Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces fourth quarter (“Q4”) and full year 2021 production
results and 2022 guidance. All figures are in Canadian dollars
unless otherwise stated.
Production from the Eagle River Complex in Q4
2021 totaled 62,374 tonnes at an average grade of 12.6 grams per
tonne (“gpt”) and a recovery rate of 98% to produce 24,630 ounces
of gold, putting full year 2021 production at 265,267 tonnes at an
average grade of 12.2 gpt to produce 101,403 ounces, near the high
end of our 2021 production guidance of 92,000 – 105,000 ounces.
At Kiena, Q4 production was 38,000 tonnes at an
average grade of 14.1 gpt and a recovery rate of 98% to produce
16,929 ounces. Total production for the year at Kiena was 68,470
tonnes at an average grade of 10.4 gpt at a recovery rate of 98% to
produce 22,440 ounces, also near the high end of our guidance range
of 15,000 – 25,000 ounces.
2021 Highlights:
- Eagle River underground gold
production of 228,759 tonnes at an average grade of 13.8 gpt at a
recovery rate of 98% to produce 99,120 ounces.
- Total Eagle River Complex
production of 101,403 ounces, the first time in the mine’s history
production exceeded 100,000 ounces.
- Mishi gold production of 36,508
tonnes at an average grade of 2.4 gpt to produce 2,283 ounces.
- Kiena Mine embarked on a
construction and mining ramp up as per the May 2021 Pre-Feasibility
study – fully funded from cash flow.
- Combined revenue from gold sales of
$262.6 million (which excludes an additional $3.9 million from a
bulk sample at the Kiena Mine).
- Published Kiena Pre-Feasibility
Study (“PFS”); IRR 98%.
- Discovered new high grade Footwall
Zone at Kiena Complex.
- Initial sill development and
production on the Falcon 7 Zone and discovery of North Contact Zone
at Eagle River.
- Monetized Moss
Lake via vend-in transaction with Goldshore Resources for aggregate
consideration of $57M including $12.5M upfront in cash and 30% of
issued and outstanding shares at closing
- Included in TMX 30 recognition
program for the third consecutive year. This flagship program
showcases the TSX's 30 top-performing stocks based on dividend
adjusted share price appreciation.
- Placed 56th overall out of 220
TSX-listed companies in the annual Globe and Mail Board Games
report on corporate governance, and in a multi-way tie for 10th in
the materials category
- In June 2021,
the Company released its annual Environmental, Social, and
Governance (“ESG”) Report, prepared using the Sustainability
Accounting Standards Board (“SASB”) Metals & Mining Standard
and providing an overview of the company’s ESG strategies,
policies, commitments, and 2020 performance.
Duncan Middlemiss, President and CEO commented,
“2021 was an excellent year for Wesdome. We achieved two
significant operational milestones, record production at the Eagle
River Complex of 101,403 ounces, and the commencement of
pre-production and construction activities at the Kiena mine in
preparation for commercial production in Q2 2022. These
achievements have resulted in further de-risking of the Company
with the addition of a second producing Canadian asset which
ultimately increases scale and diversifies cash flow sources, both
key steps towards becoming a mid-tier Canadian producer.
Looking ahead to 2022, we are guiding total
production of 160,000 – 180,000 ounces, a 30% - 45% increase over
2021. We expect costs to be slightly lower than 2021, and are
guiding consolidated cash costs per ounce sold to range between
$875 - $970 per ounce (US $700 - $775), and all-in sustaining costs
(“AISC”) to range between $1,270 and $1,400 per ounce (US$ 1,015 –
$1,125). Full operating and financial details for 2021 will be
provided in the Company’s year end financial statements and
management discussion and analysis on March 10, 2022. I would like
to thank all of our employees and stakeholders who have made this
transformational year possible, despite the obvious challenges of
the global pandemic and associated supply chain disruptions. Tough
times make tough teams.”
Amounts are denominated in Canadian dollars |
Fourth Quarter |
Year-to-Date |
|
2021 |
2020 |
Variance |
% +/(-) |
|
2021 |
2020 |
Variance |
% +/(-) |
|
|
|
|
|
|
|
|
|
|
Ore milled (tonnes) |
|
|
|
|
|
|
|
|
Eagle River |
56,159 |
53,551 |
2,608 |
5% |
|
228,759 |
196,441 |
32,318 |
16% |
|
Mishi |
6,215 |
3,555 |
2,660 |
75% |
|
36,508 |
39,856 |
(3,348) |
(8%) |
|
Kiena |
38,000 |
0 |
38,000 |
100% |
|
68,470 |
0 |
68,470 |
100% |
|
|
100,374 |
57,106 |
43,268 |
76% |
|
333,737 |
236,297 |
97,440 |
41% |
|
|
|
|
|
|
|
|
|
|
Head grade (grams per tonne, “g/t”) |
|
|
|
|
|
|
|
|
Eagle River |
13.7 |
11.7 |
2.0 |
17% |
|
13.8 |
14.2 |
(0.4) |
(3%) |
|
Mishi |
2.1 |
3.5 |
(1.4) |
(40%) |
|
2.4 |
2.7 |
(0.3) |
(12%) |
|
Kiena |
14.1 |
0 |
14 |
100% |
|
10.4 |
0 |
10 |
100% |
|
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
|
|
|
|
|
|
|
Eagle River |
24,267 |
19,667 |
4,600 |
23% |
|
99,120 |
87,560 |
11,560 |
13% |
|
Mishi |
363 |
339 |
24 |
7% |
|
2,283 |
2,718 |
(435) |
(16%) |
|
Kiena |
16,929 |
0 |
16,929 |
100% |
|
22,440 |
0 |
22,440 |
100% |
|
Total Gold Production |
41,559 |
20,006 |
21,553 |
108% |
|
123,843 |
90,278 |
33,565 |
37% |
|
|
|
|
|
|
|
|
|
|
Production sold (ounces) 3 |
37,544 |
19,890 |
17,654 |
89% |
|
118,501 |
91,229 |
27,272 |
30% |
|
|
|
|
|
|
|
|
|
|
Revenue from gold sales ($ millions) 4 |
$85.4 |
$48.3 |
$37.1 |
77% |
|
$262.6 |
$215.3 |
$47.3 |
22% |
|
|
|
|
|
|
|
|
|
|
Average realized price per ounce 2 |
$2,275 |
$2,430 |
($155) |
(6%) |
|
$2,250 |
$2,360 |
($110) |
(5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Numbers may not add due to rounding.
- Average realized price per ounce is a non-IFRS measure and is
calculated by dividing the reported revenue from gold sales by the
number of ounces sold for a given period. Please reference the
Company’s interim management discussion and analysis for the period
ended September 30, 2021 filed on SEDAR for their
calculations.
- YTD 2021 production sold includes 1,793 ounces of gold sold
from the Kiena bulk sample which was processed in Q4 2020 and sold
in Q1 2021.
- YTD 2021 revenue excludes $3.9 million of revenue from the
Kiena bulk sample, which was processed in Q4 2020 and sold in Q1
2021. The incidental revenue was credited against the cost of the
Kiena exploration asset.
2022 Guidance
Amounts are denominated in Canadian dollars, or otherwise
indicated |
Guidance |
Gold production |
|
Eagle River |
95,000 – 105,000 ounces |
Mishi |
1,000 – 2,000 ounces |
Kiena |
64,000 – 73,000 ounces |
Consolidated |
160,000 – 180,000 ounces |
|
|
Head grade (g/t) |
|
Eagle River |
12.1 – 13.4 |
Mishi |
2.0 – 2.5 |
Kiena |
10.6 – 11.8 |
|
|
Cash cost per ounce sold 1 |
$875 - $970US$700-US$775 |
|
|
All-in sustaining cost per ounce sold 1 |
$1,270 - $1,400US$1,015 –
US$1,125 |
|
|
|
|
1 Operating cost
per ounce sold and All-in sustaining cost per ounce are non-IFRS
measures, please reference the Company’s interim management
discussion and analysis for the period ended September 30, 2020
filed on SEDAR for their calculations.
2022 Budget Highlights
-
Commercial production at the Kiena Complex expected in Q2 2022
-
The Company is budgeting to spend aggressively on exploration at
both assets, including $13.7 million at Eagle River and $17.7
million at Kiena
- ESG initiatives are to continue our
climate risk assessment, complete GHG inventory assessments at
Kiena and Eagle and coordinate emission reduction planning to
support target-setting, and continue our work on integrating the
Towards Sustainable Mining (TSM) framework
-
Total budget capital spend of $142.4 million (2021: $151.6 million)
-
$88 million growth capital, $54.4 sustaining capital for both
assets
-
A total of $45.3 million ($8.3 million growth) at Eagle River
including $13.1 million in underground development, $4 million on
stage 5 of the tailings dam project, and $13.9 million on various
equipment, partially funded through lease facility
-
A total of $97.1 million ($79.7 growth) at Kiena including $13.7
million in underground development, $15.5 million on the
construction of a paste plant facility, $8 million on an
underground ventilation raise, $8 million on power upgrades, and
$27.8 million on equipment
-
At Eagle River, the 2022 exploration program consists of 65,000
metres of underground exploration drilling using 6 drills and
30,000 metres of surface drilling using 2 surface and fly
drills.
-
At Kiena Complex, the 2022 exploration program consists of 45,000
metres of underground drilling using 7 drills and 30,000 metres of
surface drilling using 2 barge drills and 1 surface drill.
-
General and corporate administration expenses budgeted to range
between $12.0 million and $13.0 million
COVID-19
The health and safety of our employees,
contractors, vendors, and consultants is the Company’s top
priority. In response to the COVID-19 outbreak, Wesdome has adopted
all public health guidelines regarding safety measures and
protocols at all of its mine operations and corporate office. In
addition, our internal COVID-19 Taskforce continues to monitor
developments and implement policies and programs intended to
protect those who are engaged in business with the Company.
Through care and planning, to date the Company
has successfully maintained operations, however there can be no
assurance that this will continue despite our best efforts with the
emergence of new, highly contagious variants such as Omicron. To
date the company has been impacted by this most recent variant
outbreak, with employees at both operations and corporate office
becoming infected. Impacts of significant numbers of employees
being absent have been limited so far however future conditions may
warrant reduced or suspended production activities which could
negatively impact our ability to maintain projected timelines and
objectives. Consequently, the Company’s actual future production
and production guidance is subject to higher levels of risk than
usual. We are continuing to closely monitor the situation and will
provide updates as they become available.
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng,
Chief Operating Officer, and Michael Michaud, P.Geo., Vice
President, Exploration of the Company and both a "Qualified Person"
as defined in National Instrument 43-101 -Standards of Disclosure
for Mineral Projects.
ABOUT WESDOMEWesdome is
Canadian focused with two producing underground gold mines.
The Company’s goal is to build Canada’s next intermediate gold
producer, producing over 200,000 ounces from two mines in Ontario
and Québec. The Eagle River Underground Mine in Wawa, Ontario
is currently producing gold at a rate of 92,000 – 105,000 ounces
per year. The recently re-started Kiena Complex in Val d’or, Quebec
is a fully permitted underground mine and milling operation.
Wesdome is actively exploring both underground and on surface
within the mine areas and more regionally at both the Eagle River
and Kiena Complex. The Company also retains meaningful exposure to
the Moss Lake gold deposit, located 100 kilometres west of Thunder
Bay, Ontario through its equity position in Goldshore Resources
Inc. The Company has approximately 140.9 million shares issued and
outstanding and trades on the Toronto Stock Exchange under the
symbol “WDO”.
For further information, please
contact:
Duncan Middlemiss President and CEO 416-360-3743 ext.
2029 duncan.middlemiss@wesdome.com |
or |
Lindsay Carpenter DunlopVP Investor Relations416-360-3743 ext.
2025lindsay.dunlop@wesdome.com |
|
|
|
220 Bay St, Suite 1200Toronto, ON, M5J 2W4Toll Free:
1-866-4-WDO-TSX416-360-3743, Fax: 416-360-7620Website:
www.wesdome.com
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances, management’s estimates or opinions should change,
except as required by securities legislation. Accordingly, the
reader is cautioned not to place undue reliance on forward-looking
statements. The Company has included in this news release certain
non-IFRS performance measures, including, but not limited to, mine
operating profit, mining and processing costs and cash costs. Cash
costs per ounce reflect actual mine operating costs incurred during
the fiscal period divided by the number of ounces produced. These
measures are not defined under IFRS and therefore should not be
considered in isolation or as an alternative to or more meaningful
than, net income (loss) or cash flow from operating activities as
determined in accordance with IFRS as an indicator of our financial
performance or liquidity. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow.
PDF
available: http://ml.globenewswire.com/Resource/Download/5c95088b-64af-4528-8b3b-1e4049c674a0
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