Wesdome Gold Mines Ltd T.WDO

Alternate Symbol(s): WDOFF

Metals & Mining Gold

Wesdome Gold Mines Ltd. is a Canadian-focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Quebec. The Company has an exploration program both underground and on the surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Eagle River Underground Mine is located 50 kilometers west of Wawa, Ontario. The Eagle River underground mine near Wawa, Ontario is producing gold at a rate of 80,000 to 90,000 ounces per year. The Kiena Mine is located in the highly prospective Val d’Or, Quebec gold camp. The Kiena Mine is a fully permitted, integrated mining and milling infrastructure which includes a 930-meter production shaft and 2,000 tons-per-day capacity mill. The Kiena Mine Complex consists of the Kiena Mine concession, Kiena Mill, related infrastructure and equipment and land position in the Township of Dubuisson, Quebec.

TSX:WDO - Post by User

Wesdome Gold Mines Ltd

Bullboard Posts

Post by riverrockon Mar 20, 2010 11:31pm

429 Views

Post# 16907129

A quesstimate

My figures are based on increasing production. Thenews releases of 02/09 and 03/19 indicate lower production for 2010. Goldprices, production and exchange rate parity are my own estimates.

Since the Canadian $ is near parity with the US $ I’musing Wesdome’s production costs and gold sales at parity with the US $. (Ingeneral, if the Canadian $ is lower thanUS $, Wesdome’s earning would increase, and if the Canadian $ is stronger theywould decrease)

Figures for Wesdome’s All In Cost (true costs) to producean ounce of Gold includes cost of mining, administration depreciation,depletion, interest ,amortization and taxes to name most all and are simply theprofits divided by the ounces sold for the periods under consideration.

For 2009

Gold sales price – Net Income (profits)/Ounces sold

1113 – 32,165,000/92700 = $766

This an improvement over 2008 All In Costs of $820

Since they have gained experience and their costs have gonedown over the years I’m using All In Costs of $750 and parity with US $

Profit per ounce at various gold prices with assumedUS/Can $’s exchange rates at parity

At US $1,100 (1100– 750) = $350 profit

At US $1,200 $450 profit

At US $1,300 $550 profit

At US $1,400 $650 profit

At US $1,500 $750 profit

At US $1,600 $850 profit

At US $1,700 $950 profit

For the earnings estimate I’m increasing gold sales abovethe 70,000 ounces that Wesdome indicated in their 02/09 and 03/19 news releaseson the basis that they increased gold production well over their 2008 (+12%)and 2009 (+28% ) estimates. I am using a 20% increase above the 70,000 ouncesand using production of 84,000 ounces.

Profit per share at various gold prices

At $1100 gold

(350 x 84,000)/100,431,159 =
.29 share

At $1200 gold

(450 x 84,000)/100,431,159 =
.38 share

At $1300 gold

(550 x 84,000)/100,431,159 =
.46 share

At $1400 gold

(650 x 84,000)/100,431,159 =
.54 share

At $1500 gold

(750 x 84,000)/100,431,159 =
.63 share

At $1600 gold