Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces third quarter (“Q3 2021”) financial results. All
figures are stated in Canadian dollars unless otherwise noted.
Achievements for Q3
include:
- Eagle River Complex production of
23,833 ounces Au and YTD production of 76,773 ounces Au sets up
well for achieving mid to high end of 2021 guidance (92,000 ounces
Au – 105,000 ounces Au)
- Kiena pre commercial production of
5,511 ounces ramping up as planned. Good progress made on Tailings
Management Facility enhancements, Paste Fill Plant construction,
and mobile equipment procurement advancing this asset towards
commercial production status
- The company remains well funded
with $69.5 M of cash on hand which allows for organically funding
the Kiena restart and aggressive company wide exploration
program
Mr. Duncan Middlemiss, President and CEO commented, “During the
quarter, the Company completed a significant milestone with the
successful restart of the Kiena mill, the commencement of
underground mining, and the increase in mine construction
activities associated with the mine restart. The restart at Kiena
has been entirely internally funded, with no debt or dilution to
the Company. We produced 5,511 pre-commercial production ounces,
and expect 2021’s total production from the asset to be within
guidance range of 15,000 – 25,000 ounces. As expected, due to
initial start up focused on the lower grade S50 zone, located
closest to existing development, Kiena cash costs of $1,844
(US$1,463 per ounce) and AISC of $1,891 (US$1,501) per ounce, are
not reflective of the asset long term. We expect to be in full
commercial production at this asset in Q2 2022. As we continue to
ramp up our production, we continue to expect costs to trend
downward.
At Eagle, cash costs of $987 (US$783) per ounce and AISC of
$1,451 (US$1,152) per ounce were within our guidance range.
Operating cash flows were $33.9 million or $0.24 per, and cash
margin was $35.3 million. Free cash outflow of $9.1 million was
incurred, net of an investment of a $41.1 million investment into
the operations, including $27.5 million at Kiena. Year to date,
production at Eagle River of 76,773 ounces, leaves us very well
positioned to meet the mid to high point of our guidance range of
92,000 ounces – 105,000 ounces.
With the higher costs realized in Q3 from the Kiena start up,
year to date combined cash costs of $983 (US$785) per ounce and
AISC cost of $1,406 ($US1,123) are slightly above our US cost
guidance range of $900 - $1,000 (US$680 - $770) per ounce for cash
costs and $1,300 - $1,450 (US$980 - $1090) per ounce AISC. The
Kiena costs are pre-commercial production and we expect to achieve
full year production guidance. We expect reductions in unit costs
as Kiena comes progresses towards commercial production, expected
mid next year.
Q3 2021 was a very successful quarter in terms of achieving our
stated corporate goals. We now are on the path to having our second
operating high-grade underground gold mine, de-risking the
Company’s single asset producer status, and bringing us that much
closer to our objective of becoming Canada’s next intermediate gold
producer.”
The Company also announces today the resignation of Marc-Andre
Pelletier, Chief Operating Officer, effective January 15, 2022.
Marc will be pursuing another opportunity in a more senior role, a
natural progression in his career trajectory. We wish to sincerely
thank him for his extensive contributions to the Company, and his
key role in the reopening of the Kiena mine, and wish him all the
best in his new endeavour.”
Key operating and financial highlights of the Q3 2021
results include:
- Gold production of 29,344 ounces,
which includes 5,511 Kiena pre-commercial ounces, is a 47% increase
over the same period in the previous year (Q3 2020: 20,008 ounces):
- Eagle River Underground 56,003
tonnes at a head grade of 13.4 grams per tonne for 23,621 ounces
produced, 22% increase over the previous year (Q3 2020: 19,319
ounces).
- Mishi Open Pit 3,727 tonnes at a
head grade of 2.3 g/t Au for 212 ounces produced (Q3 2020: 689
ounces).
- Kiena 30,470 tonnes at a head grade
of 5.8 grams per tonne for 5,511 pre-commercial ounces
produced.
- Revenue of $67.5 million, a 23%
increase over the previous year (Q3 2020: $55.0 million).
- Ounces sold were 30,000 at an
average sales price of $2,249/oz (Q3 2020: 21,700 ounces at an
average price of $2,532/oz).
- Cash margin1 of $35.3 million, a
10.0% increase over Q3 2020 (Q3 2020 - $32.1 million).
- Operating cash flows increased by
33% to $33.9 million or $0.24 per share1 as compared to $25.6
million or $0.18 per share for the same period in 2020.
- Free cash outflow of $9.1 million,
net of an investment of $27.5 million in Kiena, or ($0.06) per
share1 (Q3 2020: free cash flow of $3.3 million or $0.02 per
share).
- Net income of $15.3 million or $0.11
per share (Q3 2020: $14.6 million or $0.10 per share) and Net
income (adjusted)1 of $18.3 million or $0.13 per share (Q3 2020:
$14.6 million or $0.10 per share).
- Cash position increased to $69.5
million compared to $67.8 million in the previous quarter.
- Cash costs1 of $1,072/oz or
US$851/oz, a 2% increase over the same period in 2020 (Q3 2020:
$1,052/oz or US$790/oz) due to the inclusion of the higher cost
Kiena pre-commercial ounces ($1,844 (US$1,463) per ounce), which
increased the cash cost per ounce sold by $85 (US$67) per
ounce;
- All-in sustaining costs (“AISC”) 1
increased by 7% to $1,495/oz or US$1,186/oz (Q3 2020 - $1,395
(US$1,047) per ounce) due to the inclusion of the higher cost Kiena
pre-commercial ounces ($1,891 (US$1,501) per ounce), which
increased the AISC per ounce sold by $44 (US$35), combined with
higher sustaining capital, corporate and general expenses and lease
payments.
1 |
Refer to the Company’s 2021 Third Quarter Management Discussion and
Analysis, section entitled “Non-IFRS Performance Measures” for the
reconciliation of these non-IFRS measurements to the financial
statements. |
Production and Exploration Highlights |
Achievements |
Eagle River |
- Q3 2021
Eagle River production increased by 22% from Q3 2020 to 23,621
ounces of gold, due to a 25% increase in total throughput; offset
partially by a 3% decrease in head grade. Head grade at Eagle River
in Q3 2021 averaged 13.4 g/t.
- Q3 2021
Cash cost of $987 (US$783) per ounce of gold sold1 decreased by 6%
or $66 from Q3 2020 primarily due to a 24% increase in ounces
sold.
- Q3 2021
AISC of $1,451 (US$1,152) per ounce of gold sold1 increased by 6%
or $56 from Q3 2020 primarily due to higher mine development and
infrastructure spending; partially offset by a 24% increase in
ounces sold.
- Generated
$34.2 million in cash margin in Q3 2021 compared to $32.1 million
in the same period in 2020, despite the average realized Canadian
gold price being 11% lower at $2,249/oz (Q3 2020 - $2,532/oz).
- The Eagle
River underground ore processed was slightly lower in Q3 2021 due
to two weeks of scheduled downtime for the installation of a new
cone crusher and the annual mill maintenance. Production in Q4 is
expected to increase to 650 tpd as no project maintenance downtime
is planned. Ventilation improvements continue at depth, which has
increased the air flow in the deepest section of the ramp area.
Production from the Falcon Zone started late in Q3 and will
continue in Q4, providing a new high-grade area.
Initial sill development has been completed on the Falcon 7 zone on
the 622 and 635 levels in support of the current mining. Chip
sampling and test holes taken on these two horizons during the
initial development confirms earlier exploration drill results by
returning high gold grades over continuous strike length. 622 level
chip sampling yielded 54.3 grams of gold per tonne (g/t Au)
(uncapped) and 37.9 g/t Au (capped at 125 g/t Au) over an average
thickness of 2.1 metres (m) over a continuous strike length of 75.6
m. Also, 635 level chip sampling yielded 67.3 g/t Au (uncapped) and
34.3 g/t Au (capped) over an average thickness of 1.9 m over 61.0
m. Additionally the Company is continuing to develop and explore
the 311 West Zone along the western margin of the mine diorite. The
zone has transitioned from the diorite into the adjacent mafic
volcanics, again highlighting the potential of the volcanic rocks
to host gold mineralization, similar to that observed at the
neighbouring Falcon 7 zone.
-
Additional underground exploration is ongoing further to the east
of the current mining areas, in the east-central area of the mine,
to test for parallel zones north of the historic 8 and 6 zones. A
comprehensive structural study has been completed and is being
utilized to assist the exploration targeting.
- Surface
drilling is ongoing with 2 drills both east and west of the mine to
follow up on anomalous values returned from the regional drilling
program in 2020.
|
Kiena |
- During Q3
2021, operations at the Kiena Mine commenced, producing 5,511
ounces from the lower grade S-50 zone. The mill start-up in July
went according to plan with no major issues. Mine operations were
halted for 18 days in September for upgrading of the hoist system
which has now been completed. Progress on the paste fill plant and
tailings management area construction is on schedule. All key
mobile equipment has been ordered and we have already received four
underground haulage trucks with the remainder of the equipment
scheduled to arrive by Q2 of 2022.
- Total throughput was 30,470 tonnes
or 331 tpd and the head grade averaged 5.8 g/t.
- Generated
$1.1 million in cash margin despite the high cash costs of $1,844
per ounce of gold sold1 due to low pre-commercial production
levels.
- Late in
Q3, first stope production began at the higher grade A Zone, and
this is expected to increase significantly in the coming quarters.
The reconciliation of the A zone bulk sample that was processed in
Q4 2020 recovered 6% more gold than the MRE with a feed grade of
15.7 g/t Au versus model grade of 14.7 g/t Au. Total gold produced
from the 7,032 tonnes milled was 3,479 ounces with gold recovery in
the Kiena mill of 98.2%.
- The new
Footwall Zone was initially announced in March of this year. To
date, the Footwall Zone is defined by new intersections of gold
mineralization located within a 50 metre (‘m’) wide corridor
adjacent to the footwall of A2 Zone. The Footwall Zone corridor
remains open laterally and down plunge. The location of new gold
intercepts in recent holes suggest that the Footwall Zone extends
over 300 m along plunge. The deepest hole returned 41.2 g/t Au
(uncapped) over 51.2 m core length.
- Ongoing drilling also continues to
better define and expand the Kiena Deep A Zone predominantly along
the lateral extensions of the zone. The high grades intersected
will be included in future resource updates. One hole returned
132.1 g/t Au over 7.4 m core length (27.6 g/t Au capped, 3.9 m true
width) A Zone.
- Initial
surface drilling has focused on the Presqu’ile and Shawkey areas
located northwest and southeast of the Kiena Mine, respectively.
Since July 2021, two drills on barges have been testing the
continuity of some gold anomalies in the Jacola Formation which
host the Kiena mine. Recent drilling at Presqu’ìle zones returned
1515.0 g/t Au over 0.5 m core length.
- Wesdome
finalized the purchase of the Tarmac Gold Property from Globex
Mining Enterprises. The Property consists of 6 claims covering 94
hectares located entirely within Wesdome’s Kiena Mine Complex and
less than 2 kilometers northeast of the Kiena underground mine, all
located beneath Lac De Montigny.
|
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng,
Chief Operating Officer, 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.
Wesdome Gold Mines 2021 Third Quarter
Financial Results Conference Call
November 11, 2021 at 10:00 am ET
North American Toll Free: + 1
(844) 202-7109International Dial-In Number:
+1 (703) 639-1272Conference ID:
1534619 Webcast link:
https://edge.media-server.com/mmc/p/8rk2xyk3
The webcast can also be accessed under the News and Events
section of the Company’s website
(www.wesdome.com)
ABOUT WESDOMEWesdome is
Canadian focused with two producing underground gold mines.
The Company’s strategy is to build Canada’s next intermediate gold
producer, producing 200,000+ ounces from two mines in Ontario and
Québec. The Eagle River Underground Mine in Wawa, Ontario is
currently producing gold at a rate of 92,000 – 105,000 ounces per
year. The Kiena Complex is a fully permitted mine
with a 930-metre shaft and 2,000 tonne-per-day mill, and a restart
of operations was announced on May 26, 2021. The Company has
completed a PFS in support of the production restart decision.
Wesdome is actively exploring both underground and on surface
within the mine area and more regionally at both the Eagle River
and Kiena Complex. The Company also retains meaningful exposure to
the Moss Lake gold deposit, located 100 kilometres west of Thunder
Bay, Ontario through its equity position in Goldshore Resources
Inc. The Company has approximately 140.0 million shares issued and
outstanding and trades on the Toronto Stock Exchange under the
symbol “WDO”.
For further
information, please contact: |
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|
|
Duncan Middlemiss |
or |
Lindsay Carpenter Dunlop |
President and CEO |
|
VP Investor Relations |
416-360-3743 ext.
2029 |
|
416-360-3743 ext.
2025 |
duncan.middlemiss@wesdome.com |
|
lindsay.dunlop@wesdome.com |
|
|
|
|
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|
220 Bay St, Suite 1200 |
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Toronto, ON, M5J 2W4 |
|
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Toll Free: 1-866-4-WDO-TSX |
|
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Phone: 416-360-3743, Fax: 416-360-7620 |
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Website: www.wesdome.com |
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|
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. 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. The Company has included in this news release certain
non-IFRS performance measures, including, but not limited to, mine
operating profit, mining and processing costs and cash costs. Cash
costs per ounce reflect actual mine operating costs incurred during
the fiscal period divided by the number of ounces produced. These
measures are not defined under IFRS and therefore should not be
considered in isolation or as an alternative to or more meaningful
than, net income (loss) or cash flow from operating activities as
determined in accordance with IFRS as an indicator of our financial
performance or liquidity. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow.
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)
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating
data |
|
|
|
|
|
|
|
|
Milling
(tonnes) |
|
|
|
|
|
|
|
|
Eagle River |
|
56,003 |
|
44,667 |
|
172,600 |
|
142,890 |
Mishi |
|
3,727 |
|
11,533 |
|
30,293 |
|
36,301 |
Kiena |
|
30,470 |
|
0 |
|
30,470 |
|
0 |
Throughput 2 |
|
90,200 |
|
56,200 |
|
233,363 |
|
179,191 |
Head grades
(g/t) |
|
|
|
|
|
|
|
|
Eagle River |
|
13.4 |
|
13.8 |
|
13.8 |
|
15.1 |
Mishi |
|
2.3 |
|
2.5 |
|
2.4 |
|
2.7 |
Kiena |
|
5.8 |
|
0.0 |
|
5.8 |
|
0.0 |
Recovery
(%) |
|
|
|
|
|
|
|
|
Eagle River |
|
97.9 |
|
97.7 |
|
97.5 |
|
97.6 |
Mishi |
|
78.0 |
|
74.7 |
|
81.4 |
|
77.8 |
Kiena |
|
97.9 |
|
0.0 |
|
97.9 |
|
0.0 |
|
|
|
|
|
|
|
|
|
Production
(ounces) |
|
|
|
|
|
|
|
|
Eagle River |
|
23,621 |
|
19,319 |
|
74,853 |
|
67,893 |
Mishi |
|
212 |
|
689 |
|
1,920 |
|
2,379 |
Kiena |
|
5,511 |
|
0 |
|
5,511 |
|
0 |
Total gold
produced 2 |
|
29,344 |
|
20,008 |
|
82,284 |
|
70,272 |
Total gold
sales (ounces) 4 |
|
30,000 |
|
21,700 |
|
80,957 |
|
71,340 |
|
|
|
|
|
|
|
|
|
Eagle River
Complex (per ounce of gold sold) 1 |
|
|
|
|
|
|
|
|
Average realized price |
$ |
2,254 |
$ |
2,532 |
$ |
2,240 |
$ |
2,341 |
Cash costs |
|
987 |
|
1,052 |
|
966 |
|
1,022 |
Cash margin |
$ |
1,267 |
$ |
1,480 |
$ |
1,274 |
$ |
1,319 |
All-in Sustaining Costs 1 |
$ |
1,451 |
$ |
1,395 |
$ |
1,413 |
$ |
1,348 |
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne
milled 1 |
$ |
388 |
$ |
389 |
$ |
347 |
$ |
385 |
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange
rate |
|
1.2600 |
|
1.3321 |
|
1.2513 |
|
1.3541 |
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold
sold (US$) 1 |
$ |
783 |
$ |
790 |
$ |
772 |
$ |
755 |
All-in Sustaining Costs
(US$) 1 |
$ |
1,152 |
$ |
1,047 |
$ |
1,129 |
$ |
995 |
|
|
|
|
|
|
|
|
|
Kiena Mine (per ounce of gold
sold) 1 |
|
|
|
|
|
|
|
|
Average realized price |
$ |
2,210 |
$ |
0 |
$ |
2,210 |
$ |
0 |
Cash costs 3 |
|
1,844 |
|
0 |
|
1,243 |
|
0 |
Cash margin |
$ |
366 |
$ |
0 |
$ |
967 |
$ |
0 |
All-in Sustaining Costs 1,
3 |
$ |
1,891 |
$ |
0 |
$ |
1,288 |
$ |
0 |
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne
milled 1 |
$ |
335 |
$ |
0 |
$ |
335 |
$ |
0 |
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange
rate |
|
1.2600 |
|
1.3321 |
|
1.2513 |
|
1.3541 |
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold
sold (US$) 1 |
$ |
1,463 |
$ |
0 |
$ |
993 |
$ |
0 |
All-in Sustaining Costs
(US$) 1 |
$ |
1,501 |
$ |
0 |
$ |
1,029 |
$ |
0 |
|
|
|
|
|
|
|
|
|
Financial
Data |
|
|
|
|
|
|
|
|
Cash margin 1 |
$ |
35,306 |
$ |
32,116 |
$ |
97,672 |
$ |
94,039 |
Net income |
$ |
15,344 |
$ |
14,614 |
$ |
110,254 |
$ |
42,224 |
Net income adjusted 1 |
$ |
18,266 |
$ |
14,614 |
$ |
44,467 |
$ |
42,224 |
Earnings before interest,
taxes, depreciation and amortization 1 |
$ |
32,828 |
$ |
28,564 |
$ |
84,302 |
$ |
84,325 |
Operating cash flow |
$ |
33,890 |
$ |
25,560 |
$ |
82,798 |
$ |
89,399 |
Free cash flow |
$ |
(9,087) |
$ |
3,295 |
$ |
(18,119) |
$ |
37,822 |
Per share data |
|
|
|
|
|
|
|
|
Net income |
$ |
0.11 |
$ |
0.10 |
$ |
0.79 |
$ |
0.30 |
Adjusted net income 1 |
$ |
0.13 |
$ |
0.10 |
$ |
0.32 |
$ |
0.30 |
Operating cash flow 1 |
$ |
0.24 |
$ |
0.18 |
$ |
0.59 |
$ |
0.64 |
Free cash flow 1 |
$ |
(0.06) |
$ |
0.02 |
$ |
(0.13) |
$ |
0.27 |
1 |
Refer to the Company’s 2021 Third Quarter Management Discussion and
Analysis, section entitled “Non-IFRS Performance Measures” for the
reconciliation of these non-IFRS measurements to the financial
statements. |
2 |
Totals for tonnage and gold ounces information may not add due to
rounding. |
3 |
YTD 2021 includes a $0.4 million
charge for product inventory costs from the sale of 1,793 ounces of
gold from the Kiena bulk sample, which was processed in Q4
2020. |
4 |
YTD 2021 includes 1,793 ounces of
gold from the Kiena bulk sample, which was processed in Q4
2020. |
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Financial
Position(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
|
|
|
|
As at September 30,
2021 |
|
As at December 31, 2020 |
Assets |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
|
$ |
69,473 |
|
$ |
63,480 |
Receivables and prepaids |
|
12,690 |
|
8,974 |
Share consideration receivable |
|
4,930 |
|
- |
Inventories |
|
17,780 |
|
12,451 |
Total current assets |
|
104,873 |
|
84,905 |
|
|
|
|
|
Restricted cash |
|
657 |
|
657 |
Deferred financing costs |
|
840 |
|
827 |
Mining properties, plant and equipment |
|
203,053 |
|
128,670 |
Mines under development |
|
179,029 |
|
- |
Exploration properties |
|
10,826 |
|
143,524 |
Share consideration
receivable |
|
13,585 |
|
- |
Investment in associate |
|
19,451 |
|
- |
Total assets |
|
$ |
532,314 |
|
$ |
358,583 |
|
|
|
|
|
Liabilities |
|
|
|
|
Current |
|
|
|
|
Payables and accruals |
|
$ |
38,823 |
|
$ |
21,123 |
Income and mining tax payable |
|
3,961 |
|
3,481 |
Current portion of lease liabilities |
|
6,466 |
|
5,901 |
Total current liabilities |
|
49,250 |
|
30,505 |
|
|
|
|
|
Lease liabilities |
|
7,753 |
|
5,604 |
Deferred income and mining tax
liabilities |
|
75,259 |
|
37,354 |
Decommissioning
provisions |
|
21,832 |
|
22,270 |
Total liabilities |
|
154,094 |
|
95,733 |
|
|
|
|
|
Equity |
|
|
|
|
Equity attributable to owners of the Company |
|
|
|
|
Capital stock |
|
184,849 |
|
179,540 |
Contributed surplus |
|
6,279 |
|
6,472 |
Retained earnings |
|
187,092 |
|
76,838 |
Total equity attributable to
owners of the Company |
|
378,220 |
|
262,850 |
|
|
$ |
532,314 |
|
$ |
358,583 |
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Income and
Comprehensive Income(Expressed in thousands of Canadian
dollars except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
67,548 |
|
$ |
55,000 |
|
$ |
177,402 |
|
$ |
167,104 |
Cost of
sales |
|
(39,636) |
|
(30,487) |
|
(99,674) |
|
(94,903) |
Gross
profit |
|
27,912 |
|
24,513 |
|
77,728 |
|
72,201 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
|
Corporate and general |
|
2,565 |
|
1,371 |
|
7,797 |
|
5,147 |
Stock-based compensation |
|
558 |
|
518 |
|
2,071 |
|
2,262 |
Reversal of impairment
charges |
|
- |
|
- |
|
(58,563) |
|
- |
Gain on disposal of mining
equipment |
|
(3) |
|
- |
|
(3) |
|
- |
Impairment charge on
exploration properties |
|
4,394 |
|
- |
|
7,507 |
|
- |
|
|
7,514 |
|
1,889 |
|
(41,191) |
|
7,409 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
20,398 |
|
22,624 |
|
118,919 |
|
64,792 |
|
|
|
|
|
|
|
|
|
Gain on sale of Moss Lake exploration properties |
|
- |
|
- |
|
39,143 |
|
- |
Interest expense |
|
(325) |
|
(263) |
|
(855) |
|
(802) |
Accretion of decommissioning provisions |
|
(176) |
|
(88) |
|
(410) |
|
(265) |
Share of loss of associate |
|
(15) |
|
- |
|
(104) |
|
- |
Fair value adjustment on share consideration receivable |
|
368 |
|
- |
|
360 |
|
- |
Other income (expenses) |
|
464 |
|
(294) |
|
(239) |
|
(203) |
Income before income and mining taxes |
|
20,714 |
|
21,979 |
|
156,814 |
|
63,522 |
|
|
|
|
|
|
|
|
|
Income and mining tax expense |
|
|
|
|
|
|
|
|
Current |
|
3,309 |
|
2,195 |
|
8,655 |
|
6,234 |
Deferred |
|
2,061 |
|
5,170 |
|
37,905 |
|
15,064 |
|
|
5,370 |
|
7,365 |
|
46,560 |
|
21,298 |
|
|
|
|
|
|
|
|
|
Net income and total |
|
|
|
|
|
|
|
|
comprehensive
income |
|
$ |
15,344 |
|
$ |
14,614 |
|
$ |
110,254 |
|
$ |
42,224 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.11 |
|
$ |
0.10 |
|
$ |
0.79 |
|
$ |
0.30 |
Diluted |
|
$ |
0.11 |
|
$ |
0.10 |
|
$ |
0.77 |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
Weighted average number of common |
|
|
|
|
|
|
|
|
shares
(000s) |
|
|
|
|
|
|
|
|
Basic |
|
140,432 |
|
139,308 |
|
139,872 |
|
138,898 |
Diluted |
|
143,069 |
|
142,969 |
|
142,653 |
|
142,478 |
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Total
Equity(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
Contributed |
|
Retained |
|
Total |
|
|
Stock |
|
Surplus |
|
Earnings |
|
Equity |
|
|
|
|
|
|
|
|
|
Balance, December 31,
2019 |
|
$ |
174,789 |
|
$ |
5,590 |
|
$ |
26,123 |
|
$ |
206,502 |
Net income for the period
ended |
|
|
|
|
|
|
|
|
September 30, 2020 |
|
- |
|
- |
|
42,224 |
|
42,224 |
Exercise of options |
|
2,405 |
|
- |
|
- |
|
2,405 |
Value attributed to options
exercised |
|
1,103 |
|
(1,103) |
|
- |
|
- |
Value attributed to RSUs
exercised |
|
577 |
|
(577) |
|
- |
|
- |
Stock-based compensation |
|
- |
|
2,262 |
|
- |
|
2,262 |
Balance, September 30,
2020 |
|
$ |
178,874 |
|
$ |
6,172 |
|
$ |
68,347 |
|
$ |
253,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2020 |
|
$ |
179,540 |
|
$ |
6,472 |
|
$ |
76,838 |
|
$ |
262,850 |
Net income for the period
ended |
|
|
|
|
|
|
|
|
September 30, 2021 |
|
- |
|
- |
|
110,254 |
|
110,254 |
Exercise of options |
|
3,045 |
|
- |
|
- |
|
3,045 |
Value attributed to options
exercised |
|
1,478 |
|
(1,478) |
|
- |
|
- |
Value attributed to RSUs
exercised |
|
786 |
|
(786) |
|
- |
|
- |
Stock-based compensation |
|
- |
|
2,071 |
|
- |
|
2,071 |
Balance, September 30,
2021 |
|
$ |
184,849 |
|
$ |
6,279 |
|
$ |
187,092 |
|
$ |
378,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Cash
Flows(Unaudited, expressed in thousands of Canadian
dollars)
|
|
Three months ended September
30, |
|
Nine months ended September
30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
15,344 |
|
$ |
14,614 |
|
$ |
110,254 |
|
$ |
42,224 |
Depreciation and depletion |
|
7,395 |
|
6,322 |
|
19,945 |
|
20,001 |
Stock-based compensation |
|
558 |
|
518 |
|
2,071 |
|
2,262 |
Accretion of decommissioning provisions |
|
176 |
|
88 |
|
410 |
|
265 |
Deferred income and mining tax expense |
|
2,061 |
|
5,170 |
|
37,905 |
|
15,064 |
Amortization of deferred financing cost |
|
104 |
|
98 |
|
328 |
|
269 |
Interest expense |
|
325 |
|
263 |
|
855 |
|
802 |
Reversal of impairment charges |
|
- |
|
- |
|
(58,563) |
|
- |
Gain on sale of Moss Lake exploration properties |
|
- |
|
- |
|
(39,143) |
|
- |
Impairment charge on exploration properties |
|
4,394 |
|
- |
|
7,507 |
|
- |
Gain on disposal of mining equipment |
|
(3) |
|
- |
|
(3) |
|
- |
Share of loss of associate |
|
15 |
|
- |
|
104 |
|
- |
Fair value adjustment on share consideration |
|
(368) |
|
- |
|
(360) |
|
- |
receivable |
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) on lease financing |
|
64 |
|
(83) |
|
(15) |
|
94 |
|
|
30,065 |
|
26,990 |
|
81,295 |
|
80,981 |
Net changes in non-cash working capital |
|
6,638 |
|
2,139 |
|
9,677 |
|
13,307 |
Mining and income tax paid |
|
(2,813) |
|
(3,569) |
|
(8,174) |
|
(4,889) |
Net cash from operating activities |
|
33,890 |
|
25,560 |
|
82,798 |
|
89,399 |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Exercise of options |
|
1,814 |
|
623 |
|
3,045 |
|
2,405 |
Deferred financing costs |
|
(5) |
|
- |
|
(339) |
|
(198) |
Repayment of borrowings |
|
- |
|
- |
|
- |
|
(3,636) |
Repayment of lease liabilities |
|
(1,877) |
|
(1,322) |
|
(5,277) |
|
(3,531) |
Interest paid |
|
(325) |
|
(263) |
|
(855) |
|
(802) |
Net cash used in financing activities |
|
(393) |
|
(962) |
|
(3,426) |
|
(5,762) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions to mining properties |
|
(12,620) |
|
(6,981) |
|
(30,492) |
|
(18,972) |
Additions to mines under development |
|
(27,481) |
|
- |
|
(40,882) |
|
- |
Additions to exploration properties |
|
- |
|
(13,962) |
|
(23,267) |
|
(29,074) |
Purchase of exploration property |
|
(1,000) |
|
- |
|
(1,000) |
|
- |
Cash proceeds on sale of Moss Lake, net |
|
- |
|
- |
|
11,762 |
|
- |
of transaction costs |
|
|
|
|
|
|
|
|
Proceeds on disposal of mining assets |
|
73 |
|
- |
|
73 |
|
- |
Net changes in non-cash working capital |
|
9,205 |
|
3,125 |
|
10,427 |
|
2,265 |
Net cash used in investing activities |
|
(31,823) |
|
(17,818) |
|
(73,379) |
|
(45,781) |
|
|
|
|
|
|
|
|
|
Increase in cash and cash
equivalents |
|
1,674 |
|
6,780 |
|
5,993 |
|
37,856 |
Cash and cash equivalents - beginning of the period |
|
67,799 |
|
66,733 |
|
63,480 |
|
35,657 |
Cash and cash equivalents - end of the period |
|
$ |
69,473 |
|
$ |
73,513 |
|
$ |
69,473 |
|
$ |
73,513 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consist of: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
69,473 |
|
$ |
73,513 |
|
$ |
69,473 |
|
$ |
73,513 |
|
|
$ |
69,473 |
|
$ |
73,513 |
|
$ |
69,473 |
|
$ |
73,513 |
|
|
|
|
|
|
|
|
|
PDF
available: http://ml.globenewswire.com/Resource/Download/e37cd418-08dc-4a5d-8365-7f0c39932948
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