Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces its third quarter financial results. All figures
are stated in Canadian dollars unless otherwise noted.
Duncan Middlemiss, President and CEO commented,
“During Q3, we are pleased to have made significant advancements on
the build out at Kiena, such as completing the hoist refurbishment
project during the July shut down. As well, the remaining key
electrical components for the paste plant were delivered and
installed, and have been successfully powered. Post quarter end,
construction is being finalized, and pre-commissioning activities
have started. We expect the plant to be fully operational in Q4.
Once this is achieved, the Company can declare commercial
production at the Kiena mine.
At Eagle, initial mining of the Falcon zone in
the volcanic host rock resulted in one stope returning lower grades
than forecast. However, ongoing development and drilling throughout
the year has continued to better define the higher-grade shoots
within the Falcon Zone and improved our confidence in forecasting
production going forward. Additionally, recent surface and
underground drilling, from the 355 m-level exploration drift, has
extended the up-plunge extent of the Falcon 7 zone to surface. As
the mill was on shut down in July for planned mill thickener
refurbishment work, production was relatively in line with Q2 2022
with higher production planned for Q4.
Year to date, previously released combined
production of 75,734 ounces positions the Company is currently
tracking to produce near the low end of its 120,000 – 140,000 ounce
revised guidance range and the higher end of our cost guidance
range, which relies on significant production late in the fourth
quarter. Costs have been higher than previously guided at the start
of the year due to a number of factors, primarily lower grade at
Eagle River as a result of grade underperformance in the Falcon
Zone, supply chain delays resulting in less ounces produced than
budgeted at Kiena, and inflationary pressures. The ground
conditions in Kiena Deep, specific to the schist and komatiite in
the footwall of the A Zone remain challenging, and the equipment
delays encountered earlier in the year (now received with the
exception of some bolting equipment), have resulted in the
development and mining rates being slower to ramp up than
originally anticipated. Ramp up activities at Kiena will continue
during 2023 as the development deficit incurred is being addressed.
With learnings from mining the new Falcon Zone at Eagle in 2022,
and as we integrate Kiena, 2023 is expected to be a consolidation
year with financial improvement expected as growth capital at Kiena
tapers off, and production increases throughout the year.”
2022 Guidance |
Initial |
Revised |
YTD 2022Achievement |
Gold production |
|
|
|
Eagle River |
95,000 – 105,000 ounces |
85,000 – 95,000 ounces |
54,495 ounces |
Mishi |
1,000 – 2,000 ounces |
1,000 – 2,000 ounces |
2,005 ounces |
Kiena |
64,000 – 73,000 ounces |
34,000 – 43,000 ounces |
19,234 ounces |
|
160,000 – 180,000 ounces |
120,000 – 140,000 ounces |
75,734 ounces |
|
|
|
|
Head grade (g/t Au) |
|
|
|
Eagle River |
12.1 – 13.4 |
10.5 – 11.7 |
10.6 |
Mishi |
2.0 – 2.5 |
2.9 – 3.3 |
3.2 |
Kiena |
10.6 – 11.8 |
8.6 – 9.5 |
9.5 |
|
|
|
|
Cash cost per ounce 1 |
$875 - $970(US$700 –
US$775) |
$1,260 - $1,390(US$980 –
US$1085) |
$1,485(US$1,158) |
AlSC per ounce 1 |
$1,270 - $1,400(US$1,015
– US$1,125) |
$1,765 - $1,950(US$1,370
– US$1,520) |
$1,975(US$1,539) |
Key operating and financial highlights of the Q3 2022
results include:
- Gold production of 22,883 ounces,
including 5,208 Kiena pre-commercial ounces, is a 22% decrease over
the same period of the previous year (Q3 2021: 29,344 ounces):
- Eagle River Underground milled
52,247 tonnes at a head grade of 10.7 grams per tonne for 17,405
ounces produced, a 26% decrease over the same period in the
previous year (Q3 2021: 23,621 ounces).
- Mishi Open Pit milled 3,595 tonnes
at a head grade of 2.8 grams per tonne for 270 ounces produced (Q3
2021: 212 ounces).
- Kiena milled 16,112 tonnes at a head
grade of 10.2 grams per tonne for 5,208 pre-commercial ounces
produced.
- Revenue of $61.8 million, an 8%
decrease over the same period of the previous year (Q3 2021: $67.5
million).
- Ounces sold were 27,500 at an
average sales price of $2,246/oz (Q3 2021: 30,000 ounces at an
average price of $2,249/oz).
- Cash margin1 of $17.0 million, a 52%
decrease over the same period of the previous year (Q3 2021: $35.3
million).
- Operating cash flows decreased by
62% to $12.9 million or $0.09 per share1 as compared to $33.9
million or $0.24 per share for the same period in 2021.
- Free cash outflow of $23.2 million,
net of an investment of $22.8 million in Kiena, or ($0.16) per
share1 (Q3 2021: free cash outflow of $9.1 million or ($0.06) per
share1).
- Net loss of $3.9 million or ($0.03)
per share (Q3 2021: Net income - $14.5 million or $0.10 per share)
and Net loss (adjusted)1 of $3.9 million or ($0.03) per share (Q3
2021: $17.4 million or $0.12 per share)
- Cash position at the end of the
quarter of $24.7 million.
- Cash costs1 of $1,628/oz or
US$1,247/oz, an 52% increase over the same period in 2021 (Q3 2021:
$1,072/oz or US$851/oz);
- AISC1 increased by 48% to $2,217/oz
or US$1,698/oz over the same period in 2021(Q3 2021: $1,495 or
US$1,186 per ounce).
- Refer to the Company’s 2021 Annual Management Discussion and
Analysis section entitled “Non-IFRS Performance Measures” for the
reconciliation of these non-IFRS measurements to the consolidated
financial statements.
Production and Exploration Highlights |
Achievements |
Eagle River Complex |
- Q3 2022
Eagle River underground ore production decreased by 26% from Q3
2021 to 17,405 ounces due to lower head grade and throughput. In
July, the mill performed a planned shutdown to refurbish its
thickener, resulting in 15 days of downtime. Head grade at Eagle
River in Q3 2022 averaged 10.7 g/t, which is within the revised
2022 grade guidance of 10.5 -11.7 g/t Au. Production was negatively
impacted as two underground crews were sent off-site in September
due to members testing positive for Covid.
- Q3 2022
cash cost of $1,473 (US$1,128) per ounce of gold sold1 increased by
49% or $486 per ounce from Q3 2021 due to a 30% decrease in ounces
sold, and a 4% increase in overall aggregate site operating costs
resulting from higher costs incurred on operating development,
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.
- Q3 2022
AISC of $2,259 (US$1,730) per ounce of gold sold1 increased by 56%
or $808 per ounce from Q3 2021 due to a 30% decrease in ounces
sold, a 32% increase in capital spending primarily resulting from
the stage 5 tailings dam lift, and a 4% increase in overall
aggregate site operating costs resulting from higher costs incurred
on operating development, 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.
- Generated
a cash margin in Q3 2022 of $14.6 million compared to $34.2 million
in Q3 2021 due to the 30% decrease in ounces sold, and the 4%
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.
- In addition, a number of 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.
|
|
- Exploration drilling completed much
further to the east, within the central portion of the mine diorite
defined a new lens of gold mineralization. This lens is interpreted
to be east of and along strike from the 7 Zone structure, which is
host to the Falcon 7 zone further to the west in the volcanic rocks
and the 7 zone currently being mined within the mine diorite.
Recent highlights include 27 g/t Au over 4.6 m and 40.4 g/t Au over
3.0 m core length. This new lens will now be drilled and accessed
from adjacent underground infrastructure along the previous mined 8
zone approximately 100 m to the south.
- 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 |
- Generated
$2.4 million in cash margin despite the high cash costs of $1,963
(US$1,504) per ounce of gold sold1 due to low
pre-commercial production levels. Kiena performed a planned hoist
refurbishment shutdown in July, which resulted in 24 days of
downtime.
- Now that
the paste fill plant components have all been received,
construction is being finalized and pre-commissioning activities
have begun. Commissioning of the paste fill plant is still expected
in Q4 2022. Pending completion of the paste plant in Q4, the
Company will declare commercial production, which signifies that
the required operational infrastructure is in place.
-
The ground conditions in Kiena Deep specific to the schist and
komatiite in the footwall of the A Zone remain challenging and the
global supply chain disruption continues to delay delivery of
critical bolting equipment (originally planned to be delivered in
March 2022), which has resulted in the development and mining rates
being slower to ramp up than originally anticipated. Ramp-up
activities at Kiena will continue during 2023 as the development
deficit incurred is being addressed.
- The
recent discovery of the South Limb and Footwall zones show the
underexplored exploration potential of the Kiena Deep Zone, and
therefore, the potential to increase the number of ounces per
vertical metre and to provide additional working faces during
mining. The discovery of these zones highlights the potential to
add ounces in additional zones in this area within the basalt and
is the focus of the current drilling. We expect to report these
results in the near future.
- Underground
drills are active on 33 level to test historic zones and
encouraging drill results further to the southeast along strike
from the Kiena mine.
- 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.
- To the east of
the mine, surface drilling has been focused near the recent
discoveries at the Shawkey and Bourgo zones and most recently at
the historic Dubuisson zone. Recent drilling has intersected gold
mineralization in albite altered diorites with tourmaline and gold,
which is interpreted to be a different style and later stage of
mineralization compared to Kiena Deep. We continue to focus our
drilling in this area and will report results in the near term for
this drilling. Given that these zones are relatively close to the
existing 33 level development, these areas represent a potential
additional source of ore for the Kiena mill.
|
Wesdome Gold Mines 2022 Third Quarter
Financial Results conference call:
November 10, 2022 at 10:00 am ET. Registration
is required.
Participant registration
link:https://register.vevent.com/register/BIa0c662c27f454f2e96c3c3beeea0d9d8
Webcast
link:https://edge.media-server.com/mmc/p/9m82jvc3
The webcast can also be accessed under the News and Events
section of the Company’s website
(www.wesdome.com)
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Frederic Langevin, Eng, Chief
Operating Officer, a "Qualified Person" as defined in National
Instrument 43-101 -Standards of Disclosure for Mineral
Projects.
ABOUT WESDOMEWesdome is a
Canadian focused gold producer with two high grade underground
assets, the Eagle River mine in Ontario and the recently re-started
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:
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 |
220 Bay St, Suite 1200Toronto, ON, M5J 2W4Toll
Free: 1-866-4-WDO-TSXPhone: 416-360-3743, Fax: 416-360-7620Website:
www.wesdome.com
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Operating data |
|
|
|
|
|
|
|
|
Milling(tonnes) |
|
|
|
|
|
|
|
|
Eagle River |
|
52,247 |
|
|
56,003 |
|
|
165,428 |
|
|
172,600 |
|
Mishi |
|
3,595 |
|
|
3,727 |
|
|
23,153 |
|
|
30,293 |
|
Kiena |
|
16,112 |
|
|
30,470 |
|
|
63,752 |
|
|
30,470 |
|
Throughput2 |
|
71,954 |
|
|
90,200 |
|
|
252,333 |
|
|
233,363 |
|
Head
grades (g/t) |
|
|
|
|
|
|
|
|
Eagle
River |
|
10.7 |
|
|
13.4 |
|
|
10.6 |
|
|
13.8 |
|
Mishi |
|
2.8 |
|
|
2.3 |
|
|
3.2 |
|
|
2.4 |
|
Kiena |
|
10.2 |
|
|
5.8 |
|
|
9.5 |
|
|
5.8 |
|
Recovery (%) |
|
|
|
|
|
|
|
|
Eagle
River |
|
96.6 |
|
|
97.9 |
|
|
96.6 |
|
|
97.5 |
|
Mishi |
|
83.0 |
|
|
78.0 |
|
|
83.5 |
|
|
81.4 |
|
Kiena |
|
98.5 |
|
|
97.9 |
|
|
98.4 |
|
|
97.9 |
|
|
|
|
|
|
|
|
|
|
Production(ounces) |
|
|
|
|
|
|
|
|
Eagle
River |
|
17,405 |
|
|
23,621 |
|
|
54,495 |
|
|
74,853 |
|
Mishi |
|
270 |
|
|
212 |
|
|
2,005 |
|
|
1,920 |
|
Kiena |
|
5,208 |
|
|
5,511 |
|
|
19,234 |
|
|
5,511 |
|
Total gold produced2 |
|
22,883 |
|
|
29,344 |
|
|
75,734 |
|
|
82,284 |
|
Total gold sales(ounces)4 |
|
27,500 |
|
|
30,000 |
|
|
81,500 |
|
|
80,957 |
|
|
|
|
|
|
|
|
|
|
Eagle River Complex(per ounce of gold sold)1 |
|
|
|
|
|
|
Average
realized price |
$ |
2,247 |
|
$ |
2,254 |
|
$ |
2,343 |
|
$ |
2,240 |
|
Cash
costs |
|
1,473 |
|
|
987 |
|
|
1,377 |
|
|
966 |
|
Cash
margin |
$ |
774 |
|
$ |
1,267 |
|
$ |
966 |
|
$ |
1,274 |
|
All-in
Sustaining Costs1 |
$ |
2,259 |
|
$ |
1,451 |
|
$ |
1,989 |
|
$ |
1,413 |
|
|
|
|
|
|
|
|
|
|
Mine
operating costs/tonne milled1 |
$ |
475 |
|
$ |
388 |
|
$ |
412 |
|
$ |
347 |
|
|
|
|
|
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.3056 |
|
|
1.2600 |
|
|
1.2828 |
|
|
1.2513 |
|
|
|
|
|
|
|
|
|
|
Cash costs
per ounce of gold sold (US$)1 |
$ |
1,128 |
|
$ |
783 |
|
$ |
1,073 |
|
$ |
772 |
|
All-in
Sustaining Costs (US$)1 |
$ |
1,730 |
|
$ |
1,152 |
|
$ |
1,551 |
|
$ |
1,129 |
|
|
|
|
|
|
|
|
|
|
Kiena Mine
(per ounce of gold sold)1 |
|
|
|
|
|
|
|
|
Average
realized price |
$ |
2,244 |
|
$ |
2,209 |
|
$ |
2,314 |
|
$ |
2,209 |
|
Cash costs3,
5 |
|
1,963 |
|
|
1,844 |
|
|
1,746 |
|
|
1,243 |
|
Cash
margin |
$ |
281 |
|
$ |
365 |
|
$ |
568 |
|
$ |
966 |
|
All-in
Sustaining Costs1, 3, 5 |
$ |
2,126 |
|
$ |
1,891 |
|
$ |
1,941 |
|
$ |
1,288 |
|
|
|
|
|
|
|
|
|
|
Mine
operating costs/tonne milled1 |
$ |
869 |
|
$ |
335 |
|
$ |
643 |
|
$ |
335 |
|
|
|
|
|
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.3056 |
|
|
1.2600 |
|
|
1.2828 |
|
|
1.2513 |
|
|
|
|
|
|
|
|
|
|
Cash costs
per ounce of gold sold (US$)1 |
$ |
1,581 |
|
$ |
1,463 |
|
$ |
1,361 |
|
$ |
993 |
|
All-in
Sustaining Costs (US$)1 |
$ |
1,628 |
|
$ |
1,501 |
|
$ |
1,513 |
|
$ |
1,029 |
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
Cash
margin1 |
$ |
16,993 |
|
$ |
35,307 |
|
$ |
69,208 |
|
$ |
97,673 |
|
Net
income |
$ |
(3,899 |
) |
$ |
14,486 |
|
$ |
(11,179 |
) |
$ |
106,526 |
|
Net income
adjusted1 |
$ |
(3,899 |
) |
$ |
17,408 |
|
$ |
(2,329 |
) |
$ |
45,141 |
|
Earnings
before interest, taxes, depreciation and amortization1 |
$ |
4,814 |
|
$ |
31,848 |
|
$ |
34,308 |
|
$ |
87,964 |
|
Operating
cash flow |
$ |
12,945 |
|
$ |
33,890 |
|
$ |
54,939 |
|
$ |
82,798 |
|
Free cash
flow |
$ |
(23,193 |
) |
$ |
(9,087 |
) |
$ |
(58,565 |
) |
$ |
(18,119 |
) |
Per share
data |
|
|
|
|
|
|
|
|
Net income |
$ |
(0.03 |
) |
$ |
0.10 |
|
$ |
(0.08 |
) |
$ |
0.76 |
|
Adjusted net income1 |
$ |
(0.03 |
) |
$ |
0.12 |
|
$ |
(0.02 |
) |
$ |
0.32 |
|
Operating cash flow1 |
$ |
0.09 |
|
$ |
0.24 |
|
$ |
0.39 |
|
$ |
0.59 |
|
Free cash flow1 |
$ |
(0.16 |
) |
$ |
(0.06 |
) |
$ |
(0.41 |
) |
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
|
- Refer to the Company’s 2021 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.
- 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.
- YTD 2021 includes 1,793 ounces of gold from the Kiena bulk
sample, which was processed in Q4 2020
- 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.Condensed Interim Statements of Financial
Position(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
|
|
As at September 30, 2022 |
|
As at December 31, 2021 |
Assets |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
$ |
24,741 |
|
|
$ |
56,764 |
|
Receivables and prepaids |
|
10,327 |
|
|
|
13,793 |
|
Inventories |
|
19,338 |
|
|
|
17,918 |
|
Income and mining tax receivable |
|
3,870 |
|
|
|
- |
|
Share consideration receivable |
|
- |
|
|
|
4,560 |
|
Total
current assets |
|
58,276 |
|
|
|
93,035 |
|
|
|
|
|
Restricted
cash |
|
1,176 |
|
|
|
657 |
|
Deferred
financing costs |
|
1,570 |
|
|
|
758 |
|
Mining
properties, plant and equipment |
|
207,377 |
|
|
|
212,394 |
|
Mines under
development |
|
294,525 |
|
|
|
214,089 |
|
Exploration
properties |
|
1,139 |
|
|
|
1,139 |
|
Marketable
securities |
|
600 |
|
|
|
1,860 |
|
Share
consideration receivable |
|
4,565 |
|
|
|
10,729 |
|
Investment
in associate |
|
9,534 |
|
|
|
19,058 |
|
Total
assets |
$ |
578,762 |
|
|
$ |
553,719 |
|
|
|
|
|
Liabilities |
|
|
|
Current |
|
|
|
Payables and accruals |
$ |
59,334 |
|
|
$ |
40,093 |
|
Borrowings |
|
27,414 |
|
|
|
- |
|
Income and mining tax payable |
|
- |
|
|
|
5,490 |
|
Current portion of lease liabilities |
|
6,985 |
|
|
|
7,789 |
|
Total
current liabilities |
|
93,733 |
|
|
|
53,372 |
|
|
|
|
|
Lease
liabilities |
|
4,004 |
|
|
|
6,786 |
|
Deferred
income and mining tax liabilities |
|
73,981 |
|
|
|
77,195 |
|
Decommissioning provisions |
|
18,824 |
|
|
|
21,191 |
|
Total
liabilities |
|
190,542 |
|
|
|
158,544 |
|
|
|
|
|
Equity |
|
|
|
Equity
attributable to owners of the Company |
|
|
|
Capital stock |
|
192,753 |
|
|
|
187,911 |
|
Contributed surplus |
|
6,501 |
|
|
|
5,859 |
|
Retained earnings |
|
190,466 |
|
|
|
201,645 |
|
Accumulated other comprehensive loss |
|
(1,500 |
) |
|
|
(240 |
) |
Total equity
attributable to owners of the Company |
|
388,220 |
|
|
|
395,175 |
|
Total
liabilities and equity |
$ |
578,762 |
|
|
$ |
553,719 |
|
|
|
|
|
Wesdome Gold Mines
Ltd.Condensed Interim Statements of Income/(Loss)
and Comprehensive Income/(Loss)(Expressed in thousands of
Canadian dollars except for per share amounts)
|
Three Months
Ended |
|
Nine Months
Ended |
|
September
30, |
|
September
30, |
|
|
2022 |
|
|
|
20211 |
|
|
|
2022 |
|
|
|
20211 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
61,823 |
|
|
$ |
67,548 |
|
|
$ |
190,448 |
|
|
$ |
177,402 |
|
Cost
of sales |
|
(56,294 |
) |
|
|
(39,636 |
) |
|
|
(152,374 |
) |
|
|
(99,674 |
) |
Gross profit |
|
5,529 |
|
|
|
27,912 |
|
|
|
38,074 |
|
|
|
77,728 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
Corporate
and general |
|
2,918 |
|
|
|
2,565 |
|
|
|
9,514 |
|
|
|
7,797 |
|
Stock-based
compensation |
|
823 |
|
|
|
558 |
|
|
|
2,453 |
|
|
|
2,071 |
|
Exploration
and evaluation |
|
5,273 |
|
|
|
- |
|
|
|
12,442 |
|
|
|
- |
|
Reversal of
impairment charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(58,563 |
) |
Impairment
charge on exploration properties |
|
- |
|
|
|
4,394 |
|
|
|
- |
|
|
|
7,507 |
|
Loss (gain)
on disposal of mining equipment |
|
74 |
|
|
|
(3 |
) |
|
|
62 |
|
|
|
(3 |
) |
Total other
expenses (income) |
|
9,088 |
|
|
|
7,514 |
|
|
|
24,471 |
|
|
|
(41,191 |
) |
|
|
|
|
|
|
|
|
Operating (loss) income |
|
(3,559 |
) |
|
|
20,398 |
|
|
|
13,603 |
|
|
|
118,919 |
|
|
|
|
|
|
|
|
|
Gain on sale
of Moss Lake exploration properties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
34,330 |
|
Impairment
of investment in associate |
|
- |
|
|
|
- |
|
|
|
(11,800 |
) |
|
|
- |
|
Fair value
adjustment on share consideration receivable |
|
(1,552 |
) |
|
|
(612 |
) |
|
|
(7,391 |
) |
|
|
909 |
|
Interest
expense |
|
(588 |
) |
|
|
(325 |
) |
|
|
(1,167 |
) |
|
|
(855 |
) |
Accretion of
decommissioning provisions |
|
(239 |
) |
|
|
(176 |
) |
|
|
(618 |
) |
|
|
(410 |
) |
Share of
income (loss) of associate |
|
155 |
|
|
|
(15 |
) |
|
|
(388 |
) |
|
|
(104 |
) |
Loss on
dilution of ownership |
|
(35 |
) |
|
|
- |
|
|
|
(669 |
) |
|
|
- |
|
Other
(expense) income |
|
(1,420 |
) |
|
|
464 |
|
|
|
(1,363 |
) |
|
|
(239 |
) |
(Loss)
income before income and mining taxes |
|
(7,238 |
) |
|
|
19,734 |
|
|
|
(9,793 |
) |
|
|
152,550 |
|
|
|
|
|
|
|
|
|
Income and mining tax (recovery) expense |
|
|
|
|
|
|
|
Current |
|
325 |
|
|
|
3,309 |
|
|
|
4,601 |
|
|
|
8,655 |
|
Deferred |
|
(3,664 |
) |
|
|
1,939 |
|
|
|
(3,215 |
) |
|
|
37,369 |
|
Total income
and mining tax (recovery) expense |
|
(3,339 |
) |
|
|
5,248 |
|
|
|
1,386 |
|
|
|
46,024 |
|
|
|
|
|
|
|
|
|
Net
(loss) income |
$ |
(3,899 |
) |
|
$ |
14,486 |
|
|
$ |
(11,179 |
) |
|
$ |
106,526 |
|
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
Change in fair value of marketable securities |
|
(360 |
) |
|
|
- |
|
|
|
(1,260 |
) |
|
|
- |
|
Total comprehensive (loss) income |
$ |
(4,259 |
) |
|
$ |
14,486 |
|
|
$ |
(12,439 |
) |
|
$ |
106,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
0.10 |
|
|
$ |
(0.08 |
) |
|
$ |
0.76 |
|
Diluted |
$ |
(0.03 |
) |
|
$ |
0.10 |
|
|
$ |
(0.08 |
) |
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
Weighted average number of common |
|
|
|
|
|
|
|
shares (000s) |
|
|
|
|
|
|
|
Basic |
|
142,487 |
|
|
|
140,432 |
|
|
|
142,260 |
|
|
|
139,872 |
|
Diluted |
|
142,487 |
|
|
|
143,069 |
|
|
|
142,260 |
|
|
|
142,653 |
|
|
|
|
|
|
|
|
|
- Q3 2021 has been restated to correct an error in the valuation
of the share consideration receivable related to the sale of the
Moss Lake Project which closed on May 31, 2021. The proceeds
have been restated to $44.7 million from $49.5 million, which has
decreased the gain on sale of the Moss Lake properties to $30.2
million (net of tax of $4.1 million) from $34.6 million (net of tax
of $4.5 million). The Q3 2021 net income has decreased by
$0.9 million resulting from the mark-to-market of the share
consideration receivable. Basic earnings per share for Q3
2021 changed from $0.11 to $0.10 per share and basic earnings per
share for Q3 YTD 2021 changed from $0.79 to $0.76 per share.
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 |
|
Earnings1 |
|
Loss |
|
Equity1 |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
$ |
179,540 |
|
|
$ |
6,472 |
|
|
$ |
70,357 |
|
|
$ |
- |
|
|
$ |
256,369 |
|
Net income
for the period ended |
|
|
|
|
|
|
|
|
|
September 30, 2021 |
|
- |
|
|
|
- |
|
|
|
106,526 |
|
|
|
- |
|
|
|
106,526 |
|
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 |
|
|
$ |
176,883 |
|
|
$ |
- |
|
|
$ |
368,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
December 31, 2021 |
$ |
187,911 |
|
|
$ |
5,859 |
|
|
$ |
201,645 |
|
|
$ |
(240 |
) |
|
$ |
395,175 |
|
Net loss for
the period ended |
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
- |
|
|
|
- |
|
|
|
(11,179 |
) |
|
|
- |
|
|
|
(11,179 |
) |
Other
comprehensive loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,260 |
) |
|
|
(1,260 |
) |
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 |
|
- |
|
|
|
2,453 |
|
|
|
- |
|
|
|
- |
|
|
|
2,453 |
|
Balance,
September 30, 2022 |
$ |
192,753 |
|
|
$ |
6,501 |
|
|
$ |
190,466 |
|
|
$ |
(1,500 |
) |
|
$ |
388,220 |
|
|
|
|
|
|
|
|
|
|
|
- See footnote in the condensed interim statements of
income/(loss) and comprehensive income/(loss) for details of the
restatement in Q3 2021.
Wesdome Gold Mines
Ltd.Condensed Interim Statements of Cash
Flows(Unaudited, expressed in thousands of Canadian
dollars)
|
Three Months
Ended September 30, |
|
Nine Months
Ended September 30, |
|
|
2022 |
|
|
|
20211 |
|
|
|
2022 |
|
|
|
20211 |
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(3,899 |
) |
|
$ |
14,486 |
|
|
$ |
(11,179 |
) |
|
$ |
106,526 |
|
Depreciation and depletion |
|
11,464 |
|
|
|
7,395 |
|
|
|
31,134 |
|
|
|
19,945 |
|
Stock-based compensation |
|
823 |
|
|
|
558 |
|
|
|
2,453 |
|
|
|
2,071 |
|
Accretion of decommissioning provisions |
|
239 |
|
|
|
176 |
|
|
|
618 |
|
|
|
410 |
|
Deferred income and mining tax expense |
|
(3,664 |
) |
|
|
1,939 |
|
|
|
(3,215 |
) |
|
|
37,369 |
|
Amortization of deferred financing cost |
|
99 |
|
|
|
104 |
|
|
|
268 |
|
|
|
328 |
|
Interest expense |
|
588 |
|
|
|
325 |
|
|
|
1,167 |
|
|
|
855 |
|
Reversal of impairment charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(58,563 |
) |
Gain on sale of Moss Lake exploration properties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(34,330 |
) |
Impairment charge on exploration properties |
|
- |
|
|
|
4,394 |
|
|
|
- |
|
|
|
7,507 |
|
Loss (gain) on disposal of mining equipment |
|
74 |
|
|
|
(3 |
) |
|
|
62 |
|
|
|
(3 |
) |
Impairment of investment in associate |
|
- |
|
|
|
- |
|
|
|
11,800 |
|
|
|
- |
|
Fair value adjustment on share consideration receivable |
|
1,552 |
|
|
|
612 |
|
|
|
7,391 |
|
|
|
(909 |
) |
Share of (income) loss of associate |
|
(155 |
) |
|
|
15 |
|
|
|
388 |
|
|
|
104 |
|
Loss on dilution of ownership |
|
35 |
|
|
|
- |
|
|
|
669 |
|
|
|
- |
|
Foreign exchange loss (gain) on borrowings |
|
1,569 |
|
|
|
64 |
|
|
|
1,460 |
|
|
|
(15 |
) |
Net changes in non-cash working capital |
|
6,978 |
|
|
|
6,638 |
|
|
|
25,884 |
|
|
|
9,677 |
|
Mining and income tax paid |
|
(2,758 |
) |
|
|
(2,813 |
) |
|
|
(13,961 |
) |
|
|
(8,174 |
) |
Net
cash from operating activities |
|
12,945 |
|
|
|
33,890 |
|
|
|
54,939 |
|
|
|
82,798 |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
Proceeds from revolving credit facility |
|
25,928 |
|
|
|
- |
|
|
|
40,884 |
|
|
|
- |
|
Repayment of revolving credit facility |
|
- |
|
|
|
- |
|
|
|
(14,810 |
) |
|
|
- |
|
Exercise of options |
|
- |
|
|
|
1,814 |
|
|
|
3,031 |
|
|
|
3,045 |
|
Deferred financing costs |
|
(1,079 |
) |
|
|
(5 |
) |
|
|
(1,079 |
) |
|
|
(339 |
) |
Repayment of lease liabilities |
|
(2,300 |
) |
|
|
(1,877 |
) |
|
|
(6,731 |
) |
|
|
(5,277 |
) |
Interest paid |
|
(588 |
) |
|
|
(325 |
) |
|
|
(1,167 |
) |
|
|
(855 |
) |
Net
cash from (used in) financing activities |
|
21,961 |
|
|
|
(393 |
) |
|
|
20,128 |
|
|
|
(3,426 |
) |
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
Additions to mining properties |
|
(11,058 |
) |
|
|
(12,620 |
) |
|
|
(24,380 |
) |
|
|
(30,492 |
) |
Additions to mines under development |
|
(22,780 |
) |
|
|
(27,481 |
) |
|
|
(82,393 |
) |
|
|
(40,882 |
) |
Additions to exploration properties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(23,267 |
) |
Purchase of exploration property |
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
|
|
(1,000 |
) |
Cash proceeds on sale of Moss Lake, net of transaction costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,762 |
|
Funds held against standby letter of credit |
|
(25 |
) |
|
|
- |
|
|
|
(519 |
) |
|
|
- |
|
Proceeds on disposal of mining equipment |
|
182 |
|
|
|
73 |
|
|
|
202 |
|
|
|
73 |
|
Net changes in non-cash working capital |
|
- |
|
|
|
9,205 |
|
|
|
- |
|
|
|
10,427 |
|
Net
cash used in investing activities |
|
(33,681 |
) |
|
|
(31,823 |
) |
|
|
(107,090 |
) |
|
|
(73,379 |
) |
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents |
|
1,225 |
|
|
|
1,674 |
|
|
|
(32,023 |
) |
|
|
5,993 |
|
Cash and
cash equivalents - beginning of period |
|
23,516 |
|
|
|
67,799 |
|
|
|
56,764 |
|
|
|
63,480 |
|
Cash and
cash equivalents - end of period |
$ |
24,741 |
|
|
$ |
69,473 |
|
|
$ |
24,741 |
|
|
$ |
69,473 |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents consist of: |
|
|
|
|
|
|
|
Cash |
$ |
24,741 |
|
|
$ |
69,473 |
|
|
$ |
24,741 |
|
|
$ |
69,473 |
|
|
$ |
24,741 |
|
|
$ |
69,473 |
|
|
$ |
24,741 |
|
|
$ |
69,473 |
|
|
|
|
|
|
|
|
|
- See footnote in the condensed interim statements of
income/(loss) and comprehensive income/(loss) for details of the
restatement in Q3 2021.
PDF
available: http://ml.globenewswire.com/Resource/Download/6a2d82ea-6558-41df-b7e7-d6fdd9cf73b7
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