WDO Wesdome Gold Mines Ltd

Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces fourth quarter (“Q4 2022”) and full year financial results. All figures are stated in Canadian dollars unless otherwise noted.

Key Highlights:

Eagle River

• Eagle River underground mine processed 223,735 tonnes at an average grade of 11.5 gpt to produce 79,997 ounces with the underground producing 231,000 tonnes of broken ore.
• Completed additional drilling and ore development at the Falcon Zone which is improving production and grade forecasting; results in 2023 so far are showing positive reconciliation at the Falcon Zone

Kiena

• Successfully commissioned the pastefill plant and declared commercial production
• Drilling expanded the size of the A Zones and Footwall Zones, which supports future mine life extension potential
• Drilling better defined and expanded the Presqu’ile Zone potentially justifying the installation of an exploration ramp

Other

• Named to the Globe & Mail's 2022 Report on Business Women Lead Here list. This annual editorial benchmark identifies best-in-class executive gender diversity in corporate Canada
• Placed 6th out of 34 TSX-listed materials companies in the annual Globe and Mail Board Games report on corporate governance

Warwick Morley-Jepson, Interim CEO commented, “2022 was a challenging year for Wesdome, and we have leveraged our experiences to ensure better operational and financial performance going forward. Production misses at both mines resulted in a net loss of $14.7 million or ($0.10) per share.

Previously disclosed grade reconciliation issues at the Falcon zone that impacted 2022 production have been addressed through additional ore development and drilling. Eagle operations are recovering well, with 2023 grade so far reconciling higher than guidance.

At Kiena, despite the challenging backdrop of the fractured supply chains we are very pleased to have put a second mine into production, financed almost entirely from internally generated cash flow. The delays encountered in 2022 are behind us, and all required equipment is on site. The next milestone is the continued development of the ramp giving access to mining operations in the A zone. Ramp advancement will position us to mine in the areas where the ounces per vertical metre significantly increase, and grade is expected to improve. Year to date, this project is tracking slightly ahead of schedule. As well, 2022 saw the hiring of key technical personnel including a Director, Engineering and Operations who will support daily mine operations.

Production guidance for 2023 is expected to range between 110,000 – 130,000 ounces with production back end weighted through the year. Until the ramp reaches the 129 metre level at Kiena, lower processed grades are expected to continue into 2023.   We will continue to supply the mill with lower grade ore from the Martin, S50, and VC zones to supplement the Kiena Deep material that will be available to mine, which is mostly lower grade fringe material and diluted ore from previously mined areas.

We consider this year to be a transition year as we get Kiena back on schedule, setting up 2024 to be a stronger year operationally, as well as financially. In this regard, an at-the-market equity program was established in December to accelerate balance sheet de-levering.”

Key operating and financial performance of the full year 2022 results include:

• Gold production of 110,850 ounces is a 10% decrease over the same period in the previous year (2021: 123,843 ounces):
  • Eagle River underground processed 223,734 tonnes at a head grade of 11.5 grams per tonne for 79,997 ounces produced, 19% decrease over the previous year (2021: 99,120 ounces).
  • Mishi Open Pit 23,153 tonnes at a head grade of 3.2 grams per tonne for 2,005 ounces produced (2021: 2,283 ounces).
  • Kiena 115,171 tonnes at a head grade of 7.9 grams per tonne for 28,848 ounces produced, 29% increase over previous year (2021: 22,440)
• Revenue2 of $265.5 million, a 1% increase over the previous year (2021: $262.9 million).
• Ounces sold3 were 113,000 at an average sales price of $2,347/oz (2021: 116,708 ounces at an average price of $2,250/oz).
• Cash margin1,2,4 of $95.7 million, a 34% decrease over the previous year (2021 - $145.4 million).
• Operating cash flows2,4 decreased by 50% to $65.2 million or $0.46 per share1 as compared to $131.0 million or $0.93 per share for the same period in 2021.
• Free cash outflow of $90.2 million, net of an investment of $108.9 million in Kiena, or ($0.63) per share1 (2021: free cash outflow of $21.3 million or ($0.15) per share).  
• Net loss of $14.7 million or ($0.10) per share (2021: Net income2,4 $131.3 million or $0.94 per share) and Net loss (adjusted)1 of $5.9 million or ($0.04) per share (2021: Net income (adjusted)1,2,4 $69.9 million or $0.50 per share).
• Cash position at the end of the year of $33.2 million, with total borrowings of $54.7 million drawn on the senior secured revolving credit facility.Cash costs1,4,5 of $1,500/oz or US$1,153/oz, a 52% increase over the same period in 2021 (2021: $990/oz or US$789/oz) due to a 9% increase in aggregate operating costs at Eagle River and the costs of ramping up operations at Kiena in anticipation of declaring commercial production;
• AISC1,5 increased by 43% to $2,020/oz or US$1,552/oz (2021: $1,408 or US$1,123 per ounce) due to a 9% increase in aggregate operating costs and increased spending at Eagle River to replace aging infrastructure and the costs of ramping up operations at Kiena in anticipation of declaring commercial production.

Key operating and financial performance of Q4 2022 results include:

• Gold production of 35,116 ounces, which includes a 16% decrease over the same period in the previous year (Q4 2021: 41,559 ounces):
  • Eagle River underground 58,306 tonnes at a head grade of 14.0 grams per tonne for 25,502 ounces produced, 5% increase over the previous year (Q4 2021: 24,267 ounces).
  • Kiena 51,419 tonnes at a head grade of 5.9 grams per tonne for 9,614 ounces produced, 43% decrease over the previous year (Q4 2021: 16,929 ounces).
• Revenue of $75.1 million, a 12% decrease over the previous year (Q4 2021: $85.5 million).
• Ounces sold were 31,500 at an average sales price of $2,380/oz (Q4 2021: 37,544 ounces at an average price of $2,275/oz).
• Cash margin1 of $26.5 million, an 44% decrease over the previous year (Q4 2021 - $47.7 million).
• Operating cash flows decreased by 79% to $10.3 million or $0.07 per share1 as compared to $48.2 million or $0.34 per share for the same period in 2021.
• Free cash outflow of $31.6 million, net of an investment of $26.5 million in Kiena, or ($0.22) per share1 (Q4 2021: free cash outflow of $3.2 million or ($0.02) per share).  
• Net loss and Net loss (adjusted)1of $3.5 million or ($0.02) per share (2021: Net income and Net income (adjusted)1 $24.8 million or $0.18 per share).
• Cash costs1 of $1,540/oz or US$1,134/oz, a 53% increase over the same period in 2021 (Q4 2021: $1,005/oz or US$797/oz);
• AISC1 increased by 51% to $2,136/oz or US$1,573/oz (Q4 2021: $1,412 or US$1,121 per ounce).
  1. 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 financial statements.
  2. FY 2021 excludes $3.9 million of revenue from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021. The incidental revenue was credited against the cost of the Kiena exploration asset.
  3. FY 2021 excludes 1,793 ounces from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.
  4. 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 and sold in Q1 2021.
  5. In determining the Cash cost per ounce and AISC per ounce, the total ounces sold includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.

Production Metrics and Exploration Updates	Performance
Eagle River Complex	FY 2022 gold production from the Eagle River Complex decreased by 19% from FY 2021 to 82,002 ounces of gold, primarily due to lower realized head grade, as the newly developed Falcon Zone grade was not as high as expected. Gold production from Mishi was also lower than in 2021 as the stockpiled ore nears depletion. Head grade at the Eagle River Complex in 2022 averaged 10.7 g/t. FY 2022 cash cost of $1,356 (US$1,042) per ounce of gold sold1 increased by 39% or $378 from FY 2021 due to a 21% decrease in ounces sold and a 9% 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, general maintenance improvements and inflationary pressures, driven by higher labour costs and an increase in commodity inputs, including higher fuel and energy costs. FY 2022 AISC of $2,003 (US$1,539) per ounce of gold sold1 increased by 38% or $547 from FY 2021 due to the higher cash costs, combined with the replacement of aging site infrastructure and raising of the tailings storage facility. Generated $79.1 million in cash margin in FY 2022 compared to $127.7 million in FY 2021 due to the 21% decrease in ounces sold and the 9% increase in overall aggregate site operating costs. The new 355 m level development is now complete along the western extent of the mine infrastructure. The development extends 400 m west of the mine into the volcanic rocks that host the Falcon 7 zone. This development provides drill platforms to test for gold mineralization near the Falcon 7 zone further along strike, and for parallel zones. In the future it will provide access for mining and will improve operational planning, as it is situated away from the main mining area at depth. Most recently, surface, and underground drilling from the newly established 355 m level exploration drift, has defined the up-plunge extent of the Falcon 7 zone. Highlights of the recent drilling include 11.1 g/t Au over 3.0 m core length and 26.5 g/t Au over 2.0 m core length (see press release dated October 5, 2022). In addition, several drill holes have intersected mineralization in subparallel zones in the hanging wall of the Falcon 7 zone, including a recent hole that returned 40.3 g/t Au over 1.5 m. One hole, further to the west along strike from the Falcon 7 zone, near the historic 9 zone, returned 19.4 g/t au over 0.7 m. Additionally, initial surface drilling within the volcanic rocks, 150 metres east and down dip of the previously mined 2 Zone intersected altered volcanic rocks with quartz veining and VG. One hole returned 233.0 g/t Au over 0.4 metres.
Kiena	With the successful completion of a test pastefill pour on November 30, 2022, commercial production at the Kiena Mine was declared effective December 1, 2022. The pastefill plant has been performing well and in line with expectations. FY 2022 Kiena ore production increased by 29% from FY 2021 to 28,848 ounces of gold, primarily due to higher throughput; partially offset by lower head grade as less ore was sourced from Kiena Deep. Head grade at Kiena in 2022 averaged 7.9 g/t. The 2022 cash cost of $1,839 (US$1,413) per ounce of gold sold increased by 75% or $786 per ounce as compared to $1,052 (US$839) in 2021 and the AISC of $2,059 (US$1,582) per ounce of gold sold increased by 81% or $922 per ounce as compared to $1,138 (US$908) in 2021 primarily due to ramping up operations in anticipation of declaring commercial production, which was delayed until December 1, 2022 due to supply chain challenges in sourcing vital equipment necessary to deal with challenging ground conditions within the Kiena Deep A zone. Once a sufficient level of developed reserves is achieved through the development of the ramp to the higher grade A zone, the cash cost and AISC are expected to align with the life of mine cash costs and AISC in the Preliminary Feasibility Study (“PFS”), excluding the industry-wide cost escalations that have occurred since its publishing in 2021. Generated $16.6 million in cash margin despite the low ounces produced and the high cash costs of $1,839 per ounce of gold sold1 as commercial production was delayed until December 1, 2022 due to supply chain challenges in sourcing vital equipment necessary to deal with challenging ground conditions within the Kiena Deep A zone. The recent discovery of the South Limb and Footwall zones show the underexplored exploration potential of the Kiena Deep zone.` Most recently, drilling intersected two new zones in the hanging wall basalt. This zone consists of disseminated sulfides in basalt associated with a stockwork of veinlets composed of quartz ± gold. The second zone consists of a quartz-cabonate vein with visible gold that returned 2,850 g/t Au over 1.5 m core length. The discovery of these zones highlights the potential to add ounces within the basalt, where the rock quality is significantly better than in the A Zone allowing for increased development rates (see press release dated November 16,2022). From surface, drilling has focused on the Presqu'île Zone located 2 kilometres west of the Kiena Mine. Highlights include 24.3 g/t over 3.3 m core length and 30.0 g/t Au over 9.4 m core length. Given the significant upside that the Presqu'île zone could represent for Kiena, the Company is currently evaluating options to fast-track an exploration ramp from surface. It could also easily be connected to Kiena's existing underground ramp network, providing access to surface for the existing operation and enhancements to the mine’s ventilation network (see press release dated September 8, 2022).

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.

Wesdome Gold Mines 2022 Fourth Quarter and Full Year Financial Results Conference Call

February 23, 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/BIcb64cd10b9f843d79897899900fca10c
• Webcast Link:https://edge.media-server.com/mmc/p/oab6ykxp
• The webcast can also be accessed under the news and events section of the company’s website

ABOUT WESDOMEWesdome 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 also retains meaningful exposure to the Moss Lake gold deposit in Ontario through its equity position in Goldshore Resources Inc. 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:

Warwick Morley-Jepson	or	Lindsay Carpenter Dunlop
Interim CEO		VP Investor Relations
416-360-3743   ext. 2029		416-360-3743   ext. 2025
w.morley-jepson@wesdome.com		lindsay.dunlop@wesdome.com

220 Bay St, Suite 1200Toronto, ON, M5J 2W4

Toll Free: 1-866-4-WDO-TSXPhone: 416-360-3743, Fax: 416-360-7620Website: www.wesdome.com

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 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						Years Ended
		December 31,						December 31,
		2022			2021			2022			2021
Operating data
Milling (tonnes)
Eagle River		58,306			56,159			223,734			228,759
Mishi		0			6,215			23,153			36,508
Kiena		51,419			38,000			115,171			68,470
Throughput 2		109,725			100,374			362,058			333,737
Head grades (g/t)
Eagle River		14.0			13.7			11.5			13.8
Mishi		0.0			2.1			3.2			2.4
Kiena		5.9			14.1			7.9			10.4
Recovery (%)
Eagle River		97.4			97.8			96.9			97.5
Mishi		0.0			88.1			83.5			82.4
Kiena		98.1			98.1			98.3			98.0
Production (ounces)
Eagle River		25,502			24,267			79,997			99,120
Mishi		0			363			2,005			2,283
Kiena		9,614			16,929			28,848			22,440
Total gold produced 2		35,116			41,559			110,850			123,843
Total gold sales (ounces) 4		31,500			37,544			113,000			118,501
Eagle River Complex (per ounce of gold sold) 1
Average realized price	$	2,384		$	2,279		$	2,354		$	2,250
Cash costs		1,302			1,017			1,356			978
Cash margin	$	1,082		$	1,262		$	998		$	1,272
All-in Sustaining Costs 1	$	2,039		$	1,608		$	2,003		$	1,456
Mine operating costs/tonne milled 1	$	515		$	391		$	436		$	357
Average 1 USD → CAD exchange rate		1.3578			1.2603			1.3013			1.2535
Cash costs per ounce of gold sold (US$) 1	$	959		$	807		$	1,042		$	780
All-in Sustaining Costs (US$) 1	$	1,502		$	1,276		$	1,539		$	1,162
Kiena Mine (per ounce of gold sold) 1
Average realized price	$	2,371		$	2,267		$	2,331		$	2,249
Cash costs 3, 5		2,063			983			1,839			1,052
Cash margin	$	308		$	1,284		$	492		$	1,197
All-in Sustaining Costs 1, 3, 5	$	2,348		$	1,051		$	2,059		$	1,138
Mine operating costs/tonne milled 1	$	352		$	335		$	518		$	325
Average 1 USD → CAD exchange rate		1.3578			1.2603			1.3013			1.2535
Cash costs per ounce of gold sold (US$) 1	$	1,519		$	780		$	1,413		$	839
All-in Sustaining Costs (US$) 1	$	1,729		$	834		$	1,582		$	908
Financial Data
Cash margin 1	$	26,466		$	47,681		$	95,674		$	145,354
Net income	$	(3,527	)	$	24,762		$	(14,706	)	$	131,288
Net income adjusted 1	$	(3,527	)	$	24,762		$	(5,856	)	$	69,903
Earnings before interest, taxes, depreciation and amortization 1	$	21,309		$	44,235		$	55,617		$	132,199
Operating cash flow	$	10,267		$	48,160		$	65,206		$	130,958
Free cash flow	$	(31,609	)	$	(3,172	)	$	(90,174	)	$	(21,291	)
Per share data
Net income	$	(0.02	)	$	0.18		$	(0.10	)	$	0.94
Adjusted net income 1	$	(0.02	)	$	0.18		$	(0.04	)	$	0.50
Operating cash flow 1	$	0.07		$	0.34		$	0.46		$	0.93
Free cash flow 1	$	(0.22	)	$	(0.02	)	$	(0.63	)	$	(0.15	)

1. 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 financial statements.
2. Totals for tonnage and gold ounces may not add due to rounding.
3. FY 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. FY 2021 includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020
5. In determining the Cash cost per ounce and AISC per ounce, the total ounces sold includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.

Wesdome Gold Mines Ltd.Statements of Financial Position(Expressed in thousands of Canadian dollars)

		As at December 31, 2022				As at December 31, 2021
Assets
Current
Cash and cash equivalents		$	33,185			$	56,764
Receivables and prepaids			12,755				13,793
Inventories			22,119				17,918
Income and mining tax receivable			6,494				-
Share consideration receivable			2,994				4,560
Total current assets			77,547				93,035
Restricted cash			1,176				657
Deferred financing costs			1,411				758
Mining properties, plant and equipment			525,860				212,394
Mines under development			-				214,089
Exploration properties			1,139				1,139
Marketable securities			960				1,860
Share consideration receivable			2,576				10,729
Investment in associate			8,458				19,058
Total assets		$	619,127			$	553,719
Liabilities
Current
Payables and accruals		$	54,734			$	40,093
Borrowings			54,697				-
Income and mining tax payable			-				5,490
Current portion of lease liabilities			6,160				7,789
Total current liabilities			115,591				53,372
Lease liabilities			3,126				6,786
Deferred income and mining tax liabilities			82,950				77,195
Decommissioning provisions			18,941				21,191
Total liabilities			220,608				158,544
Equity
Equity attributable to owners of the Company
Capital stock			205,361				187,911
Contributed surplus			7,359				5,859
Retained earnings			186,939				201,645
Accumulated other comprehensive loss			(1,140	)			(240	)
Total equity attributable to owners of the Company			398,519				395,175
Total liabilities and equity		$	619,127			$	553,719

 

Wesdome Gold Mines Ltd.Statements of Income (Loss) and Comprehensive Income (Loss)(Unaudited, expressed in thousands of Canadian dollars except for per share amounts)

	Three Months Ended								Years Ended
	December 31,								December 31,
		2022				2021				2022				2021
Revenues	$	75,035			$	85,505			$	265,483			$	262,907
Cost of sales		(61,997	)			(45,945	)			(214,371	)			(145,619	)
Gross profit		13,038				39,560				51,112				117,288
Other expenses
Corporate and general		2,309				2,817				11,823				10,614
Stock-based compensation		857				533				3,311				2,604
Exploration and evaluation		1,926				471				14,369				471
Reversal of impairment charges		-				-				-				(58,563	)
Impairment charge on exploration properties		-				-				-				7,507
Loss (gain) on disposal of mining equipment		242				-				303				(3	)
Total other expenses (income)		5,334				3,821				29,806				(37,370	)
Operating income		7,704				35,739				21,306				154,658
Gain on sale of Moss Lake exploration properties		-				-				-				34,330
Impairment of investment in associate		-				-				(11,800	)			-
Fair value adjustment on share consideration receivable		1,005				1,038				(6,386	)			1,947
Interest expense		(1,279	)			(339	)			(2,446	)			(1,194	)
Accretion of decommissioning provisions		(242	)			(146	)			(860	)			(556	)
Share of loss of associate		(1,264	)			(393	)			(1,652	)			(497	)
Loss on dilution of ownership		188				-				(481	)			-
Other income (expenses)		490				(124	)			(872	)			(363	)
Income (loss) before income and mining taxes		6,602				35,775				(3,191	)			188,325
Income and mining tax expense
Current		999				4,720				5,600				13,375
Deferred		9,130				6,293				5,915				43,662
Total income and mining tax expense		10,129				11,013				11,515				57,037
Net (loss) income	$	(3,527	)		$	24,762			$	(14,706	)		$	131,288
Other comprehensive income (loss)
Change in fair value of marketable securities		360				(240	)			(900	)			(240	)
Total comprehensive (loss) income	$	(3,167	)		$	24,522			$	(15,606	)		$	131,048
(Loss) Earnings per share
Basic	$	(0.02	)		$	0.18			$	(0.10	)		$	0.94
Diluted	$	(0.02	)		$	0.17			$	(0.10	)		$	0.92
Weighted average number of common
shares (000s)
Basic		142,782				141,156				142,391				140,195
Diluted		142,782				143,200				142,391				142,787

 

Wesdome Gold Mines Ltd.Statements of Total Equity(Expressed in thousands of Canadian dollars)

													Accumulated
													Other
	Capital				Contributed				Retained				Comprehensive				Total
	Stock				Surplus				Earnings				Loss				Equity
Balance, December 31, 2020	$	179,540			$	6,472			$	70,357			$	-			$	256,369
Net income for the year ended		-				-				131,288				-				131,288
December 31, 2021
Other comprehensive loss		-				-				-				(240	)			(240	)
Exercise of options		5,154				-				-				-				5,154
Value attributed to options exercised		2,431				(2,431	)			-				-				-
Value attributed to RSUs exercised		786				(786	)			-				-				-
Stock-based compensation		-				2,604				-				-				2,604
Balance, December 31, 2021	$	187,911			$	5,859			$	201,645			$	(240	)		$	395,175
Net loss for the year ended	$	-			$	-			$	(14,706	)		$	-			$	(14,706	)
December 31, 2022
Other comprehensive loss		-				-				-				(900	)			(900	)
At-the-Market offering:
Common shares issued for cash		13,080				-				-				-				13,080
Agents' fees and issuance costs		(472	)			-				-				-				(472	)
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		-				3,311				-				-				3,311
Balance, December 31, 2022	$	205,361			$	7,359			$	186,939			$	(1,140	)		$	398,519

 

Wesdome Gold Mines Ltd.Statements of Cash Flows(Unaudited, expressed in thousands of Canadian dollars)

	Three Months Ended December 31,								Years Ended December 31,
		2022				2021				2022				2021
Operating Activities
Net (loss) income	$	(3,527	)		$	24,762			$	(14,706	)		$	131,288
Depreciation and depletion		13,428				8,121				44,562				28,066
Stock-based compensation		857				533				3,311				2,604
Accretion of decommissioning provisions		242				146				860				556
Deferred income and mining tax expense		9,130				6,293				5,915				43,662
Amortization of deferred financing cost		133				84				401				412
Interest expense		1,279				339				2,446				1,194
Reversal of impairment charges		-				-				-				(58,563	)
Gain on sale of Moss Lake exploration properties		-				-				-				(34,330	)
Impairment charge on exploration properties		-				-				-				7,507
Loss (gain) on disposal of mining equipment		242				-				303				(3	)
Impairment of investment in associate		-				-				11,800				-
Fair value adjustment on share consideration receivable		(1,005	)			(1,038	)			6,386				(1,947	)
Share of loss of associate		1,264				393				1,652				497
Loss on dilution of ownership		(188	)			-				481				-
Foreign exchange loss (gain) on borrowings		(1,009	)			(8	)			451				(23	)
Net changes in non-cash working capital		(6,956	)			11,726				18,928				21,403
Mining and income tax paid		(3,623	)			(3,191	)			(17,584	)			(11,365	)
Net cash from operating activities		10,267				48,160				65,206				130,958
Financing Activities
Proceeds from At-the-Market offering		13,080				-				13,080				-
Agents' fees and issuance costs		(632	)			-				(632	)			-
Proceeds from revolving credit facility		28,279				-				69,163				-
Repayment of revolving credit facility		-				-				(14,810	)			-
Repayment of lease liabilities		(11,929	)			(11,823	)			(8,898	)			(8,778	)
Exercise of options		4,110				5,493				3,031				5,154
Deferred financing costs		5,678				4,935				(1,053	)			(342	)
Interest paid		(1,279	)			(339	)			(2,446	)			(1,194	)
Net cash from (used in) financing activities		37,307				(1,734	)			57,435				(5,160	)
Investing Activities
Additions to mining properties		(20,948	)			(12,375	)			(45,328	)			(42,867	)
Additions to mines under development		(18,242	)			(35,455	)			(100,635	)			(76,337	)
Additions to exploration properties		-				-				-				(23,267	)
Purchase of exploration property		-				-				-				(1,000	)
Cash proceeds on sale of Moss Lake, net of transaction costs		-				-				-				11,762
Investment in marketable securities		-				(2,100	)			-				(2,100	)
Funds held against standby letter of credit		-				-				(519	)			-
Proceeds on disposal of mining equipment		60				-				262				73
Net changes in non-cash working capital		-				(9,205	)			-				1,222
Net cash used in investing activities		(39,130	)			(59,135	)			(146,220	)			(132,514	)
Increase (decrease) in cash and cash equivalents		8,444				(12,709	)			(23,579	)			(6,716	)
Cash and cash equivalents - beginning of period		24,741				69,473				56,764				63,480
Cash and cash equivalents - end of year	$	33,185			$	56,764			$	33,185			$	56,764
Cash and cash equivalents consist of:
Cash	$	33,185			$	56,764			$	33,185			$	56,764
	$	33,185			$	56,764			$	33,185			$	56,764

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