Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX:WDOFF) (“Wesdome” or the
“Company”) today announces second quarter (“Q2 2023”) financial
results. Management will host a conference call tomorrow, Friday
August 11, 2023, at 10:00 a.m. Eastern time to discuss the results.
Dial-in details for the call can be found near the end of this
press release.
Second quarter 2023 highlights
- Payable
gold production in the second quarter of 2023 was 30,992 ounces at
Cash costs per ounce of $1,743 (US$1,298) and all-in sustaining
costs (“AISC”) per ounce of $2,238 (US$1,666). These results
compared well relative to internal targets for the quarter and
reflect consistent performance from Eagle River and the successful
ongoing ramp-up of mining activities at Kiena.
- At Kiena,
execution of development of the ramp to the 129 level giving access
to the A Zone of Kiena Deep continues to track ahead of schedule,
positioning the mine well for increased production levels in the
first half of 2024. Excavation of an exploration ramp from surface
to access a drilling platform to test the near-surface Presqu’ile
Zone is expected to proceed in the second half of 2023 after the
required permits are secured.
- Cash
margins were $28.7 million, however free cash flow was negative
$5.3 million as the Company completes final projects related
to the production ramp up at Kiena, primarily the ramp to 129
level. While on track to meet 2023 capital spend guidance, timing
of expenditures are planned to be highest in the third quarter,
before easing in the fourth quarter.
- Adjusted
net loss attributable to shareholders of $5.0 million, or $0.03 per
share. Operating cash flow of $14 million, or $0.09 per share.
- The
Company reaffirms its production guidance of 110,000 to 130,000
ounces and cash cost guidance of $1,500 to $1,670 per ounce
(US$1,150 to US$1,290), as well as AISC of $2,100 to $2,340 per
ounce, (US$1,620 to $1,800).
- Available
liquidity of $133 million, including $22.1 million in cash, and
$111 million in available credit, reflecting $11 million of gross
issuance under the at-the-market (“ATM”) program during the
period.
-
Subsequent to quarter end, a careful review of near-term operating
and financial projections concluded that use of the ATM facility is
no longer required.
Charles Main, Lead Independent Director during
Warwick Morley-Jepson’s tenure as Interim President and CEO,
commented, "On behalf of the Board, we want to thank Warwick for
his dedication and leadership in stabilizing the Company over the
last six months. We look forward to working with Warwick in his
continuing role as independent Chair of the Board.”
Following the appointment of a permanent CEO and
Warwick’s return to the independent Chair position the Company has
eliminated the Lead Director role. Mr. Main will resume his
position as Independent Director.
Anthea Bath, President and CEO of Wesdome
stated, “Since starting as President and Chief Executive Officer on
July 1, 2023, I have had the privilege to visit both sites and
spend time with our teams and stakeholders. I come away confident
that Wesdome will become a responsible, efficient, and value-driven
free cash flow platform for growth.
“In the second quarter of 2023, Wesdome
delivered a solid operational quarter and continues to track well
relative to guidance, with production at Eagle River and Kiena
delivering above our quarterly budget despite impacts from regional
forest fires in the period. During the quarter we also made strong
progress on our key projects including ramp development to the 129
level at Kiena, which remains ahead of schedule. Looking ahead to
the second half of 2023, we completed our planned shut down at
Eagle River for mill upgrades in July, with the mill offline for
two weeks. With higher capital spending also planned for the third
quarter, we now expect to see an improving cash flow profile in the
back end of the year. This cash flow will allow us to continue
improving working capital levels.”
Anthea concluded, “Finally, after a careful and
deliberate review of our preliminary operating and financial plans,
we have greater confidence in the near-term grade profile at Kiena
and, therefore, anticipate a production and free cash flow rebound
next year. Combined with an improved liquidity position,
backstopped by the strength of our credit facility, we now believe
that equity issuance under the ATM facility is no longer required.
As Wesdome turns a corner late this year, we will remain committed
to reducing borrowings under our $150 million credit facility as
well as advancing and optimizing our high-quality portfolio.”
Management Update
Subsequent to the quarter-end, Mr. Scott Gilbert
advised that he will be leaving Wesdome to pursue another
opportunity in the mining industry. Mr. Gilbert has already
initiated the process of transitioning his responsibilities and
will be available to provide support as needed.
The Company has appointed Mr. Jonathan Singh as
Interim Chief Financial Officer effective September 12, 2023. Mr.
Singh is a professional accountant (CPA, CGA) with more than 19
years of experience in progressive senior financial leadership
roles within the resource industry. The Company has commenced a
recruitment process to select a permanent CFO.
Anthea commented, “Scott has been an invaluable
member of the leadership team at Wesdome for nearly 6 years, having
joined the Company in 2018 and serving as our Chief Financial
Officer since 2020. I would like to thank Scott on behalf of the
entire team and Board at Wesdome for his leadership, hard work, and
financial acumen, all of which have been instrumental in growing
the business into a diversified gold producer. We wish him every
success in his future endeavors.”
|
|
Q2 2023 |
Q1 2023 |
Q2 2022 |
YTD 2023 |
YTD 2022 |
|
|
|
|
|
|
|
Ore
milled (tonnes) |
|
|
|
|
|
|
Eagle River |
|
64,672 |
48,133 |
59,964 |
112,805 |
113,181 |
Mishi |
|
0 |
6,150 |
7,685 |
6,150 |
19,558 |
Kiena |
|
51,824 |
42,324 |
26,478 |
94,148 |
47,640 |
Total Ore
Milled |
|
116,496 |
96,607 |
94,127 |
213,103 |
180,379 |
|
|
|
|
|
|
|
Head
grade (grams per tonne, “g/t”) |
|
|
|
|
|
|
Eagle River |
|
11.4 |
13.5 |
9.6 |
12.3 |
10.6 |
Mishi |
|
0.0 |
2.3 |
2.8 |
2.3 |
3.3 |
Kiena |
|
5.0 |
5.9 |
10.6 |
5.4 |
9.3 |
|
|
|
|
|
|
|
Gold
production (ounces) |
|
|
|
|
|
|
Eagle River |
|
22,845 |
20,159 |
17,756 |
43,004 |
37,090 |
Mishi |
|
0 |
332 |
570 |
332 |
1,735 |
Kiena |
|
8,147 |
7,877 |
8,914 |
16,024 |
14,026 |
Total
Gold Production |
|
30,992 |
28,368 |
27,240 |
59,360 |
52,851 |
|
|
|
|
|
|
|
Production sold (ounces) |
|
32,000 |
30,000 |
26,000 |
62,000 |
54,000 |
|
|
|
|
|
|
|
Operations and Financial Results |
Comparison to Q2 2022 |
Gold production of 30,992 ounces. |
Gold production increased by 14% compared to 27,240 ounces in Q2
2022 primarily due to higher grade at the Eagle River Complex, and
despite the impact from the regional forest fires in June at Kiena.
New quarterly throughput records established at both sites.YTD gold
production of 59,360 ounces, an increase of 12% when compared to
YTD 2022 production of 52,851 ounces. |
Cash costs of $1,743
(US$1,298) per ounce of gold
sold1. |
Cash costs1 in Canadian dollars increased by 13% from Q2 2022 of
$1,538 (US$1,205) per ounce due to a 39% increase in aggregate mine
operating costs; partially offset by a 23% increase in ounces sold.
At Eagle River, the aggregate cash costs increased by 23% due to
more ore development metres, waste movement, improvements to
strengthen the technical and mine management team and general
maintenance of aging site infrastructure. At Kiena the aggregate
cash costs increased by 77% due to a 96% increase in throughput and
increased staffing levels required to support commercial
production, which was declared on December 1, 2022. |
AISC of $2,238 (US$1,666)
per ounce of gold
sold1. |
AISC1 in Canadian dollars increased by 11% from Q2 2022 of $2,020
(US$1,582) per ounce due to the increased cash costs, an increase
in capital spending at Eagle River resulting from the replacement
of aging site infrastructure, and the inclusion of sustaining
mining exploration and development costs at Kiena. |
Cash margin of $28.7
million1. |
Cash margin1 increased by 31% or $6.8 million from Q2 2022 due to
higher ounces sold and a higher Canadian dollar realized gold
price; partially offset by increased cash operating costs. |
Operating cash flow of $14.0 million or $0.09 per
share1. |
Increased by 16% or $1.9 million (Q2 2022 - $12.1 million or $0.08
per share1) due to the higher cash margin, reduced tax instalments;
partially offset by the decrease in cash from working capital
changes. |
Free cash outflow of $5.3 million or ($0.04) per
share1. |
The free cash outflow1 decreased by $23.3 million (Q2 2022 - $28.6
million or ($0.20) per share1) primarily due to the increased
operating cash flow and decreased capital spending. Invested $17.8
million in capital expenditures at Eagle River and Kiena in the
quarter as compared to $38.3 million in Q2 2022. |
Net loss and adjusted net loss1
attributable to shareholders of $5.0 million or ($0.03) per
share. |
Net loss decreased by $9.3 million (Q2 2022 - $14.3 million or
($0.10 per share) primarily because of the Q2 2022 after-tax
impairment of an investment in associate of $8.9 million.After
removing these one-time items, the adjusted net loss1 decreased by
$0.4 million from Q2 2022. |
- Refer to the section entitled “Non-IFRS Performance Measures”
for the reconciliation of these non-IFRS measurements to the
Financial Statements.
Production Metrics and Exploration Updates |
Performance |
Eagle River Complex |
- Q2 2023
production increased by 25% from Q2 2022 to 22,845 ounces due to a
28% increase in head grade; offset partially by a 4% decrease in
throughput, which was sourced entirely from the Eagle River
underground as the Mishi Pit stockpile was fully depleted in Q1
2023. 64,672 tonnes processed in Q2 represents a new quarterly
throughput record from the UG mine as a standalone source of ore
for the mill.
- Q2 2023
cash cost of $1,526 (US$1,136) per ounce of gold sold1 increased by
9% or $131 per ounce from Q2 2022 due to a 23% increase in overall
aggregate site operating costs resulting from higher operating
costs incurred due to more ore development metres, waste movement,
improvements made to strengthen the technical and mine management
team at site, and general maintenance improvements; partially
offset by a 13% increase in ounces sold.
- Q2 2023
AISC of $2,019 (US$1,504) per ounce of gold sold1 increased by 4%
or $79 per ounce from Q2 2022 due to higher cash costs and site
infrastructure spending; partially offset by a 13% increase in
ounces sold.
- Generated
$13.6 million in cash margin net AISC1 in Q2 2023 compared to $8.8
million in Q2 2022 due to the 13% increase in ounces sold and the
higher average Canadian dollar gold price; partially offset by the
23% increase in overall aggregate site operating costs and the 12%
increase in site infrastructure spending.
- Recent
exploration drilling within the mine diorite, has extended the 300
East Zone to the 1,600 m-level and remains open down plunge.
Several of these holes have intersected wider widths along the
eastern margin of the zone and is interpreted to be the result of
intersecting structures with one hole returning 77.6 g/t Au over
9.4 m core length (40.7 g/t Au cut, 6.0 m true width). Drilling is
continuing in this area to better define this wider part of the
zone.
- The drilling of
the 300 East Zone confirms the continuity of the mineralization at
depth, thus suggesting that many other similar parallel zones, such
as 808, 811, 818, 711 and 7 East, have this same potential to
continue at depth and will be tested with ongoing drilling.
- On surface,
exploration drilling is scheduled to commence in H2 2023 to test
targets within the volcanic rocks adjacent to and east and west of
the mine diorite. Last year’s surface drilling returned a number of
encouraging results, along strike of, and subparallel to the Falcon
7 Zone, and also the interpreted western extension of the mine 311
West and 5 Zones. Approximately 700 metres further to the west,
drilling near the historic 9 Zone returned 19.4 g/t au over 0.7 m.
All of these areas will be drilled in this year’s program.
- On the eastern
side of the mine diorite, previous drilling within the volcanic
rocks 150 metres east and down dip of the historic 2 zone
intersected quartz veining and VG that graded 233.0 g/t Au over 0.4
metres. Similar to the Falcon zones located west of the mine
diorite, the drilling highlights the potential of discovering
additional zones within volcanic rocks east of the mine
diorite.
|
Kiena |
- Q2 2023
production decreased by 9% from Q2 2022 to 8,147 ounces due to a
53% decrease in head grade; partially offset by a 96% increase in
throughput (51,824 tonnes, a new quarterly record since restart of
operations, despite impact from forest fires in June). The head
grade is above the 2023 grade guidance of 3.7 – 4.7 due to an
overall positive reconciliation of recovered diluted material from
previous mining, and a higher proportion of ore sourced from the
higher grade Kiena Deep
- Q2 2023
AISC of $2,755 (US$2,052) per ounce of gold1 sold increased by 21%
or $471 per ounce as compared to Q2 2022 due to increased cash
costs and sustaining mine exploration and development costs; offset
partially by a 58% increase in ounces sold. The costs remain
consistent with the plan and will decrease once full production
levels are achieved.
- Q2 2023
cash margin net AISC1 of negative $0.7 million decreased by $1.2
million compared to $0.5 million in Q2 2022 due to the increased
overall aggregate cash cost and the inclusion of sustaining
development and exploration costs; offset partially by the 58%
increase in ounces sold and the favourable movement Canadian dollar
gold price.
-
Development of the ramp to the 129 level, which provides access to
the A Zone of Kiena Deep, continued to track ahead of schedule
during Q2 2023, positioning the mine to achieve better than planned
production levels in 2024 based on the updated Kiena schedule.
-
Underground exploration drilling is ongoing to better define and
expand the South Limb zone with the intent to add to the current
mineral resource base at year end. Drilling is also ongoing on 33
level east of the Kiena mine to test the strike and dip extensions
of the Martin and Wish zones.
- Surface
drilling is ongoing at the Presqu’ile zone, located approximately 2
kilometres west of the Kiena mine, to better define and
subsequently convert the current inferred resource to indicated for
the anticipated conversion into mineral reserves at year end. The
excavation of an exploration ramp from surface will provide
drilling access to the near-surface Presqu’ile Zone, is expected to
proceed in H2 2023 after the required permits are secured.
- The
recent surface exploration results at Shawkey and Dubuisson zones
highlight the potential to increase the resource base in areas
adjacent to mine infrastructure, thus potentially providing a
second source of mill feed for the underutilized Kiena mill. Both
of these zones are proximal to the 33 level track drift development
that extends over 3 kilometres east of the Kiena mine shaft towards
the Dubuisson Zone.
- At
Shawkey, surface drilling at the end of 2022 intersected wide zones
of alteration and mineralization with one hole returning 2.3 g/t Au
over 72.0 m within a diorite. The zone has been extended to 200
metres up dip and along strike and remains open along strike to the
north-west as well as down dip. Future drilling in this area next
year will be able to better define the geometry and therefore the
potential of this zone. At Dubuisson, drilling has confirmed that
the mineralization occurs along shear zones located at the contact
between diorite and ultramafic rocks. One hole returned 9.8 g/t
over 25.2 m core length (9.8 g/t Au capped*, 17.2 m true
width).
|
- Refer to the section entitled “Non-IFRS Performance Measures”
for the reconciliation of these non-IFRS measurements to the
Financial Statements.
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Frédéric Langevin, Eng, Chief
Operating Officer of the Company and Michael Michaud, P.Geo., Vice
President, Exploration of the Company and each a "Qualified Person"
as defined in National Instrument 43-101 -Standards of Disclosure
for Mineral Projects.
Cautionary Note to United States
Investors Concerning Estimates of Reserves and
Resources
The mineral reserve and resource estimates
reported in this news release were prepared in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”) as required by Canadian
securities regulatory authorities. The United States Securities and
Exchange Commission (the “SEC”) applies different
standards in order to classify and report mineralization. This news
release uses the terms “measured”, “indicated” and “inferred”
mineral resources, as required by NI 43-101. Readers are advised
that although such terms are recognized and required by Canadian
securities regulations, the SEC does not recognize such terms.
Canadian standards differ significantly from the requirements of
the SEC. Readers are cautioned not to assume that any part or all
of the mineral deposits in these categories constitute or will ever
be converted into mineral reserves. In addition, “inferred” mineral
resources have a great amount of uncertainty as to their existence
and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of an inferred mineral
resource exists, is economically or legally mineable or will ever
be upgraded to a higher category of mineral resource.
Second Quarter 2023 Conference Call and
Webcast
The financial statements and management discussion and analysis
will be available on the company’s website at www.wesdome.com and
on SEDAR+ www.sedar.com A conference call and webcast to
discuss these results will be held on Friday August 11, 2023 at
10:00 am ET.
- Participants may register for the
call at the link below to obtain dial in details. Preregistration
is required for this event. It is recommended you join 10 minutes
prior to the start of the event.
- Participant Registration Link:
https://register.vevent.com/register/BI252d24d221d547208182c6cda6381b58
- Webcast Link:
https://edge.media-server.com/mmc/p/5gdxhx26
- The webcast can also be accessed
under the news and events section of the company’s website
About Wesdome
Wesdome is a Canadian focused gold producer with
two high grade underground assets, the Eagle River mine in Ontario
and the recently commissioned Kiena mine in Quebec. The Company’s
primary goal is to responsibly leverage this operating platform and
high-quality brownfield and greenfield exploration pipeline to
build Canada’s next intermediate gold producer. Wesdome trades
on the Toronto Stock Exchange under the symbol “WDO,” with a
secondary listing on the OTCQX under the symbol “WDOFF.”
For further information, please
contact:
Lindsay Carpenter DunlopVP Investor Relations(647)
812-5312lindsay.dunlop@wesdome.com
Wesdome Gold
Mines Ltd.Summarized Operating and Financial
Data(Unaudited, expressed in thousands of Canadian
dollars, except per share and per unit amounts and otherwise
indicated) |
|
|
|
Three Months
Ended |
Six Months
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Operating data |
|
|
|
|
|
|
|
|
|
Milling (tonnes) |
|
|
|
|
|
|
|
|
|
Eagle
River |
|
64,672 |
|
|
59,964 |
|
|
112,805 |
|
|
113,181 |
|
|
Mishi |
|
0 |
|
|
7,685 |
|
|
6,150 |
|
|
19,558 |
|
|
Kiena |
|
51,824 |
|
|
26,478 |
|
|
94,148 |
|
|
47,640 |
|
|
Throughput
2 |
|
116,496 |
|
|
94,127 |
|
|
213,103 |
|
|
180,379 |
|
|
Head
grades (g/t) |
|
|
|
|
|
|
|
|
|
Eagle
River |
|
11.4 |
|
|
9.6 |
|
|
12.3 |
|
|
10.6 |
|
|
Mishi |
|
0.0 |
|
|
2.8 |
|
|
2.3 |
|
|
3.3 |
|
|
Kiena |
|
5.0 |
|
|
10.6 |
|
|
5.4 |
|
|
9.3 |
|
|
Recovery (%) |
|
|
|
|
|
|
|
|
|
Eagle
River |
|
96.5 |
|
|
95.6 |
|
|
96.7 |
|
|
96.6 |
|
|
Mishi |
|
0.0 |
|
|
81.2 |
|
|
72.5 |
|
|
83.6 |
|
|
Kiena |
|
97.7 |
|
|
98.5 |
|
|
97.8 |
|
|
98.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Production (ounces) |
|
|
|
|
|
|
|
|
|
Eagle
River |
|
22,845 |
|
|
17,756 |
|
|
43,004 |
|
|
37,090 |
|
|
Mishi |
|
0 |
|
|
570 |
|
|
332 |
|
|
1,735 |
|
|
Kiena |
|
8,147 |
|
|
8,914 |
|
|
16,024 |
|
|
14,026 |
|
|
Total gold produced 2 |
|
30,992 |
|
|
27,240 |
|
|
59,360 |
|
|
52,851 |
|
|
Total gold sales (ounces) |
|
32,000 |
|
|
26,000 |
|
|
62,000 |
|
|
54,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Eagle River Complex (per ounce of gold sold)
1 |
|
|
|
|
|
|
|
Average
realized price |
$ |
2,625 |
|
$ |
2,382 |
|
$ |
2,584 |
|
$ |
2,389 |
|
|
Cash
costs |
|
1,526 |
|
|
1,395 |
|
|
1,353 |
|
|
1,330 |
|
|
Cash
margin |
$ |
1,099 |
|
$ |
987 |
|
$ |
1,231 |
|
$ |
1,059 |
|
|
All-in
Sustaining Costs 1 |
$ |
2,019 |
|
$ |
1,940 |
|
$ |
1,859 |
|
$ |
1,858 |
|
|
|
|
|
|
|
|
|
|
|
|
Mine
operating costs/tonne milled 1 |
$ |
503 |
|
$ |
387 |
|
$ |
474 |
|
$ |
386 |
|
|
|
|
|
|
|
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.3428 |
|
|
1.2768 |
|
|
1.3477 |
|
|
1.2715 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs
per ounce of gold sold (US$) 1 |
$ |
1,136 |
|
$ |
1,093 |
|
$ |
1,004 |
|
$ |
1,046 |
|
|
All-in
Sustaining Costs (US$) 1 |
$ |
1,504 |
|
$ |
1,519 |
|
$ |
1,379 |
|
$ |
1,461 |
|
|
|
|
|
|
|
|
|
|
|
|
Kiena Mine
(per ounce of gold sold) 1 |
|
|
|
|
|
|
|
|
|
Average
realized price |
$ |
2,676 |
|
$ |
2,372 |
|
$ |
2,642 |
|
$ |
2,355 |
|
|
Cash costs
3, 5 |
|
2,257 |
|
|
2,018 |
|
|
2,261 |
|
|
1,622 |
|
|
Cash
margin |
$ |
419 |
|
$ |
354 |
|
$ |
381 |
|
$ |
733 |
|
|
All-in
Sustaining Costs 1 |
$ |
2,755 |
|
$ |
2,284 |
|
$ |
2,868 |
|
$ |
1,834 |
|
|
|
|
|
|
|
|
|
|
|
|
Mine
operating costs/tonne milled 1 |
$ |
379 |
|
$ |
557 |
|
$ |
430 |
|
$ |
567 |
|
|
|
|
|
|
|
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.3428 |
|
|
1.2768 |
|
|
1.3477 |
|
|
1.2715 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs
per ounce of gold sold (US$) 1 |
$ |
1,681 |
|
$ |
1,581 |
|
$ |
1,678 |
|
$ |
1,276 |
|
|
All-in
Sustaining Costs (US$) 1 |
$ |
2,052 |
|
$ |
1,789 |
|
$ |
2,128 |
|
$ |
1,442 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
|
Cash margin
1 |
$ |
28,722 |
|
$ |
21,873 |
|
$ |
63,130 |
|
$ |
52,215 |
|
|
Net
loss |
$ |
(5,014 |
) |
$ |
(14,331 |
) |
$ |
(5,359 |
) |
$ |
(7,280 |
) |
|
Net income
(loss) adjusted 1 |
$ |
(5,014 |
) |
$ |
(5,481 |
) |
$ |
(1,757 |
) |
$ |
1,570 |
|
|
Earnings
before interest, taxes, depreciation and amortization 1 |
$ |
22,020 |
|
$ |
8,844 |
|
$ |
48,144 |
|
$ |
29,494 |
|
|
Operating
cash flow |
$ |
13,979 |
|
$ |
12,101 |
|
$ |
19,099 |
|
$ |
41,994 |
|
|
Free cash
outflow 1 |
$ |
(5,279 |
) |
$ |
(28,576 |
) |
$ |
(24,876 |
) |
$ |
(35,372 |
) |
|
Per share
data |
|
|
|
|
|
|
|
|
|
Net income |
$ |
(0.03 |
) |
$ |
(0.10 |
) |
$ |
(0.04 |
) |
$ |
(0.05 |
) |
|
Adjusted net income 1 |
$ |
(0.03 |
) |
$ |
(0.04 |
) |
$ |
(0.01 |
) |
$ |
0.01 |
|
|
Operating cash flow 1 |
$ |
0.09 |
|
$ |
0.08 |
|
$ |
0.13 |
|
$ |
0.30 |
|
|
Free cash flow 1 |
$ |
(0.04 |
) |
$ |
(0.20 |
) |
$ |
(0.17 |
) |
$ |
(0.25 |
) |
|
|
|
|
|
|
|
|
|
|
|
- Refer to the Company’s 2022 Annual
Management Discussion and Analysis section entitled “Non-IFRS
Performance Measures” for the reconciliation of these non-IFRS
measurements to the consolidated financial statements.
- Totals for tonnage and gold ounces may
not add due to rounding.
Wesdome Gold Mines Ltd.Condensed
Interim Statements of Financial Position(Unaudited,
expressed in thousands of Canadian dollars) |
|
|
As at
June 30, 2023 |
|
As at December 31,
2022 |
|
Assets |
|
|
|
|
|
Current |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
22,067 |
|
|
$ |
33,185 |
|
|
Receivables and prepaids |
|
|
16,227 |
|
|
|
12,755 |
|
|
Inventories |
|
|
24,261 |
|
|
|
22,119 |
|
|
Income and mining tax receivable |
|
|
5,988 |
|
|
|
6,494 |
|
|
Share consideration receivable |
|
|
2,233 |
|
|
|
2,994 |
|
|
Total
current assets |
|
|
70,776 |
|
|
|
77,547 |
|
|
|
|
|
|
|
|
Restricted
cash |
|
|
1,176 |
|
|
|
1,176 |
|
|
Deferred
financing costs |
|
|
1,147 |
|
|
|
1,411 |
|
|
Mining
properties, plant and equipment |
|
|
519,202 |
|
|
|
525,860 |
|
|
Exploration
properties |
|
|
1,339 |
|
|
|
1,139 |
|
|
Marketable
securities |
|
|
600 |
|
|
|
960 |
|
|
Share
consideration receivable |
|
|
1,760 |
|
|
|
2,576 |
|
|
Investment
in associate |
|
|
5,320 |
|
|
|
8,458 |
|
|
Total
assets |
|
$ |
601,320 |
|
|
$ |
619,127 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current |
|
|
|
|
|
Payables and accruals |
|
$ |
30,883 |
|
|
$ |
54,734 |
|
|
Borrowings |
|
|
38,779 |
|
|
|
54,697 |
|
|
Current portion of lease liabilities |
|
|
4,028 |
|
|
|
6,160 |
|
|
Total
current liabilities |
|
|
73,690 |
|
|
|
115,591 |
|
|
|
|
|
|
|
|
Lease
liabilities |
|
|
2,065 |
|
|
|
3,126 |
|
|
Deferred
income and mining tax liabilities |
|
|
78,288 |
|
|
|
82,950 |
|
|
Decommissioning provisions |
|
|
19,819 |
|
|
|
18,941 |
|
|
Total
liabilities |
|
|
173,862 |
|
|
|
220,608 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Equity
attributable to owners of the Company |
|
|
|
|
|
Capital stock |
|
|
237,957 |
|
|
|
205,361 |
|
|
Contributed surplus |
|
|
9,421 |
|
|
|
7,359 |
|
|
Retained earnings |
|
|
181,580 |
|
|
|
186,939 |
|
|
Accumulated other comprehensive loss |
|
|
(1,500 |
) |
|
|
(1,140 |
) |
|
Total equity
attributable to owners of the Company |
|
|
427,458 |
|
|
|
398,519 |
|
|
Total
liabilities and equity |
|
$ |
601,320 |
|
|
$ |
619,127 |
|
|
|
|
|
|
|
|
Wesdome Gold Mines Ltd.Condensed Interim
Statements of (Loss) / Income and Comprehensive (Loss) /
Income(Unaudited, expressed in thousands of Canadian
dollars except for per share amounts) |
|
Three Months
Ended |
|
Six Months
Ended |
|
June
30, |
|
June
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
84,555 |
|
|
$ |
61,931 |
|
|
$ |
161,256 |
|
|
$ |
128,625 |
|
Cost
of sales |
|
(84,048 |
) |
|
|
(51,374 |
) |
|
|
(145,466 |
) |
|
|
(96,080 |
) |
Gross profit |
|
507 |
|
|
|
10,557 |
|
|
|
15,790 |
|
|
|
32,545 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
Corporate
and general |
|
4,007 |
|
|
|
3,221 |
|
|
|
7,669 |
|
|
|
6,596 |
|
Stock-based
compensation |
|
1,551 |
|
|
|
1,554 |
|
|
|
3,325 |
|
|
|
1,630 |
|
Retirement
costs |
|
- |
|
|
|
- |
|
|
|
1,190 |
|
|
|
- |
|
Exploration
and evaluation |
|
1,267 |
|
|
|
4,213 |
|
|
|
2,227 |
|
|
|
7,169 |
|
Loss (gain)
on disposal of mining equipment |
|
99 |
|
|
|
(10 |
) |
|
|
317 |
|
|
|
(12 |
) |
Total other
expenses |
|
6,924 |
|
|
|
8,978 |
|
|
|
14,728 |
|
|
|
15,383 |
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
(6,417 |
) |
|
|
1,579 |
|
|
|
1,062 |
|
|
|
17,162 |
|
|
|
|
|
|
|
|
|
Impairment
of investment in associate |
|
- |
|
|
|
(11,800 |
) |
|
|
(2,700 |
) |
|
|
(11,800 |
) |
Fair value
adjustment on share consideration receivable |
|
459 |
|
|
|
(3,605 |
) |
|
|
(1,577 |
) |
|
|
(5,839 |
) |
Interest
expense |
|
(1,175 |
) |
|
|
(316 |
) |
|
|
(2,484 |
) |
|
|
(579 |
) |
Accretion of
decommissioning provisions |
|
(246 |
) |
|
|
(208 |
) |
|
|
(490 |
) |
|
|
(379 |
) |
Share of
loss of associate |
|
(310 |
) |
|
|
(131 |
) |
|
|
(666 |
) |
|
|
(543 |
) |
Gain (loss)
on dilution of ownership |
|
228 |
|
|
|
(429 |
) |
|
|
228 |
|
|
|
(634 |
) |
Other
income |
|
91 |
|
|
|
322 |
|
|
|
145 |
|
|
|
57 |
|
Loss before
income and mining taxes |
|
(7,370 |
) |
|
|
(14,588 |
) |
|
|
(6,482 |
) |
|
|
(2,555 |
) |
|
|
|
|
|
|
|
|
Income and mining tax expense (recovery) |
|
|
|
|
|
|
|
Current |
|
1,522 |
|
|
|
1,788 |
|
|
|
3,540 |
|
|
|
4,276 |
|
Deferred |
|
(3,878 |
) |
|
|
(2,045 |
) |
|
|
(4,663 |
) |
|
|
449 |
|
Total income
and mining tax expense (recovery) |
|
(2,356 |
) |
|
|
(257 |
) |
|
|
(1,123 |
) |
|
|
4,725 |
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(5,014 |
) |
|
$ |
(14,331 |
) |
|
$ |
(5,359 |
) |
|
$ |
(7,280 |
) |
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
Change in fair value of marketable securities |
|
(30 |
) |
|
|
(1,410 |
) |
|
|
(360 |
) |
|
|
(900 |
) |
Total comprehensive loss |
$ |
(5,044 |
) |
|
$ |
(15,741 |
) |
|
$ |
(5,719 |
) |
|
$ |
(8,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
per share |
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
Weighted average number of common shares
(000s) |
|
|
|
|
|
|
|
Basic |
|
148,001 |
|
|
|
142,478 |
|
|
|
146,242 |
|
|
|
142,146 |
|
Diluted |
|
148,001 |
|
|
|
142,478 |
|
|
|
146,242 |
|
|
|
142,146 |
|
|
|
|
|
|
|
|
|
Wesdome Gold
Mines Ltd.Condensed Interim Statements of Changes
in Equity(Unaudited, expressed in thousands of Canadian
dollars) |
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Capital |
|
Contributed |
|
Retained |
|
Comprehensive |
|
Total |
|
Stock |
|
Surplus |
|
Earnings |
|
Loss |
|
Equity |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2021 |
$ |
187,911 |
|
|
$ |
5,859 |
|
|
$ |
201,645 |
|
|
$ |
(240 |
) |
|
$ |
395,175 |
|
Net loss for
the period ended June 30, 2022 |
|
- |
|
|
|
- |
|
|
|
(7,280 |
) |
|
|
- |
|
|
|
(7,280 |
) |
Other
comprehensive loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(900 |
) |
|
|
(900 |
) |
Exercise of
options |
|
3,031 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,031 |
|
Value
attributed to options exercised |
|
1,173 |
|
|
|
(1,173 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value
attributed to RSUs exercised |
|
638 |
|
|
|
(638 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based
compensation |
|
- |
|
|
|
1,630 |
|
|
|
- |
|
|
|
- |
|
|
|
1,630 |
|
Balance,
June 30, 2022 |
$ |
192,753 |
|
|
$ |
5,678 |
|
|
$ |
194,365 |
|
|
$ |
(1,140 |
) |
|
$ |
391,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
December 31, 2022 |
|
205,361 |
|
|
|
7,359 |
|
|
|
186,939 |
|
|
|
(1,140 |
) |
|
|
398,519 |
|
Net loss for
the period ended June 30, 2023 |
|
- |
|
|
|
- |
|
|
|
(5,359 |
) |
|
|
- |
|
|
|
(5,359 |
) |
At-the-Market offering: |
|
|
|
|
|
|
|
|
|
Common shares issued for cash |
|
31,988 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
31,988 |
|
Agents' fees and issuance costs |
|
(1,331 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,331 |
) |
Other
comprehensive loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(360 |
) |
|
|
(360 |
) |
Exercise of
options |
|
676 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
676 |
|
Value
attributed to options exercised |
|
276 |
|
|
|
(276 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value
attributed to RSUs exercised |
|
616 |
|
|
|
(616 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value
attributed to PSUs exercised |
|
371 |
|
|
|
(371 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based
compensation |
|
- |
|
|
|
3,325 |
|
|
|
- |
|
|
|
- |
|
|
|
3,325 |
|
Balance,
June 30, 2023 |
$ |
237,957 |
|
|
$ |
9,421 |
|
|
$ |
181,580 |
|
|
$ |
(1,500 |
) |
|
$ |
427,458 |
|
Wesdome Gold Mines Ltd.Condensed Interim
Statements of Cash Flows(Unaudited, expressed in thousands
of Canadian dollars) |
|
|
Three months
ended June 30, |
|
Six months
ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Net loss |
$ |
(5,014 |
) |
|
$ |
(14,331 |
) |
|
$ |
(5,359 |
) |
|
$ |
(7,280 |
) |
|
Depreciation and depletion |
|
28,215 |
|
|
|
11,316 |
|
|
|
47,340 |
|
|
|
19,670 |
|
|
Stock-based compensation |
|
1,551 |
|
|
|
1,554 |
|
|
|
3,325 |
|
|
|
1,630 |
|
|
Accretion of decommissioning provisions |
|
246 |
|
|
|
208 |
|
|
|
490 |
|
|
|
379 |
|
|
Deferred income and mining tax (recovery) expense |
|
(3,878 |
) |
|
|
(2,045 |
) |
|
|
(4,663 |
) |
|
|
449 |
|
|
Amortization of deferred financing cost |
|
132 |
|
|
|
85 |
|
|
|
264 |
|
|
|
169 |
|
|
Interest expense |
|
1,175 |
|
|
|
316 |
|
|
|
2,484 |
|
|
|
579 |
|
|
Loss (gain) on disposal of mining equipment |
|
99 |
|
|
|
(10 |
) |
|
|
317 |
|
|
|
(12 |
) |
|
Impairment of investment in associate |
|
- |
|
|
|
11,800 |
|
|
|
2,700 |
|
|
|
11,800 |
|
|
Fair value adjustment on share consideration receivable |
|
(459 |
) |
|
|
3,605 |
|
|
|
1,577 |
|
|
|
5,839 |
|
|
Share of loss of associate |
|
310 |
|
|
|
131 |
|
|
|
666 |
|
|
|
543 |
|
|
(Gain) loss on dilution of ownership |
|
(228 |
) |
|
|
429 |
|
|
|
(228 |
) |
|
|
634 |
|
|
Foreign exchange gain on borrowings |
|
(6 |
) |
|
|
(77 |
) |
|
|
(7 |
) |
|
|
(109 |
) |
|
Net changes in non-cash working capital |
|
(8,169 |
) |
|
|
4,642 |
|
|
|
(26,773 |
) |
|
|
18,906 |
|
|
Mining and income tax refund (paid) |
|
5 |
|
|
|
(5,522 |
) |
|
|
(3,034 |
) |
|
|
(11,203 |
) |
|
Net
cash from operating activities |
|
13,979 |
|
|
|
12,101 |
|
|
|
19,099 |
|
|
|
41,994 |
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from At-the-Market offering |
|
10,998 |
|
|
|
- |
|
|
|
31,988 |
|
|
|
- |
|
|
Agents' fees and issuance costs |
|
(401 |
) |
|
|
- |
|
|
|
(1,331 |
) |
|
|
- |
|
|
Proceeds from revolving credit facility |
|
- |
|
|
|
14,956 |
|
|
|
- |
|
|
|
14,956 |
|
|
Repayment of revolving credit facility |
|
(7,963 |
) |
|
|
(14,810 |
) |
|
|
(15,918 |
) |
|
|
(14,810 |
) |
|
Exercise of options |
|
- |
|
|
|
264 |
|
|
|
676 |
|
|
|
3,031 |
|
|
Repayment of lease liabilities |
|
(1,410 |
) |
|
|
(2,345 |
) |
|
|
(3,194 |
) |
|
|
(4,431 |
) |
|
Interest paid |
|
(1,175 |
) |
|
|
(316 |
) |
|
|
(2,484 |
) |
|
|
(579 |
) |
|
Net
cash from (used in) financing activities |
|
49 |
|
|
|
(2,251 |
) |
|
|
9,737 |
|
|
|
(1,833 |
) |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions to mining properties |
|
(17,848 |
) |
|
|
(7,132 |
) |
|
|
(40,581 |
) |
|
|
(13,322 |
) |
|
Additions to mines under development |
|
- |
|
|
|
(31,200 |
) |
|
|
- |
|
|
|
(59,613 |
) |
|
Purchase of exploration property |
|
- |
|
|
|
- |
|
|
|
(200 |
) |
|
|
- |
|
|
Funds held against standby letter of credit |
|
- |
|
|
|
(494 |
) |
|
|
- |
|
|
|
(494 |
) |
|
Proceeds on disposal of mining equipment |
|
827 |
|
|
|
20 |
|
|
|
827 |
|
|
|
20 |
|
|
Net
cash used in investing activities |
|
(17,021 |
) |
|
|
(38,806 |
) |
|
|
(39,954 |
) |
|
|
(73,409 |
) |
|
|
|
|
|
|
|
|
|
|
Decrease in
cash and cash equivalents |
|
(2,993 |
) |
|
|
(28,956 |
) |
|
|
(11,118 |
) |
|
|
(33,248 |
) |
|
Cash and
cash equivalents - beginning of period |
|
25,060 |
|
|
|
52,472 |
|
|
|
33,185 |
|
|
|
56,764 |
|
|
Cash and
cash equivalents - end of period |
$ |
22,067 |
|
|
$ |
23,516 |
|
|
$ |
22,067 |
|
|
$ |
23,516 |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents consist of: |
|
|
|
|
|
|
|
|
Cash |
$ |
22,067 |
|
|
$ |
23,516 |
|
|
$ |
22,067 |
|
|
$ |
23,516 |
|
|
|
$ |
22,067 |
|
|
$ |
23,516 |
|
|
$ |
22,067 |
|
|
$ |
23,516 |
|
|
|
|
|
|
|
|
|
|
|
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the benefits of achieving commercial production at
Kiena, the Company’s expected capital expenditure in 2023, the
timing around reaching the Kiena Deep A Zone, the Company’s ability
to be cash flow positive and its annual production run rate. Often,
but not always, forward-looking statements can be identified by the
use of words such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “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
achievements 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. The
Company undertakes no obligation to update forward-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.
Wesdome Gold Mines (TSX:WDO)
過去 株価チャート
から 12 2024 まで 1 2025
Wesdome Gold Mines (TSX:WDO)
過去 株価チャート
から 1 2024 まで 1 2025