19,600 66,200 65,759
Mishi - - - 341
Total gold sold 21,340 19,600 66,200 66,100
Production costs per tonne milled1 ($) 545 503 570 485
Costs per oz sold ($/oz)
Cost of sales 2,042 2,046 1,972 1,912
Cash costs1 1,449 1,442 1,422 1,380
All-in sustaining costs1 2,318 2,467 2,107 2,039
Costs per oz sold (US$/oz)
Cost of sales 1,497 1,525 1,449 1,421
Cash costs1 1,062 1,075 1,046 1,025
All-in sustaining costs1 1,700 1,839 1,549 1,516
During Q3 2024, Eagle River produced 23,688 ounces of gold as compared to 20,391 ounces in Q3 2023 primarily
due to a 10% increase in head grade and 5% increase in throughput. For the first nine months of 2024, Eagle River
produced 67,859 ounces of gold driven by an 11% increase in head grade, as compared to 63,727 ounces in the
first nine months of 2023, which included the Mishi deposit. Eagle River head grade in the first nine months of 2024
was 13.4 g/t compared to 12.1 g/t in the first nine months of 2023.
In Q3 2024, Eagle River generated $73.6 million in revenue from the sale of 21,340 ounces of gold compared to
$50.5 million from the sale of 19,600 ounces in Q3 2023. Revenue increased by 46% compared to Q3 2023
primarily due to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine
months of 2024 Eagle River generated $207.0 million in revenue from the sale of 66,200 ounces of gold as
compared to $170.6 million from the sale of 66,100 ounces in the first nine months of 2023. Revenue increased by
21% compared the first nine months of 2023 due to the higher average realized Canadian dollar gold price and an
increase in ounces sold.
- 4 -
Cost of sales in Q3 2024 was $43.6 million, an increase of 9% compared to the corresponding period in 2023
primarily due to a $1.9 million increase in mine operating costs and a $0.8 million increase in depreciation and
depletion expense driven by a 16% increase in ounces produced and a 5% increase in throughput. Cost of sales
in the first nine months of 2024 was higher by 3% compared to the first nine months of 2023 primarily due to a 6%
increase in ounces produced, driven by an 11% increase in head grade offset by slightly lower throughput.
In Q3 2024, cash costs per ounce of gold sold were $1,449 (US$1,062) compared to $1,442 (US$1,075) in Q3
2023 primarily due to an increase in mine operating costs driven by higher ounces produced and higher throughput.
Cash costs per ounce of gold sold in the first nine months of 2024 were $1,422 (US$1,046), an increase of 3%
compared to $1,380 (US$1,025) in the first nine months of 2023, primarily due to an increase in ounces produced.
In Q3 2024, AISC per ounce of gold sold were $2,318 (US$1,700), a 6% decrease compared to $2,467 (US$1,839)
in Q3 2023, primarily due to an increase in ounces sold and lower sustaining capital expenditures. AISC per ounce
of gold sold in the first nine months of 2024 were $2,107 (US$1,549 ), an increase of 3% compared to $2,039
(US$1,516) in the first nine months of 2023 , primarily due to higher operating costs and sustaining capital
expenditures.
Kiena Mine – Quebec
Kiena Operating Results Q3 2024 Q3 2023 YTD 2024 YTD 2023
Ore milled (tonnes) 51,321 47,351 154,334 141,499
Head grade (g/t) 13.1 4.9 11.1 5.2
Average mill recoveries (%) 99.0 98.4 98.9 98.0
Gold production (oz) 21,421 7,369 54,607 23,393
Gold sold (oz) 21,560 7,400 52,400 22,900
Production costs per tonne milled1 ($) 426 402 424 419
Costs per oz sold ($/oz)
Cost of sales 1,524 4,225 1,881 3,944
Cash costs1 981 2,585 1,212 2,365
All-in sustaining costs1 1,526 3,359 1,937 3,027
Costs per oz sold (US$/oz)
Cost of sales 1,118 3,149 1,382 2,931
Cash costs1 719 1,927 891 1,758
All-in sustaining costs1 1,119 2,504 1,424 2,249
During Q3 2024, the Kiena mine produced 21,421 ounces of gold as compared to 7,369 ounces in Q3 2023
primarily due to a 167% increase in head grade due to the ramp-up in mining of high-grade Kiena Deep ore from
the 129-level horizon in mid -April and an 8% increase in throughput. Kiena’s head grade increased to 13.1 g/t in
Q3 2024 from 4.9 g/t in Q3 2023. Gold recovery increased to 99.0% compared to 98.4% in the corresponding
period in 2023. In Q3 2024, the mill processed 51,321 tonnes throughput a s compared to 47,351 tonnes in Q3
2023.
In the first nine months of 2024, Kiena produced 54,607 ounces of gold as compared to 23,393 ounces of gold in
the first nine months of 2023 primarily due to a 113% increase in head grade and a 9% increase in throughput.
Head grade at Kiena increased to 11.1 g/t in the first nine months of 2024 from 5.2 g/t in the first nine months of
2023. The rate of gold recovery increased to 98.9% from 98.0% in the corresponding period in 2023. In the first
nine months of 2024, the mill processed throughput of 154,334 tonnes compared to 141,499 tonnes in the first nine
- 5 -
months of 2023. In the second quarter Kiena began processing higher grade material from the new 129 -level
horizon of Kiena Deep, which is expected to continue over the balance of 2024.
In Q3 2024, Kiena generated $73.1 million in revenue from the sale of 21,560 ounces of gold as compared to
$19.1 million from the sale of 7,400 ounces in Q3 2023. Revenue increased by 282% compared to Q3 2023 due
to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine months of 2024,
Kiena increased revenue to $168.2 million from the sale of 52,400 ounces of gold, an increase of 180% compared
to $60.1 million in revenue from the sale of 22,900 ounces in the first nine months of 2023 . Revenue in the first
nine months of 2024 increased due to higher ounces sold and a higher average realized Canadian dollar gold
price.
Cost of sales in Q3 2024 was $32.9 million, an increase of 5% over the corresponding period in 2023 primarily due
to a $2.7 million increase in mine operating costs, which was due to 8% higher throughput partially offset by a
change in inventory levels of $0.6 million and a $0.5 million decrease in non -cash depletion and depreciation
resulting from an increase in inventories. Cost of sales in the first nine months of 2024 was $98.5 million, 9% higher
than the corresponding period in 2023 primarily due to an increase in the aggregate mine operating costs as a
result of a 9% increase in throughput.
Cash costs per ounce of gold sold in Q3 2024 were $981 (US$719), a decrease of 62% compared to $2,585
(US$1,927) in Q3 2023 primarily due to a 191% increase in ounces sold. Cash costs per ounce of gold sold in the
first nine months of 2024 decreased by 49% to $1,212 (US$891) compared to $2,365 (US$1,758) in the first nine
months of 2023 primarily due to a 129% increase in ounces sold partially offset by higher aggregate mine operating
expenses due to increased throughput.
AISC per ounce of gold sold decreased by 55% in Q3 2024 to $1,526 (US$1,119) from $3,359 (US$2,504) in Q3
2023 primarily due to an increase in ounces sold partially offset by an increase in aggregate mine operating costs
and sustaining capital expenditures. AISC per ounce of gold sold decreased by 36% in the first nine months of
2024 to $1,937 (US$1,424) from $3,027 (US$2,249) in the first nine months of 2023 primarily due to a 129%
increase in ounces sold partially offset by an increase in aggregate mine operating costs and sustaining capital
expenditures.
Outlook
The Company is tightening its 2024 guidance and reaffirming its previously disclosed 2025 consolidated production
outlook. G uidance for 2024 costs, depreciation and capital expenditure s, now reflects updated full -year
expectations based on the Company’s operational and financial performance to date.
Consolidated 2024 gold production has been narrowed to 166,000 to 176,000 ounces from the Company’s original
guidance of 160 ,000 to 180,000 ounces. Preliminary plans for 2025 continue to support previously disclosed
consolidated production guidance of 175,000 to 210,000 ounces.
Total consolidated cash costs per ounce of gold sold is expected to be $1,225 to $1,300 per ounce sold an increase
from the Company’s original guidance of $1,075 to $1,200 per ounce sold, primarily due to lower production and
increased cash costs at Kiena.
Consolidated AISC per ounce of gold sold is expected to be $1,975 to $2,100 (US$1,445 to US$1,525) from $1,750
to $1,950 (US$1,325 to US$1,475) , primarily due to higher total cash costs, partially offset by lower sustaining
capital expenditures.
Based on strong operating performance in the first nine months of the year , 2024 production from Eagle River is
now expected to be 89,000 to 93,000 ounces, compared to the original guidance range of 80,000 to 90,000 ounces
- 6 -
at cash costs per ounce of gold sold of $1,370 to $1,425 and AISC per ounce of gold sold of $2,175 to $2,275
(US$1,595 to US$1,675).
Kiena’s 2024 production is now expected to be 77,000 to 83,000, at cash costs per ounce of gold sold of $1,065
to $1,150 and AISC per ounce of gold sold of $1,745 to $1,875 (US$1,280 to US$1,375). Execution is improving
and continuing to support increased production rates, optimization of stope design parameters and the
enhancement of maintenance practices. Benefits from these initiatives will continue to be realized in 2025.
2024 Guidance
Eagle River Kiena Consolidated
Initial Revised Initial Revised Initial Revised
Production
Feed grade (g/t) 12.2 - 13.4 12.9 - 13.5 12.0 - 13.5 11.2 - 12.0 12.0 - 13.5 12.1 - 12.8
Gold production (ounces) 80,000 - 90,000 89,000 - 93,000 80,000 - 90,000 77,000 - 83,000 160,000 - 180,000 166,000 - 176,000
Operating Costs
Depreciation and depletion ($M) $40 $50 $60 $50 $100 $100
Corporate and general1 ($M) $10 $11 $10 $11 $20 $22
Exploration and evaluation2 ($M) $4 $4 $7 $7 $11 $11
Cash costs3 ($/oz) $1,275 - $1,425 $1,370 - $1,425 $875 - $975 $1,065 - $1,150 $1,075 - $1,200 $1,225 - $1,300
All-in sustaining costs3 ($/oz) $2,175 - $2,275 $2,175 - $2,275 $1,475 - $1,625 $1,745 - $1,875 $1,750 - $1,950 $1,975 - $2,100
All-in sustaining costs3 (US$/oz) $1,595 - $1,675 $1,595 - $1,675 $1,100 - $1,225 $1,280 - $1,375 $1,325 - $1,475 $1,445 - $1,525
Capital Investment
Total capital4 ($M) $55 $60 $65 $70 $120 $130
Sustaining capital3 ($M) $55 $60 $45 $45 $100 $105
Growth capital3 ($M) - - $20 $25 $20 $25
Notes
1. Corporate and general costs do not include an estimated $3 million in stock-based compensation. Corporate G&A allocated
to each site is included in site all-in sustaining cost calculation.
2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses.
3. This is a financial measure or ratio that is a non -IFRS financial measure or ratio. Certain additional disclosures for non -IFRS
financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press
release in the Non-IFRS Performance Measures section.
4. Initial 2024 capital Investment guidance was previously net of an estimated $5 million in capital leasing activities. Total capital
expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the
condensed interim statements of cash flows.
2025 Production Guidance
Eagle River Kiena Consolidated
Gold production (ounces) 90,000 – 105,000 85,000 - 105,000 175,000 - 210,000
- 7 -
Exploration Update
Eagle River
Development and Drilling
The exploration and infill drilling program, which has been successful, targeted the 300 Zone at depth, Falcon 311,
and the 6 Central Zone for growth and resource conversion from established underground platforms. Additional
infill drilling towards the Falcon 7, 311 Zone, 5 Zone, and 711 Zone focused on resource conversion with delineation
drilling continued to support the production areas for the current year and in preparation for 2025 planned
production.
High-grade mineralization is continuously being intercepted in the 6 Central Zone, a zone that holds immense
potential for our mining operations. The zone discovered in 2023 continues to trend down and plunge in an easterly
direction. Located at an interme diate depth and close to underground infrastructure, targeting the zone remains a
priority for resource growth and potential reserve conversion. The zone is anticipated to be continuous and will
become a promising mining zone in the future.
The drilling program continued targeting the up -plunge potential of the Falcon 311 zone. Infill drilling continued to
upgrade the resource classification, further solidifying our understanding of the zone. The successful delineation of
the zone in the volc anics west of the Diorite showcases the potential growth for more zones outside the diorite -
hosted mineralization. Drilling results indicated higher-grade mineralization for the zone at depth.
Infill drilling confirms the quality and continuity of the high -grade mineralization in the 300 Zone below the 1,400
metre elevation, creating opportunities for conversion of mineral resources. Recent results yielded significant values
highlighting the continuity and quality of the 300 Zone . Exploring the depth potential of the 300 Zone continues to
be a top priority to enhance our understanding of the structure.
Surface Exploration
Data processing of the IP survey completed west of the Diorite remained the focus. The structural study assesses
targets with surface mapping and sampling potential.
Kiena
Development and Drilling
Kiena Deep remains a promising target for growth and conversion, with drilling focusing on growing the South Limb
of the Kiena Deep and infill drilling targeting the Footwall Zones discovered in 2022, with follow -up drilling
continuing to improve the understanding of the zones. Drilling has returned results of 31.7 g/t Au / over 5.3m,
showcasing the potential for high -grade mineralization at reasonable widths, highlighting the o pportunity for
increased ounces per vertical metre, and providing operational fl exibility and increased production near the
Footwall elevations. Several opportunities for growth ounces remain in the South Limb area at depth in Kiena Deep
and hanging wall basalt zones.
Follow-up drilling in the underexplored Wish Zone area continued in the quarter to provide an initial assessment of
the size and potential continuity of the mineralization. Rehabilitation of the 33 -level development to the east is
making good progress to ensure the establishment of more optimal drilling p latforms.
- 8 -
Surface Exploration Drilling
An excess of 10,000 metres of drilling was planned for the Dubuisson Zone from the barges, targeting existing
resources for conversion and down-extension of the zones. Several areas within the zones were targeted with infill
drilling to confirm the re -interpreted model, improve drill hole density for resource classification upgrade and test
down plunge extension. Drilling results have confirmed the continuity of the zone, and above -average results not
only validate our efforts but also highlight the excitin g potential for the existence of higher -grade areas. The
proximity of the Dubuisson Zone to the 33 -level development and the relatively large resources available for
conversion make it an excellent opportunity to provide flexibility for future mining.
The Northwest Zone, located approximately 400 metres north of the planned Presqu’île ramp, was targeted during
the 2024 barge drilling season. Follow -up drilling is scheduled to confirm mineralization and assess the extent of
the zone. High -grade mineralization was intercepted to the north of the zone, potentially indicating a new
mineralization trend towards the north. The relative proximity of the zone to the planned Presqu’île ramp increases
its potential as a mineable zone at intermediate depth.
East of the Kiena mine, historic drilling confirmed mineralization within the Duchesne Zone, which was modelled
based on the original drilling. Follow-up drilling was scheduled in 2024 to test the original interpretation and confirm
additional mineralization. Although mineralization was confirmed, drilling has driven a reinterpretation of the
geological model and controls.
Presqu’île Project
The Presqu'île deposit is located 1.3 kilometres west of the Kiena mine and has been identified as five gold -rich
zones cross-cutting mafic rocks (Zones PR -1, 2 and 2A) and ultramafic rocks (Zones PR -3 and 4). Presqu'île is
just one of several underexplore d near-surface deposits on the Kiena land package that could leverage spare
capacity at the Company’s 2,040 tonne per day Kiena mill and extend mine life.
The results of a recent internal Presqu'île project study scoped 250 to 400 tonnes per day of feed starting in late
2025, supporting production of 15,000 to 20,000 ounces per year at all-in sustaining costs consistent with the Kiena
operation. A mining permit application for Presqu’île is expected to be filed in the first quarter of 2025.
Work on the ramp portal was started in December 2023 with substantial completion achieved in early April 2024.
Lateral development of the exploration ramp commenced mid -April following portal construction. The ramp is
currently expected to advance 1,150 metres by year end 2024 with the remaining 1,250 metres to be completed in
2025. Approximately $25 million is forecasted to be spent on the portal, ramp and surface infrastructure in 2024 .
Presqu’île drilling commenced in September 2024. Initial drilling testing an area near a lower -grade intercept
intersected mineralization with visible gold. The drilling program was increased to complete more drillholes in the
inferred classified area for potential resource conversion, and in addition to down -plunge extension potential, it
underscores the significant value of the zone and the importance of the zone.
Preliminary Short Form Base Shelf Prospectus Renewal
Today, the Company renewed its short form base shelf prospectus with the securities regulators in each of the
provinces and territories of Canada under the applicable Well-Known Seasoned Issuer ( WKSI) procedures. The
base shelf prospectus will allow the Company to offer and issue common shares, debt securities, warrants,
subscription receipts, units or any combination thereof during the 25 -month period over which the base shelf
prospectus is effective. The Company has refreshed its base shelf prospectus in order to maintain its financial
flexibility as it continues to advance its business plans but has no immediate plans to issue any securities under it
at this time and may never proceed with any such issuance. Should the Company decide to offer securities during