Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces its second quarter financial results. All figures
are stated in Canadian dollars unless otherwise noted.
Duncan Middlemiss, President and CEO commented,
“At Eagle River, the one-time challenges which temporarily impacted
production, such as the hoist rope manufacturing defect and the
leach tank failure have since been addressed. Head grade at Eagle
River in Q2 averaged 9.6 g/t, which is below the 2022 grade
guidance of 12.1 -13.4 g/t Au. However, once both issues were
resolved, we were able to mine and process the significantly
higher-grade ore originally planned for June.
At Kiena, the supply chain challenges, which
delayed delivery of the underground equipment in Q1 2022 and
negatively affected our development rates, have also delayed
delivery of key electrical components for the completion of the
paste backfill plant. Consequently, the mining rate has been slower
to ramp up, which now puts us approximately 3-4 months behind our
original 2022 plan. We look forward to the completion of the paste
fill plant (now expected to be commissioned in Q4 2022) to speed up
our production cycle and mitigate delays.
As previously disclosed on July15, combined
production in Q2 was 27,240 ounces resulting in total H1 2022
production of 52,851 ounces. Challenges such as global supply chain
related delays, inflationary cost pressures, and lost productivity
from COVID related absences persisted into Q2 and beyond.
Subsequent to the quarter both operations were shut down for
planned maintenance. During July, the Kiena hoist was shutdown for
three weeks for planned refurbishment and at Eagle the mill was
shutdown for two weeks for annual scheduled maintenance and
thickener refurbishment.
As a result of lower production and sales than
planned, both cash costs for the quarter of $1,538 (US$1,205) and
AISC of $2,020 (US$1,582) were above our guidance range of $875 -
$970 (US$700 - $775) for cash costs and $1,270 - $1,400 (US$1,015 -
$1,125) per ounce. Free cash outflow for the quarter was $28.6
million, net of an investment of $31.2 million in Kiena, or ($0.20)
per share. This is our final year of elevated growth capital
(primarily at Kiena) as commercial production is expected in
Q4.
In the beginning of the year, the Company set
full year 2022 combined production guidance at 160,000 – 180,000
ounces. At Kiena, commercial production will be declared with the
successful commissioning of the paste fill plant, which is now
expected in Q4. As a result of the paste fill plant delays and the
development deficit, we are revising Kiena guidance to 34,000 –
43,000 ounces. At Eagle River Mine, our recent development into the
Falcon Zone has indicated that there is more grade variability than
initially demonstrated from the 2021 diamond drilling, and we are
forecasting lower grades in this zone for the remainder of 2022.
However, this has been a zone which has already demonstrated good
upside as well with our successful Falcon mining in late 2021 and
we would expect this zone to demonstrate the variability associated
with high grade chutes of this nature. Consequently, we are
revising Eagle’s guidance to 85,000 – 95,000 ounces. As a result of
the lower production and continued inflationary pressures affecting
labour cost and availability, ongoing supply chain issues, and the
ongoing pandemic, the company is revising both its cash and AISC
costs for the year as per the below table.
2022 Guidance |
Initial |
Revised |
YTD 2022Achievement |
Gold production |
|
|
|
Eagle River |
95,000 – 105,000 ounces |
85,000 – 95,000 ounces |
37,090 ounces |
Mishi |
1,000 – 2,000 ounces |
1,000 – 2,000 ounces |
1,735 ounces |
Kiena |
64,000 – 73,000 ounces |
34,000 – 43,000 ounces |
14,026 ounces |
|
160,000 – 180,000 ounces |
120,000 – 140,000 ounces |
52,851 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 |
3.3 |
Kiena |
10.6 – 11.8 |
8.6 – 9.5 |
9.3 |
|
|
|
|
Cash cost per ounce 1 |
$875 - $970(US$700 –
US$775) |
$1,260 - $1,390
(US$980 – US$1085) |
$1,412
(US$1,111) |
AlSC per ounce 1 |
$1,270 - $1,400(US$1,015
– US$1,125) |
$1,765 - $1,950(US$1,370
– US$1,520) |
$1,851
(US$1,456) |
“The Company is continuing its aggressive
exploration and drilling program for 2022. We are pleased with the
recent expansion of the high grade A Zones and Footwall Zones as
well as the discovery of the South Limb zone at Kiena. Similarly at
Eagle River, the surface and underground drilling has continued to
expand known zones such as 300E and Falcon 7 and identified new
areas of mineralization both within the mine diorite and
surrounding volcanic rocks. The continued discovery of new
mineralization demonstrates the upside exploration potential at
both sites.”
Key operating and financial highlights of the Q2 2022
results include:
- Gold production of 27,240 ounces,
including 8,914 Kiena pre-commercial ounces, is a 10% decrease over
the same period of the previous year (Q2 2021: 30,375 ounces):
- Eagle River Underground milled
59,964 tonnes at a head grade of 9.6 grams per tonne for 17,756
ounces produced, a 40% decrease over the same period in the
previous year (Q2 2021: 29,836 ounces).
- Mishi Open Pit milled 7,685 tonnes
at a head grade of 2.8 grams per tonne for 570 ounces produced (Q2
2021: 539 ounces).
- Kiena milled 26,478 tonnes at a head
grade of 10.6 grams per tonne for 8,914 pre-commercial ounces
produced.
- Revenue of $61.9 million, a 3%
decrease over the same period of the previous year (Q2 2021: $63.9
million).
- Ounces sold were 26,000 at an
average sales price of $2,380/oz (Q2 2021: 28,500 ounces at an
average price of $2,239/oz).
- Cash margin1 of $21.9 million, a 46%
decrease over the same period of the previous year (Q2 2021: $40.6
million).
- Operating cash flows decreased by
55% to $12.1 million or $0.08 per share1 as compared to $26.9
million or $0.19 per share for the same period in 2021.
- Free cash outflow of $28.6 million,
net of an investment of $31.2 million in Kiena, or ($0.20) per
share1 (Q2 2021: free cash outflow of $9.1 million or ($0.07) per
share1).
- Net loss of $14.3 million or ($0.10)
per share (Q2 2021: Net income - $84.9 million or $0.63 per share)
and Net loss (adjusted)1 of $5.5 million or ($0.04) per share (Q2
2021: $20.6 million or $0.15 per share)
- Cash position at the end of the
quarter of $23.5 million.
- Cash costs1 of $1,538/oz or
US$1,205/oz, an 89% increase over the same period in 2021 (Q2 2021:
$814/oz or US$663/oz);
- AISC1 increased by 63% to $2,020/oz
or US$1,582/oz (Q2 2021: $1,240 or US$1,009 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.
Production andExploration Highlights |
Achievements |
|
Eagle River Complex |
- Q2 2022
Eagle River underground ore production decreased by 40% from Q2
2021 to 17,756 ounces of gold due to a manufacturing defect on a
new hoist rope, resulting in two weeks of lower productivity as ore
was trucked to surface, while a new rope was sourced, and one of
the leach tanks at the mill, which was previously scheduled to be
replaced later this year, failed in mid-June, impacting nearly one
week of mill production. Head grade at Eagle River in Q2 2022
averaged 9.6 g/t, which is below the 2022 grade guidance of 12.1
-13.4 g/t Au. Once both issues were resolved, we were able to mine
and process the significantly higher grade ore planned for
June.
- Q2 2022
cash cost of $1,395 (US$1,093) per ounce of gold sold1 increased by
71% or $580 per ounce from Q2 2021 due to a 30% decrease in ounces
sold, and a 14% increase in overall aggregate site operating costs
resulting from increased operating development, general
maintenance, and inflationary pressures, driven by higher labour
costs and an increase in commodity inputs, including higher fuel
and energy costs.
- Q2 2022
AISC of $1,940 (US$1,519) per ounce of gold sold1 increased by 57%
or $701 per ounce from Q2 2021 due to a 30% decrease in ounces sold
and a 14% increase in overall aggregate site operating costs
resulting from increased operating development, general
maintenance, 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 Q2 2022 of $19.7 million compared to $40.6 million
in Q2 2021 due to the 30% decrease in ounces sold, the 14% increase
in overall aggregate site operating costs; partially offset by a 6%
higher average realized Canadian gold price of $2,382 per ounce (Q2
2021 - $2,239 per ounce).
-
Definition drilling is focused at the Falcon Zone and 300 E Zone. A
record Inferred Resource inventory provides a platform for a
potential increase in Reserve replacement for 2022.Definition and
expansion drilling has continued to return high grade gold
mineralization from the Falcon 7 zone with 90.2 g/t Au over 4.9 m
core length (21.2 g/t Au capped, 3.4 m true width) and 87.1 g/t Au
over 6.6 m core length. The discovery and initial production from
the Falcon 7 Zone reaffirms the potential of the surrounding
volcanic rocks to host sizeable deposits of gold mineralization and
remains a focus for drilling. New development is being completed
along the 355 m Level extending 400 m west of the mine diorite and
will provide platforms to test for gold mineralization further
along strike, and for parallel zones where surface exploration has
returned encouraging results from a region of the mine that has
historically been given very little attention.
-
Meanwhile, underground exploration drilling is being completed down
plunge at the 300E, 711 and 811 zones that remain open down plunge.
Additional underground exploration is ongoing further to the east
of the current mining areas, in the east-central area of the mine,
to test for parallel zones north of the historic 8 and 6
Zones.
- Surface
drilling is ongoing with one drill to test the up plunge extension
of the Falcon 7 zone near surface and other zones along this trend
further to the west. The recent drilling has intersected several
well altered and mineralized areas with VG, which is interpreted to
be the up plunge extension of the Falcon 7 zone.
- Drilling
within the central portion of the mine diorite has intersected the
interpreted eastern extension of the 7 zone. Several holes in this
area have intersected VG and in the future will be better drilled
from underground.
- Also,
drilling within the volcanic rocks east of the mine diorite
approximately 150 m down dip and the previously mined 2 Zone
intersected quartz veining and alteration.
|
|
Kiena |
- Generated
$2.1 million in cash margin despite the high cash costs of $2,018
(US$1,581) per ounce of gold sold1 due to low pre-commercial
production levels. The global supply chain challenges, which
delayed delivery of the underground equipment in Q1 2022, have also
delayed delivery of key electrical components for the completion of
the paste backfill plant. Consequently, the mining rate has been
slower to ramp up, which now puts us approximately 3-4 months
behind our original 2022 plan. We look forward to the completion of
the paste fill plant (now expected to be commissioned in Q4 2022)
to speed up our production cycle and mitigate delays.
- Most recently, underground
exploration drilling at the Kiena Deep A Zones area has discovered
a new mineralized interval (hole 6752W10) located 100 metres below
the known limit of A zone resource returning 13.9 g/t Au over 83.2
m core length (9.9 g/t Au capped) (see June 1, 2022 press
release).
- Recent drilling has discovered the
lateral extension of the A Zone along the South limb of the fold
returning 16.5 g/t au over 4.7 m and 17.8 g/t Au over 4.2 m. The
discovery of the South limb of the A Zone could significantly add
to the resource base.
- Additionally, underground drills
have been moved onto the 33 level to test historic zones and
encouraging drill results further to the southeast along strike
from the Kiena mine.Surface drilling is focused on discovering new
zones at the Shawkey and Bourgo zones, where previous drilling has
returned encouraging results, and defining and extending the
historical Presqu’ile and Shawkey Dubuisson areas located northwest
and southeast of the Kiena Mine, respectively. These areas are
close to the mine infrastructure and represent a potential
additional source of ore for the Kiena mill.
|
|
Wesdome Gold Mines 2022 Second Quarter
Financial Results conference call:
August 11, 2022 at 10:00 am ET. Registration is
required.
Registration Link:
https://register.vevent.com/register/BI6fabe85cad5f48ea97a0b7087d4cb9cb
Webcast
link:https://edge.media-server.com/mmc/p/8ft6b4im
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.
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 our 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. We are continuing to
closely monitor the situation and will provide updates as they
become available.
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 President and CEO 416-360-3743
ext. 2019 duncan.middlemiss@wesdome.com |
or |
Lindsay Carpenter DunlopVP Investor Relations416-360-3743 ext.
2025lindsay.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 |
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Operating data |
|
|
|
|
|
|
|
|
Milling (tonnes) |
|
|
|
|
|
|
|
|
Eagle River |
|
59,964 |
|
|
63,057 |
|
|
113,181 |
|
|
116,597 |
|
Mishi |
|
7,685 |
|
|
9,347 |
|
|
19,558 |
|
|
26,566 |
|
Kiena |
|
26,478 |
|
|
- |
|
|
47,640 |
|
|
- |
|
Throughput 2 |
|
94,127 |
|
|
72,404 |
|
|
180,379 |
|
|
143,163 |
|
Head grades (g/t) |
|
|
|
|
|
|
|
|
Eagle River |
|
9.6 |
|
|
15.1 |
|
|
10.6 |
|
|
14.1 |
|
Mishi |
|
2.8 |
|
|
2.4 |
|
|
3.3 |
|
|
2.4 |
|
Kiena |
|
10.6 |
|
|
- |
|
|
9.3 |
|
|
- |
|
Recovery (%) |
|
|
|
|
|
|
|
|
Eagle River |
|
95.6 |
|
|
97.4 |
|
|
96.6 |
|
|
97.3 |
|
Mishi |
|
81.2 |
|
|
76.1 |
|
|
83.6 |
|
|
81.9 |
|
Kiena |
|
98.5 |
|
|
- |
|
|
98.3 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Production (ounces) |
|
|
|
|
|
|
|
|
Eagle River |
|
17,756 |
|
|
29,836 |
|
|
37,090 |
|
|
51,232 |
|
Mishi |
|
570 |
|
|
539 |
|
|
1,735 |
|
|
1,707 |
|
Kiena |
|
8,914 |
|
|
- |
|
|
14,026 |
|
|
- |
|
Total gold produced 2 |
|
27,240 |
|
|
30,375 |
|
|
52,851 |
|
|
52,939 |
|
Total gold sales (ounces) 4 |
|
26,000 |
|
|
28,500 |
|
|
54,000 |
|
|
50,957 |
|
|
|
|
|
|
|
|
|
|
Eagle River Complex (per ounce of gold sold)
1 |
|
|
|
|
|
|
Average realized price |
$ |
2,382 |
|
$ |
2,239 |
|
$ |
2,389 |
|
$ |
2,232 |
|
Cash costs |
|
1,395 |
|
|
814 |
|
|
1,330 |
|
|
930 |
|
Cash margin |
$ |
987 |
|
$ |
1,425 |
|
$ |
1,059 |
|
$ |
1,302 |
|
All-in Sustaining Costs 1 |
$ |
1,940 |
|
$ |
1,240 |
|
$ |
1,858 |
|
$ |
1,353 |
|
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne milled 1 |
$ |
387 |
|
$ |
324 |
|
$ |
386 |
|
$ |
330 |
|
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange rate |
|
1.2768 |
|
|
1.2282 |
|
|
1.2715 |
|
|
1.247 |
|
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold sold (US$) 1 |
$ |
1,093 |
|
$ |
663 |
|
$ |
1,046 |
|
$ |
745 |
|
All-in Sustaining Costs (US$) 1 |
$ |
1,519 |
|
$ |
1,009 |
|
$ |
1,461 |
|
$ |
1,085 |
|
|
|
|
|
|
|
|
|
|
Kiena Mine (per ounce of gold sold) 1 |
|
|
|
|
|
|
|
|
Average realized price |
$ |
2,372 |
|
$ |
- |
|
$ |
2,355 |
|
$ |
- |
|
Cash costs 3, 5 |
|
2,018 |
|
|
- |
|
|
1,622 |
|
|
238 |
|
Cash margin |
$ |
354 |
|
$ |
- |
|
$ |
733 |
|
$ |
(426 |
) |
All-in Sustaining Costs 1, 3, 5 |
$ |
2,284 |
|
$ |
- |
|
$ |
1,834 |
|
$ |
238 |
|
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne milled 1 |
$ |
557 |
|
$ |
- |
|
$ |
567 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange rate |
|
1.2768 |
|
|
1.2282 |
|
|
1.2715 |
|
|
1.247 |
|
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold sold (US$) 1 |
$ |
1,581 |
|
$ |
- |
|
$ |
1,276 |
|
$ |
191 |
|
All-in Sustaining Costs (US$) 1 |
$ |
1,789 |
|
$ |
- |
|
$ |
1,442 |
|
$ |
191 |
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
Cash margin 1 |
$ |
21,873 |
|
$ |
40,590 |
|
$ |
52,215 |
|
$ |
62,366 |
|
Net income |
$ |
(14,331 |
) |
$ |
84,937 |
|
$ |
(7,280 |
) |
$ |
92,040 |
|
Net income adjusted 1 |
$ |
(5,481 |
) |
$ |
20,630 |
|
$ |
1,570 |
|
$ |
27,733 |
|
Earnings before interest, taxes, depreciation and amortization
1 |
$ |
8,844 |
|
$ |
37,454 |
|
$ |
29,494 |
|
$ |
56,116 |
|
Operating cash flow |
$ |
12,101 |
|
$ |
26,875 |
|
$ |
41,994 |
|
$ |
48,908 |
|
Free cash flow |
$ |
(28,576 |
) |
$ |
(9,131 |
) |
$ |
(35,372 |
) |
$ |
(9,032 |
) |
Per share data |
|
|
|
|
|
|
|
|
Net income |
$ |
(0.10 |
) |
$ |
0.61 |
|
$ |
(0.05 |
) |
$ |
0.66 |
|
Adjusted net income 1 |
$ |
(0.04 |
) |
$ |
0.15 |
|
$ |
0.01 |
|
$ |
0.20 |
|
Operating cash flow 1 |
$ |
0.08 |
|
$ |
0.19 |
|
$ |
0.30 |
|
$ |
0.35 |
|
Free cash flow 1 |
$ |
(0.20 |
) |
$ |
(0.07 |
) |
$ |
(0.25 |
) |
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
- 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 atJune 30, 2022 |
|
As atDecember 31, 2021 |
Assets |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
|
$ |
23,516 |
|
|
$ |
56,764 |
|
Receivables and prepaids |
|
|
8,343 |
|
|
|
13,793 |
|
Inventories |
|
|
22,864 |
|
|
|
17,918 |
|
Income and mining tax receivable |
|
|
1,438 |
|
|
|
- |
|
Share consideration receivable |
|
|
- |
|
|
|
4,560 |
|
Total current assets |
|
|
56,161 |
|
|
|
93,035 |
|
|
|
|
|
|
Restricted cash |
|
|
1,151 |
|
|
|
657 |
|
Deferred financing costs |
|
|
590 |
|
|
|
758 |
|
Mining properties, plant and equipment |
|
|
205,390 |
|
|
|
212,394 |
|
Mines under development |
|
|
272,699 |
|
|
|
214,089 |
|
Exploration properties |
|
|
1,139 |
|
|
|
1,139 |
|
Marketable securities |
|
|
960 |
|
|
|
1,860 |
|
Share consideration receivable |
|
|
6,117 |
|
|
|
10,729 |
|
Investment in associate |
|
|
9,414 |
|
|
|
19,058 |
|
Total assets |
|
$ |
553,621 |
|
|
$ |
553,719 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current |
|
|
|
|
Payables and accruals |
|
$ |
53,325 |
|
|
$ |
40,093 |
|
Income and mining tax payable |
|
|
- |
|
|
|
5,490 |
|
Current portion of lease liabilities |
|
|
7,371 |
|
|
|
7,789 |
|
Total current liabilities |
|
|
60,696 |
|
|
|
53,372 |
|
|
|
|
|
|
Lease liabilities |
|
|
5,036 |
|
|
|
6,786 |
|
Deferred income and mining tax liabilities |
|
|
77,644 |
|
|
|
77,195 |
|
Decommissioning provisions |
|
|
18,589 |
|
|
|
21,191 |
|
Total liabilities |
|
|
161,965 |
|
|
|
158,544 |
|
|
|
|
|
|
Equity |
|
|
|
|
Equity attributable to owners of the Company |
|
|
|
|
Capital stock |
|
|
192,753 |
|
|
|
187,911 |
|
Contributed surplus |
|
|
5,678 |
|
|
|
5,859 |
|
Retained earnings |
|
|
194,365 |
|
|
|
201,645 |
|
Accumulated other comprehensive loss |
|
|
(1,140 |
) |
|
|
(240 |
) |
Total equity attributable to owners of the Company |
|
|
391,656 |
|
|
|
395,175 |
|
Total liabilities and equity |
|
$ |
553,621 |
|
|
$ |
553,719 |
|
Wesdome Gold Mines
Ltd.Condensed Interim Statements of Income and
Comprehensive Income(Expressed in thousands of Canadian
dollars except for per share amounts)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2022 |
|
|
|
2021 1 |
|
|
|
2022 |
|
|
|
2021 1 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
61,931 |
|
|
$ |
63,881 |
|
|
$ |
128,625 |
|
|
$ |
109,854 |
|
Cost of sales |
|
(51,374 |
) |
|
|
(29,774 |
) |
|
|
(96,080 |
) |
|
|
(60,038 |
) |
Gross profit |
|
10,557 |
|
|
|
34,107 |
|
|
|
32,545 |
|
|
|
49,816 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
Corporate and general |
|
3,221 |
|
|
|
2,841 |
|
|
|
6,596 |
|
|
|
5,232 |
|
Stock-based compensation |
|
1,554 |
|
|
|
1,203 |
|
|
|
1,630 |
|
|
|
1,513 |
|
Exploration and evaluation |
|
4,213 |
|
|
|
- |
|
|
|
7,169 |
|
|
|
- |
|
Reversal of impairment charges |
|
- |
|
|
|
(58,563 |
) |
|
|
- |
|
|
|
(58,563 |
) |
Impairment charge on exploration properties |
|
- |
|
|
|
3,113 |
|
|
|
- |
|
|
|
3,113 |
|
Gain on disposal of mining equipment |
|
(10 |
) |
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
Total other expenses |
|
8,978 |
|
|
|
(51,406 |
) |
|
|
15,383 |
|
|
|
(48,705 |
) |
|
|
|
|
|
|
|
|
Operating income |
|
1,579 |
|
|
|
85,513 |
|
|
|
17,162 |
|
|
|
98,521 |
|
|
|
|
|
|
|
|
|
Gain on sale of Moss Lake exploration properties |
|
- |
|
|
|
34,330 |
|
|
|
- |
|
|
|
34,330 |
|
Impairment of investment in associate |
|
(11,800 |
) |
|
|
- |
|
|
|
(11,800 |
) |
|
|
- |
|
Fair value adjustment on share consideration receivable |
|
(3,605 |
) |
|
|
1,521 |
|
|
|
(5,839 |
) |
|
|
1,521 |
|
Interest expense |
|
(316 |
) |
|
|
(271 |
) |
|
|
(579 |
) |
|
|
(530 |
) |
Accretion of decommissioning provisions |
|
(208 |
) |
|
|
(124 |
) |
|
|
(379 |
) |
|
|
(234 |
) |
Share of loss of associate |
|
(131 |
) |
|
|
(89 |
) |
|
|
(543 |
) |
|
|
(89 |
) |
Loss on dilution of ownership |
|
(429 |
) |
|
|
- |
|
|
|
(634 |
) |
|
|
- |
|
Other income (expense) |
|
322 |
|
|
|
(400 |
) |
|
|
57 |
|
|
|
(703 |
) |
(Loss) income before income and mining taxes |
|
(14,588 |
) |
|
|
120,480 |
|
|
|
(2,555 |
) |
|
|
132,816 |
|
|
|
|
|
|
|
|
|
Income and mining tax expense |
|
|
|
|
|
|
|
Current |
|
1,788 |
|
|
|
4,250 |
|
|
|
4,276 |
|
|
|
5,346 |
|
Deferred |
|
(2,045 |
) |
|
|
31,293 |
|
|
|
449 |
|
|
|
35,430 |
|
Total income and mining tax expense |
|
(257 |
) |
|
|
35,543 |
|
|
|
4,725 |
|
|
|
40,776 |
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(14,331 |
) |
|
$ |
84,937 |
|
|
$ |
(7,280 |
) |
|
$ |
92,040 |
|
|
|
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
|
Change in fair value of marketable securities |
|
(1,410 |
) |
|
|
- |
|
|
|
(900 |
) |
|
|
- |
|
Total comprehensive (loss) income |
$ |
(15,741 |
) |
|
$ |
84,937 |
|
|
$ |
(8,180 |
) |
|
$ |
92,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
0.61 |
|
|
$ |
(0.05 |
) |
|
$ |
0.66 |
|
Diluted |
$ |
(0.10 |
) |
|
$ |
0.60 |
|
|
$ |
(0.05 |
) |
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
(000s) |
|
|
|
|
|
|
|
Basic |
|
142,478 |
|
|
|
139,754 |
|
|
|
142,146 |
|
|
|
139,587 |
|
Diluted |
|
142,478 |
|
|
|
142,630 |
|
|
|
142,146 |
|
|
|
142,454 |
|
|
|
|
|
|
|
|
|
- Q2 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 Q2 2021 net income has decreased by
$2.9 million, which includes a $1.5 million gain resulting from the
mark-to-market of the share consideration receivable. Basic
earnings per share for Q2 2021 changed from $0.63 to $0.61 per
share and basic earnings per share for Q2 YTD 2021 changed from
$0.68 to $0.66 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 |
|
Earnings 1 |
|
Loss |
|
Equity 1 |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
$ |
179,540 |
|
|
$ |
6,472 |
|
|
$ |
70,357 |
|
|
$ |
- |
|
|
$ |
256,369 |
|
Net income for the period ended |
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
- |
|
|
|
- |
|
|
|
92,040 |
|
|
|
- |
|
|
|
92,040 |
|
Exercise of options |
|
1,231 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,231 |
|
Value attributed to options exercised |
|
587 |
|
|
|
(587 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value attributed to RSUs exercised |
|
786 |
|
|
|
(786 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
- |
|
|
|
1,513 |
|
|
|
- |
|
|
|
- |
|
|
|
1,513 |
|
Balance, June 30, 2021 |
$ |
182,144 |
|
|
$ |
6,612 |
|
|
$ |
162,397 |
|
|
$ |
- |
|
|
$ |
351,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2021 |
$ |
187,911 |
|
|
$ |
5,859 |
|
|
$ |
201,645 |
|
|
$ |
(240 |
) |
|
$ |
395,175 |
|
Net loss for the period ended |
|
|
|
|
|
|
|
|
|
June 30, 2022 |
|
- |
|
|
|
- |
|
|
|
(7,280 |
) |
|
|
- |
|
|
|
(7,280 |
) |
Other comprehensive loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(900 |
) |
|
|
(900 |
) |
Exercise of options |
|
3,031 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,031 |
|
Value attributed to options exercised |
|
1,173 |
|
|
|
(1,173 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value attributed to RSUs exercised |
|
638 |
|
|
|
(638 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
- |
|
|
|
1,630 |
|
|
|
- |
|
|
|
- |
|
|
|
1,630 |
|
Balance, June 30, 2022 |
$ |
192,753 |
|
|
$ |
5,678 |
|
|
$ |
194,365 |
|
|
$ |
(1,140 |
) |
|
$ |
391,656 |
|
|
|
|
|
|
|
|
|
|
|
- See footnote in the condensed interim statements of income and
comprehensive income for details of the restatement in Q2
2021.
Wesdome Gold Mines
Ltd.Condensed Interim Statements of Cash
Flows(Unaudited, expressed in thousands of Canadian
dollars)
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2022 |
|
|
|
2021 1 |
|
|
|
2022 |
|
|
|
2021 1 |
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(14,331 |
) |
|
$ |
84,937 |
|
|
$ |
(7,280 |
) |
|
$ |
92,040 |
|
Depreciation and depletion |
|
11,316 |
|
|
|
6,483 |
|
|
|
19,670 |
|
|
|
12,550 |
|
Stock-based compensation |
|
1,554 |
|
|
|
1,203 |
|
|
|
1,630 |
|
|
|
1,513 |
|
Accretion of decommissioning provisions |
|
208 |
|
|
|
124 |
|
|
|
379 |
|
|
|
234 |
|
Deferred income and mining tax expense |
|
(2,045 |
) |
|
|
31,293 |
|
|
|
449 |
|
|
|
35,430 |
|
Amortization of deferred financing cost |
|
85 |
|
|
|
119 |
|
|
|
169 |
|
|
|
224 |
|
Interest expense |
|
316 |
|
|
|
271 |
|
|
|
579 |
|
|
|
530 |
|
Reversal of impairment charges |
|
- |
|
|
|
(58,563 |
) |
|
|
- |
|
|
|
(58,563 |
) |
Gain on sale of Moss Lake exploration properties |
|
- |
|
|
|
(34,330 |
) |
|
|
- |
|
|
|
(34,330 |
) |
Impairment charge on exploration properties |
|
- |
|
|
|
3,113 |
|
|
|
- |
|
|
|
3,113 |
|
Gain on disposal of mining equipment |
|
(10 |
) |
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
Impairment of investment in associate |
|
11,800 |
|
|
|
- |
|
|
|
11,800 |
|
|
|
- |
|
Fair value adjustment on share consideration receivable |
|
3,605 |
|
|
|
(1,521 |
) |
|
|
5,839 |
|
|
|
(1,521 |
) |
Share of loss of associate |
|
131 |
|
|
|
89 |
|
|
|
543 |
|
|
|
89 |
|
Loss on dilution of ownership |
|
429 |
|
|
|
- |
|
|
|
634 |
|
|
|
- |
|
Foreign exchange gain on borrowings |
|
(77 |
) |
|
|
(50 |
) |
|
|
(109 |
) |
|
|
(79 |
) |
Net changes in non-cash working capital |
|
4,642 |
|
|
|
(1,131 |
) |
|
|
18,906 |
|
|
|
3,039 |
|
Mining and income tax paid |
|
(5,522 |
) |
|
|
(5,162 |
) |
|
|
(11,203 |
) |
|
|
(5,361 |
) |
Net cash from operating activities |
|
12,101 |
|
|
|
26,875 |
|
|
|
41,994 |
|
|
|
48,908 |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
Proceeds from revolving credit facility |
|
14,956 |
|
|
|
- |
|
|
|
14,956 |
|
|
|
- |
|
Repayment of revolving credit facility |
|
(14,810 |
) |
|
|
- |
|
|
|
(14,810 |
) |
|
|
- |
|
Exercise of options |
|
264 |
|
|
|
910 |
|
|
|
3,031 |
|
|
|
1,231 |
|
Deferred financing costs |
|
- |
|
|
|
(95 |
) |
|
|
- |
|
|
|
(334 |
) |
Repayment of lease liabilities |
|
(2,345 |
) |
|
|
(1,884 |
) |
|
|
(4,431 |
) |
|
|
(3,400 |
) |
Interest paid |
|
(316 |
) |
|
|
(271 |
) |
|
|
(579 |
) |
|
|
(530 |
) |
Net cash used in financing activities |
|
(2,251 |
) |
|
|
(1,340 |
) |
|
|
(1,833 |
) |
|
|
(3,033 |
) |
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
Additions to mining properties |
|
(7,132 |
) |
|
|
(10,050 |
) |
|
|
(13,322 |
) |
|
|
(17,873 |
) |
Additions to mines under development |
|
(31,200 |
) |
|
|
(12,704 |
) |
|
|
(59,613 |
) |
|
|
(13,400 |
) |
Additions to exploration properties |
|
- |
|
|
|
(11,368 |
) |
|
|
- |
|
|
|
(23,267 |
) |
Cash proceeds on sale of Moss Lake, net of transaction costs |
|
- |
|
|
|
11,762 |
|
|
|
- |
|
|
|
11,762 |
|
Funds held against standby letter of credit |
|
(494 |
) |
|
|
- |
|
|
|
(494 |
) |
|
|
- |
|
Proceeds on disposal of mining equipment |
|
20 |
|
|
|
- |
|
|
|
20 |
|
|
|
- |
|
Net changes in non-cash working capital |
|
- |
|
|
|
740 |
|
|
|
- |
|
|
|
1,222 |
|
Net cash used in investing activities |
|
(38,806 |
) |
|
|
(21,620 |
) |
|
|
(73,409 |
) |
|
|
(41,556 |
) |
|
|
|
|
|
|
|
|
(Decrease) increase in cash and cash equivalents |
|
(28,956 |
) |
|
|
3,915 |
|
|
|
(33,248 |
) |
|
|
4,319 |
|
Cash and cash equivalents - beginning of period |
|
52,472 |
|
|
|
63,884 |
|
|
|
56,764 |
|
|
|
63,480 |
|
Cash and cash equivalents - end of period |
$ |
23,516 |
|
|
$ |
67,799 |
|
|
$ |
23,516 |
|
|
$ |
67,799 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consist of: |
|
|
|
|
|
|
|
Cash |
$ |
23,516 |
|
|
$ |
67,799 |
|
|
$ |
23,516 |
|
|
$ |
67,799 |
|
|
$ |
23,516 |
|
|
$ |
67,799 |
|
|
$ |
23,516 |
|
|
$ |
67,799 |
|
|
|
|
|
|
|
|
|
- See footnote in the condensed interim statements of income and
comprehensive income for details of the restatement in Q2
2021.
PDF
available: http://ml.globenewswire.com/Resource/Download/81794437-9f20-4831-9559-922d1b3c387f
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