TORONTO, Nov. 06, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Wesdome Gold Mines (TSX:WDO, OTCQX:WDOFF) please note that the 2025 Production Guidance table has been updated with new gold production ranges in the Eagle River, Kiena, and Consolidated data columns. The corrected release follows:

Wesdome Gold Mines Ltd. (TSX:WDO, OTCQX:WDOFF) ("Wesdome” or the "Company”) today announced its results for the three and nine months ended September 30, 2024 ("Q3 2024” and "YTD 2024”). Preliminary operating results for Q3 2024 and YTD 2024 were disclosed in the Company's press release dated October 17, 2024. Management will host a conference call tomorrow, November 7, 2024 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q3 2024 Highlights

  • Consolidated gold production was 45,109 ounces, a 62% increase over the prior year quarter, at cost of sales per ounce sold of $1,7831,4 (US$1,308), cash costs per ounce sold1 of $1,214 (US$890) and all-in sustaining costs ("AISC”) per ounce sold1 of $1,920 (US$1,408). The average realized price of gold sold was $3,420 (US$2,508) per ounce.
  • Net income increased to $39.0 million, or $0.26 earnings per share, an increase of $42.2 million from the corresponding quarter in 2023 and $9.9 million, or $0.07 earnings per share, from Q2 2024.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA”)1 increased to $84.6 million or by more than 6.5 times relative to the prior year quarter mainly due to an increase in ounces sold, a higher average realized price of gold sold and lower cash costs.
  • Net cash flow from operating activities increased to $61.0 million, or $0.41 operating cash flow per share1,3, $15.9 million higher than the prior year quarter mainly due to a higher average realized price of gold sold.
  • Cash of $82.5 million has nearly doubled since year end, resulting in available liquidity at the end of the third quarter of $232.5 million including cash and $150.0 million of undrawn full capacity available under the Company's revolving credit facility.
  • Free cash flow1 increased to $30.8 million, or $0.21 per share, compared to $10.7 million, or $0.07 per share, in the corresponding period in 2023 mainly due to higher average realized price of gold sold, partially offset by an increase in capital expenditures.
  • Consolidated 2024 production guidance range has been narrowed to between 166,000 and 176,000 ounces of gold, while increasing cash costs per ounce sold to $1,225 to $1,300 and AISC per ounce sold1 to $1,975 to $2,100 (US$1,445 to US$1,525).
  • During the quarter, the Company announced the appointments of Guy Belleau as Chief Operating Officer and Ronald "Jono” Lawrence as Senior Vice President, Exploration and Resources. Subsequent to quarter end, Philip C. Yee was appointed Independent Director and Chair of the Audit Committee.
Anthea Bath, President and Chief Executive Officer, commented: "Wesdome delivered a strong third quarter with sequential improvement over the first two quarters of the year. Higher production at lower costs have led to strong operating cash flow and another free cash flow1 record, with notable improvements seen across most performance metrics compared to the prior year quarter. Our dedicated teams at Eagle River and Kiena have been instrumental in this success, while upholding our commitment to health, safety, and environmental stewardship.

"Wesdome's financial position has strengthened considerably. Compared to year end, our cash position has doubled, we have eliminated our bank debt and increased our available liquidity by nearly $80 million. We will continue to use our financial strength to de-risk future mine plans by accelerating the rate of capital spend on mine development and exploration and making additional infrastructure investments to support our fill the mill strategy.

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"Looking ahead, preliminary plans for 2025 continue to de-risk our medium-term outlook and point to growing production levels at lower costs relative to this year.”

Consolidated Financial and Operating Highlights

In 000s, except per unit and per share amountsQ3 2024Q3 2023YTD 2024YTD 2023
Financial results    
Revenue2146,852  69,696 375,573  230,952 
Cost of sales76,512  71,450 229,301  216,916 
Gross profit (loss)70,340 (1,754)146,272 14,036 
Cash margin194,635  22,233 217,498  85,363 
EBITDA184,600  12,933 193,138  61,077 
Net income (loss)38,999 (3,248)78,842 (8,607)
Earnings (loss) per share0.26 (0.02)0.53 (0.06)
Adjusted net income (loss)139,196 (2,573)79,039 (4,330)
Adjusted net income (loss) per share1 0.26 (0.02)0.53 (0.03)
Net cash from operating activities60,976  45,076 164,561  64,175 
Operating cash flow per share1,30.41 0.30 1.10 0.44 
Net cash from (used in) financing activities449 (2,370)(39,050)7,367 
Net cash used in investing activities(29,607)33,191 (84,367)(73,145)
Free cash flow130,838 10,672 78,723 (14,204)
Free cash flow per share10.21 0.07 0.53 (0.10)
     
Average 1 USD → CAD exchange rate1.3637  1.3414 1.3603  1.3456 
     
Operating results    
Gold produced (ounces)45,109  27,760 122,466  87,120 
Gold sold (ounces)42,900  27,000 118,600  89,000 
Average realized price1 ($/oz)3,420  2,579 3,163  2,592 
Average realized price1 (US$/oz)2,508  1,923 2,325  1,926 
     
Per ounce of gold sold1    
Cost of sales1,4 ($/oz)1,783  2,646 1,933  2,437 
Cost of sales1,4 (US$/oz)1,308  1,973 1,421  1,923 
Cash costs1 ($/oz)1,214  1,755 1,329  1,633 
Cash costs1 (US$/oz)890  1,308 977  1,214 
AISC1 ($/oz)1,920  2,711 2,032  2,293 
AISC1 (US$/oz)1,408  2,021 1,493  1,704 
     
Financial position    
Cash82,515  31,582 82,515 31,582 
Working capital69,413 (18,839)69,413 (18,839)
Total assets684,736  605,364 684,736 605,364 
Current liabilities61,062 87,577 61,062 87,577 
Non-current liabilities110,269  93,404 110,269 93,404 
Total liabilities171,331  180,981 171,331 180,981 
  1. Refer to the section in this press release entitled "Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
  2. Revenue includes insignificant amounts from the sale of by-product silver.
  3. Operating cash flow per share is calcated by dividing net cash from activities by the weighted average number of shares.
  4. Costs of sales per ounce of gold sold is calculated by dividing the cost of sales by the number of ounces sold.
Eagle River - Ontario

Eagle River Operating ResultsQ3 2024Q3 2023YTD 2024YTD 2023
     
Ore milled (tonnes)    
Eagle River57,98455,153162,168 167,958
Mishi - - - 6,150
Total ore milled57,98455,153162,168 174,108
     
Head grade (grams per tonne, "g/t")    
Eagle River13.1 11.913.4 12.1
Mishi - - - 2.3
Total head grade13.1 11.913.4 12.1
     
Average mill recoveries (%)    
Eagle River97.0 96.796.8 96.7
Mishi - - - 72.5
Total gold recovery97.0 96.7

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