Wesdome Gold Mines Ltd. (TSX:WDO, OTCQX:WDOFF) (“Wesdome” or the
“Company”) today announced its results for the three and nine
months ended September 30, 2024 (“Q3 2024” and “YTD 2024”).
Preliminary operating results for Q3 2024 and YTD 2024 were
disclosed in the Company’s press release dated October 17, 2024.
Management will host a conference call tomorrow, November 7, 2024
at 10:00 a.m. ET to discuss its results. All amounts are expressed
in Canadian dollars unless otherwise indicated.
Q3 2024 Highlights
- Consolidated
gold production was 45,109 ounces, a 62% increase over the prior
year quarter, at cost of sales per ounce sold of $1,7831,4
(US$1,308), cash costs per ounce sold1 of $1,214 (US$890) and
all-in sustaining costs (“AISC”) per ounce sold1 of $1,920
(US$1,408). The average realized price of gold sold was $3,420
(US$2,508) per ounce.
- Net income
increased to $39.0 million, or $0.26 earnings per share, an
increase of $42.2 million from the corresponding quarter in 2023
and $9.9 million, or $0.07 earnings per share, from Q2 2024.
- Earnings before
interest, taxes, depreciation and amortization (“EBITDA”)1
increased to $84.6 million or by more than 6.5 times relative to
the prior year quarter mainly due to an increase in ounces sold, a
higher average realized price of gold sold and lower cash
costs.
- Net cash flow
from operating activities increased to $61.0 million, or $0.41
operating cash flow per share1,3, $15.9 million higher than the
prior year quarter mainly due to a higher average realized price of
gold sold.
- Cash of $82.5
million has nearly doubled since year end, resulting in available
liquidity at the end of the third quarter of $232.5 million
including cash and $150.0 million of undrawn full capacity
available under the Company’s revolving credit facility.
- Free cash flow1
increased to $30.8 million, or $0.21 per share, compared to $10.7
million, or $0.07 per share, in the corresponding period in 2023
mainly due to higher average realized price of gold sold, partially
offset by an increase in capital expenditures.
- Consolidated
2024 production guidance range has been narrowed to between 166,000
and 176,000 ounces of gold, while increasing cash costs per ounce
sold to $1,225 to $1,300 and AISC per ounce sold1 to $1,975 to
$2,100 (US$1,445 to US$1,525).
- During the
quarter, the Company announced the appointments of Guy Belleau as
Chief Operating Officer and Ronald “Jono” Lawrence as Senior Vice
President, Exploration and Resources. Subsequent to quarter end,
Philip C. Yee was appointed Independent Director and Chair of the
Audit Committee.
Anthea Bath, President and Chief Executive
Officer, commented: “Wesdome delivered a strong third quarter with
sequential improvement over the first two quarters of the year.
Higher production at lower costs have led to strong operating cash
flow and another free cash flow1 record, with notable improvements
seen across most performance metrics compared to the prior year
quarter. Our dedicated teams at Eagle River and Kiena have been
instrumental in this success, while upholding our commitment to
health, safety, and environmental stewardship.
“Wesdome’s financial position has strengthened
considerably. Compared to year end, our cash position has doubled,
we have eliminated our bank debt and increased our available
liquidity by nearly $80 million. We will continue to use our
financial strength to de-risk future mine plans by accelerating the
rate of capital spend on mine development and exploration and
making additional infrastructure investments to support our fill
the mill strategy.
“Looking ahead, preliminary plans for 2025
continue to de-risk our medium-term outlook and point to growing
production levels at lower costs relative to this year.”
Consolidated Financial and Operating
Highlights
|
In 000s, except per unit and per share amounts |
Q3 2024 |
Q3 2023 |
YTD 2024 |
YTD 2023 |
|
Financial results |
|
|
|
|
|
Revenue2 |
146,852 |
|
69,696 |
|
375,573 |
|
230,952 |
|
|
Cost of sales |
76,512 |
|
71,450 |
|
229,301 |
|
216,916 |
|
|
Gross profit (loss) |
70,340 |
|
(1,754 |
) |
146,272 |
|
14,036 |
|
|
Cash margin1 |
94,635 |
|
22,233 |
|
217,498 |
|
85,363 |
|
|
EBITDA1 |
84,600 |
|
12,933 |
|
193,138 |
|
61,077 |
|
|
Net income (loss) |
38,999 |
|
(3,248 |
) |
78,842 |
|
(8,607 |
) |
|
Earnings (loss) per share |
0.26 |
|
(0.02 |
) |
0.53 |
|
(0.06 |
) |
|
Adjusted net income (loss)1 |
39,196 |
|
(2,573 |
) |
79,039 |
|
(4,330 |
) |
|
Adjusted net income (loss) per share1 |
0.26 |
|
(0.02 |
) |
0.53 |
|
(0.03 |
) |
|
Net cash from operating activities |
60,976 |
|
45,076 |
|
164,561 |
|
64,175 |
|
|
Operating cash flow per share1,3 |
0.41 |
|
0.30 |
|
1.10 |
|
0.44 |
|
|
Net cash from (used in) financing activities |
449 |
|
(2,370 |
) |
(39,050 |
) |
7,367 |
|
|
Net cash used in investing activities |
(29,607 |
) |
33,191 |
|
(84,367 |
) |
(73,145 |
) |
|
Free cash flow1 |
30,838 |
|
10,672 |
|
78,723 |
|
(14,204 |
) |
|
Free cash flow per share1 |
0.21 |
|
0.07 |
|
0.53 |
|
(0.10 |
) |
|
|
|
|
|
|
|
Average 1 USD → CAD exchange rate |
1.3637 |
|
1.3414 |
|
1.3603 |
|
1.3456 |
|
|
|
|
|
|
|
|
Operating results |
|
|
|
|
|
Gold produced (ounces) |
45,109 |
|
27,760 |
|
122,466 |
|
87,120 |
|
|
Gold sold (ounces) |
42,900 |
|
27,000 |
|
118,600 |
|
89,000 |
|
|
Average realized price1 ($/oz) |
3,420 |
|
2,579 |
|
3,163 |
|
2,592 |
|
|
Average realized price1 (US$/oz) |
2,508 |
|
1,923 |
|
2,325 |
|
1,926 |
|
|
|
|
|
|
|
|
Per ounce of gold sold1 |
|
|
|
|
|
Cost of sales1,4 ($/oz) |
1,783 |
|
2,646 |
|
1,933 |
|
2,437 |
|
|
Cost of sales1,4 (US$/oz) |
1,308 |
|
1,973 |
|
1,421 |
|
1,923 |
|
|
Cash costs1 ($/oz) |
1,214 |
|
1,755 |
|
1,329 |
|
1,633 |
|
|
Cash costs1 (US$/oz) |
890 |
|
1,308 |
|
977 |
|
1,214 |
|
|
AISC1 ($/oz) |
1,920 |
|
2,711 |
|
2,032 |
|
2,293 |
|
|
AISC1 (US$/oz) |
1,408 |
|
2,021 |
|
1,493 |
|
1,704 |
|
|
|
|
|
|
|
|
Financial position |
|
|
|
|
|
Cash |
82,515 |
|
31,582 |
|
82,515 |
|
31,582 |
|
|
Working capital |
69,413 |
|
(18,839 |
) |
69,413 |
|
(18,839 |
) |
|
Total assets |
684,736 |
|
605,364 |
|
684,736 |
|
605,364 |
|
|
Current liabilities |
61,062 |
|
87,577 |
|
61,062 |
|
87,577 |
|
|
Non-current liabilities |
110,269 |
|
93,404 |
|
110,269 |
|
93,404 |
|
|
Total liabilities |
171,331 |
|
180,981 |
|
171,331 |
|
180,981 |
|
- Refer to the section in this press
release entitled “Non-IFRS Performance Measures” for the
reconciliation of non-IFRS measurements to the financial
statements.
- Revenue includes insignificant
amounts from the sale of by-product silver.
- Operating cash flow per share is
calcated by dividing net cash from activities by the weighted
average number of shares.
- Costs of sales per ounce of gold
sold is calculated by dividing the cost of sales by the number of
ounces sold.
Eagle River – Ontario
|
Eagle River Operating Results |
Q3 2024 |
Q3 2023 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
Ore milled (tonnes) |
|
|
|
|
|
Eagle River |
57,984 |
55,153 |
162,168 |
167,958 |
|
Mishi |
- |
- |
- |
6,150 |
|
Total ore milled |
57,984 |
55,153 |
162,168 |
174,108 |
|
|
|
|
|
|
|
Head grade (grams per tonne, "g/t") |
|
|
|
|
|
Eagle River |
13.1 |
11.9 |
13.4 |
12.1 |
|
Mishi |
- |
- |
- |
2.3 |
|
Total head grade |
13.1 |
11.9 |
13.4 |
12.1 |
|
|
|
|
|
|
|
Average mill recoveries (%) |
|
|
|
|
|
Eagle River |
97.0 |
96.7 |
96.8 |
96.7 |
|
Mishi |
- |
- |
- |
72.5 |
|
Total gold recovery |
97.0 |
96.7 |
96.8 |
96.7 |
|
|
|
|
|
|
|
Gold production (oz) |
|
|
|
|
|
Eagle River |
23,688 |
20,391 |
67,859 |
63,395 |
|
Mishi |
- |
- |
- |
332 |
|
Total gold production |
23,688 |
20,391 |
67,859 |
63,727 |
|
|
|
|
|
|
|
Gold sold (oz) |
|
|
|
|
|
Eagle River |
21,340 |
19,600 |
66,200 |
65,759 |
|
Mishi |
- |
- |
- |
341 |
|
Total gold sold |
21,340 |
19,600 |
66,200 |
66,100 |
|
|
|
|
|
|
|
Production costs per tonne
milled1 ($) |
545 |
503 |
570 |
485 |
|
|
|
|
|
|
|
Costs per oz sold ($/oz) |
|
|
|
|
|
Cost of sales |
2,042 |
2,046 |
1,972 |
1,912 |
|
Cash costs1 |
1,449 |
1,442 |
1,422 |
1,380 |
|
All-in sustaining costs1 |
2,318 |
2,467 |
2,107 |
2,039 |
|
|
|
|
|
|
|
Costs per oz sold (US$/oz) |
|
|
|
|
|
Cost of sales |
1,497 |
1,525 |
1,449 |
1,421 |
|
Cash costs1 |
1,062 |
1,075 |
1,046 |
1,025 |
|
All-in sustaining costs1 |
1,700 |
1,839 |
1,549 |
1,516 |
During Q3 2024, Eagle River produced 23,688
ounces of gold as compared to 20,391 ounces in Q3 2023 primarily
due to a 10% increase in head grade and 5% increase in throughput.
For the first nine months of 2024, Eagle River produced 67,859
ounces of gold driven by an 11% increase in head grade, as compared
to 63,727 ounces in the first nine months of 2023, which included
the Mishi deposit. Eagle River head grade in the first nine months
of 2024 was 13.4 g/t compared to 12.1 g/t in the first nine months
of 2023.
In Q3 2024, Eagle River generated $73.6 million
in revenue from the sale of 21,340 ounces of gold compared to $50.5
million from the sale of 19,600 ounces in Q3 2023. Revenue
increased by 46% compared to Q3 2023 primarily due to higher ounces
sold and a higher average realized Canadian dollar gold price. In
the first nine months of 2024 Eagle River generated $207.0 million
in revenue from the sale of 66,200 ounces of gold as compared to
$170.6 million from the sale of 66,100 ounces in the first nine
months of 2023. Revenue increased by 21% compared the first nine
months of 2023 due to the higher average realized Canadian dollar
gold price and an increase in ounces sold.
Cost of sales in Q3 2024 was $43.6 million, an
increase of 9% compared to the corresponding period in 2023
primarily due to a $1.9 million increase in mine operating costs
and a $0.8 million increase in depreciation and depletion expense
driven by a 16% increase in ounces produced and a 5% increase in
throughput. Cost of sales in the first nine months of 2024 was
higher by 3% compared to the first nine months of 2023 primarily
due to a 6% increase in ounces produced, driven by an 11% increase
in head grade offset by slightly lower throughput.
In Q3 2024, cash costs per ounce of gold sold
were $1,449 (US$1,062) compared to $1,442 (US$1,075) in Q3 2023
primarily due to an increase in mine operating costs driven by
higher ounces produced and higher throughput. Cash costs per ounce
of gold sold in the first nine months of 2024 were $1,422
(US$1,046), an increase of 3% compared to $1,380 (US$1,025) in the
first nine months of 2023, primarily due to an increase in ounces
produced.
In Q3 2024, AISC per ounce of gold sold were
$2,318 (US$1,700), a 6% decrease compared to $2,467 (US$1,839) in
Q3 2023, primarily due to an increase in ounces sold and lower
sustaining capital expenditures. AISC per ounce of gold sold in the
first nine months of 2024 were $2,107 (US$1,549), an increase of 3%
compared to $2,039 (US$1,516) in the first nine months of 2023,
primarily due to higher operating costs and sustaining capital
expenditures.
Kiena Mine – Quebec
|
Kiena Operating Results |
Q3 2024 |
Q3 2023 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
Ore milled (tonnes) |
51,321 |
47,351 |
154,334 |
141,499 |
|
Head grade (g/t) |
13.1 |
4.9 |
11.1 |
5.2 |
|
Average mill recoveries (%) |
99.0 |
98.4 |
98.9 |
98.0 |
|
Gold production (oz) |
21,421 |
7,369 |
54,607 |
23,393 |
|
Gold sold (oz) |
21,560 |
7,400 |
52,400 |
22,900 |
|
|
|
|
|
|
|
Production costs per tonne milled1 ($) |
426 |
402 |
424 |
419 |
|
|
|
|
|
|
|
Costs per oz sold ($/oz) |
|
|
|
|
|
Cost of sales |
1,524 |
4,225 |
1,881 |
3,944 |
|
Cash costs1 |
981 |
2,585 |
1,212 |
2,365 |
|
All-in sustaining costs1 |
1,526 |
3,359 |
1,937 |
3,027 |
|
|
|
|
|
|
|
Costs per oz sold (US$/oz) |
|
|
|
|
|
Cost of sales |
1,118 |
3,149 |
1,382 |
2,931 |
|
Cash costs1 |
719 |
1,927 |
891 |
1,758 |
|
All-in sustaining costs1 |
1,119 |
2,504 |
1,424 |
2,249 |
During Q3 2024, the Kiena mine produced 21,421
ounces of gold as compared to 7,369 ounces in Q3 2023 primarily due
to a 167% increase in head grade due to the ramp-up in mining of
high-grade Kiena Deep ore from the 129-level horizon in mid-April
and an 8% increase in throughput. Kiena’s head grade increased to
13.1 g/t in Q3 2024 from 4.9 g/t in Q3 2023. Gold recovery
increased to 99.0% compared to 98.4% in the corresponding period in
2023. In Q3 2024, the mill processed 51,321 tonnes throughput as
compared to 47,351 tonnes in Q3 2023.
In the first nine months of 2024, Kiena produced
54,607 ounces of gold as compared to 23,393 ounces of gold in the
first nine months of 2023 primarily due to a 113% increase in head
grade and a 9% increase in throughput. Head grade at Kiena
increased to 11.1 g/t in the first nine months of 2024 from 5.2 g/t
in the first nine months of 2023. The rate of gold recovery
increased to 98.9% from 98.0% in the corresponding period in 2023.
In the first nine months of 2024, the mill processed throughput of
154,334 tonnes compared to 141,499 tonnes in the first nine months
of 2023. In the second quarter Kiena began processing higher grade
material from the new 129-level horizon of Kiena Deep, which is
expected to continue over the balance of 2024.
In Q3 2024, Kiena generated $73.1 million in
revenue from the sale of 21,560 ounces of gold as compared to $19.1
million from the sale of 7,400 ounces in Q3 2023. Revenue increased
by 282% compared to Q3 2023 due to higher ounces sold and a higher
average realized Canadian dollar gold price. In the first nine
months of 2024, Kiena increased revenue to $168.2 million from the
sale of 52,400 ounces of gold, an increase of 180% compared to
$60.1 million in revenue from the sale of 22,900 ounces in the
first nine months of 2023. Revenue in the first nine months of 2024
increased due to higher ounces sold and a higher average realized
Canadian dollar gold price.
Cost of sales in Q3 2024 was $32.9 million, an
increase of 5% over the corresponding period in 2023 primarily due
to a $2.7 million increase in mine operating costs, which was due
to 8% higher throughput partially offset by a change in inventory
levels of $0.6 million and a $0.5 million decrease in non-cash
depletion and depreciation resulting from an increase in
inventories. Cost of sales in the first nine months of 2024 was
$98.5 million, 9% higher than the corresponding period in 2023
primarily due to an increase in the aggregate mine operating costs
as a result of a 9% increase in throughput.
Cash costs per ounce of gold sold in Q3 2024
were $981 (US$719), a decrease of 62% compared to $2,585 (US$1,927)
in Q3 2023 primarily due to a 191% increase in ounces sold. Cash
costs per ounce of gold sold in the first nine months of 2024
decreased by 49% to $1,212 (US$891) compared to $2,365 (US$1,758)
in the first nine months of 2023 primarily due to a 129% increase
in ounces sold partially offset by higher aggregate mine operating
expenses due to increased throughput.
AISC per ounce of gold sold decreased by 55% in
Q3 2024 to $1,526 (US$1,119) from $3,359 (US$2,504) in Q3 2023
primarily due to an increase in ounces sold partially offset by an
increase in aggregate mine operating costs and sustaining capital
expenditures. AISC per ounce of gold sold decreased by 36% in the
first nine months of 2024 to $1,937 (US$1,424) from $3,027
(US$2,249) in the first nine months of 2023 primarily due to a 129%
increase in ounces sold partially offset by an increase in
aggregate mine operating costs and sustaining capital
expenditures.
Outlook
The Company is tightening its 2024 guidance and
reaffirming its previously disclosed 2025 consolidated production
outlook. Guidance for 2024 costs, depreciation and capital
expenditures, now reflects updated full-year expectations based on
the Company’s operational and financial performance to date.
Consolidated 2024 gold production has been
narrowed to 166,000 to 176,000 ounces from the Company’s original
guidance of 160,000 to 180,000 ounces. Preliminary plans for 2025
continue to support previously disclosed consolidated production
guidance of 175,000 to 210,000 ounces.
Total consolidated cash costs per ounce of gold
sold is expected to be $1,225 to $1,300 per
ounce sold an increase from the Company’s original guidance of
$1,075 to $1,200 per ounce sold, primarily due to
lower production and increased cash costs at Kiena.
Consolidated AISC per ounce of gold sold is
expected to be $1,975 to $2,100 (US$1,445 to
US$1,525) from $1,750 to $1,950 (US$1,325 to US$1,475), primarily
due to higher total cash costs, partially offset by lower
sustaining capital expenditures.
Based on strong operating performance in the
first nine months of the year, 2024 production from Eagle River is
now expected to be 89,000 to 93,000 ounces, compared to the
original guidance range of 80,000 to 90,000 ounces at cash costs
per ounce of gold sold of $1,370 to $1,425 and AISC per ounce of
gold sold of $2,175 to $2,275 (US$1,595 to US$1,675).
Kiena’s 2024 production is now expected to be
77,000 to 83,000, at cash costs per ounce of gold sold of $1,065 to
$1,150 and AISC per ounce of gold sold of $1,745 to $1,875
(US$1,280 to US$1,375). Execution is improving and continuing to
support increased production rates, optimization of stope design
parameters and the enhancement of maintenance practices. Benefits
from these initiatives will continue to be realized in 2025.
2024 Guidance
|
|
|
Eagle River |
Kiena |
Consolidated |
|
|
|
Initial |
Revised |
Initial |
Revised |
Initial |
Revised |
|
Production |
|
|
|
|
|
|
|
|
Feed grade |
(g/t) |
12.2 - 13.4 |
12.9 - 13.5 |
12.0 - 13.5 |
11.2 - 12.0 |
12.0 - 13.5 |
12.1 - 12.8 |
|
Gold production |
(ounces) |
80,000 - 90,000 |
89,000 - 93,000 |
80,000 - 90,000 |
77,000 - 83,000 |
160,000 - 180,000 |
166,000 - 176,000 |
|
|
|
|
|
|
|
|
|
|
Operating Costs |
|
|
|
|
|
|
|
|
Depreciation and depletion |
($M) |
$40 |
$50 |
$60 |
$50 |
$100 |
$100 |
|
Corporate and general1 |
($M) |
$10 |
$11 |
$10 |
$11 |
$20 |
$22 |
|
Exploration and evaluation2 |
($M) |
$4 |
$4 |
$7 |
$7 |
$11 |
$11 |
|
Cash costs3 |
($/oz) |
$1,275 - $1,425 |
$1,370 - $1,425 |
$875 - $975 |
$1,065 - $1,150 |
$1,075 - $1,200 |
$1,225 - $1,300 |
|
All-in sustaining costs3 |
($/oz) |
$2,175 - $2,275 |
$2,175 - $2,275 |
$1,475 - $1,625 |
$1,745 - $1,875 |
$1,750 - $1,950 |
$1,975 - $2,100 |
|
All-in sustaining costs3 |
(US$/oz) |
$1,595 - $1,675 |
$1,595 - $1,675 |
$1,100 - $1,225 |
$1,280 - $1,375 |
$1,325 - $1,475 |
$1,445 - $1,525 |
|
|
|
|
|
|
|
|
|
|
Capital Investment |
|
|
|
|
|
|
|
|
Total capital4 |
($M) |
$55 |
$60 |
$65 |
$70 |
$120 |
$130 |
|
Sustaining capital3 |
($M) |
$55 |
$60 |
$45 |
$45 |
$100 |
$105 |
|
Growth capital3 |
($M) |
- |
- |
$20 |
$25 |
$20 |
$25 |
Notes
- Corporate and
general costs do not include an estimated $3 million in stock-based
compensation. Corporate G&A allocated to each site is included
in site all-in sustaining cost calculation.
- Exploration and
evaluation costs primarily include surface drilling activities and
regional office expenses.
- This is a
financial measure or ratio that is a non-IFRS financial measure or
ratio. Certain additional disclosures for non-IFRS financial
measures and ratios have been incorporated by reference and
additional detail can be found at the end of this press release in
the Non-IFRS Performance Measures section.
- Initial 2024
capital Investment guidance was previously net of an estimated $5
million in capital leasing activities. Total capital expenditures
are the sum of sustaining and growth capital expenditures and are
reported under investing activities on the condensed interim
statements of cash flows.
2025 Production Guidance
|
|
|
Eagle River |
Kiena |
Consolidated |
|
Gold production |
(ounces) |
80,000 - 90,000 |
80,000 - 90,000 |
160,000 - 180,000 |
Exploration Update
Eagle River
Development and Drilling
The exploration and infill drilling program,
which has been successful, targeted the 300 Zone at depth, Falcon
311, and the 6 Central Zone for growth and resource conversion from
established underground platforms. Additional infill drilling
towards the Falcon 7, 311 Zone, 5 Zone, and 711 Zone focused on
resource conversion with delineation drilling continued to support
the production areas for the current year and in preparation for
2025 planned production.
High-grade mineralization is continuously being
intercepted in the 6 Central Zone, a zone that holds immense
potential for our mining operations. The zone discovered in 2023
continues to trend down and plunge in an easterly direction.
Located at an intermediate depth and close to underground
infrastructure, targeting the zone remains a priority for resource
growth and potential reserve conversion. The zone is anticipated to
be continuous and will become a promising mining zone in the
future.
The drilling program continued targeting the
up-plunge potential of the Falcon 311 zone. Infill drilling
continued to upgrade the resource classification, further
solidifying our understanding of the zone. The successful
delineation of the zone in the volcanics west of the Diorite
showcases the potential growth for more zones outside the
diorite-hosted mineralization. Drilling results indicated
higher-grade mineralization for the zone at depth.
Infill drilling confirms the quality and
continuity of the high-grade mineralization in the 300 Zone below
the 1,400 metre elevation, creating opportunities for conversion of
mineral resources. Recent results yielded significant values
highlighting the continuity and quality of the 300 Zone. Exploring
the depth potential of the 300 Zone continues to be a top priority
to enhance our understanding of the structure.
Surface Exploration
Data processing of the IP survey completed west
of the Diorite remained the focus. The structural study assesses
targets with surface mapping and sampling potential.
Kiena
Development and Drilling
Kiena Deep remains a promising target for growth
and conversion, with drilling focusing on growing the South Limb of
the Kiena Deep and infill drilling targeting the Footwall Zones
discovered in 2022, with follow-up drilling continuing to improve
the understanding of the zones. Drilling has returned results of
31.7 g/t Au / over 5.3m, showcasing the potential for high-grade
mineralization at reasonable widths, highlighting the opportunity
for increased ounces per vertical metre, and providing operational
flexibility and increased production near the Footwall elevations.
Several opportunities for growth ounces remain in the South Limb
area at depth in Kiena Deep and hanging wall basalt zones.
Follow-up drilling in the underexplored Wish
Zone area continued in the quarter to provide an initial assessment
of the size and potential continuity of the mineralization.
Rehabilitation of the 33-level development to the east is making
good progress to ensure the establishment of more optimal drilling
platforms.
Surface Exploration Drilling
An excess of 10,000 metres of drilling was
planned for the Dubuisson Zone from the barges, targeting existing
resources for conversion and down-extension of the zones. Several
areas within the zones were targeted with infill drilling to
confirm the re-interpreted model, improve drill hole density for
resource classification upgrade and test down plunge extension.
Drilling results have confirmed the continuity of the zone, and
above-average results not only validate our efforts but also
highlight the exciting potential for the existence of higher-grade
areas. The proximity of the Dubuisson Zone to the 33-level
development and the relatively large resources available for
conversion make it an excellent opportunity to provide flexibility
for future mining.
The Northwest Zone, located approximately 400
metres north of the planned Presqu’île ramp, was targeted during
the 2024 barge drilling season. Follow-up drilling is scheduled to
confirm mineralization and assess the extent of the zone.
High-grade mineralization was intercepted to the north of the zone,
potentially indicating a new mineralization trend towards the
north. The relative proximity of the zone to the planned Presqu’île
ramp increases its potential as a mineable zone at intermediate
depth.
East of the Kiena mine, historic drilling
confirmed mineralization within the Duchesne Zone, which was
modelled based on the original drilling. Follow-up drilling was
scheduled in 2024 to test the original interpretation and confirm
additional mineralization. Although mineralization was confirmed,
drilling has driven a reinterpretation of the geological model and
controls.
Presqu’île Project
The Presqu'île deposit is located 1.3 kilometres
west of the Kiena mine and has been identified as five gold-rich
zones cross-cutting mafic rocks (Zones PR-1, 2 and 2A) and
ultramafic rocks (Zones PR-3 and 4). Presqu'île is just one of
several underexplored near-surface deposits on the Kiena land
package that could leverage spare capacity at the Company’s 2,040
tonne per day Kiena mill and extend mine life.
The results of a recent internal Presqu'île
project study scoped 250 to 400 tonnes per day of feed starting in
late 2025, supporting production of 15,000 to 20,000 ounces per
year at all-in sustaining costs consistent with the Kiena
operation. A mining permit application for Presqu’île is expected
to be filed in the first quarter of 2025.
Work on the ramp portal was started in December
2023 with substantial completion achieved in early April 2024.
Lateral development of the exploration ramp commenced mid-April
following portal construction. The ramp is currently expected to
advance 1,150 metres by year end 2024 with the remaining 1,250
metres to be completed in 2025. Approximately $25 million is
forecasted to be spent on the portal, ramp and surface
infrastructure in 2024.
Presqu’île drilling commenced in September 2024.
Initial drilling testing an area near a lower-grade intercept
intersected mineralization with visible gold. The drilling program
was increased to complete more drillholes in the inferred
classified area for potential resource conversion, and in addition
to down-plunge extension potential, it underscores the significant
value of the zone and the importance of the zone.
Preliminary Short Form Base Shelf
Prospectus Renewal
Today, the Company renewed its short form base
shelf prospectus with the securities regulators in each of the
provinces and territories of Canada under the applicable Well-Known
Seasoned Issuer (WKSI) procedures. The base shelf prospectus will
allow the Company to offer and issue common shares, debt
securities, warrants, subscription receipts, units or any
combination thereof during the 25-month period over which the base
shelf prospectus is effective. The Company has refreshed its base
shelf prospectus in order to maintain its financial flexibility as
it continues to advance its business plans but has no immediate
plans to issue any securities under it at this time and may never
proceed with any such issuance. Should the Company decide to offer
securities during the 25-month effective period, the specific
terms, including the use of proceeds, will be set forth in a
prospectus supplement to the short form base shelf prospectus,
which will be filed with the applicable Canadian securities
regulatory authorities. This news release does not constitute an
offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities, in any province, state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such province, state or jurisdiction. A copy
of the short form base shelf prospectus can be found under the
Company’s profile on SEDAR+ at www.sedarplus.ca.
Conference Call and Webcast
Management will host a conference call and
webcast to discuss the Company’s Q3 and YTD 2024 financial and
operating results. A question-and-answer session will follow
management’s prepared remarks. Details of the webcast are as
follows:
|
Date and time: |
Thursday, November 7, 2024 at 10:00 a.m. ET |
| Dial-in numbers: |
To access the call by telephone,
dial 1.646.968.2525 or 1.888.596.4144 (toll-free). The event
passcode is: 8215935. Please allow up to 10 minutes to be
connected. |
| Webcast link: |
https://events.q4inc.com/attendee/802915383Pre-registration is
required for this event. It is recommended you join 10 minutes
prior to the start of the event. The webcast can also be accessed
from the home page of the Company’s website at
www.wesdome.com. |
| |
|
The financial statements and management’s
discussion and analysis will be available on the Company’s website
at www.wesdome.com and on SEDAR+ www.sedarplus.ca the evening of
November 6, 2024.
About Wesdome
Wesdome 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’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.
For further information, please
contact:
Raj Gill, SVP, Corporate Development &
Investor RelationsTrish Moran, VP, Investor RelationsPhone: +1
(416) 360-3743E-Mail: invest@wesdome.com
Responsibility for Technical
Information
The technical and scientific information
relating to exploration activities disclosed in this document was
prepared under the supervision of and verified and reviewed by Guy
Belleau, P.Eng, Chief Operating Officer of the Company and Niel de
Bruin, P. Geo, Director of Geology for Wesdome, each a "Qualified
Person" as defined in National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Data verification involves data input and review
by senior project geologists at site, scheduled weekly and monthly
reporting to senior exploration management and the completion of
project site visits by senior exploration management to review the
status of ongoing project activities and data underlying reported
results. All drilling results for exploration projects or
supporting resource and reserve estimates referenced in this
document have been previously reported in news release disclosures
by the Company and have been prepared in accordance with NI 43-101
- Standards of Disclosure for Mineral Projects. The sampling and
assay data from drilling programs are monitored through the
implementation of a quality assurance - quality control (“QA-QC”)
program designed to follow industry best practice.
Forward Looking Statements
This news release contains “forward-looking
information” which involve a number of risks and uncertainties.
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.
Forward-looking statements or information
contained in this press release include, but are not limited to,
statements or information with respect to the Company’s
expectations around: the level of and uses of the Company’s
anticipated rate of capital spend; the Company’s future production,
costs and expenses; the Company’s future production rates, design
parameters, maintenance practices and other continuous improvement
initiatives; the success, potential, objectives, schedule, targets,
opportunities and priorities of the Company’s exploration programs;
the Company’s anticipated filing of mining permits; and the
anticipated cost and development rate of the Presqu'île ramp.
Forward-looking statements and forward-looking information by their
nature are based on assumptions and 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 such forward-looking
statements or information.
We have made certain assumptions about the
forward-looking statements and information, including assumptions
around economic parameters relating to our mineral reserves and
mineral resource estimates described herein. Even though management
believes that the assumptions made, and the expectations
represented by such statements or information, are reasonable in
the circumstances, there can be no assurance that the
forward-looking statement or information will prove to be accurate.
Many assumptions may be difficult to predict and are beyond the
Company’s control.
Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors including those risk
factors discussed in the sections titled “Cautionary Note Regarding
Forward Looking Information” and “Risks and Uncertainties” in the
Company’s most recent Annual Information Form. Readers are urged to
carefully review the detailed risk discussion in our most recent
Annual Information Form which is available on SEDAR+ and on the
Company’s website.
There can be no assurance that forward-looking
statements or information 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.
Non-IFRS Performance
Measures
Wesdome uses non-IFRS performance measures
throughout this news release as it believes that these generally
accepted industry performance measures provide a useful indication
of the Company’s operational performance. These non-IFRS
performance measures do not have standardized meanings defined by
IFRS and may not be comparable to information in other gold
producers’ reports and filings. Accordingly, it is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
The non-IFRS performance measures include:
- Average realized price per ounce of gold sold
- Cash costs per ounce of gold sold
- Production costs per tonne milled
- Cash margin
- All-in sustaining costs per ounce of gold sold
- Free cash flow and free cash flow per share
- Adjusted net income (loss) and adjusted net income (loss) per
share
- EBITDA
Average realized price per ounce of gold
sold
Average realized price per ounce of gold sold is
a non-IFRS measure and does not constitute a measure recognized by
IFRS and does not have a standardized meaning defined by IFRS.
Average realized price per ounce of gold sold is calculated by
dividing gold sales proceeds received by the Company for the
relevant period by the ounces of gold sold. It may not be
comparable to information in other gold producers’ reports and
filings.
|
In 000s, except per unit amounts |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per financial statements |
146,852 |
|
127,799 |
|
100,922 |
|
102,221 |
|
69,696 |
|
84,555 |
|
76,701 |
|
75,035 |
|
375,573 |
|
230,952 |
|
|
Silver revenue from mining operations |
(153 |
) |
(126 |
) |
(134 |
) |
(73 |
) |
(77 |
) |
(70 |
) |
(86 |
) |
(60 |
) |
(413 |
) |
(233 |
) |
|
Gold revenue from mining operations (a) |
146,699 |
|
127,673 |
|
100,788 |
|
102,148 |
|
69,619 |
|
84,485 |
|
76,615 |
|
74,975 |
|
375,160 |
|
230,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ounces of gold sold (b) |
42,900 |
|
40,000 |
|
35,700 |
|
37,620 |
|
27,000 |
|
32,000 |
|
30,000 |
|
31,500 |
|
118,600 |
|
89,000 |
|
|
Average realized price gold sold CAD (c) = (a) ÷ (b) |
3,420 |
|
3,192 |
|
2,823 |
|
2,715 |
|
2,579 |
|
2,640 |
|
2,554 |
|
2,380 |
|
3,163 |
|
2,592 |
|
|
Average 1 USD → CAD exchange rate (d) |
1.3637 |
|
1.3684 |
|
1.3488 |
|
1.3619 |
|
1.3414 |
|
1.3428 |
|
1.3525 |
|
1.3578 |
|
1.3603 |
|
1.3456 |
|
|
Average realized price gold sold USD (c) ÷ (d) |
2,508 |
|
2,333 |
|
2,093 |
|
1,994 |
|
1,923 |
|
1,966 |
|
1,888 |
|
1,753 |
|
2,325 |
|
1,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold sold
Cash cost per ounce of gold sold is a non-IFRS
performance measure and does not constitute a measure recognized by
IFRS and does not have a standardized meaning defined by IFRS, as
well it may not be comparable to information in other gold
producers’ reports and filings. The Company has included this
non-IFRS performance measure throughout this document as Wesdome
believes that this generally accepted industry performance measure
provides a useful indication of the Company’s operational
performance. 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. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. The following table provides a reconciliation of total
cash costs per ounce of gold sold to cost of sales per the
financial statements for each of the last eight quarters:
|
In 000s, except per unit amounts |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales per financial statements (a) |
76,512 |
|
74,110 |
|
78,679 |
|
78,506 |
|
71,450 |
|
84,048 |
|
61,418 |
|
61,997 |
|
229,301 |
|
216,916 |
|
|
Depletion and depreciation |
(24,295 |
) |
(22,550 |
) |
(24,381 |
) |
(23,861 |
) |
(23,987 |
) |
(28,215 |
) |
(19,125 |
) |
(13,428 |
) |
(71,226 |
) |
(71,327 |
) |
|
Silver revenue from mining operations |
(153 |
) |
(126 |
) |
(134 |
) |
(73 |
) |
(77 |
) |
(70 |
) |
(86 |
) |
(60 |
) |
(413 |
) |
(233 |
) |
|
Cash costs (b) |
52,064 |
|
51,434 |
|
54,164 |
|
54,572 |
|
47,386 |
|
55,763 |
|
42,207 |
|
48,509 |
|
157,662 |
|
145,356 |
|
|
Ounces of gold sold (c) |
42,900 |
|
40,000 |
|
35,700 |
|
37,620 |
|
27,000 |
|
32,000 |
|
30,000 |
|
31,500 |
|
118,600 |
|
89,000 |
|
|
Cost of sales per ounce of gold sold (d) = (a) ÷ (c) |
1,783 |
|
1,853 |
|
2,204 |
|
2,087 |
|
2,646 |
|
2,627 |
|
2,047 |
|
1,968 |
|
1,933 |
|
2,437 |
|
|
Cash costs per ounce of gold sold (e) = (b) ÷ (c) |
1,214 |
|
1,286 |
|
1,517 |
|
1,451 |
|
1,755 |
|
1,743 |
|
1,407 |
|
1,540 |
|
1,329 |
|
1,633 |
|
|
Average 1 USD → CAD exchange rate (f) |
1.3637 |
|
1.3684 |
|
1.3488 |
|
1.3619 |
|
1.3414 |
|
1.3428 |
|
1.3525 |
|
1.3578 |
|
1.3603 |
|
1.3456 |
|
|
Cost of sales per ounce of gold sold USD (d) ÷ (f) |
1,308 |
|
1,354 |
|
1,634 |
|
1,532 |
|
1,973 |
|
1,956 |
|
1,514 |
|
1,450 |
|
1,421 |
|
1,811 |
|
|
Cash costs per ounce of gold sold USD (c) ÷ (d) |
890 |
|
940 |
|
1,125 |
|
1,065 |
|
1,308 |
|
1,298 |
|
1,040 |
|
1,134 |
|
977 |
|
1,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs per tonne
milled
Mine-site cost per tonne milled is a non-IFRS
performance measure and does not constitute a measure recognized by
IFRS and does not have a standardized meaning defined by IFRS, as
well it may not be comparable to information in other gold
producers’ reports and filings. As illustrated in the table below,
this measure is calculated by adjusting cost of sales, as shown in
the statements of income for non-cash depletion and depreciation,
royalties and inventory level changes and then dividing by tonnes
processed through the mill. Management believes that mine-site cost
per tonne milled provides additional information regarding the
performance of mining operations and allows Management to monitor
operating costs on a more consistent basis as the per tonne milled
measure reduces the cost variability associated with varying
production levels. Management also uses this measure to determine
the economic viability of mining blocks. As each mining block is
evaluated based on the net realizable value of each tonne mined,
the estimated revenue on a per tonne basis must be in excess of the
production cost per tonne milled in order to be economically
viable. Management is aware that this per tonne milled measure is
impacted by fluctuations in throughput and thus uses this
evaluation tool in conjunction with production costs prepared in
accordance with IFRS. This measure supplements production cost
information prepared in accordance with IFRS and allows investors
to distinguish between changes in production costs resulting from
changes in production versus changes in operating performance.
|
In 000s, except per unit amounts |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q42022 |
YTD2024 |
YTD2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales per financial statements (a) |
76,512 |
|
74,110 |
|
78,679 |
|
78,506 |
|
71,450 |
|
84,048 |
|
61,418 |
|
61,997 |
|
229,301 |
|
216,916 |
|
|
Depletion and depreciation |
(24,295 |
) |
(22,550 |
) |
(24,381 |
) |
(23,861 |
) |
(23,987 |
) |
(28,215 |
) |
(19,125 |
) |
(13,428 |
) |
(71,226 |
) |
(71,327 |
) |
|
Royalties |
(1,570 |
) |
(1,200 |
) |
(1,342 |
) |
(1,267 |
) |
(1,029 |
) |
(1,172 |
) |
(998 |
) |
(1,172 |
) |
(4,112 |
) |
(3,199 |
) |
|
Bullion & in-circuit inventory adjustments |
2,819 |
|
3,471 |
|
(2,267 |
) |
(3,908 |
) |
384 |
|
(2,526 |
) |
2,524 |
|
1,288 |
|
4,023 |
|
382 |
|
|
Mining and processing costs, before inventory adjustments (b) |
53,466 |
|
53,831 |
|
50,689 |
|
49,470 |
|
46,818 |
|
52,135 |
|
43,819 |
|
48,685 |
|
157,986 |
|
142,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled (tonnes) (c) |
109,305 |
|
110,221 |
|
96,976 |
|
104,318 |
|
102,504 |
|
116,496 |
|
96,607 |
|
109,725 |
|
316,502 |
|
315,607 |
|
|
Cost of sales per tonne milled (a) ÷ (c) |
700 |
|
672 |
|
811 |
|
753 |
|
697 |
|
721 |
|
636 |
|
565 |
|
724 |
|
687 |
|
|
Production costs per tonne milled (b) ÷ (c) |
489 |
|
488 |
|
523 |
|
474 |
|
457 |
|
448 |
|
454 |
|
444 |
|
499 |
|
452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin
Cash margin is a non-IFRS measure and does not
constitute a measure recognized by IFRS and does not have a
standardized meaning defined by IFRS, as well it may not be
comparable to information in other gold producers’ reports and
filings. It is calculated as the difference between gold sales
revenue from mining operations and cash mine site operating costs
(see Cash cost per ounce of gold sold under this Section above) per
the Company’s Financial Statements. The Company believes it
illustrates the performance of the Company’s operating mines and
enables investors to better understand the Company’s performance in
comparison to other gold producers who present results on a similar
basis.
|
In 000s, except per unit amounts |
Q32024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold revenue from mining operations (per above) |
146,699 |
127,673 |
100,788 |
102,148 |
69,619 |
84,485 |
76,615 |
74,975 |
375,160 |
230,719 |
|
Cash costs (per above) |
52,064 |
51,434 |
54,164 |
54,572 |
47,386 |
55,763 |
42,207 |
48,509 |
157,662 |
145,356 |
|
Cash margin |
94,635 |
76,239 |
46,624 |
47,576 |
22,233 |
28,722 |
34,408 |
26,466 |
217,498 |
85,363 |
|
Per ounce of gold sold (C$) |
|
|
|
|
|
|
|
|
|
|
|
Average realized price (a) |
3,420 |
3,192 |
2,823 |
2,715 |
2,579 |
2,640 |
2,554 |
2,380 |
3,163 |
2,592 |
|
Cash costs (b) |
1,214 |
1,286 |
1,517 |
1,451 |
1,755 |
1,743 |
1,407 |
1,540 |
1,329 |
1,633 |
|
Cash margin (a) – (b) |
2,206 |
1,906 |
1,306 |
1,264 |
824 |
897 |
1,147 |
840 |
1,834 |
959 |
|
|
|
|
|
|
|
|
|
|
|
|
All-in sustaining costs per ounce of
gold sold
All-in sustaining costs
(“AISC”) include mine site operating costs
incurred at Wesdome mining operations, sustaining mine capital and
development expenditures, mine site exploration expenditures and
equipment lease payments related to the mine operations and
corporate administration expenses. The Company believes that this
measure represents the total costs of producing gold from current
operations and provides Wesdome and other stakeholders with
additional information that illustrates the Company’s operational
performance and ability to generate cash flow. This cost measure
seeks to reflect the full cost of gold production from current
operations on a per-ounce of gold sold basis. New project and
growth capital are not included.
|
In 000s, except per unit amounts |
Q32024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, per financial statements |
76,512 |
|
74,110 |
|
78,679 |
|
78,506 |
|
71,450 |
|
84,048 |
|
61,418 |
|
61,997 |
|
229,301 |
|
216,916 |
|
|
Depletion and depreciation |
(24,295 |
) |
(22,550 |
) |
(24,381 |
) |
(23,861 |
) |
(23,987 |
) |
(28,215 |
) |
(19,125 |
) |
(13,428 |
) |
(71,226 |
) |
(71,327 |
) |
|
Silver revenue from mining operations |
(153 |
) |
(126 |
) |
(134 |
) |
(73 |
) |
(77 |
) |
(70 |
) |
(86 |
) |
(60 |
) |
(413 |
) |
(233 |
) |
|
Cash costs |
52,064 |
|
51,434 |
|
54,164 |
|
54,572 |
|
47,386 |
|
55,763 |
|
42,207 |
|
48,509 |
|
157,662 |
|
145,356 |
|
|
Sustaining mine exploration and development |
13,419 |
|
15,492 |
|
15,942 |
|
10,190 |
|
9,683 |
|
9,024 |
|
8,484 |
|
7,179 |
|
44,853 |
|
27,191 |
|
|
Sustaining mine capital equipment |
6,012 |
|
5,250 |
|
4,275 |
|
6,779 |
|
10,360 |
|
1,598 |
|
3,200 |
|
5,585 |
|
15,537 |
|
15,158 |
|
|
Tailings management facility |
4,247 |
|
210 |
|
256 |
|
342 |
|
15 |
|
12 |
|
2 |
|
1,597 |
|
4,713 |
|
29 |
|
|
Corporate and general |
6,346 |
|
5,972 |
|
3,969 |
|
5,955 |
|
4,707 |
|
4,007 |
|
3,662 |
|
2,309 |
|
16,287 |
|
12,376 |
|
|
Less: Corporate development |
(320 |
) |
(14 |
) |
(50 |
) |
(276 |
) |
(161 |
) |
(210 |
) |
(31 |
) |
(72 |
) |
(384 |
) |
(402 |
) |
|
Payment of lease liabilities |
615 |
|
754 |
|
909 |
|
780 |
|
1,208 |
|
1,410 |
|
1,784 |
|
2,167 |
|
2,278 |
|
4,402 |
|
|
AISC (a) |
82,383 |
|
79,098 |
|
79,465 |
|
78,342 |
|
73,198 |
|
71,604 |
|
59,308 |
|
67,274 |
|
240,946 |
|
204,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ounces of gold sold (b) |
42,900 |
|
40,000 |
|
35,700 |
|
37,620 |
|
27,000 |
|
32,000 |
|
30,000 |
|
31,500 |
|
118,600 |
|
89,000 |
|
|
AISC (c) = (a) ÷ (b) |
1,920 |
|
1,977 |
|
2,226 |
|
2,082 |
|
2,711 |
|
2,238 |
|
1,977 |
|
2,136 |
|
2,032 |
|
2,293 |
|
|
Average 1 USD → CAD exchange rate (d) |
1.3637 |
|
1.3684 |
|
1.3488 |
|
1.3619 |
|
1.3414 |
|
1.3428 |
|
1.3525 |
|
1.3578 |
|
1.3603 |
|
1.3456 |
|
|
AISC USD (c) ÷ (d) |
1,408 |
|
1,445 |
|
1,650 |
|
1,529 |
|
2,021 |
|
1,666 |
|
1,462 |
|
1,573 |
|
1,493 |
|
1,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow and operating and free
cash flow per share
Free cash flow is calculated by taking net cash
flow from operating activities less cash used in capital
expenditures and lease payments as reported in the Company’s
financial statements. Free cash flow per share is calculated by
dividing free cash flow by the weighted average number of shares
outstanding for the period.
Operating cash flow per share is calculated by
dividing net cash flow from operating activities in the Company’s
Financial Statements by the weighted average number of shares
outstanding for each year. It may not be comparable to information
in other gold producers’ reports and filings.
|
In 000s, except per share amounts |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities per financial statements
(c) |
60,976 |
|
57,083 |
|
46,502 |
|
37,176 |
|
45,076 |
|
13,979 |
|
5,120 |
|
10,267 |
|
164,561 |
|
64,175 |
|
|
Sustaining mine exploration and development |
(13,419 |
) |
(15,492 |
) |
(15,942 |
) |
(10,190 |
) |
(9,683 |
) |
(9,024 |
) |
(8,484 |
) |
(7,179 |
) |
(44,853 |
) |
(27,191 |
) |
|
Sustaining mine capital equipment |
(6,012 |
) |
(5,250 |
) |
(4,275 |
) |
(6,779 |
) |
(10,360 |
) |
(1,598 |
) |
(3,200 |
) |
(5,585 |
) |
(15,537 |
) |
(15,158 |
) |
|
Tailings management facility |
(4,247 |
) |
(210 |
) |
(256 |
) |
(342 |
) |
(15 |
) |
(12 |
) |
(2 |
) |
(1,597 |
) |
(4,713 |
) |
(29 |
) |
|
Capitalized development, exploration and evaluation
expenditures |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(4,284 |
) |
- |
|
- |
|
|
Mines under development capital equipment |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(13,958 |
) |
- |
|
- |
|
|
Growth mine exploration and development |
(5,845 |
) |
(4,344 |
) |
(4,203 |
) |
(4,154 |
) |
(4,111 |
) |
(4,316 |
) |
(4,360 |
) |
(919 |
) |
(14,392 |
) |
(12,787 |
) |
|
Growth mine capital equipment |
- |
|
(2,596 |
) |
(1,469 |
) |
(7,132 |
) |
(7,485 |
) |
(2,898 |
) |
(6,687 |
) |
(5,668 |
) |
(4,065 |
) |
(17,070 |
) |
|
Purchase of mineral properties |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(200 |
) |
- |
|
- |
|
(200 |
) |
|
Funds held against standby letters of credit |
- |
|
- |
|
- |
|
- |
|
(1,542 |
) |
- |
|
- |
|
(519 |
) |
- |
|
(1,542 |
) |
|
Payment of lease liabilities |
(615 |
) |
(754 |
) |
(909 |
) |
(780 |
) |
(1,208 |
) |
(1,410 |
) |
(1,784 |
) |
(2,167 |
) |
(2,278 |
) |
(4,402 |
) |
|
Free cash flow (a) |
30,838 |
|
28,437 |
|
19,448 |
|
7,799 |
|
10,672 |
|
(5,279 |
) |
(19,597 |
) |
(31,609 |
) |
78,723 |
|
(14,204 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares (000s) (b) |
149,729 |
|
149,548 |
|
149,068 |
|
148,965 |
|
148,952 |
|
148,001 |
|
144,463 |
|
142,782 |
|
149,449 |
|
147,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow (c) ÷ (b) |
0.41 |
|
0.38 |
|
0.31 |
|
0.25 |
|
0.30 |
|
0.09 |
|
0.04 |
|
0.07 |
|
1.10 |
|
0.44 |
|
|
Free cash flow (a) ÷ (b) |
0.21 |
|
0.19 |
|
0.13 |
|
0.05 |
|
0.07 |
|
(0.04 |
) |
(0.14 |
) |
(0.22 |
) |
0.53 |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) and adjusted
net income (loss) per share
Adjusted net income (loss) and adjusted net
income (loss) per share are non-IFRS performance measures and do
not constitute a measure recognized by IFRS and do not have
standardized meanings defined by IFRS, as well both measures may
not be comparable to information in other gold producers’ reports
and filings. Adjusted net income (loss) is calculated by removing
the one-time gains and losses resulting from the disposition of
non-core assets, non-recurring expenses and significant tax
adjustments (mining tax recognition and exploration credit refunds)
not related to current period’s income, as detailed in the table
below. Wesdome discloses this measure, which is based on its
financial statements, to assist in the understanding of the
Company’s operating results and financial position.
|
In 000s, except per share amounts |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD 2024 |
YTD 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per financial statements |
38,999 |
|
29,135 |
10,708 |
2,420 |
(3,248 |
) |
(5,014 |
) |
(345 |
) |
(3,527 |
) |
78,842 |
|
(8,607 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of investment in associate |
- |
|
- |
- |
- |
900 |
|
- |
|
2,700 |
|
- |
|
- |
|
3,600 |
|
|
Retirement costs |
262 |
|
- |
- |
- |
- |
|
- |
|
2,102 |
|
- |
|
262 |
|
2,102 |
|
|
Total adjustments |
262 |
|
- |
- |
- |
900 |
|
- |
|
4,802 |
|
- |
|
262 |
|
5,702 |
|
|
Related income tax effect |
(66 |
) |
- |
- |
- |
(225 |
) |
- |
|
(1,200 |
) |
- |
|
(66 |
) |
(1,425 |
) |
|
|
197 |
|
- |
- |
- |
675 |
|
- |
|
3,602 |
|
- |
|
197 |
|
4,277 |
|
|
Adjusted net income (loss) (a) |
39,196 |
|
29,135 |
10,708 |
2,420 |
(2,573 |
) |
(5,014 |
) |
3,257 |
|
(3,527 |
) |
79,039 |
|
(4,330 |
) |
|
Weighted average number of shares (000s) (b) |
149,729 |
|
149,548 |
149,068 |
148,965 |
148,952 |
|
148,001 |
|
144,463 |
|
142,782 |
|
149,449 |
|
147,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) (a) ÷ (b) |
0.26 |
|
0.19 |
0.07 |
0.02 |
(0.02 |
) |
(0.03 |
) |
0.02 |
|
(0.02 |
) |
0.53 |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Earnings before interest, taxes and depreciation
and amortization (“EBITDA”) is a non-IFRS
financial measure which excludes the following items from net
income (loss): interest expense; mining and income taxes and
depletion and depreciation expenses. The Company believes that, in
addition to conventional measures prepared in accordance with IFRS,
the Company and certain investors use EBITDA as an indicator of
Wesdome’s ability to generate liquidity by producing net cash from
operating activities to fund working capital needs, service debt
obligations and fund capital expenditures. EBITDA is intended to
provide additional information to investors and analysts and do not
have any standardized definition under IFRS and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. EBITDA excludes the
impact of cash costs of financing activities and taxes, and the
effects of changes in operating working capital balances, and
therefore are not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other producers
may calculate EBITDA differently. The following table provides a
reconciliation of net income in the Company’s financial statements
to EBITDA:
|
In 000s |
Q3 2024 |
Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
YTD2024 |
YTD2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per financial statements |
38,999 |
29,135 |
10,708 |
2,420 |
(3,248 |
) |
(5,014 |
) |
(345 |
) |
(3,527 |
) |
78,842 |
(8,607 |
) |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
Mining and income tax expense (recovery) |
20,708 |
15,358 |
4,550 |
10,761 |
(9,820 |
) |
(2,356 |
) |
1,233 |
|
10,129 |
|
40,616 |
(10,943 |
) |
|
Depletion and depreciation |
24,295 |
22,550 |
24,381 |
23,861 |
23,987 |
|
28,215 |
|
19,125 |
|
13,428 |
|
71,226 |
71,327 |
|
|
Non-recurring expenses |
262 |
- |
- |
- |
900 |
|
- |
|
4,802 |
|
- |
|
262 |
5,702 |
|
|
Interest expense |
336 |
820 |
1,036 |
1,214 |
1,114 |
|
1,175 |
|
1,309 |
|
1,279 |
|
2,192 |
3,598 |
|
|
EBITDA |
84,600 |
67,863 |
40,675 |
38,256 |
12,933 |
|
22,020 |
|
26,124 |
|
21,309 |
|
193,138 |
61,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines (TSX:WDO)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Wesdome Gold Mines (TSX:WDO)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
