Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces fourth quarter (“Q4 2021”) and full year financial
results. All figures are stated in Canadian dollars unless
otherwise noted.
Key Highlights:
- Record full year production at the Eagle River Complex of
101,403 ounces
- Decreased Eagle River cash costs by 6%
- Increased revenues and cash margins by 22%
- Increased operating cash flows by 28%
- Increased Eagle River reserve grade by 15%
- Increased Eagle River resources (exclusive of reserves) by
25%
- Kiena Mine embarked on a construction and mining ramp up as per
the May 2021 Pre-Feasibility study – fully funded from internally
generated cash flow
- Successfully restarted Kiena in Q3, producing 22,440
pre-commercial ounces
- Increased Kiena Measured and Indicated Resources (exclusive of
reserves) by 7%
Mr. Duncan Middlemiss, President and CEO commented, “Q4 2021
demonstrated strong operating and financial performance with total
gold production of 41,559 ounces and 37,544 ounces sold. Operating
cash flows increased by 274% to $48.2 million or $0.34 per share1
(Q4 2020: $12.9 million or $0.09 per share). Net income and
net income (adjusted)1 for the quarter were $24.8 million or
$0.18 per share (2020: $8.5 million or $0.06 per share).
We are very pleased with both our operating and financial
results in 2021. Total gold production of 123,843 ounces was
pre-released, and both cash and all-in sustaining costs (“AISC”) of
$990 and $1,408 respectively, within guidance of $900 - $1000 and
$1,300 - $1,450 per ounce. Operating cash flows increased by 28% to
$131.0 million (2020: $102.3 million) and cash margins increased by
22% to $145.4 million (2020: $119.3 million). We successfully
restarted the Kiena operation fully funded by internally generated
cash flow, spending $99.6 million during the year and producing our
first ounces in Q3 2021. Kiena precommercial production generated
$17.6 million of cash margin. We ended the year with $56.8 million
in cash, sufficient to carry out all exploration and project work
in 2022.
We have determined the 2021 year end resources
using a 3D block model, in accordance with the industry best
practises and standards. At Eagle, current reserves stand at
524,000 ounces of gold from 1.1 M tonnes at an average grade of
15.3 g/t Au. Reserve ounces declined modestly by 10% after
depleting Eagle’s record year of production, but saw a significant
grade increase of 15% compared to 2020, which will improve mine
margins going forward. A record Inferred Resource inventory of
255,000 ounces, an increase of 24% compared to 2020, provides a
platform for potential increased Reserve replacement for YE 2022.
Near term infill drilling is expected to increase confidence of
current resources which could be deemed economic for reserve
inclusion next year.”
At Kiena, the Kiena Deep geological interpretation was improved
on from the PFS model with additional drilling and silling along
the zone in 2021, the new interpretation provided higher confidence
in the Resource and will add to the successful mining of the zone.
Due to successful infill and step out drilling the MI&I
Resource (inclusive of reserves) increased 11% from the 2021 PFS,
with a 7% increase in M&I leading to an overall Reserve
increase by 8% with a very small decrease in grade due to bringing
additional material from A1 and A2 zones which are lower grade
compared to the A Zone.
Full MRMR data can be found in the Eagle River Complex and Kiena
reserves and resources section below.
In 2022, production guidance is 160,000 – 180,000 ounces, and
consolidated cash cost per ounce sold guidance to range between
$875 - $970 per ounce (US $700 - $775), and AISC to range between
$1,270 and $1,400 per ounce (US$ 1,015 – $1,125), slightly lower
than 2021’s results.”
Key operating and financial highlights of the full year
2021 results include:
- Gold production of 123,843 ounces, which includes 22,440 Kiena
pre-commercial ounces, is a 37% increase over the same period in
the previous year (2020: 90,278 ounces):
- Eagle River Underground 228,759 tonnes at a head grade of 13.8
grams per tonne for 99,120 ounces produced, 13% increase over the
previous year (2020: 87,560 ounces).
- Mishi Open Pit 36,508 tonnes at a head grade of 2.4 grams per
tonne for 2,283 ounces produced (2020: 2,718 ounces).
- Kiena 68,470 tonnes at a head grade of 10.4 grams per tonne for
22,440 pre-commercial ounces produced.
- Revenue2 of $262.9 million, a 22% increase over the previous
year (2020: $215.5 million).
- Ounces sold3 were 116,708 at an average sales price of
$2,250/oz (2020: 91,229 ounces at an average price of
$2,360/oz).
- Cash margin1,2,4 of $145.4 million, a 22% increase over the
previous year (2020 - $119.3 million).
- Operating cash flows2,4 increased by 28% to $131.0 million or
$0.93 per share1 as compared to $102.3 million or $0.74 per share
for the same period in 2020.
- Free cash outflow of $21.3 million, net of an investment of
$99.6 million in Kiena, or ($0.15) per share1 (2020: free cash flow
of $29.0 million or $0.21 per share).
- Net income2,4 of $131.3 million or $0.94 per share (2020: $50.7
million or $0.36 per share) and Net income (adjusted)1,2,4 of $69.9
million or $0.50 per share (2020: $50.7 million or $0.36 per
share).
- Cash position at the end of the year of $56.8 million.
- Cash costs1,4,5 of $990/oz or US$789/oz, a 6% decrease over the
same period in 2020 (2020: $1,053/oz or US$785/oz);
- AISC1,5 increased by 1% to $1,408/oz or US$1,123/oz (2020:
$1,396 or US$1,040 per ounce) due to higher sustaining capital,
corporate and general expenses and lease payments.
- Eagle River Proven and Probable reserves of 1.1 M tonnes at an
average grade of 15.3 grams per tonne for 524,000 ounces
- Eagle River Measured and Indicated Resources (exclusive of
reserves) of 465,000 tonnes grading 10.2 for 153,000 ounces
- Eagle River Inferred Resources (exclusive of reserves) 596,000
tonnes grading 13.3 g/t for 255,000
- Kiena Proven and
Probable Reserves of 1.8 M tonnes at 11.1 g/t for 651,000
ounces
- Kiena Measured and
Indicated Resources (exclusive of reserves) of 734,000 tonnes
grading 4.8 g/t for 113,000 ounces
- Kiena Inferred
Resources (exclusive of reserves) of 4 M tonnes grading 5.9 g/t for
761,000 ounces
Other Achievements for 2021
include:
- 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%.
- Monetized Moss Lake via vend-in transaction with Goldshore
Resources for aggregate consideration of $57 million including
$12.5 million 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.
Key operating and financial highlights of Q4 2021
results include:
- Gold production of 41,559 ounces, which includes 16,929 Kiena
pre-commercial ounces, is a 108% increase over the same period in
the previous year (Q4 2020: 20,006 ounces):
- Eagle River Underground 56,159 tonnes at a head grade of 13.7
grams per tonne for 24,267 ounces produced, 23% increase over the
previous year (Q4 2020: 19,667 ounces).
- Mishi Open Pit 6,215 tonnes at a head grade of 2.1 grams per
tonne for 363 ounces produced (Q4 2020: 339 ounces).
- Kiena 38,000 tonnes at a head grade of 14.1 grams per tonne for
16,929 pre-commercial ounces produced.
- Revenue of $85.5 million, a 77% increase over the previous year
(Q4 2020: $48.4 million).
- Ounces sold were 37,544 at an average sales price of $2,275/oz
(Q4 2020: 19,889 ounces at an average price of $2,430/oz).
- Cash margin1 of $47.7 million, an 89% increase over the
previous year (Q4 2020 - $25.2 million).
- Operating cash flows increased by 274% to $48.2 million or
$0.34 per share1 as compared to $12.9 million or $0.09 per share
for the same period in 2020.
- Free cash outflow of $3.2 million, net of an investment of
$35.5 million in Kiena, or ($0.02) per share1 (Q4 2020: free cash
outflow of $8.8 million or ($0.06) per share).
- Net income and Net income (adjusted)1of $24.8 million or $0.18
per share (2020: $8.5 million or $0.06 per share).
- Cash costs1 of $1,005/oz or US$797/oz, a 14% decrease over the
same period in 2020 (Q4 2020: $1,162/oz or US$892/oz);
- AISC1 decreased by 10% to $1,412/oz or US$1,121/oz (Q4 2020:
$1,567 or US$1,203 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.
- FY 2021 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.
- FY 2021 excludes 1,793 ounces from the Kiena bulk sample, which
was processed in Q4 2020 and sold in Q1 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 and sold in Q1 2021.
- 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.
Eagle River Complex Reserves and Resources
MINERAL RESERVES – EAGLE RIVER (see notes) |
December 31, 2021 |
December 31, 2020 |
|
|
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
|
|
|
|
|
|
|
|
Eagle
River |
Proven |
116 |
11.3 |
42,000 |
370 |
12.6 |
150,000 |
|
Probable |
951 |
15.8 |
482,000 |
982 |
13.7 |
431,000 |
|
Proven +
Probable |
1,066 |
15.3 |
524,000 |
1,352 |
13.4 |
581,000 |
|
|
|
|
|
|
|
|
Notes:
- Mineral reserves are founded on measured and indicated mineral
resources with an effective date of December 31, 2021
- The Qualified Person for the Mineral Reserves estimate as per
NI 43-101 is Gary Poxleitner P. Eng, SRK Consulting, and
independent of the Company
- Mineral Reserves are reported using a 5.5 g/t Au cut off
- Mineral Reserves demonstrated economic viability with the
following parameters:
- gold price of C$1,820 (US$1,400) per ounce for the Reserves,
with a USD:CAD exchange rate of 1.3.
- a 1.5 m minimum width,
- 1.0 m of external dilution (0.5m in HW, 0.5m in FW),
- 90% mine recovery,
- mining cost of C$161.7/t,
- milling cost of C$64.3/t,
- surface and G&A cost of C$78.2/t,
- Royalty of 2% of gold sold,
- selling cost of C$7.65/oz and
- metallurgical recoveries of 97.0%.
- A bulk density factor of 2.7 tonnes per cubic m (t/m3)
- Mineral Reserves have been estimated in accordance with the
Standards of the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”)
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and metal
content
MINERAL RESOURCES (Exclusive of Mineral
Reserves) (see notes) |
December 31, 2021 |
December 31, 2020 |
|
|
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
|
|
|
|
|
|
|
|
EAGLE
RIVER |
Measured |
126 |
13.4 |
54,000 |
23 |
12.1 |
9,000 |
|
Indicated |
339 |
9.1 |
99,000 |
320 |
9.0 |
93,000 |
|
Measured +
Indicated |
465 |
10.2 |
153,000 |
343 |
9.2 |
102,000 |
|
Inferred |
596 |
13.3 |
255,000 |
510 |
12.5 |
205,000 |
|
|
|
|
|
|
|
|
- The effective date of the estimate is December 31, 2021
- The estimate was prepared by Sandeep Prakash, P. Geo.,
Senior Resource Geologist of the Company, under the supervision of
the André M. Deiss, BSc (Hons), Pri.Sci.Nat. of SRK Consulting
(Canada) Inc., who is a “Qualified Person” under NI 43-101
- Mineral resources are reported exclusive of mineral reserves;
mineral resources that are not mineral reserves do not have
demonstrated economic viability
- Mineral resources are considered for underground extraction and
have been reported within potentially mineable volumes without
external dilution. Must take material inside these volumes below
the stated block grade cut-off has been included in the total.
- A bulk density factor of 2.7 tonnes per cubic m (t/m3) was
applied
- Resources have been reported considering mining progress as of
December 31, 2021
- Resources are reported using a 4.22 g/t Au cut-off grade
- Economic parameters for the determination of the cut-off grade
include:
- a gold price of US$1,500 per ounce, a USD/CAD exchange rate of
1.30 (resulting in C$1,950 per ounce gold price);
- mining cost C$107.6/t milled;
- processing cost C$64.3/t;
- G&A C$78.2/t milled;
- 97.0% mill recovery
- Royalty of 2% of gold sold, and
- selling cost at C7.65$/oz
- Mineral resources are classified in accordance with CIM
standards
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and metal
content
MINERAL RESOURCES (Exclusive of Mineral Reserves) (see
notes) |
December 31, 2021 |
December 31, 2020 |
|
|
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
|
|
|
|
|
|
|
|
MISHI |
|
|
|
|
|
|
|
Open pit |
Indicated |
- |
- |
- |
- |
- |
- |
|
Inferred |
2,300 |
1.6 |
120,000 |
2,808 |
1.6 |
147,000 |
Underground |
Indicated |
- |
- |
- |
- |
- |
- |
|
Inferred |
|
|
|
373 |
5.4 |
65,000 |
MISHI
TOTAL |
Indicated |
- |
- |
- |
- |
- |
- |
|
Inferred |
2,300 |
1.6 |
120,000 |
3,182 |
2.1 |
212,000 |
|
|
|
|
|
|
|
|
Notes – Mishi
- The effective date of the estimate is December 31, 2021
- The estimate was prepared by Dr. Lars Weiershäuser,
P. Geo., Director, Geology of the Company, who is a “Qualified
Person” under NI 43-101
- Mineral resources are reported exclusive of mineral reserves;
mineral resources that are not mineral reserves do not have
demonstrated economic viability
- Mineral resources are amenable for open pit extraction and have
been reported within a conceptual pit shell.
- A bulk density factor of 2.7 tonnes per cubic m (t/m3) was
applied
- Resources have been reported considering mining progress as of
December 31, 2021
- Resources are reported using an in-situ marginal cut-off grade
of 0.52 g/t
- Ounces are contained ounces
- Economic parameters for the determination of the cut-off grade
include:
- a gold price of US$1,500 per ounce, a USD/CAD exchange rate of
1.30 (resulting in C$1,950 per ounce gold price);
- Mining cost C$5.00/t;
- Processing cost C$21.00/t including base processing, sustaining
CAPEX, variable and G&A
- Refining and transport cost $7.65/oz gold recovered
- Royalty of 2% of gold sold and
- 82% mill recovery
- Assumed pit slope angles between 36.8 and 52.4 degrees
- Mineral resources are classified in accordance with CIM
standards
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and metal
content
Kiena Complex Mineral Reserves and
Resources
MINERAL RESERVES – KIENA (see
notes) |
December 31, 2021 |
May 26, 2021 Pre-Feasibility Study |
Tonnes(000s) |
Grade(g/t Au) |
Contained ounces |
Tonnes(000s) |
Grade(g/t Au) |
Contained ounces |
Kiena |
Proven |
71 |
13.2 |
30,000 |
95 |
4.1 |
12,000 |
|
Probable |
1,758 |
11.0 |
621,000 |
1,387 |
13.0 |
577,000 |
|
Proven and
Probable |
1,829 |
11.1 |
651,000 |
1,574 |
12.0 |
602,000 |
|
|
|
|
|
|
|
|
- Mineral reserves are founded on measured and indicated mineral
resources with an effective date of December 31, 2021
- The Qualified Person for the Mineral Reserves estimate as per
NI 43-101 is Simon Fontaine P. Eng, Mining Engineer at Kiena Mine
and employee of the Company
- Mineral Reserves are reported using a 3.7 g/t Au cut off
- Mineral Reserves demonstrated economic viability with the
following parameters:
- gold price of C$1,820 (US$1,400) per ounce for the Reserves,
with a USD:CAD exchange rate of 1.3.
- a 2.1 m minimum width,
- 15% external dilution in the A Zone, H1ZA1, BZA1, BZA2, S50,
and Martin, 12% external dilution in the VC Zone and 25% external
dilution in the A1 and A2 Zones,
- S50 considers a dilution grade of 0.7 g/t Au, all other zones
consider 0.0 g/t Au dilution grade.
- 90% mine recovery,
- mining cost of C$113.7/t,
- milling cost of C$40.3/t,
- surface and G&A cost of C$58.3/t,
- selling cost of C$ 1.59/t, and 97% metallurgical processing
recovery for the S50, VC & Martin Zones and 98.5% for the Kiena
Deep Zones
- A bulk density factor of 2.8 tonnes per cubic m (t/m3)
- Kiena Deep incorporates, Zone A, A1, A2, H1ZA, BZA1, BZA2
- Mineral Reserves have been estimated in accordance with the
Standards of the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”)
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and metal
content.
MINERAL RESOURCES (Exclusive of Mineral
Reserves) (see notes) |
December 31, 2021 |
December 31, 2020 |
|
|
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
Tonnes(000s) |
Grade (g/t Au) |
Contained ounces |
|
|
|
|
|
|
|
|
KIENA |
Measured |
21 |
9.6 |
6,000 |
- |
- |
- |
|
Indicated |
713 |
4.6 |
106,000 |
643 |
7.6 |
157,000 |
|
Measured +
Indicated |
734 |
4.8 |
113,000 |
643 |
7.6 |
157,000 |
|
Inferred |
4,011 |
5.9 |
761,000 |
3,404 |
5.9 |
649,000 |
|
|
|
|
|
|
|
|
Notes:
- The effective date of the estimate is December 31, 2021
- The estimate was prepared by Karine Brousseau, P. Eng.,
Senior Engineer – Mineral Resources of the Company, who is a
“Qualified Person” under NI 43-101
- Mineral resources are reported exclusive of mineral reserves;
mineral resources that are not mineral reserves do not have
demonstrated economic viability
- Mineral resources are considered for underground extraction and
have been reported below a 100m crown pillar and within potentially
mineable volumes without external dilution. Must take material
inside these volumes below the stated block grade cut-off has been
included in the total.
- A bulk density factor of 2.8 tonnes per cubic m (t/m3) was
applied
- Resources have been reported considering mining progress as of
December 31, 2021
- Resources are reported using a 3.0 g/t Au cut-off grade
- Economic parameters for the determination of the cut-off grade
include:
- a gold price of US$1,500 per ounce, a USD/CAD exchange rate of
1.30 (resulting in C$1,950 per ounce gold price);
- mining cost C$85.7/t milled;
- processing cost C$40.3/t;
- G&A C$58.3/t milled;
- 98.5% mill recovery and
- selling cost at C1.59$/oz
- Mineral resources are classified in accordance with CIM
standards
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and metal
content.
Production and Exploration Highlights |
Achievements |
Eagle River |
- FY 2021 Eagle River underground ore production increased by 13%
from 2020 to 99,120 ounces of gold, due to a 16% increase in total
throughput; offset partially by a 3% decrease in head grade. Head
grade at Eagle River in 2021 averaged 13.8 g/t.
- FY 2021 cash cost of $978 (US$780) per ounce of gold sold1
decreased by 7% or $74 from FY 2020 primarily due to a 10% increase
in ounces sold.
- FY 2021 AISC of $1,456 (US$1,162) per ounce of gold sold1
increased by 4% or $60 from FY 2020 primarily due to higher mine
development and infrastructure spending; partially offset by a 10%
increase in ounces sold.
- Generated $127.7 million in cash margin in FY 2021 compared to
$119.3 million in FY 2020, despite the average realized Canadian
gold price being 5% lower at $2,250/oz (2020 - $2,360/oz).
- Current mineral reserves at Eagle River as of December 31, 2021
are 525,000 ounces of gold from 1.1 Mt at an overall grade of 15.3
g/t Au. Measured and Indicated resources were impacted by reduced
definition drilling and a revised, more conservative classification
criteria, leading to a slightly smaller, higher grade reserve
estimate for YE 2021. Reserve ounces declined modestly 11% after
depleting Eagle’s record year of production, but saw a significant
grade increase of 15% compared to 2020 further improving the mines
margin.
- A record Inferred Resource inventory of 255,000 ounces provides
a platform for potential increase Reserve replacement for YE 2022.
Near term infill drilling is expected to increase confidence of
current resources which could be deemed economic for reserve
inclusion next year.
- Current strategy for the corporation is to have production from
the Eagle River operations to be in the 100,000 ounces per annum
range by focused exploration and development of the Eagle River
Mine thereby generating higher margin tonnes. This is supplemented
by a growing production profile at Kiena.
- Underground exploration is focused on extending the high grade
300 E and Falcon zones and targeting parallel zones in the volcanic
rocks. Additionally, drilling is planned at the recently discovered
North Contact zone.
- Surface drilling is ongoing with 2 drills both east and west of
the mine to follow up on anomalous values returned from the
regional drilling program in 2021.
|
Kiena |
- In Q2 2021, based on the positive results of the Preliminary
Feasibility Study (“PFS”), a Kiena restart
decision was made. In H2 2021, Kiena produced 22,240
pre-commercial ounces. Total throughput was 68,470 tonnes or
372 tpd and the head grade averaged 10.4 g/t. The mill start-up in
July went according to plan with no major issues. Mine operations
were halted for 18 days in September for upgrading of the hoist
system which has now been completed. Progress on the paste fill
plant and tailings management area construction is on schedule. All
key mobile equipment has been ordered and the mine has already
received four underground haulage trucks with the remainder of the
equipment scheduled to arrive by Q2 of 2022.
- Despite the planned low pre-commercial production levels, FY
2021 cash cost was $1,052 (US$839) per ounce of gold sold1 and AISC
was $1,138 (US$908) per ounce of gold sold1.
- Generated $17.6 million in cash margin despite the high cash
costs of $1,052 per ounce of gold sold1 due to planned low
pre-commercial production levels.
- Successful underground exploration at Kiena resulted in a 11%
increase in the 2021 MI&I Resource (inclusive of reserves) from
the 2021 PFS MI&I Resource at a slightly lower grade on
average. An increase in the Measured and Indicated resources lead
to an 8% increase of Reserves.
- Current mineral reserves at Kiena as of December 31, 2021 are
651,000 ounces of gold from 1.8 Mt at an overall grade of 11.1 g/t
Au.
- Kiena Deep continues to show potential to add additional ounces
in the resource base and additional ounces are planned for
conversion to reserves with 2022 drilling, particularly at the
Footwall Zone where an inferred resource has been defined.
- The discovery of a new Footwall Zone was initially announced in
March of this year. To date, the Footwall Zone is defined by new
intersections of gold mineralization located within a 50 metre
(‘m’) wide corridor adjacent to the footwall of the A2 Zone.
The Footwall Zone corridor remains open laterally and down
plunge. The location of new gold intercepts in recent holes
suggest that the Footwall Zone extends over 300 m along
plunge. The deepest hole returned 41.2 g/t Au (uncapped) over
51.2 m core length.
- Ongoing drilling also continues to better define and expand the
Kiena Deep A Zone predominantly along the lateral extensions of the
zone. The high grades intersected will be included in future
resource updates. One hole returned 132.1 g/t Au over 7.4 m core
length (27.6 g/t Au capped, 3.9 m true width).
- Initial surface drilling has focused on the Presqu’ile and
Shawkey areas located northwest and southeast of the Kiena Mine,
respectively. Since July 2021, two drills on barges have been
testing the continuity of some gold anomalies in the Jacola
Formation which host the Kiena mine. Recent drilling at Presqu’ìle
zones returned 1515.0 g/t Au over 0.5 m core length.
- Wesdome finalized the purchase of the Tarmac Gold Property from
Globex Mining Enterprises. The Property consists of 6 claims
covering 94 hectares located entirely within Wesdome’s Kiena Mine
Complex and less than 2 kilometers northeast of the Kiena
underground mine, all located beneath Lac De Montigny.
|
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Jacqueline Wheeler, P. Eng,
Director, Corporate Development and Technical Projects and Michael
Michaud, P.Geo., Vice President, Exploration of the Company and
each a "Qualified Person" as defined in National Instrument 43-101
-Standards of Disclosure for Mineral Projects.
Cautionary Note to United States
Investors Concerning Estimates of Reserves and
Resources
The mineral reserve and resource estimates
reported in this news release were prepared in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”) as required by Canadian
securities regulatory authorities. The United States Securities and
Exchange Commission (the “SEC”) applies different
standards in order to classify and report mineralization. This news
release uses the terms “measured”, “indicated” and “inferred”
mineral resources, as required by NI 43-101. Readers are advised
that although such terms are recognized and required by Canadian
securities regulations, the SEC does not recognize such terms.
Canadian standards differ significantly from the requirements of
the SEC. Readers are cautioned not to assume that any part or all
of the mineral deposits in these categories constitute or will ever
be converted into mineral reserves. In addition, “inferred” mineral
resources have a great amount of uncertainty as to their existence
and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of an inferred mineral
resource exists, is economically or legally mineable or will ever
be upgraded to a higher category of mineral resource.
Wesdome Gold Mines 2021 Fourth Quarter
and Full Year Financial Results Conference Call
March 11, 2022 at 10:00 am ET
North American Toll Free: + 1
(844) 202-7109International Dial-In Number:
+1 (703) 639-1272Conference ID:
1763095
Webcast link:
https://edge.media-server.com/mmc/p/yynhs6r8
The webcast can also be accessed under the News and Events
section of the Company’s website
(www.wesdome.com)
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.
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 141.9 million shares issued and
outstanding and 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: |
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|
|
|
|
Duncan MiddlemissPresident and CEO416-360-3743 ext.
2029duncan.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-TSXPhone: 416-360-3743, Fax: 416-360-7620Website:
www.wesdome.com |
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|
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 |
|
Years
Ended |
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating data |
|
|
|
|
|
|
|
|
|
Milling (tonnes) |
|
|
|
|
|
|
|
|
|
Eagle
River |
|
56,159 |
|
|
53,551 |
|
|
228,759 |
|
|
196,441 |
|
Mishi |
|
6,215 |
|
|
3,555 |
|
|
36,508 |
|
|
39,856 |
|
Kiena |
|
38,000 |
|
|
0 |
|
|
68,470 |
|
|
0 |
|
Throughput 2 |
|
100,374 |
|
|
57,106 |
|
|
333,737 |
|
|
236,297 |
|
Head grades (g/t) |
|
|
|
|
|
|
|
|
|
Eagle River |
|
13.7 |
|
|
11.7 |
|
|
13.8 |
|
|
14.2 |
|
Mishi |
|
2.1 |
|
|
3.5 |
|
|
2.4 |
|
|
2.7 |
|
Kiena |
|
14.1 |
|
|
0.0 |
|
|
10.4 |
|
|
0.0 |
|
Recovery (%) |
|
|
|
|
|
|
|
|
|
Eagle River |
|
97.8 |
|
|
98.0 |
|
|
97.5 |
|
|
97.7 |
|
Mishi |
|
88.1 |
|
|
84.5 |
|
|
82.4 |
|
|
77.8 |
|
Kiena |
|
98.1 |
|
|
0.0 |
|
|
98.0 |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
Production (ounces) |
|
|
|
|
|
|
|
|
|
Eagle River |
|
24,267 |
|
|
19,667 |
|
|
99,120 |
|
|
87,560 |
|
Mishi |
|
363 |
|
|
339 |
|
|
2,283 |
|
|
2,718 |
|
Kiena |
|
16,929 |
|
|
0 |
|
|
22,440 |
|
|
0 |
|
Total gold produced 2 |
|
41,559 |
|
|
20,006 |
|
|
123,843 |
|
|
90,278 |
|
Total gold sales (ounces) 4 |
|
37,544 |
|
|
19,889 |
|
|
118,501 |
|
|
91,229 |
|
|
|
|
|
|
|
|
|
|
|
Eagle River Complex (per ounce of
gold sold) 1 |
|
|
|
|
|
|
|
Average realized price |
$ |
2,279 |
|
$ |
2,430 |
|
$ |
2,250 |
|
$ |
2,360 |
|
Cash costs |
$ |
1,017 |
|
$ |
1,162 |
|
$ |
978 |
|
$ |
1,053 |
|
Cash margin |
$ |
1,262 |
|
$ |
1,268 |
|
$ |
1,272 |
|
$ |
1,307 |
|
All-in Sustaining Costs 1 |
$ |
1,608 |
|
$ |
1,567 |
|
$ |
1,456 |
|
$ |
1,396 |
|
|
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne milled 1 |
$ |
391 |
|
$ |
400 |
|
$ |
357 |
|
$ |
389 |
|
|
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange rate |
|
1.2603 |
|
|
1.3030 |
|
|
1.2535 |
|
|
1.3415 |
|
|
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold sold (US$) 1 |
$ |
807 |
|
$ |
892 |
|
$ |
780 |
|
$ |
785 |
|
All-in Sustaining Costs (US$) 1 |
$ |
1,276 |
|
$ |
1,203 |
|
$ |
1,162 |
|
$ |
1,041 |
|
|
|
|
|
|
|
|
|
|
|
Kiena Mine (per ounce of gold sold) 1 |
|
|
|
|
|
|
|
|
|
Average realized price |
$ |
2,267 |
|
$ |
0 |
|
$ |
2,249 |
|
$ |
0 |
|
Cash costs 3, 5 |
$ |
983 |
|
$ |
0 |
|
$ |
1,052 |
|
$ |
0 |
|
Cash margin |
$ |
1,284 |
|
$ |
0 |
|
$ |
1,197 |
|
$ |
0 |
|
All-in Sustaining Costs 1, 3, 5 |
$ |
1,051 |
|
$ |
0 |
|
$ |
1,138 |
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
Mine operating costs/tonne milled 1 |
$ |
335 |
|
$ |
0 |
|
$ |
325 |
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
Average 1 USD → CAD exchange rate |
|
1.2603 |
|
|
1.3030 |
|
|
1.2535 |
|
|
1.3415 |
|
|
|
|
|
|
|
|
|
|
|
Cash costs per ounce of gold sold (US$) 1 |
$ |
780 |
|
$ |
0 |
|
$ |
839 |
|
$ |
0 |
|
All-in Sustaining Costs (US$) 1 |
$ |
834 |
|
$ |
0 |
|
$ |
908 |
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
|
Cash margin 1 |
$ |
47,681 |
|
$ |
25,211 |
|
$ |
145,354 |
|
$ |
119,250 |
|
Net income |
$ |
24,762 |
|
$ |
8,491 |
|
$ |
131,288 |
|
$ |
50,715 |
|
Net income adjusted 1 |
$ |
24,762 |
|
$ |
8,491 |
|
$ |
69,903 |
|
$ |
50,715 |
|
Earnings before interest, taxes, depreciation and amortization
1 |
$ |
44,235 |
|
$ |
18,017 |
|
$ |
132,199 |
|
$ |
102,342 |
|
Operating cash flow |
$ |
48,160 |
|
$ |
12,893 |
|
$ |
130,958 |
|
$ |
102,292 |
|
Free cash flow 1 |
$ |
(3,172 |
) |
$ |
(8,813 |
) |
$ |
(21,291 |
) |
$ |
29,009 |
|
Per share data |
|
|
|
|
|
|
|
|
|
Net income |
$ |
0.18 |
|
$ |
0.06 |
|
$ |
0.94 |
|
$ |
0.36 |
|
Adjusted net income 1 |
$ |
0.18 |
|
$ |
0.06 |
|
$ |
0.50 |
|
$ |
0.36 |
|
Operating cash flow 1 |
$ |
0.34 |
|
$ |
0.09 |
|
$ |
0.93 |
|
$ |
0.74 |
|
Free cash flow 1 |
$ |
(0.02 |
) |
$ |
(0.06 |
) |
$ |
(0.15 |
) |
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. 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.2. Totals for tonnage and
gold ounces may not add due to rounding.3. FY 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 2020.4. FY 2021 includes 1,793 ounces of gold
from the Kiena bulk sample, which was processed in Q4
20205. 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.Consolidated Statements of Financial
Position(Unaudited, expressed in thousands of Canadian
dollars)
|
As atDecember 31,2021 |
|
As atDecember 31, 2020 1 |
Assets |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
$ |
56,764 |
|
|
$ |
63,480 |
|
Receivables and prepaids |
|
13,793 |
|
|
|
8,974 |
|
Share consideration receivable |
|
4,560 |
|
|
|
- |
|
Inventories |
|
17,918 |
|
|
|
12,451 |
|
Total current assets |
|
93,035 |
|
|
|
84,905 |
|
|
|
|
|
Restricted cash |
|
657 |
|
|
|
657 |
|
Deferred financing cost |
|
758 |
|
|
|
827 |
|
Mineral properties, plant and
equipment |
|
212,394 |
|
|
|
128,670 |
|
Mines under development |
|
214,089 |
|
|
|
- |
|
Exploration properties |
|
1,139 |
|
|
|
133,221 |
|
Marketable securities |
|
1,860 |
|
|
|
- |
|
Share consideration
receivable |
|
10,729 |
|
|
|
- |
|
Investment in associate |
|
19,058 |
|
|
|
- |
|
Total assets |
$ |
553,719 |
|
|
$ |
348,280 |
|
|
|
|
|
Liabilities |
|
|
|
Current |
|
|
|
Payables and accruals |
$ |
40,093 |
|
|
$ |
21,123 |
|
Income and mining tax payable |
|
5,490 |
|
|
|
3,481 |
|
Current portion of lease liabilities |
|
7,789 |
|
|
|
5,901 |
|
Total current liabilities |
|
53,372 |
|
|
|
30,505 |
|
|
|
|
|
Lease liabilities |
|
6,786 |
|
|
|
5,604 |
|
Deferred income and mining tax
liabilities |
|
77,195 |
|
|
|
33,532 |
|
Decommissioning
provisions |
|
21,191 |
|
|
|
22,270 |
|
Total liabilities |
|
158,544 |
|
|
|
91,911 |
|
|
|
|
|
Equity |
|
|
|
Equity
attributable to owners of the Company |
|
|
|
Capital stock |
|
187,911 |
|
|
|
179,540 |
|
Contributed surplus |
|
5,859 |
|
|
|
6,472 |
|
Retained earnings |
|
201,645 |
|
|
|
70,357 |
|
Accumulated other comprehensive loss |
|
(240 |
) |
|
|
- |
|
Total equity attributable to
owners of the Company |
|
395,175 |
|
|
|
256,369 |
|
|
|
|
|
Total liabilities and
equity |
$ |
553,719 |
|
|
$ |
348,280 |
|
|
|
|
|
|
|
|
|
1. Refer to the Company’s 2021 consolidated financial
statements for details regarding changes in the Company’s
accounting policies which impacted the balances from prior
periods.
Wesdome Gold Mines
Ltd.Consolidated Statements of Income and
Comprehensive Income(Expressed in thousands of Canadian
dollars except for per share
amounts)
|
Three Months Ended |
|
Years Ended |
|
December 31 |
|
December 31 |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
85,505 |
|
|
$ |
48,362 |
|
|
$ |
262,907 |
|
|
$ |
215,466 |
|
Cost of
sales |
|
(45,945 |
) |
|
|
(30,483 |
) |
|
|
(145,619 |
) |
|
|
(125,386 |
) |
Gross
profit |
|
39,560 |
|
|
|
17,879 |
|
|
|
117,288 |
|
|
|
90,080 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
Corporate and general |
|
2,817 |
|
|
|
2,231 |
|
|
|
10,614 |
|
|
|
7,378 |
|
Stock-based compensation |
|
533 |
|
|
|
524 |
|
|
|
2,604 |
|
|
|
2,786 |
|
Exploration and
evaluation |
|
471 |
|
|
|
- |
|
|
|
471 |
|
|
|
- |
|
Reversal of impairment
charges |
|
- |
|
|
|
- |
|
|
|
(58,563 |
) |
|
|
- |
|
(Gain) loss on disposal of
mining equipment |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
Write-down of mining
equipment |
|
- |
|
|
|
427 |
|
|
|
- |
|
|
|
427 |
|
Impairment charge on
exploration properties |
|
- |
|
|
|
2,034 |
|
|
|
7,507 |
|
|
|
2,034 |
|
|
|
3,821 |
|
|
|
5,216 |
|
|
|
(37,370 |
) |
|
|
12,625 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
35,739 |
|
|
|
12,663 |
|
|
|
154,658 |
|
|
|
77,455 |
|
|
|
|
|
|
|
|
|
Gain on sale of Moss Lake
exploration properties |
|
- |
|
|
|
- |
|
|
|
34,330 |
|
|
|
- |
|
Interest expense |
|
(339 |
) |
|
|
(294 |
) |
|
|
(1,194 |
) |
|
|
(1,096 |
) |
Accretion of decommissioning
provisions |
|
(146 |
) |
|
|
(89 |
) |
|
|
(556 |
) |
|
|
(354 |
) |
Share of loss of
associate |
|
(393 |
) |
|
|
- |
|
|
|
(497 |
) |
|
|
- |
|
Fair value adjustment on share
consideration receivable |
|
1,038 |
|
|
|
- |
|
|
|
1,947 |
|
|
|
- |
|
Other expenses |
|
(124 |
) |
|
|
(902 |
) |
|
|
(363 |
) |
|
|
(1,105 |
) |
Income before income
and mining taxes |
|
35,775 |
|
|
|
11,378 |
|
|
|
188,325 |
|
|
|
74,900 |
|
|
|
|
|
|
|
|
|
Income and mining tax expense |
|
|
|
|
|
|
|
Current |
|
4,720 |
|
|
|
4,425 |
|
|
|
13,375 |
|
|
|
10,660 |
|
Deferred |
|
6,293 |
|
|
|
(1,538 |
) |
|
|
43,662 |
|
|
|
13,525 |
|
Total income and mining tax
expense |
|
11,013 |
|
|
|
2,887 |
|
|
|
57,037 |
|
|
|
24,185 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
24,762 |
|
|
$ |
8,491 |
|
|
$ |
131,288 |
|
|
$ |
50,715 |
|
|
|
|
|
|
|
|
|
Other comprehensive
loss |
|
|
|
|
|
|
|
Change in fair value of marketable securities net of tax
effect |
|
(240 |
) |
|
|
- |
|
|
|
(240 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Total comprehensive
income |
$ |
24,522 |
|
|
$ |
8,491 |
|
|
$ |
131,048 |
|
|
$ |
50,715 |
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.06 |
|
|
$ |
0.94 |
|
|
$ |
0.36 |
|
Diluted |
$ |
0.17 |
|
|
$ |
0.06 |
|
|
$ |
0.92 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
(000s) |
|
|
|
|
|
|
|
Basic |
|
141,156 |
|
|
|
139,482 |
|
|
|
140,195 |
|
|
|
139,045 |
|
Diluted |
|
143,200 |
|
|
|
142,874 |
|
|
|
142,787 |
|
|
|
142,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wesdome Gold Mines
Ltd.Consolidated Statements of Total
Equity(Unaudited, expressed in thousands of Canadian
dollars)
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Capital |
|
Contributed |
|
Retained |
|
Comprehensive |
|
Total |
|
Stock |
|
Surplus |
|
Earnings 1 |
|
Loss |
|
Equity 1 |
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2019 |
$ |
174,789 |
|
|
$ |
5,590 |
|
|
$ |
19,642 |
|
|
$ |
- |
|
|
$ |
200,021 |
|
Net income for the year ended
December 31, 2020 |
|
- |
|
|
|
- |
|
|
|
50,715 |
|
|
|
- |
|
|
|
50,715 |
|
Exercise of options |
|
2,847 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,847 |
|
Value attributed to options
exercised |
|
1,327 |
|
|
|
(1,327 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value attributed to RSUs
exercised |
|
577 |
|
|
|
(577 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
- |
|
|
|
2,786 |
|
|
|
- |
|
|
|
- |
|
|
|
2,786 |
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2020 |
$ |
179,540 |
|
|
$ |
6,472 |
|
|
$ |
70,357 |
|
|
$ |
- |
|
|
$ |
256,369 |
|
|
|
|
|
|
|
|
|
|
|
Net income for the year ended
December 31, 2021 |
|
- |
|
|
|
- |
|
|
|
131,288 |
|
|
|
- |
|
|
|
131,288 |
|
Other comprehensive loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(240 |
) |
|
|
(240 |
) |
Exercise of options |
|
5,154 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,154 |
|
Value attributed to options
exercised |
|
2,431 |
|
|
|
(2,431 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Value attributed to RSUs
exercised |
|
786 |
|
|
|
(786 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
- |
|
|
|
2,604 |
|
|
|
- |
|
|
|
- |
|
|
|
2,604 |
|
Balance, December 31,
2021 |
$ |
187,911 |
|
|
$ |
5,859 |
|
|
$ |
201,645 |
|
|
$ |
(240 |
) |
|
$ |
395,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Refer to the Company’s 2021 consolidated financial
statements for details regarding changes in the Company’s
accounting policies which impacted the balances from prior
periods.
Wesdome Gold Mines
Ltd.Consolidated Statements of Cash
Flows(Unaudited, expressed in thousands of Canadian
dollars)
|
Three Months Ended |
|
Years Ended |
|
December 31 |
|
December 31 |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Operating
Activities |
|
|
|
|
|
|
|
Net income |
$ |
24,762 |
|
|
$ |
8,491 |
|
|
$ |
131,288 |
|
|
$ |
50,715 |
|
Depreciation and depletion |
|
8,121 |
|
|
|
6,345 |
|
|
|
28,066 |
|
|
|
26,346 |
|
Stock-based compensation |
|
533 |
|
|
|
524 |
|
|
|
2,604 |
|
|
|
2,786 |
|
Accretion of decommissioning provisions |
|
146 |
|
|
|
89 |
|
|
|
556 |
|
|
|
354 |
|
Deferred income and mining tax expense |
|
6,293 |
|
|
|
(1,539 |
) |
|
|
43,662 |
|
|
|
13,525 |
|
Amortization of deferred financing cost |
|
84 |
|
|
|
111 |
|
|
|
412 |
|
|
|
370 |
|
Interest expense |
|
339 |
|
|
|
294 |
|
|
|
1,194 |
|
|
|
1,096 |
|
Reversal of impairment charges |
|
- |
|
|
|
- |
|
|
|
(58,563 |
) |
|
|
- |
|
Gain on sale of Moss Lake exploration properties |
|
- |
|
|
|
- |
|
|
|
(34,330 |
) |
|
|
- |
|
Impairment charge on exploration properties |
|
- |
|
|
|
2,034 |
|
|
|
7,507 |
|
|
|
2,034 |
|
(Gain) loss on disposal of mining equipment |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
Write-down of mining equipment |
|
- |
|
|
|
427 |
|
|
|
- |
|
|
|
427 |
|
Share of loss of associate |
|
393 |
|
|
|
- |
|
|
|
497 |
|
|
|
- |
|
Fair value adjustment on share consideration receivable |
|
(1,038 |
) |
|
|
- |
|
|
|
(1,947 |
) |
|
|
- |
|
Foreign exchange gain on lease financing |
|
(8 |
) |
|
|
(140 |
) |
|
|
(23 |
) |
|
|
(36 |
) |
Net changes in non-cash working capital |
|
11,726 |
|
|
|
(35 |
) |
|
|
21,403 |
|
|
|
13,272 |
|
Mining and income tax paid |
|
(3,191 |
) |
|
|
(3,708 |
) |
|
|
(11,365 |
) |
|
|
(8,597 |
) |
Net cash from
operating activities |
|
48,160 |
|
|
|
12,893 |
|
|
|
130,958 |
|
|
|
102,292 |
|
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
Exercise of options |
|
2,110 |
|
|
|
442 |
|
|
|
5,154 |
|
|
|
2,847 |
|
Deferred financing costs |
|
(4 |
) |
|
|
- |
|
|
|
(342 |
) |
|
|
(209 |
) |
Repayment of borrowings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,636 |
) |
Repayment of lease liabilities |
|
(3,501 |
) |
|
|
(1,316 |
) |
|
|
(8,778 |
) |
|
|
(4,847 |
) |
Interest paid |
|
(339 |
) |
|
|
(294 |
) |
|
|
(1,194 |
) |
|
|
(1,096 |
) |
Net cash used in
financing activities |
|
(1,734 |
) |
|
|
(1,168 |
) |
|
|
(5,160 |
) |
|
|
(6,941 |
) |
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
Additions to mining properties |
|
(12,374 |
) |
|
|
(8,984 |
) |
|
|
(42,867 |
) |
|
|
(27,956 |
) |
Additions to mines under development |
|
(35,456 |
) |
|
|
- |
|
|
|
(76,337 |
) |
|
|
- |
|
Additions to exploration properties |
|
- |
|
|
|
(11,406 |
) |
|
|
(23,267 |
) |
|
|
(40,480 |
) |
Purchase of exploration property |
|
- |
|
|
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
Cash proceeds on sale of Moss Lake, net of transaction
costs |
|
- |
|
|
|
- |
|
|
|
11,762 |
|
|
|
- |
|
Investment in marketable securities |
|
(2,100 |
) |
|
|
- |
|
|
|
(2,100 |
) |
|
|
- |
|
Proceeds on disposal of mining assets |
|
- |
|
|
|
- |
|
|
|
73 |
|
|
|
- |
|
Net changes in non-cash working capital |
|
(9,205 |
) |
|
|
(1,367 |
) |
|
|
1,222 |
|
|
|
908 |
|
Net cash used in
investing activities |
|
(59,135 |
) |
|
|
(21,757 |
) |
|
|
(132,514 |
) |
|
|
(67,528 |
) |
|
|
|
|
|
|
|
|
(Decrease) increase in cash
and cash equivalents |
|
(12,709 |
) |
|
|
(10,033 |
) |
|
|
(6,716 |
) |
|
|
27,823 |
|
Cash and cash equivalents -
beginning of year |
|
69,473 |
|
|
|
73,513 |
|
|
|
63,480 |
|
|
|
35,657 |
|
Cash and cash equivalents -
end of year |
$ |
56,764 |
|
|
$ |
63,480 |
|
|
$ |
56,764 |
|
|
$ |
63,480 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
consist of: |
|
|
|
|
|
|
|
Cash |
$ |
56,764 |
|
|
$ |
63,480 |
|
|
$ |
56,764 |
|
|
$ |
63,480 |
|
|
$ |
56,764 |
|
|
$ |
63,480 |
|
|
$ |
56,764 |
|
|
$ |
63,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PDF
available: http://ml.globenewswire.com/Resource/Download/90533296-67e7-4181-b664-ab673fbfb89e
Wesdome Gold Mines (TSX:WDO)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Wesdome Gold Mines (TSX:WDO)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024