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Wesdome Announces 2022 Third Quarter Financial Results

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Wesdome Announces 2022 Third Quarter Financial Results

 

 

 

 

 

Wesdome Gold Mines Ltd. (TSX: WDO) announces its third quarter financial results. All figures are stated in Canadian dollars unless otherwise noted.

 

Duncan Middlemiss, President and CEO commented, “During Q3, we are pleased to have made significant advancements on the build out at Kiena, such as completing the hoist refurbishment project during the July shut down. As well, the remaining key electrical components for the paste plant were delivered and installed, and have been successfully powered. Post quarter end, construction is being finalized, and pre-commissioning activities have started. We expect the plant to be fully operational in Q4. Once this is achieved, the Company can declare commercial production at the Kiena mine.

 

At Eagle, initial mining of the Falcon zone in the volcanic host rock resulted in one stope returning lower grades than forecast. However, ongoing development and drilling throughout the year has continued to better define the higher-grade shoots within the Falcon Zone and improved our confidence in forecasting production going forward. Additionally, recent surface and underground drilling, from the 355 m-level exploration drift, has extended the up-plunge extent of the Falcon 7 zone to surface. As the mill was on shut down in July for planned mill thickener refurbishment work, production was relatively in line with Q2 2022 with higher production planned for Q4.

 

Year to date, previously released combined production of 75,734 ounces positions the Company is currently tracking to produce near the low end of its 120,000 – 140,000 ounce revised guidance range and the higher end of our cost guidance range, which relies on significant production late in the fourth quarter. Costs have been higher than previously guided at the start of the year due to a number of factors, primarily lower grade at Eagle River as a result of grade underperformance in the Falcon Zone, supply chain delays resulting in less ounces produced than budgeted at Kiena, and inflationary pressures. The ground conditions in Kiena Deep, specific to the schist and komatiite in the footwall of the A Zone remain challenging, and the equipment delays encountered earlier in the year (now received with the exception of some bolting equipment), have resulted in the development and mining rates being slower to ramp up than originally anticipated. Ramp up activities at Kiena will continue during 2023 as the development deficit incurred is being addressed. With learnings from mining the new Falcon Zone at Eagle in 2022, and as we integrate Kiena, 2023 is expected to be a consolidation year with financial improvement expected as growth capital at Kiena tapers off, and production increases throughout the year.”

 

 

2022 Guidance Initial Revised YTD 2022
Achievement
Gold production      
Eagle River 95,000 – 105,000 ounces 85,000 – 95,000 ounces 54,495 ounces
Mishi 1,000 – 2,000 ounces 1,000 – 2,000 ounces 2,005 ounces
Kiena 64,000 – 73,000 ounces 34,000 – 43,000 ounces 19,234 ounces
  160,000 – 180,000 ounces 120,000 – 140,000 ounces 75,734 ounces
       
Head grade (g/t Au)      
Eagle River 12.1 – 13.4 10.5 – 11.7 10.6
Mishi 2.0 – 2.5 2.9 – 3.3 3.2
Kiena 10.6 – 11.8 8.6 – 9.5 9.5
       
Cash cost per ounce 1 $875 – $970
(US$700 – US$775)		 $1,260 – $1,390
(US$980 – US$1085)		 $1,485
(US$1,158)
AlSC per ounce 1 $1,270 – $1,400
(US$1,015 – US$1,125)		 $1,765 – $1,950
(US$1,370 – US$1,520)		 $1,975
(US$1,539)

 

 

Key operating and financial highlights of the Q3 2022 results include:

  • Gold production of 22,883 ounces, including 5,208 Kiena pre-commercial ounces, is a 22% decrease over the same period of the previous year (Q3 2021: 29,344 ounces):
    • Eagle River Underground milled 52,247 tonnes at a head grade of 10.7 grams per tonne for 17,405 ounces produced, a 26% decrease over the same period in the previous year (Q3 2021: 23,621 ounces).
    • Mishi Open Pit milled 3,595 tonnes at a head grade of 2.8 grams per tonne for 270 ounces produced (Q3 2021: 212 ounces).
    • Kiena milled 16,112 tonnes at a head grade of 10.2 grams per tonne for 5,208 pre-commercial ounces produced.
  • Revenue of $61.8 million, an 8% decrease over the same period of the previous year (Q3 2021: $67.5 million).
  • Ounces sold were 27,500 at an average sales price of $2,246/oz (Q3 2021: 30,000 ounces at an average price of $2,249/oz).
  • Cash margin1 of $17.0 million, a 52% decrease over the same period of the previous year (Q3 2021: $35.3 million).
  • Operating cash flows decreased by 62% to $12.9 million or $0.09 per share1 as compared to $33.9 million or $0.24 per share for the same period in 2021.
  • Free cash outflow of $23.2 million, net of an investment of $22.8 million in Kiena, or ($0.16) per share1 (Q3 2021: free cash outflow of $9.1 million or ($0.06) per share1).
  • Net loss of $3.9 million or ($0.03) per share (Q3 2021: Net income – $14.5 million or $0.10 per share) and Net loss (adjusted)1 of $3.9 million or ($0.03) per share (Q3 2021: $17.4 million or $0.12 per share)
  • Cash position at the end of the quarter of $24.7 million.
  • Cash costs1 of $1,628/oz or US$1,247/oz, an 52% increase over the same period in 2021 (Q3 2021: $1,072/oz or US$851/oz);
  • AISC1 increased by 48% to $2,217/oz or US$1,698/oz over the same period in 2021(Q3 2021: $1,495 or US$1,186 per ounce).
  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.

 

Production and Exploration Highlights Achievements
Eagle River Complex
  • Q3 2022 Eagle River underground ore production decreased by 26% from Q3 2021 to 17,405 ounces due to lower head grade and throughput. In July, the mill performed a planned shutdown to refurbish its thickener, resulting in 15 days of downtime. Head grade at Eagle River in Q3 2022 averaged 10.7 g/t, which is within the revised 2022 grade guidance of 10.5 -11.7 g/t Au. Production was negatively impacted as two underground crews were sent off-site in September due to members testing positive for Covid.
  • Q3 2022 cash cost of $1,473 (US$1,128) per ounce of gold sold1 increased by 49% or $486 per ounce from Q3 2021 due to a 30% decrease in ounces sold, and a 4% increase in overall aggregate site operating costs resulting from higher costs incurred on operating development, 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.
  • Q3 2022 AISC of $2,259 (US$1,730) per ounce of gold sold1 increased by 56% or $808 per ounce from Q3 2021 due to a 30% decrease in ounces sold, a 32% increase in capital spending primarily resulting from the stage 5 tailings dam lift, and a 4% increase in overall aggregate site operating costs resulting from higher costs incurred on operating development, 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.
  • Generated a cash margin in Q3 2022 of $14.6 million compared to $34.2 million in Q3 2021 due to the 30% decrease in ounces sold, and the 4% 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.
  • In addition, a number of 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.
 
  • Exploration drilling completed much further to the east, within the central portion of the mine diorite defined a new lens of gold mineralization. This lens is interpreted to be east of and along strike from the 7 Zone structure, which is host to the Falcon 7 zone further to the west in the volcanic rocks and the 7 zone currently being mined within the mine diorite. Recent highlights include 27 g/t Au over 4.6 m and 40.4 g/t Au over 3.0 m core length. This new lens will now be drilled and accessed from adjacent underground infrastructure along the previous mined 8 zone approximately 100 m to the south.
  • 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.
Kiena
  • Generated $2.4 million in cash margin despite the high cash costs of $1,963 (US$1,504) per ounce of gold sold1 due to low pre-commercial production levels. Kiena performed a planned hoist refurbishment shutdown in July, which resulted in 24 days of downtime.
  • Now that the paste fill plant components have all been received, construction is being finalized and pre-commissioning activities have begun. Commissioning of the paste fill plant is still expected in Q4 2022. Pending completion of the paste plant in Q4, the Company will declare commercial production, which signifies that the required operational infrastructure is in place.
  • The ground conditions in Kiena Deep specific to the schist and komatiite in the footwall of the A Zone remain challenging and the global supply chain disruption continues to delay delivery of critical bolting equipment (originally planned to be delivered in March 2022), which has resulted in the development and mining rates being slower to ramp up than originally anticipated. Ramp-up activities at Kiena will continue during 2023 as the development deficit incurred is being addressed.
  • The recent discovery of the South Limb and Footwall zones show the underexplored exploration potential of the Kiena Deep Zone, and therefore, the potential to increase the number of ounces per vertical metre and to provide additional working faces during mining. The discovery of these zones highlights the potential to add ounces in additional zones in this area within the basalt and is the focus of the current drilling. We expect to report these results in the near future.
  • Underground drills are active on 33 level to test historic zones and encouraging drill results further to the southeast along strike from the Kiena mine.
  • 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.
  • To the east of the mine, surface drilling has been focused near the recent discoveries at the Shawkey and Bourgo zones and most recently at the historic Dubuisson zone. Recent drilling has intersected gold mineralization in albite altered diorites with tourmaline and gold, which is interpreted to be a different style and later stage of mineralization compared to Kiena Deep. We continue to focus our drilling in this area and will report results in the near term for this drilling. Given that these zones are relatively close to the existing 33 level development, these areas represent a potential additional source of ore for the Kiena mill.

 

Technical Disclosure

 

The technical content of this release has been compiled, reviewed and approved by Frederic Langevin, Eng, Chief Operating Officer, a “Qualified Person” as defined in National Instrument 43-101 –Standards of Disclosure for Mineral Projects.

 

ABOUT WESDOME

 

Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently re-started 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 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 Nine Months Ended
    September 30,   September 30,
    2022     2021     2022     2021  
Operating data                
Milling(tonnes)                
Eagle River   52,247     56,003     165,428     172,600  
Mishi   3,595     3,727     23,153     30,293  
Kiena   16,112     30,470     63,752     30,470  
Throughput2   71,954     90,200     252,333     233,363  
Head grades (g/t)                
Eagle River   10.7     13.4     10.6     13.8  
Mishi   2.8     2.3     3.2     2.4  
Kiena   10.2     5.8     9.5     5.8  
Recovery (%)                
Eagle River   96.6     97.9     96.6     97.5  
Mishi   83.0     78.0     83.5     81.4  
Kiena   98.5     97.9     98.4     97.9  
                 
Production(ounces)                
Eagle River   17,405     23,621     54,495     74,853  
Mishi   270     212     2,005     1,920  
Kiena   5,208     5,511     19,234     5,511  
Total gold produced2   22,883     29,344     75,734     82,284  
Total gold sales(ounces)4   27,500     30,000     81,500     80,957  
                 
Eagle River Complex(per ounce of gold sold)1            
Average realized price $ 2,247   $ 2,254   $ 2,343   $ 2,240  
Cash costs   1,473     987     1,377     966  
Cash margin $ 774   $ 1,267   $ 966   $ 1,274  
All-in Sustaining Costs1 $ 2,259   $ 1,451   $ 1,989   $ 1,413  
                 
Mine operating costs/tonne milled1 $ 475   $ 388   $ 412   $ 347  
                 
Average 1 USD → CAD exchange rate   1.3056     1.2600     1.2828     1.2513  
                 
Cash costs per ounce of gold sold (US$)1 $ 1,128   $ 783   $ 1,073   $ 772  
All-in Sustaining Costs (US$)1 $ 1,730   $ 1,152   $ 1,551   $ 1,129  
                 
Kiena Mine (per ounce of gold sold)1                
Average realized price $ 2,244   $ 2,209   $ 2,314   $ 2,209  
Cash costs3, 5   1,963     1,844     1,746     1,243  
Cash margin $ 281   $ 365   $ 568   $ 966  
All-in Sustaining Costs1, 3, 5 $ 2,126   $ 1,891   $ 1,941   $ 1,288  
                 
Mine operating costs/tonne milled1 $ 869   $ 335   $ 643   $ 335  
                 
Average 1 USD → CAD exchange rate   1.3056     1.2600     1.2828     1.2513  
                 
Cash costs per ounce of gold sold (US$)1 $ 1,581   $ 1,463   $ 1,361   $ 993  
All-in Sustaining Costs (US$)1 $ 1,628   $ 1,501   $ 1,513   $ 1,029  
                 
Financial Data                
Cash margin1 $ 16,993   $ 35,307   $ 69,208   $ 97,673  
Net income $ (3,899 ) $ 14,486   $ (11,179 ) $ 106,526  
Net income adjusted1 $ (3,899 ) $ 17,408   $ (2,329 ) $ 45,141  
Earnings before interest, taxes, depreciation and amortization1 $ 4,814   $ 31,848   $ 34,308   $ 87,964  
Operating cash flow $ 12,945   $ 33,890   $ 54,939   $ 82,798  
Free cash flow $ (23,193 ) $ (9,087 ) $ (58,565 ) $ (18,119 )
Per share data                
Net income $ (0.03 ) $ 0.10   $ (0.08 ) $ 0.76  
Adjusted net income1 $ (0.03 ) $ 0.12   $ (0.02 ) $ 0.32  
Operating cash flow1 $ 0.09   $ 0.24   $ 0.39   $ 0.59  
Free cash flow1 $ (0.16 ) $ (0.06 ) $ (0.41 ) $ (0.13 )
                 

 

  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. YTD 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. YTD 2021 includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020
  5. 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.
Condensed Interim Statements of Financial Position
(Unaudited, expressed in thousands of Canadian dollars)

 

       
  As at September 30, 2022   As at December 31, 2021
Assets      
Current      
Cash and cash equivalents $ 24,741     $ 56,764  
Receivables and prepaids   10,327       13,793  
Inventories   19,338       17,918  
Income and mining tax receivable   3,870       –  
Share consideration receivable   –       4,560  
Total current assets   58,276       93,035  
       
Restricted cash   1,176       657  
Deferred financing costs   1,570       758  
Mining properties, plant and equipment   207,377       212,394  
Mines under development   294,525       214,089  
Exploration properties   1,139       1,139  
Marketable securities   600       1,860  
Share consideration receivable   4,565       10,729  
Investment in associate   9,534       19,058  
Total assets $ 578,762     $ 553,719  
       
Liabilities      
Current      
Payables and accruals $ 59,334     $ 40,093  
Borrowings   27,414       –  
Income and mining tax payable   –       5,490  
Current portion of lease liabilities   6,985       7,789  
Total current liabilities   93,733       53,372  
       
Lease liabilities   4,004       6,786  
Deferred income and mining tax liabilities   73,981       77,195  
Decommissioning provisions   18,824       21,191  
Total liabilities   190,542       158,544  
       
Equity      
Equity attributable to owners of the Company      
Capital stock   192,753       187,911  
Contributed surplus   6,501       5,859  
Retained earnings   190,466       201,645  
Accumulated other comprehensive loss   (1,500 )     (240 )
Total equity attributable to owners of the Company   388,220       395,175  
Total liabilities and equity $ 578,762     $ 553,719  
       

 

 

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Income/(Loss) and Comprehensive Income/(Loss)
(Expressed in thousands of Canadian dollars except for per share amounts)

 

  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2022       20211       2022       20211  
               
Revenues $ 61,823     $ 67,548     $ 190,448     $ 177,402  
Cost of sales   (56,294 )     (39,636 )     (152,374 )     (99,674 )
Gross profit   5,529       27,912       38,074       77,728  
               
Other expenses              
Corporate and general   2,918       2,565       9,514       7,797  
Stock-based compensation   823       558       2,453       2,071  
Exploration and evaluation   5,273       –       12,442       –  
Reversal of impairment charges   –       –       –       (58,563 )
Impairment charge on exploration properties   –       4,394       –       7,507  
Loss (gain) on disposal of mining equipment   74       (3 )     62       (3 )
Total other expenses (income)   9,088       7,514       24,471       (41,191 )
               
Operating (loss) income   (3,559 )     20,398       13,603       118,919  
               
Gain on sale of Moss Lake exploration properties   –       –       –       34,330  
Impairment of investment in associate   –       –       (11,800 )     –  
Fair value adjustment on share consideration receivable   (1,552 )     (612 )     (7,391 )     909  
Interest expense   (588 )     (325 )     (1,167 )     (855 )
Accretion of decommissioning provisions   (239 )     (176 )     (618 )     (410 )
Share of income (loss) of associate   155       (15 )     (388 )     (104 )
Loss on dilution of ownership   (35 )     –       (669 )     –  
Other (expense) income   (1,420 )     464       (1,363 )     (239 )
(Loss) income before income and mining taxes   (7,238 )     19,734       (9,793 )     152,550  
               
Income and mining tax (recovery) expense              
Current   325       3,309       4,601       8,655  
Deferred   (3,664 )     1,939       (3,215 )     37,369  
Total income and mining tax (recovery) expense   (3,339 )     5,248       1,386       46,024  
               
Net (loss) income $ (3,899 )   $ 14,486     $ (11,179 )   $ 106,526  
               
Other comprehensive loss              
Change in fair value of marketable securities   (360 )     –       (1,260 )     –  
Total comprehensive (loss) income $ (4,259 )   $ 14,486     $ (12,439 )   $ 106,526  
               
               
(Loss) earnings per share              
Basic $ (0.03 )   $ 0.10     $ (0.08 )   $ 0.76  
Diluted $ (0.03 )   $ 0.10     $ (0.08 )   $ 0.75  
               
Weighted average number of common              
shares (000s)              
Basic   142,487       140,432       142,260       139,872  
Diluted   142,487       143,069       142,260       142,653  
               
  1. Q3 2021 has been restated to correct an error in the valuation of the share consideration receivable related to the sale of the Moss Lake Project which closed on May 31, 2021.  The proceeds have been restated to $44.7 million from $49.5 million, which has decreased the gain on sale of the Moss Lake properties to $30.2 million (net of tax of $4.1 million) from $34.6 million (net of tax of $4.5 million).  The Q3 2021 net income has decreased by $0.9 million resulting from the mark-to-market of the share consideration receivable.  Basic earnings per share for Q3 2021 changed from $0.11 to $0.10 per share and basic earnings per share for Q3 YTD 2021 changed from $0.79 to $0.76 per share.

 

 

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Changes in Equity
(Unaudited, expressed in thousands of Canadian dollars)

 

              Accumulated    
              Other    
  Capital   Contributed   Retained   Comprehensive Total
  Stock   Surplus   Earnings1   Loss   Equity1
                   
Balance, December 31, 2020 $ 179,540     $ 6,472     $ 70,357     $ –     $ 256,369  
Net income for the period ended                  
September 30, 2021   –       –       106,526       –       106,526  
Exercise of options   3,045       –       –       –       3,045  
Value attributed to options exercised   1,478       (1,478 )     –       –       –  
Value attributed to RSUs exercised   786       (786 )     –       –       –  
Stock-based compensation   –       2,071       –       –       2,071  
Balance, September 30, 2021 $ 184,849     $ 6,279     $ 176,883     $ –     $ 368,011  
                   
                   
Balance, December 31, 2021 $ 187,911     $ 5,859     $ 201,645     $ (240 )   $ 395,175  
Net loss for the period ended                  
September 30, 2022   –       –       (11,179 )     –       (11,179 )
Other comprehensive loss   –       –       –       (1,260 )     (1,260 )
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   –       2,453       –       –       2,453  
Balance, September 30, 2022 $ 192,753     $ 6,501     $ 190,466     $ (1,500 )   $ 388,220  
                   
  1. See footnote in the condensed interim statements of income/(loss) and comprehensive income/(loss) for details of the restatement in Q3 2021.

 

 

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)

 

  Three Months Ended September 30,   Nine Months Ended September 30,
    2022       20211       2022       20211  
               
Operating Activities              
Net (loss) income $ (3,899 )   $ 14,486     $ (11,179 )   $ 106,526  
Depreciation and depletion   11,464       7,395       31,134       19,945  
Stock-based compensation   823       558       2,453       2,071  
Accretion of decommissioning provisions   239       176       618       410  
Deferred income and mining tax expense   (3,664 )     1,939       (3,215 )     37,369  
Amortization of deferred financing cost   99       104       268       328  
Interest expense   588       325       1,167       855  
Reversal of impairment charges   –       –       –       (58,563 )
Gain on sale of Moss Lake exploration properties   –       –       –       (34,330 )
Impairment charge on exploration properties   –       4,394       –       7,507  
Loss (gain) on disposal of mining equipment   74       (3 )     62       (3 )
Impairment of investment in associate   –       –       11,800       –  
Fair value adjustment on share consideration receivable   1,552       612       7,391       (909 )
Share of (income) loss of associate   (155 )     15       388       104  
Loss on dilution of ownership   35       –       669       –  
Foreign exchange loss (gain) on borrowings   1,569       64       1,460       (15 )
Net changes in non-cash working capital   6,978       6,638       25,884       9,677  
Mining and income tax paid   (2,758 )     (2,813 )     (13,961 )     (8,174 )
Net cash from operating activities   12,945       33,890       54,939       82,798  
               
Financing Activities              
Proceeds from revolving credit facility   25,928       –       40,884       –  
Repayment of revolving credit facility   –       –       (14,810 )     –  
Exercise of options   –       1,814       3,031       3,045  
Deferred financing costs   (1,079 )     (5 )     (1,079 )     (339 )
Repayment of lease liabilities   (2,300 )     (1,877 )     (6,731 )     (5,277 )
Interest paid   (588 )     (325 )     (1,167 )     (855 )
Net cash from (used in) financing activities   21,961       (393 )     20,128       (3,426 )
               
Investing Activities              
Additions to mining properties   (11,058 )     (12,620 )     (24,380 )     (30,492 )
Additions to mines under development   (22,780 )     (27,481 )     (82,393 )     (40,882 )
Additions to exploration properties   –       –       –       (23,267 )
Purchase of exploration property   –       (1,000 )     –       (1,000 )
Cash proceeds on sale of Moss Lake, net of transaction costs   –       –       –       11,762  
Funds held against standby letter of credit   (25 )     –       (519 )     –  
Proceeds on disposal of mining equipment   182       73       202       73  
Net changes in non-cash working capital   –       9,205       –       10,427  
Net cash used in investing activities   (33,681 )     (31,823 )     (107,090 )     (73,379 )
               
Increase (decrease) in cash and cash equivalents   1,225       1,674       (32,023 )     5,993  
Cash and cash equivalents – beginning of period   23,516       67,799       56,764       63,480  
Cash and cash equivalents – end of period $ 24,741     $ 69,473     $ 24,741     $ 69,473  
               
Cash and cash equivalents consist of:              
Cash $ 24,741     $ 69,473     $ 24,741     $ 69,473  
  $ 24,741     $ 69,473     $ 24,741     $ 69,473  
               

 

  1. See footnote in the condensed interim statements of income/(loss) and comprehensive income/(loss) for details of the restatement in Q3 2021.

 

Posted November 10, 2022
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