TORONTO, Nov. 09, 2022 (GLOBE NEWSWIRE) -- 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 2022
Achievement |
| 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 WESDOME
Wesdome 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:
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 |
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
