Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces first quarter (“Q1 2022”) financial results. All
figures are stated in Canadian dollars unless otherwise noted.
Duncan Middlemiss, President and CEO commented,
“In Q1, with combined production of 25,611 ounces we increased cash
flow from operations by 36%, and cash margins by 39% over the same
period last year, ending the quarter with $52.5 million in cash.
This is sufficient to fund our final year of elevated growth capex
as we finish projects related to the ramp up at Kiena, such as the
fleet purchase, tailings dam, and paste fill plant
construction.
It was a challenging quarter due to the
unpredictable supply chain, inflationary pressures seen across the
industry, as well as the Omicron variant surge which impacted work
force availability. Q1 production at Kiena was impacted by the
unscheduled downtime of the underground crusher (since rectified)
and the delay in the delivery of underground mobile equipment,
which was received at the end of the quarter. Ground conditions
within the Kiena Deep A Zone, specifically the schist and komatiite
rock types which are in the foot wall of the zone, are challenging
as expected. We look forward to the completion of the paste fill
plant (now expected to be commissioned in the summer) in order to
speed up our production cycle and mitigate delays.
While the Kiena restart is generally progressing
as planned, the aforementioned challenges have impacted various
aspects of the project to date. The addition of paste fill
capabilities in Q3 will have significant production benefits.
Wesdome is very fortunate to have commenced this start up activity
in June of 2021, as most major components critical to commercial
restart of operations have now been received at
site.
Combined cash costs for the quarter of $1,295
per ounce (US $1,023) and AISC costs of $1,695 per ounce (US$1,339)
were higher than the upper end of full-year guidance ranges due to
planned lower production (the low for 2022)) and increased
corporate and general expenses. A more detailed breakdown of costs
for each operation is provided in the table below. Free cash
outflow was $6.8 million, net of an investment of $28.4 million in
Kiena, or ($0.05) per share. The Company expects to return to
positive free cash flow status in the second half of the year as
production ramps up and growth capital spending is significantly
reduced.
At Eagle, we are continuing to open up
additional stopes in the high-grade Falcon Zone, with the mine plan
calling for higher production in the second half of the year.
Executive Appointments
Subsequent to quarter-end, the Company is
pleased to announce two new executive management updates. Frederic
Mercier-Langevin has been appointed as Chief Operating Officer,
effective June 15, 2022.
Frederic brings over 17 years of project execution and
operational experience with Agnico Eagle Mines Limited. Most
recently, Mr. Langevin served as General Manager of Agnico Eagle’s
Meliadine mine in Nunavut, which produced 391,687 koz Au in 2021
from both underground and open pit operations. Prior to his role at
Meliadine, Mr. Langevin held roles of increasing responsibility,
including overseeing the execution of the Goldex project and Lapa
Mine in Val d’or, Quebec where he was eventually appointed General
Manager. He is bilingual in English and French and holds a Bachelor
of Science degree in Mining Engineering and a M.Sc. in Mining
Engineering (Rock Mechanics) from Laval University.
The Company also announces that Joanna Miller has been promoted
to the position of Vice President, Sustainability and Environment
(previously Director Sustainability).
Joanna is an experienced sustainability strategist with over 15
years experience in the mining industry in consulting, site-based
and corporate roles, managing external affairs, Indigenous
relations, ESG reporting and social & environmental risk. She
joined Wesdome in 2020 as the Director of Sustainability &
Environment, having previously spent 6 years with Centerra Gold and
Thompson Creek Metals in British Columbia. Prior to her work in the
mining industry, Joanna managed engagement and investment campaigns
for clients including Scotiabank, Hyundai and Loblaws. She holds a
Bachelor of Arts from Queen’s University and has completed
certification programs in Indigenous law and environmental
management. Joanna is the current Vice-Chair of the Ontario Mining
Association’s Indigenous Relations Committee.
“Frederic’s experience in Canadian gold mining
operations, and the Abitibi region specifically will be a
tremendous asset to our team, as we ramp up Kiena to commercial
production. Joanna, who has been working with us for the last
eighteen months in a director role, has significantly improved our
ESG disclosure and performance, and brings a wealth of knowledge
and experience to this role.”
Key operating and financial highlights of the Q1 2022
results include:
- Gold production of 25,611 ounces,
including 5,112 Kiena pre-commercial ounces, is a 13% increase over
the same period of the previous year (Q1 2021: 22,565 ounces):
- Eagle River Underground milled
53,217 tonnes at a head grade of 11.6 grams per tonne for 19,334
ounces produced, a 10% decrease over the same period in the
previous year (Q1 2021: 21,396 ounces).
- Mishi Open Pit milled 11,873 tonnes
at a head grade of 3.6 grams per tonne for 1,165 ounces produced
(2021: 1,169 ounces).
- Kiena milled 21,162 tonnes at a head
grade of 7.7 grams per tonne for 5,112 pre-commercial ounces
produced.
- Revenue2 of $66.7 million, a 45%
increase over the same period of the previous year (Q1 2021: $46.0
million).
- Ounces sold3 were 28,000 at an
average sales price of $2,379/oz (Q1 2021: 20,664 ounces at an
average price of $2,223/oz).
- Cash margin1,2,4 of $30.3 million, a
39% increase over the same period of the previous year (Q1 2021:
$21.8 million).
- Operating cash flows2,4 increased by
36% to $29.9 million or $0.21 per share1 as compared to $22.0
million or $0.16 per share for the same period in 2021.
- Free cash outflow of $6.8 million,
net of an investment of $28.4 million in Kiena, or ($0.05) per
share1 (Q1 2021: free cash inflow of $0.1 million or $nil per
share).
- Net income2,4 and Adjusted net
income attributable to shareholders of $7.1 million or $0.05 per
share (Q1 2021: $7.1 million or $0.05 per share).
- Cash position at the end of the
quarter of $52.5 million.
- Cash costs1,4,5 of $1,295/oz or
US$1,023/oz, a 20% increase over the same period in 2021 (Q1 2020:
$1,076/oz or US$850/oz);
- AISC1,5 increased by 13% to
$1,695/oz or US$1,339/oz (Q1 2021: $1,497 or US$1,182 per ounce)
due to lower ounces sold and increased corporate and general
expenses.
- 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.
- Q1 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.
- Q1 2021 excludes 1,793 ounces from the Kiena bulk sample, which
was processed in Q4 2020 and sold in Q1 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 and sold in Q1 2021.
- 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 and Exploration Highlights |
Achievements |
Eagle River Complex |
- Q1 2022
Eagle River underground ore production decreased by 10% from Q1
2021 to 19,334 ounces of gold due to a planned decrease in head
grade. Head grade at Eagle River in Q1 2022 averaged 11.6 g/t,
which exceeded the plan, but is slightly below the 2022 grade
guidance of 12.1 – 13.4 g/t Au as expected.
- Q1 2022
cash cost of $1,262 (US$997) per ounce of gold sold1 increased by
10% or $113 from Q1 2021 due to a 9% decrease in ounces sold.
Despite inflationary pressure and pandemic related impacts, the
overall aggregate cash costs remained consistent with Q1 2021.
- Q1 2022
AISC of $1,771 (US$1,399) per ounce of gold sold1 increased by 9%
or $164 from Q1 2021 due to a 9% decrease in ounces sold.
- Generated
a cash margin in Q1 2022 of $21.3 million compared to $22.2 million
in Q1 2021 due to the 9% decrease in ounces sold; partially offset
by an 8% higher average realized Canadian gold price of $2,396/oz
(Q1 2021 - $2,223/oz).
-
Definition drilling is focused at the Falcon Zone and 300 E Zone. A
record Inferred Resource inventory provides a platform for
potential increase Reserve replacement for 2022.
-
Underground exploration is focused on extending the high grade 300
E and Falcon zones and targeting parallel zones in the volcanic
rocks. Additionally, drilling is planned at the recently discovered
North Contact zone.
- Surface
drilling is ongoing with 2 drills both east and west of the mine to
follow up on encouraging values returned from the regional drilling
program in 2021.
|
Kiena |
- Generated
$9.0 million in cash margin despite the high cash costs of $1,364
per ounce of gold sold1 due to planned low pre-commercial
production levels.
- Q1 2022
cash cost of $1,364 (US$1,023) per ounce of gold sold1 and AISC of
$1,541 (US$1,217) per ounce of gold sold1.
- Kiena Deep continues to show
potential to add additional ounces in the resource base and
additional ounces are planned for conversion to reserves with 2022
drilling, particularly at the Footwall Zone where an inferred
resource has been defined.
- Additionally, underground drills
have been moved onto the 33 level to test historic zones and
encouraging drill results further to the east along strike from the
Kiena mine.
- Initial
surface drilling has focused on the Presqu’ile and Shawkey areas
located northwest and southeast of the Kiena Mine,
respectively.
- Surface
drilling is ongoing and will be accelerated once the ice has melted
utilizing the two barges at site. Planned drilling is concentrated
around the Shawkey and newly discovered Bourgo zone.
|
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Jacqueline Wheeler, P. Eng,
Director, Corporate Development and Technical Projects 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 First Quarter
Financial Results Conference Call
North American Toll Free: + 1
(844) 202-7109International Dial-In Number:
+1 (703) 639-1272Conference ID:
9471808 Webcast link:
https://edge.media-server.com/mmc/p/xgum6kaa
The webcast can also be accessed under the News and Events
section of the Company’s website
(www.wesdome.com)
COVID-19
The health and safety of our employees,
contractors, vendors, and consultants is the Company’s top
priority. In response to the COVID-19 outbreak, Wesdome has adopted
all public health guidelines regarding safety measures and
protocols at all of its mine operations and corporate office. These
protocols are still in place at all sites despite the loosening of
some provincial public health guidelines. In addition, our internal
COVID-19 Taskforce continues to monitor developments and implement
policies and programs intended to protect those who are engaged in
business with the Company.
Through care and planning, to date the Company
has successfully maintained operations; however, there can be no
assurance that this will continue despite the Company’s best
efforts, with the emergence of new, highly contagious variants such
as Omicron. To date, the Company has been impacted by this most
recent variant outbreak, with employees at both operations and
corporate office becoming infected, which may negatively impact our
ability to maintain projected timelines and objectives.
Consequently, the Company’s actual future production and production
guidance is subject to higher levels of risk than usual. The
Company is continuing to monitor the situation closely and will
provide updates as they become available.
ABOUT WESDOMEWesdome is
Canadian focused with two producing underground gold mines.
The Company’s goal is to build Canada’s next intermediate gold
producer, producing over 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 95,000 – 105,000 ounces
per year. The Company is currently milling the final stockpile of
ore from the Mishi Pit with 1,000 – 2,000 ounces expected. The
recently re-started Kiena Complex in Val d’or, Quebec is a fully
permitted underground mine and milling operation and the Kiena Mine
is expected to produce 64,000 – 73,000 ounces in 2022. On a
combined basis, 2022 guidance is 160,000 ounces – 180,000 ounces.
Wesdome is actively exploring underground and on surface within the
mine areas and more regionally at 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 142.5 million shares issued and
outstanding and 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 1200 |
|
|
Toronto, ON, M5J 2W4 |
|
|
Toll Free: 1-866-4-WDO-TSX |
|
|
Phone: 416-360-3743, Fax: 416-360-7620 |
|
|
Website: 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 |
|
|
March 31, |
|
|
2022 |
|
|
2021 |
Operating data |
|
|
|
|
Milling (tonnes) |
|
|
|
|
Eagle
River |
|
53,217 |
|
|
53,540 |
Mishi |
|
11,873 |
|
|
17,219 |
Kiena |
|
21,162 |
|
|
0 |
Throughput
2 |
|
86,252 |
|
|
70,759 |
Head
grades (g/t) |
|
|
|
|
Eagle
River |
|
11.6 |
|
|
12.8 |
Mishi |
|
3.6 |
|
|
2.5 |
Kiena |
|
7.7 |
|
|
0.0 |
Recovery (%) |
|
|
|
|
Eagle
River |
|
97.4 |
|
|
97.1 |
Mishi |
|
84.8 |
|
|
84.8 |
Kiena |
|
98.0 |
|
|
0.0 |
|
|
|
|
|
Production (ounces) |
|
|
|
|
Eagle
River |
|
19,334 |
|
|
21,396 |
Mishi |
|
1,165 |
|
|
1,169 |
Kiena |
|
5,112 |
|
|
0 |
Total gold produced 2 |
|
25,611 |
|
|
22,565 |
Total gold sales (ounces) 4 |
|
28,000 |
|
|
22,457 |
|
|
|
|
|
Eagle River Complex(per ounce of gold sold)1 |
|
|
Average
realized price |
$ |
2,396 |
|
$ |
2,223 |
Cash
costs |
$ |
1,262 |
|
$ |
1,076 |
Cash
margin |
$ |
1,134 |
|
$ |
1,147 |
All-in
Sustaining Costs1 |
$ |
1,771 |
|
$ |
1,497 |
|
|
|
|
|
Mine
operating costs/tonne milled1 |
$ |
385 |
|
$ |
335 |
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.2662 |
|
|
1.2660 |
|
|
|
|
|
Cash costs
per ounce of gold sold (US$)1 |
$ |
997 |
|
$ |
850 |
All-in
Sustaining Costs (US$)1 |
$ |
1,399 |
|
$ |
1,182 |
|
|
|
|
|
Kiena Mine
(per ounce of gold sold)1 |
|
|
|
|
Average
realized price |
$ |
2,344 |
|
$ |
0 |
Cash costs3,
5 |
$ |
1,364 |
|
$ |
238 |
Cash
margin |
$ |
980 |
|
$ |
0 |
All-in
Sustaining Costs1, 3, 5 |
$ |
1,541 |
|
$ |
0 |
|
|
|
|
|
Mine
operating costs/tonne milled1 |
$ |
579 |
|
$ |
0 |
|
|
|
|
|
Average 1
USD → CAD exchange rate |
|
1.2662 |
|
|
1.2660 |
|
|
|
|
|
Cash costs
per ounce of gold sold (US$)1 |
$ |
1,077 |
|
$ |
0 |
All-in
Sustaining Costs (US$)1 |
$ |
1,217 |
|
$ |
0 |
|
|
|
|
|
Financial Data |
|
|
|
|
Cash
margin1 |
$ |
30,342 |
|
$ |
21,776 |
Net
income |
$ |
7,061 |
|
$ |
7,103 |
Net income
adjusted1 |
$ |
7,061 |
|
$ |
7,103 |
Earnings
before interest, taxes, depreciation and amortization1 |
$ |
20,650 |
|
$ |
18,662 |
Operating
cash flow |
$ |
29,893 |
|
$ |
22,033 |
Free cash
flow1 |
$ |
(6,796 |
) |
$ |
99 |
Per share
data |
|
|
|
|
Net income |
$ |
0.05 |
|
$ |
0.05 |
Adjusted net income1 |
$ |
0.05 |
|
$ |
0.05 |
Operating cash flow1 |
$ |
0.21 |
|
$ |
0.16 |
Free cash flow1 |
$ |
(0.05 |
) |
$ |
0.00 |
|
|
|
|
|
- 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.
- Q1 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.
- Q1 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.Consolidated Statements of Financial
Position(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
As at March 31, 2022 |
|
As at December 31, 2021 |
|
Assets |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
52,472 |
|
$ |
56,764 |
|
|
Receivables and prepaids |
|
|
|
13,621 |
|
|
13,793 |
|
|
Share consideration receivable |
|
|
|
3,924 |
|
|
4,560 |
|
|
Inventories |
|
|
|
21,142 |
|
|
17,918 |
|
|
Total
current assets |
|
|
|
91,159 |
|
|
93,035 |
|
|
|
|
|
|
|
|
|
Restricted
cash |
|
|
|
657 |
|
|
657 |
|
|
Deferred
financing costs |
|
|
|
674 |
|
|
758 |
|
|
Mining
properties, plant and equipment |
|
|
|
208,945 |
|
|
212,394 |
|
|
Mines under
development |
|
|
|
241,955 |
|
|
214,089 |
|
|
Exploration
properties |
|
|
|
1,139 |
|
|
1,139 |
|
|
Marketable
securities |
|
|
|
2,370 |
|
|
1,860 |
|
|
Share
consideration receivable |
|
|
|
9,131 |
|
|
10,729 |
|
|
Investment
in associate |
|
|
|
18,441 |
|
|
19,058 |
|
|
Total
assets |
|
|
$ |
574,471 |
|
$ |
553,719 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Payables and accruals |
|
|
$ |
53,791 |
|
$ |
40,093 |
|
|
Income and mining tax payable |
|
|
|
2,297 |
|
|
5,490 |
|
|
Current portion of lease liabilities |
|
|
|
8,216 |
|
|
7,789 |
|
|
Total
current liabilities |
|
|
|
64,304 |
|
|
53,372 |
|
|
|
|
|
|
|
|
|
Lease
liabilities |
|
|
|
5,649 |
|
|
6,786 |
|
|
Deferred
income and mining tax liabilities |
|
|
|
79,689 |
|
|
77,195 |
|
|
Decommissioning provisions |
|
|
|
19,250 |
|
|
21,191 |
|
|
Total
liabilities |
|
|
|
168,892 |
|
|
158,544 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Equity
attributable to owners of the Company |
|
|
|
|
|
|
Capital stock |
|
|
|
192,367 |
|
|
187,911 |
|
|
Contributed surplus |
|
|
|
4,246 |
|
|
5,859 |
|
|
Retained earnings |
|
|
|
208,696 |
|
|
201,645 |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
270 |
|
|
(240 |
) |
|
Total equity
attributable to owners of the Company |
|
|
|
405,579 |
|
|
395,175 |
|
|
Total
liabilities and equity |
|
|
$ |
574,471 |
|
$ |
553,719 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
March
31 |
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
66,694 |
|
|
$ |
45,973 |
|
|
Cost
of sales |
|
|
|
(44,706 |
) |
|
|
(30,264 |
) |
|
Gross profit |
|
|
|
21,988 |
|
|
|
15,709 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
Corporate
and general |
|
|
|
3,375 |
|
|
|
2,391 |
|
|
Stock-based
compensation |
|
|
|
76 |
|
|
|
310 |
|
|
Exploration
and evaluation |
|
|
|
2,956 |
|
|
|
- |
|
|
Gain on
disposal of mining equipment |
|
|
|
(2 |
) |
|
|
- |
|
|
Total other
expenses |
|
|
|
6,405 |
|
|
|
2,701 |
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
15,583 |
|
|
|
13,008 |
|
|
|
|
|
|
|
|
|
Fair value
adjustment on share consideration receivable |
|
|
|
(2,234 |
) |
|
|
- |
|
|
Interest
expense |
|
|
|
(263 |
) |
|
|
(259 |
) |
|
Accretion of
decommissioning provisions |
|
|
|
(171 |
) |
|
|
(110 |
) |
|
Share of
loss of associate |
|
|
|
(412 |
) |
|
|
- |
|
|
Loss on
dilution of ownership |
|
|
|
(205 |
) |
|
|
- |
|
|
Other
expense |
|
|
|
(265 |
) |
|
|
(303 |
) |
|
Income
before income and mining taxes |
|
|
|
12,033 |
|
|
|
12,336 |
|
|
|
|
|
|
|
|
|
Income and mining tax expense |
|
|
|
|
|
|
Current |
|
|
|
2,488 |
|
|
|
1,096 |
|
|
Deferred |
|
|
|
2,494 |
|
|
|
4,137 |
|
|
Total income
and mining tax expense |
|
|
|
4,982 |
|
|
|
5,233 |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
7,051 |
|
|
$ |
7,103 |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
Change in fair value of marketable
securities |
|
|
|
510 |
|
|
|
- |
|
|
Total comprehensive income |
|
|
$ |
7,561 |
|
|
$ |
7,103 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
Basic |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
Diluted |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
Weighted average number of common |
|
|
|
|
|
|
shares (000s) |
|
|
|
|
|
|
Basic |
|
|
|
141,830 |
|
|
|
139,732 |
|
|
Diluted |
|
|
|
143,467 |
|
|
|
142,617 |
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Total
Equity(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
Capital |
|
Contributed |
|
Retained |
|
Comprehensive |
|
Total |
|
|
|
|
Stock |
|
Surplus |
|
Earnings |
|
Income (Loss) |
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
|
|
$ |
179,540 |
|
$ |
6,472 |
|
|
$ |
70,357 |
|
$ |
- |
|
|
$ |
256,369 |
|
Net income
for the period ended |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
|
|
- |
|
|
- |
|
|
|
7,103 |
|
|
- |
|
|
|
7,103 |
|
Exercise of
options |
|
|
|
321 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
321 |
|
Value
attributed to options exercised |
|
|
|
155 |
|
|
(155 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
Value
attributed to RSUs exercised |
|
|
|
786 |
|
|
(786 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
Stock-based
compensation |
|
|
|
- |
|
|
310 |
|
|
|
- |
|
|
- |
|
|
|
310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
March 31, 2021 |
|
|
$ |
180,802 |
|
$ |
5,841 |
|
|
$ |
77,460 |
|
$ |
- |
|
|
$ |
264,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
December 31, 2021 |
|
|
$ |
187,911 |
|
$ |
5,859 |
|
|
$ |
201,645 |
|
$ |
(240 |
) |
|
$ |
395,175 |
|
Net income
for the period ended |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
|
- |
|
|
- |
|
|
|
7,051 |
|
|
- |
|
|
|
7,051 |
|
Other
comprehensive income |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
510 |
|
|
|
510 |
|
Exercise of
options |
|
|
|
2,767 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
2,767 |
|
Value
attributed to options exercised |
|
|
|
1,051 |
|
|
(1,051 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
Value
attributed to RSUs exercised |
|
|
|
638 |
|
|
(638 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
Stock-based
compensation |
|
|
|
- |
|
|
76 |
|
|
|
- |
|
|
- |
|
|
|
76 |
|
Balance,
March 31, 2022 |
|
|
$ |
192,367 |
|
$ |
4,246 |
|
|
$ |
208,696 |
|
$ |
270 |
|
|
$ |
405,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Cash
Flows(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
Three Months
Ended |
|
|
|
March
31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
Operating
Activities |
|
|
|
|
|
Net income |
|
|
$ |
7,051 |
|
|
$ |
7,103 |
|
Depreciation and depletion |
|
|
|
8,354 |
|
|
|
6,067 |
|
Stock-based compensation |
|
|
|
76 |
|
|
|
310 |
|
Accretion of decommissioning provisions |
|
|
|
171 |
|
|
|
110 |
|
Deferred income and mining tax expense |
|
|
|
2,494 |
|
|
|
4,137 |
|
Amortization of deferred financing cost |
|
|
|
84 |
|
|
|
105 |
|
Interest expense |
|
|
|
263 |
|
|
|
259 |
|
Gain on disposal of mining equipment |
|
|
|
(2 |
) |
|
|
- |
|
Share of loss of associate |
|
|
|
412 |
|
|
|
- |
|
Loss on dilution of ownership |
|
|
|
205 |
|
|
|
- |
|
Fair value adjustment on share consideration
receivable |
|
|
2,234 |
|
|
|
- |
|
Foreign exchange gain on lease financing |
|
|
|
(32 |
) |
|
|
(29 |
) |
Net changes in non-cash working capital |
|
|
|
14,264 |
|
|
|
4,170 |
|
Mining and income tax paid |
|
|
|
(5,681 |
) |
|
|
(199 |
) |
Net cash
from operating activities |
|
|
|
29,893 |
|
|
|
22,033 |
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
Exercise of options |
|
|
|
2,767 |
|
|
|
321 |
|
Deferred financing costs |
|
|
|
- |
|
|
|
(239 |
) |
Repayment of lease liabilities |
|
|
|
(2,086 |
) |
|
|
(1,516 |
) |
Interest paid |
|
|
|
(263 |
) |
|
|
(259 |
) |
Net cash
from (used in) financing activities |
|
|
|
418 |
|
|
|
(1,693 |
) |
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
Additions to mining properties |
|
|
|
(6,190 |
) |
|
|
(8,519 |
) |
Additions to mines under development |
|
|
|
(28,413 |
) |
|
|
- |
|
Additions to exploration properties |
|
|
|
- |
|
|
|
(11,899 |
) |
Net changes in non-cash working capital |
|
|
|
- |
|
|
|
482 |
|
Net cash
used in investing activities |
|
|
|
(34,603 |
) |
|
|
(19,936 |
) |
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents |
|
|
|
(4,292 |
) |
|
|
404 |
|
Cash and
cash equivalents - beginning of period |
|
|
|
56,764 |
|
|
|
63,480 |
|
Cash and
cash equivalents - end of period |
|
|
$ |
52,472 |
|
|
$ |
63,884 |
|
|
|
|
|
|
|
Cash and
cash equivalents consist of: |
|
|
|
|
|
Cash |
|
|
$ |
52,472 |
|
|
|
63,884 |
|
|
|
|
$ |
52,472 |
|
|
$ |
63,884 |
|
PDF available:
http://ml.globenewswire.com/Resource/Download/7293cffe-e8fe-45e0-b36f-dc5c015ecca3
Wesdome Gold Mines (TSX:WDO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Wesdome Gold Mines (TSX:WDO)
Historical Stock Chart
From Apr 2023 to Apr 2024