WDO has some very concerned investors!! WESDOME GOLD MINES ANNUAL GENERAL MEETING SHOULD BE POSTPONED
TORONTO, May 16, 2016 /CNW/ - Resolute Performance Fund ("Resolute"), an investment fund managed by Resolute Funds Limited, the largest shareholder of Wesdome Gold Mines Ltd. (TSX: WDO) ("Wesdome" or the "Corporation"), announced today that it has submitted a letter to the board of directors of Wesdome expressing significant concerns with respect to the operations and management of Wesdome. While there have been many operational and other issues at the Corporation since Resolute became a shareholder, Resolute is particularly concerned with:
- the fact that gold production dropped to 8,036 ounces in the first quarter of 2016 from 14,484 ounces in the third quarter of 2015;
- the significant increase in cash burn in the first quarter of 2016, as reflected by the decrease of $7.3 million in cash and cash equivalents, compared to a decrease of $0.362 million in the third quarter of 2015;
- the significant increase in the all-in sustaining costs per ounce on a production basis to $2,501 per ounce in the first quarter of 2016, compared to $1,368 per ounce in the third quarter of 2015; and
- the proposed increase in the size of the board of directors from five to eight members, which Resolute believes will simply increase overhead and other costs without leading to the necessary operational changes.