TORONTO, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces fourth quarter (“Q4 2022”) and full year financial results. All figures are stated in Canadian dollars unless otherwise noted.
Key Highlights:
Eagle River
- Eagle River underground mine processed 223,735 tonnes at an average grade of 11.5 gpt to produce 79,997 ounces with the underground producing 231,000 tonnes of broken ore.
- Completed additional drilling and ore development at the Falcon Zone which is improving production and grade forecasting; results in 2023 so far are showing positive reconciliation at the Falcon Zone
Kiena
- Successfully commissioned the pastefill plant and declared commercial production
- Drilling expanded the size of the A Zones and Footwall Zones, which supports future mine life extension potential
- Drilling better defined and expanded the Presqu’ile Zone potentially justifying the installation of an exploration ramp
Other
- Named to the Globe & Mail's 2022 Report on Business Women Lead Here list. This annual editorial benchmark identifies best-in-class executive gender diversity in corporate Canada
- Placed 6th out of 34 TSX-listed materials companies in the annual Globe and Mail Board Games report on corporate governance
Warwick Morley-Jepson, Interim CEO commented, “2022 was a challenging year for Wesdome, and we have leveraged our experiences to ensure better operational and financial performance going forward. Production misses at both mines resulted in a net loss of $14.7 million or ($0.10) per share.
Previously disclosed grade reconciliation issues at the Falcon zone that impacted 2022 production have been addressed through additional ore development and drilling. Eagle operations are recovering well, with 2023 grade so far reconciling higher than guidance.
At Kiena, despite the challenging backdrop of the fractured supply chains we are very pleased to have put a second mine into production, financed almost entirely from internally generated cash flow. The delays encountered in 2022 are behind us, and all required equipment is on site. The next milestone is the continued development of the ramp giving access to mining operations in the A zone. Ramp advancement will position us to mine in the areas where the ounces per vertical metre significantly increase, and grade is expected to improve. Year to date, this project is tracking slightly ahead of schedule. As well, 2022 saw the hiring of key technical personnel including a Director, Engineering and Operations who will support daily mine operations.
Production guidance for 2023 is expected to range between 110,000 – 130,000 ounces with production back end weighted through the year. Until the ramp reaches the 129 metre level at Kiena, lower processed grades are expected to continue into 2023. We will continue to supply the mill with lower grade ore from the Martin, S50, and VC zones to supplement the Kiena Deep material that will be available to mine, which is mostly lower grade fringe material and diluted ore from previously mined areas.
We consider this year to be a transition year as we get Kiena back on schedule, setting up 2024 to be a stronger year operationally, as well as financially. In this regard, an at-the-market equity program was established in December to accelerate balance sheet de-levering.”
Key operating and financial performance of the full year 2022 results include:
- Gold production of 110,850 ounces is a 10% decrease over the same period in the previous year (2021: 123,843 ounces):
- Eagle River underground processed 223,734 tonnes at a head grade of 11.5 grams per tonne for 79,997 ounces produced, 19% decrease over the previous year (2021: 99,120 ounces).
- Mishi Open Pit 23,153 tonnes at a head grade of 3.2 grams per tonne for 2,005 ounces produced (2021: 2,283 ounces).
- Kiena 115,171 tonnes at a head grade of 7.9 grams per tonne for 28,848 ounces produced, 29% increase over previous year (2021: 22,440)
- Revenue2 of $265.5 million, a 1% increase over the previous year (2021: $262.9 million).
- Ounces sold3 were 113,000 at an average sales price of $2,347/oz (2021: 116,708 ounces at an average price of $2,250/oz).
- Cash margin1,2,4 of $95.7 million, a 34% decrease over the previous year (2021 - $145.4 million).
- Operating cash flows2,4 decreased by 50% to $65.2 million or $0.46 per share1 as compared to $131.0 million or $0.93 per share for the same period in 2021.
- Free cash outflow of $90.2 million, net of an investment of $108.9 million in Kiena, or ($0.63) per share1 (2021: free cash outflow of $21.3 million or ($0.15) per share).
- Net loss of $14.7 million or ($0.10) per share (2021: Net income2,4 $131.3 million or $0.94 per share) and Net loss (adjusted)1 of $5.9 million or ($0.04) per share (2021: Net income (adjusted)1,2,4 $69.9 million or $0.50 per share).
- Cash position at the end of the year of $33.2 million, with total borrowings of $54.7 million drawn on the senior secured revolving credit facility.Cash costs1,4,5 of $1,500/oz or US$1,153/oz, a 52% increase over the same period in 2021 (2021: $990/oz or US$789/oz) due to a 9% increase in aggregate operating costs at Eagle River and the costs of ramping up operations at Kiena in anticipation of declaring commercial production;
- AISC1,5 increased by 43% to $2,020/oz or US$1,552/oz (2021: $1,408 or US$1,123 per ounce) due to a 9% increase in aggregate operating costs and increased spending at Eagle River to replace aging infrastructure and the costs of ramping up operations at Kiena in anticipation of declaring commercial production.
Key operating and financial performance of Q4 2022 results include:
- Gold production of 35,116 ounces, which includes a 16% decrease over the same period in the previous year (Q4 2021: 41,559 ounces):
- Eagle River underground 58,306 tonnes at a head grade of 14.0 grams per tonne for 25,502 ounces produced, 5% increase over the previous year (Q4 2021: 24,267 ounces).
- Kiena 51,419 tonnes at a head grade of 5.9 grams per tonne for 9,614 ounces produced, 43% decrease over the previous year (Q4 2021: 16,929 ounces).
- Revenue of $75.1 million, a 12% decrease over the previous year (Q4 2021: $85.5 million).
- Ounces sold were 31,500 at an average sales price of $2,380/oz (Q4 2021: 37,544 ounces at an average price of $2,275/oz).
- Cash margin1 of $26.5 million, an 44% decrease over the previous year (Q4 2021 - $47.7 million).
- Operating cash flows decreased by 79% to $10.3 million or $0.07 per share1 as compared to $48.2 million or $0.34 per share for the same period in 2021.
- Free cash outflow of $31.6 million, net of an investment of $26.5 million in Kiena, or ($0.22) per share1 (Q4 2021: free cash outflow of $3.2 million or ($0.02) per share).
- Net loss and Net loss (adjusted)1of $3.5 million or ($0.02) per share (2021: Net income and Net income (adjusted)1 $24.8 million or $0.18 per share).
- Cash costs1 of $1,540/oz or US$1,134/oz, a 53% increase over the same period in 2021 (Q4 2021: $1,005/oz or US$797/oz);
- AISC1 increased by 51% to $2,136/oz or US$1,573/oz (Q4 2021: $1,412 or US$1,121 per ounce).
- Refer to the Company’s 2022 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the 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.
Production Metrics and Exploration Updates | Performance |
| Eagle River Complex | - FY 2022 gold production from the Eagle River Complex decreased by 19% from FY 2021 to 82,002 ounces of gold, primarily due to lower realized head grade, as the newly developed Falcon Zone grade was not as high as expected. Gold production from Mishi was also lower than in 2021 as the stockpiled ore nears depletion. Head grade at the Eagle River Complex in 2022 averaged 10.7 g/t.
- FY 2022 cash cost of $1,356 (US$1,042) per ounce of gold sold1 increased by 39% or $378 from FY 2021 due to a 21% decrease in ounces sold and a 9% increase in overall aggregate site operating costs resulting from higher operating costs incurred due to more ore development metres, waste movement, improvements made to strengthen the technical and mine management team at site, general maintenance improvements and inflationary pressures, driven by higher labour costs and an increase in commodity inputs, including higher fuel and energy costs.
- FY 2022 AISC of $2,003 (US$1,539) per ounce of gold sold1 increased by 38% or $547 from FY 2021 due to the higher cash costs, combined with the replacement of aging site infrastructure and raising of the tailings storage facility.
- Generated $79.1 million in cash margin in FY 2022 compared to $127.7 million in FY 2021 due to the 21% decrease in ounces sold and the 9% increase in overall aggregate site operating costs.
- The new 355 m level development is now complete along the western extent of the mine infrastructure. The development extends 400 m west of the mine into the volcanic rocks that host the Falcon 7 zone. This development provides drill platforms to test for gold mineralization near the Falcon 7 zone further along strike, and for parallel zones. In the future it will provide access for mining and will improve operational planning, as it is situated away from the main mining area at depth.
- Most recently, surface, and underground drilling from the newly established 355 m level exploration drift, has defined the up-plunge extent of the Falcon 7 zone. Highlights of the recent drilling include 11.1 g/t Au over 3.0 m core length and 26.5 g/t Au over 2.0 m core length (see press release dated October 5, 2022).
- In addition, several drill holes have intersected mineralization in subparallel zones in the hanging wall of the Falcon 7 zone, including a recent hole that returned 40.3 g/t Au over 1.5 m. One hole, further to the west along strike from the Falcon 7 zone, near the historic 9 zone, returned 19.4 g/t au over 0.7 m.
- Additionally, initial surface drilling within the volcanic rocks, 150 metres east and down dip of the previously mined 2 Zone intersected altered volcanic rocks with quartz veining and VG. One hole returned 233.0 g/t Au over 0.4 metres.
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| Kiena | - With the successful completion of a test pastefill pour on November 30, 2022, commercial production at the Kiena Mine was declared effective December 1, 2022. The pastefill plant has been performing well and in line with expectations.
- FY 2022 Kiena ore production increased by 29% from FY 2021 to 28,848 ounces of gold, primarily due to higher throughput; partially offset by lower head grade as less ore was sourced from Kiena Deep. Head grade at Kiena in 2022 averaged 7.9 g/t.
- The 2022 cash cost of $1,839 (US$1,413) per ounce of gold sold increased by 75% or $786 per ounce as compared to $1,052 (US$839) in 2021 and the AISC of $2,059 (US$1,582) per ounce of gold sold increased by 81% or $922 per ounce as compared to $1,138 (US$908) in 2021 primarily due to ramping up operations in anticipation of declaring commercial production, which was delayed until December 1, 2022 due to supply chain challenges in sourcing vital equipment necessary to deal with challenging ground conditions within the Kiena Deep A zone. Once a sufficient level of developed reserves is achieved through the development of the ramp to the higher grade A zone, the cash cost and AISC are expected to align with the life of mine cash costs and AISC in the Preliminary Feasibility Study (“PFS”), excluding the industry-wide cost escalations that have occurred since its publishing in 2021.
- Generated $16.6 million in cash margin despite the low ounces produced and the high cash costs of $1,839 per ounce of gold sold1 as commercial production was delayed until December 1, 2022 due to supply chain challenges in sourcing vital equipment necessary to deal with challenging ground conditions within the Kiena Deep A zone.
- The recent discovery of the South Limb and Footwall zones show the underexplored exploration potential of the Kiena Deep zone.`
- Most recently, drilling intersected two new zones in the hanging wall basalt. This zone consists of disseminated sulfides in basalt associated with a stockwork of veinlets composed of quartz ± gold. The second zone consists of a quartz-cabonate vein with visible gold that returned 2,850 g/t Au over 1.5 m core length. The discovery of these zones highlights the potential to add ounces within the basalt, where the rock quality is significantly better than in the A Zone allowing for increased development rates (see press release dated November 16,2022).
- From surface, drilling has focused on the Presqu'île Zone located 2 kilometres west of the Kiena Mine. Highlights include 24.3 g/t over 3.3 m core length and 30.0 g/t Au over 9.4 m core length. Given the significant upside that the Presqu'île zone could represent for Kiena, the Company is currently evaluating options to fast-track an exploration ramp from surface. It could also easily be connected to Kiena's existing underground ramp network, providing access to surface for the existing operation and enhancements to the mine’s ventilation network (see press release dated September 8, 2022).
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Technical Disclosure
The technical content of this release has been compiled, reviewed and approved by Frédéric Langevin, Eng, Chief Operating Officer of the Company 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 2022 Fourth Quarter and Full Year Financial Results Conference Call
February 23, 2023 at 10:00 am ET
ABOUT WESDOME
Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently commissioned Kiena mine in Quebec. The Company also retains meaningful exposure to the Moss Lake gold deposit in Ontario through its equity position in Goldshore Resources Inc. The Company’s primary goal is to responsibly leverage this operating platform and high-quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold producer. Wesdome trades on the Toronto Stock Exchange under the symbol “WDO,” with a secondary listing on the OTCQX under the symbol “WDOFF.”
For further information, please contact:
220 Bay St, Suite 1200
Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: www.wesdome.com
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the benefits of achieving commercial production at Kiena, the Company’s expected capital expenditure in 2023, the timing around reaching the Kiena Deep A Zone, the Company’s ability to be cash flow positive and its annual production run rate. 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.
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, | |
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | |
| Operating data | | | | | | | | | |
| Milling (tonnes) | | | | | | | | | |
| Eagle River | | 58,306 | | | 56,159 | | | 223,734 | | | 228,759 | | |
| Mishi | | 0 | | | 6,215 | | | 23,153 | | | 36,508 | | |
| Kiena | | 51,419 | | | 38,000 | | | 115,171 | | | 68,470 | | |
| Throughput 2 | | 109,725 | | | 100,374 | | | 362,058 | | | 333,737 | | |
| Head grades (g/t) | | | | | | | | | |
| Eagle River | | 14.0 | | | 13.7 | | | 11.5 | | | 13.8 | | |
| Mishi | | 0.0 | | | 2.1 | | | 3.2 | | | 2.4 | | |
| Kiena | | 5.9 | | | 14.1 | | | 7.9 | | | 10.4 | | |
| Recovery (%) | | | | | | | | | |
| Eagle River | | 97.4 | | | 97.8 | | | 96.9 | | | 97.5 | | |
| Mishi | | 0.0 | | | 88.1 | | | 83.5 | | | 82.4 | | |
| Kiena | | 98.1 | | | 98.1 | | | 98.3 | | | 98.0 | | |
| | | | | | | | | | |
| Production (ounces) | | | | | | | | | |
| Eagle River | | 25,502 | | | 24,267 | | | 79,997 | | | 99,120 | | |
| Mishi | | 0 | | | 363 | | | 2,005 | | | 2,283 | | |
| Kiena | | 9,614 | | | 16,929 | | | 28,848 | | | 22,440 | | |
| Total gold produced 2 | | 35,116 | | | 41,559 | | | 110,850 | | | 123,843 | | |
| Total gold sales (ounces) 4 | | 31,500 | | | 37,544 | | | 113,000 | | | 118,501 | | |
| | | | | | | | | | |
| Eagle River Complex (per ounce of gold sold) 1 | | | | | | | |
| Average realized price | $ | 2,384 | | $ | 2,279 | | $ | 2,354 | | $ | 2,250 | | |
| Cash costs | | 1,302 | | | 1,017 | | | 1,356 | | | 978 | | |
| Cash margin | $ | 1,082 | | $ | 1,262 | | $ | 998 | | $ | 1,272 | | |
| All-in Sustaining Costs 1 | $ | 2,039 | | $ | 1,608 | | $ | 2,003 | | $ | 1,456 | | |
| | | | | | | | | | |
| Mine operating costs/tonne milled 1 | $ | 515 | | $ | 391 | | $ | 436 | | $ | 357 | | |
| | | | | | | | | | |
| Average 1 USD ? CAD exchange rate | | 1.3578 | | | 1.2603 | | | 1.3013 | | | 1.2535 | | |
| | | | | | | | | | |
| Cash costs per ounce of gold sold (US$) 1 | $ | 959 | | $ | 807 | | $ | 1,042 | | $ | 780 | | |
| All-in Sustaining Costs (US$) 1 | $ | 1,502 | | $ | 1,276 | | $ | 1,539 | | $ | 1,162 | | |
| | | | | | | | | | |
| Kiena Mine (per ounce of gold sold) 1 | | | | | | | | | |
| Average realized price | $ | 2,371 | | $ | 2,267 | | $ | 2,331 | | $ | 2,249 | | |
| Cash costs 3, 5 | | 2,063 | | | 983 | | | 1,839 | | | 1,052 | | |
| Cash margin | $ | 308 | | $ | 1,284 | | $ | 492 | | $ | 1,197 | | |
| All-in Sustaining Costs 1, 3, 5 | $ | 2,348 | | $ | 1,051 | | $ | 2,059 | | $ | 1,138 | | |
| | | | | | | | | | |
| Mine operating costs/tonne milled 1 | $ | 352 | | $ | 335 | | $ | 518 | | $ | 325 | | |
| | | | | | | | | | |
| Average 1 USD ? CAD exchange rate | | 1.3578 | | | 1.2603 | | | 1.3013 | | | 1.2535 | | |
| | | | | | | | | | |
| Cash costs per ounce of gold sold (US$) 1 | $ | 1,519 | | $ | 780 | | $ | 1,413 | | $ | 839 | | |
| All-in Sustaining Costs (US$) 1 | $ | 1,729 | | $ | 834 | | $ | 1,582 | | $ | 908 | | |
| | | | | | | | | | |
| Financial Data | | | | | | | | | |
| Cash margin 1 | $ | 26,466 | | $ | 47,681 | | $ | 95,674 | | $ | 145,354 | | |
| Net income | $ | (3,527 | ) | $ | 24,762 | | $ | (14,706 | ) | $ | 131,288 | | |
| Net income adjusted 1 | $ | (3,527 | ) | $ | 24,762 | | $ | (5,856 | ) | $ | 69,903 | | |
| Earnings before interest, taxes, depreciation and amortization 1 | $ | 21,309 | | $ | 44,235 | | $ | 55,617 | | $ | 132,199 | | |
| Operating cash flow | $ | 10,267 | | $ | 48,160 | | $ | 65,206 | | $ | 130,958 | | |
| Free cash flow | $ | (31,609 | ) | $ | (3,172 | ) | $ | (90,174 | ) | $ | (21,291 | ) | |
| Per share data | | | | | | | | | |
| Net income | $ | (0.02 | ) | $ | 0.18 | | $ | (0.10 | ) | $ | 0.94 | | |
| Adjusted net income 1 | $ | (0.02 | ) | $ | 0.18 | | $ | (0.04 | ) | $ | 0.50 | | |
| Operating cash flow 1 | $ | 0.07 | | $ | 0.34 | | $ | 0.46 | | $ | 0.93 | | |
| Free cash flow 1 | $ | (0.22 | ) | $ | (0.02 | ) | $ | (0.63 | ) | $ | (0.15 | ) | |
| | | | | | | | | | |
- Refer to the Company’s 2022 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
- Totals for tonnage and gold ounces may not add due to rounding.
- 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.
- FY 2021 includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020
- In determining the Cash cost per ounce and AISC per ounce, the total ounces sold includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.
Wesdome Gold Mines Ltd.
Statements of Financial Position
(Expressed in thousands of Canadian dollars)
| | | | | | |
| | | As at December 31, 2022 | | As at December 31, 2021 | |
| Assets | | | | | |
| Current | | | | | |
| Cash and cash equivalents | | $ | 33,185 | | | $ | 56,764 | | |
| Receivables and prepaids | | | 12,755 | | | | 13,793 | | |
| Inventories | | | 22,119 | | | | 17,918 | | |
| Income and mining tax receivable | | | 6,494 | | | | - | | |
| Share consideration receivable | | | 2,994 | | | | 4,560 | | |
| Total current assets | | | 77,547 | | | | 93,035 | | |
| | | | | | |
| Restricted cash | | | 1,176 | | | | 657 | | |
| Deferred financing costs | | | 1,411 | | | | 758 | | |
| Mining properties, plant and equipment | | | 525,860 | | | | 212,394 | | |
| Mines under development | | | - | | | | 214,089 | | |
| Exploration properties | | | 1,139 | | | | 1,139 | | |
| Marketable securities | | | 960 | | | | 1,860 | | |
| Share consideration receivable | | | 2,576 | | | | 10,729 | | |
| Investment in associate | | | 8,458 | | | | 19,058 | | |
| Total assets | | $ | 619,127 | | | $ | 553,719 | | |
| | | | | | |
| Liabilities | | | | | |
| Current | | | | | |
| Payables and accruals | | $ | 54,734 | | | $ | 40,093 | | |
| Borrowings | | | 54,697 | | | | - | | |
| Income and mining tax payable | | | - | | | | 5,490 | | |
| Current portion of lease liabilities | | | 6,160 | | | | 7,789 | | |
| Total current liabilities | | | 115,591 | | | | 53,372 | | |
| | | | | | |
| Lease liabilities | | | 3,126 | | | | 6,786 | | |
| Deferred income and mining tax liabilities | | | 82,950 | | | | 77,195 | | |
| Decommissioning provisions | | | 18,941 | | | | 21,191 | | |
| Total liabilities | | | 220,608 | | | | 158,544 | | |
| | | | | | |
| Equity | | | | | |
| Equity attributable to owners of the Company | | | | | |
| Capital stock | | | 205,361 | | | | 187,911 | | |
| Contributed surplus | | | 7,359 | | | | 5,859 | | |
| Retained earnings | | | 186,939 | | | | 201,645 | | |
| Accumulated other comprehensive loss | | | (1,140 | ) | | | (240 | ) | |
| Total equity attributable to owners of the Company | | | 398,519 | | | | 395,175 | | |
| Total liabilities and equity | | $ | 619,127 | | | $ | 553,719 | | |
| | | | | | |
Wesdome Gold Mines Ltd.
Statements of Income (Loss) and Comprehensive Income (Loss)
(Unaudited, expressed in thousands of Canadian dollars except for per share amounts)
| | Three Months Ended | | Years Ended |
| | December 31, | | December 31, |
| | | 2022 | | | | 2021 | | | | 2022 | | | | 2021 | |
| | | | | | | | |
| Revenues | $ | 75,035 | | | $ | 85,505 | | | $ | 265,483 | | | $ | 262,907 | |
| Cost of sales | | (61,997 | ) | | | (45,945 | ) | | | (214,371 | ) | | | (145,619 | ) |
| Gross profit | | 13,038 | | | | 39,560 | | | | 51,112 | | | | 117,288 | |
| | | | | | | | |
| Other expenses | | | | | | | |
| Corporate and general | | 2,309 | | | | 2,817 | | | | 11,823 | | | | 10,614 | |
| Stock-based compensation | | 857 | | | | 533 | | | | 3,311 | | | | 2,604 | |
| Exploration and evaluation | | 1,926 | | | | 471 | | | | 14,369 | | | | 471 | |
| Reversal of impairment charges | | - | | | | - | | | | - | | | | (58,563 | ) |
| Impairment charge on exploration properties | | - | | | | - | | | | - | | | | 7,507 | |
| Loss (gain) on disposal of mining equipment | | 242 | | | | - | | | | 303 | | | | (3 | ) |
| Total other expenses (income) | | 5,334 | | | | 3,821 | | | | 29,806 | | | | (37,370 | ) |
| | | | | | | | |
| Operating income | | 7,704 | | | | 35,739 | | | | 21,306 | | | | 154,658 | |
| | | | | | | | |
| Gain on sale of Moss Lake exploration properties | | - | | | | - | | | | - | | | | 34,330 | |
| Impairment of investment in associate | | - | | | | - | | | | (11,800 | ) | | | - | |
| Fair value adjustment on share consideration receivable | | 1,005 | | | | 1,038 | | | | (6,386 | ) | | | 1,947 | |
| Interest expense | | (1,279 | ) | | | (339 | ) | | | (2,446 | ) | | | (1,194 | ) |
| Accretion of decommissioning provisions | | (242 | ) | | | (146 | ) | | | (860 | ) | | | (556 | ) |
| Share of loss of associate | | (1,264 | ) | | | (393 | ) | | | (1,652 | ) | | | (497 | ) |
| Loss on dilution of ownership | | 188 | | | | - | | | | (481 | ) | | | - | |
| Other income (expenses) | | 490 | | | | (124 | ) | | | (872 | ) | | | (363 | ) |
| Income (loss) before income and mining taxes | | 6,602 | | | | 35,775 | | | | (3,191 | ) | | | 188,325 | |
| | | | | | | | |
| Income and mining tax expense | | | | | | | |
| Current | | 999 | | | | 4,720 | | | | 5,600 | | | | 13,375 | |
| Deferred | | 9,130 | | | | 6,293 | | | | 5,915 | | | | 43,662 | |
| Total income and mining tax expense | | 10,129 | | | | 11,013 | | | | 11,515 | | | | 57,037 | |
| | | | | | | | |
| Net (loss) income | $ | (3,527 | ) | | $ | 24,762 | | | $ | (14,706 | ) | | $ | 131,288 | |
| | | | | | | | |
| Other comprehensive income (loss) | | | | | | | |
| Change in fair value of marketable securities | | 360 | | | | (240 | ) | | | (900 | ) | | | (240 | ) |
| Total comprehensive (loss) income | $ | (3,167 | ) | | $ | 24,522 | | | $ | (15,606 | ) | | $ | 131,048 | |
| | | | | | | | |
| (Loss) Earnings per share | | | | | | | |
| Basic | $ | (0.02 | ) | | $ | 0.18 | | | $ | (0.10 | ) | | $ | 0.94 | |
| Diluted | $ | (0.02 | ) | | $ | 0.17 | | | $ | (0.10 | ) | | $ | 0.92 | |
| | | | | | | | |
| Weighted average number of common | | | | | | | |
| shares (000s) | | | | | | | |
| Basic | | 142,782 | | | | 141,156 | | | | 142,391 | | | | 140,195 | |
| Diluted | | 142,782 | | | | 143,200 | | | | 142,391 | | | | 142,787 | |
| | | | | | | | |
Wesdome Gold Mines Ltd.
Statements of Total Equity
(Expressed in thousands of Canadian dollars)
| | | | | | | | Accumulated | | |
| | | | | | | | Other | | |
| | Capital | | Contributed | | Retained | | Comprehensive | Total |
| | Stock | | Surplus | | Earnings | | Loss | | Equity |
| | | | | | | | | | |
| Balance, December 31, 2020 | $ | 179,540 | | | $ | 6,472 | | | $ | 70,357 | | | $ | - | | | $ | 256,369 | |
| Net income for the year ended | | - | | | | - | | | | 131,288 | | | | - | | | | 131,288 | |
| December 31, 2021 | | | | | | | | | |
| 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 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net loss for the year ended | $ | - | | | $ | - | | | $ | (14,706 | ) | | $ | - | | | $ | (14,706 | ) |
| December 31, 2022 | | | | | | | | | |
| Other comprehensive loss | | - | | | | - | | | | - | | | | (900 | ) | | | (900 | ) |
| At-the-Market offering: | | | | | | | | | |
| Common shares issued for cash | | 13,080 | | | | - | | | | - | | | | - | | | | 13,080 | |
| Agents' fees and issuance costs | | (472 | ) | | | - | | | | - | | | | - | | | | (472 | ) |
| Exercise of options | | 3,031 | | | | - | | | | - | | | | - | | | | 3,031 | |
| Value attributed to options exercised | | 1,173 | | | | (1,173 | ) | | | - | | | | - | | | | - | |
| Value attributed to RSUs exercised | | 638 | | | | (638 | ) | | | - | | | | - | | | | - | |
| Stock-based compensation | | - | | | | 3,311 | | | | - | | | | - | | | | 3,311 | |
| Balance, December 31, 2022 | $ | 205,361 | | | $ | 7,359 | | | $ | 186,939 | | | $ | (1,140 | ) | | $ | 398,519 | |
| | | | | | | | | | |
Wesdome Gold Mines Ltd.
Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)
| | Three Months Ended
December 31, | | Years Ended
December 31, | |
| | | 2022 | | | | 2021 | | | | 2022 | | | | 2021 | | |
| | | | | | | | | |
| Operating Activities | | | | | | | | |
| Net (loss) income | $ | (3,527 | ) | | $ | 24,762 | | | $ | (14,706 | ) | | $ | 131,288 | | |
| Depreciation and depletion | | 13,428 | | | | 8,121 | | | | 44,562 | | | | 28,066 | | |
| Stock-based compensation | | 857 | | | | 533 | | | | 3,311 | | | | 2,604 | | |
| Accretion of decommissioning provisions | | 242 | | | | 146 | | | | 860 | | | | 556 | | |
| Deferred income and mining tax expense | | 9,130 | | | | 6,293 | | | | 5,915 | | | | 43,662 | | |
| Amortization of deferred financing cost | | 133 | | | | 84 | | | | 401 | | | | 412 | | |
| Interest expense | | 1,279 | | | | 339 | | | | 2,446 | | | | 1,194 | | |
| Reversal of impairment charges | | - | | | | - | | | | - | | | | (58,563 | ) | |
| Gain on sale of Moss Lake exploration properties | | - | | | | - | | | | - | | | | (34,330 | ) | |
| Impairment charge on exploration properties | | - | | | | - | | | | - | | | | 7,507 | | |
| Loss (gain) on disposal of mining equipment | | 242 | | | | - | | | | 303 | | | | (3 | ) | |
| Impairment of investment in associate | | - | | | | - | | | | 11,800 | | | | - | | |
| Fair value adjustment on share consideration receivable | | (1,005 | ) | | | (1,038 | ) | | | 6,386 | | | | (1,947 | ) | |
| Share of loss of associate | | 1,264 | | | | 393 | | | | 1,652 | | | | 497 | | |
| Loss on dilution of ownership | | (188 | ) | | | - | | | | 481 | | | | - | | |
| Foreign exchange loss (gain) on borrowings | | (1,009 | ) | | | (8 | ) | | | 451 | | | | (23 | ) | |
| Net changes in non-cash working capital | | (6,956 | ) | | | 11,726 | | | | 18,928 | | | | 21,403 | | |
| Mining and income tax paid | | (3,623 | ) | | | (3,191 | ) | | | (17,584 | ) | | | (11,365 | ) | |
| Net cash from operating activities | | 10,267 | | | | 48,160 | | | | 65,206 | | | | 130,958 | | |
| | | | | | | | | |
| Financing Activities | | | | | | | | |
| Proceeds from At-the-Market offering | | 13,080 | | | | - | | | | 13,080 | | | | - | | |
| Agents' fees and issuance costs | | (632 | ) | | | - | | | | (632 | ) | | | - | | |
| Proceeds from revolving credit facility | | 28,279 | | | | - | | | | 69,163 | | | | - | | |
| Repayment of revolving credit facility | | - | | | | - | | | | (14,810 | ) | | | - | | |
| Repayment of lease liabilities | | (11,929 | ) | | | (11,823 | ) | | | (8,898 | ) | | | (8,778 | ) | |
| Exercise of options | | 4,110 | | | | 5,493 | | | | 3,031 | | | | 5,154 | | |
| Deferred financing costs | | 5,678 | | | | 4,935 | | | | (1,053 | ) | | | (342 | ) | |
| Interest paid | | (1,279 | ) | | | (339 | ) | | | (2,446 | ) | | | (1,194 | ) | |
| Net cash from (used in) financing activities | | 37,307 | | | | (1,734 | ) | | | 57,435 | | | | (5,160 | ) | |
| | | | | | | | | |
| Investing Activities | | | | | | | | |
| Additions to mining properties | | (20,948 | ) | | | (12,375 | ) | | | (45,328 | ) | | | (42,867 | ) | |
| Additions to mines under development | | (18,242 | ) | | | (35,455 | ) | | | (100,635 | ) | | | (76,337 | ) | |
| Additions to exploration properties | | - | | | | - | | | | - | | | | (23,267 | ) | |
| 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 | ) | |
| Funds held against standby letter of credit | | - | | | | - | | | | (519 | ) | | | - | | |
| Proceeds on disposal of mining equipment | | 60 | | | | - | | | | 262 | | | | 73 | | |
| Net changes in non-cash working capital | | - | | | | (9,205 | ) | | | - | | | | 1,222 | | |
| Net cash used in investing activities | | (39,130 | ) | | | (59,135 | ) | | | (146,220 | ) | | | (132,514 | ) | |
| | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | 8,444 | | | | (12,709 | ) | | | (23,579 | ) | | | (6,716 | ) | |
| Cash and cash equivalents - beginning of period | | 24,741 | | | | 69,473 | | | | 56,764 | | | | 63,480 | | |
| Cash and cash equivalents - end of year | $ | 33,185 | | | $ | 56,764 | | | $ | 33,185 | | | $ | 56,764 | | |
| | | | | | | | | |
| Cash and cash equivalents consist of: | | | | | | | | |
| Cash | $ | 33,185 | | | $ | 56,764 | | | $ | 33,185 | | | $ | 56,764 | | |
| | $ | 33,185 | | | $ | 56,764 | | | $ | 33,185 | | | $ | 56,764 | | |
| | | | | | | | | |
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