The Prospector News

Wesdome Announces Second Quarter 2023 Financial Results

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Wesdome Announces Second Quarter 2023 Financial Results

 

 

 

 

 

Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX:WDOFF) announces second quarter financial results.

 

Second quarter 2023 highlights

  • Payable gold production in the second quarter of 2023 was 30,992 ounces at Cash costs per ounce of $1,743 (US$1,298) and all-in sustaining costs per ounce of $2,238 (US$1,666). These results compared well relative to internal targets for the quarter and reflect consistent performance from Eagle River and the successful ongoing ramp-up of mining activities at Kiena.
  • At Kiena, execution of development of the ramp to the 129 level giving access to the A Zone of Kiena Deep continues to track ahead of schedule, positioning the mine well for increased production levels in the first half of 2024. Excavation of an exploration ramp from surface to access a drilling platform to test the near-surface Presqu’ile Zone is expected to proceed in the second half of 2023 after the required permits are secured.
  • Cash margins were $28.7 million, however free cash flow was negative $5.3 million as the Company completes final projects related to the production ramp up at Kiena, primarily the ramp to 129 level. While on track to meet 2023 capital spend guidance, timing of expenditures are planned to be highest in the third quarter, before easing in the fourth quarter.
  • Adjusted net loss attributable to shareholders of $5.0 million, or $0.03 per share. Operating cash flow of $14 million, or $0.09 per share.
  • The Company reaffirms its production guidance of 110,000 to 130,000 ounces and cash cost guidance of $1,500 to $1,670 per ounce (US$1,150 to US$1,290), as well as AISC of $2,100 to $2,340 per ounce, (US$1,620 to $1,800).
  • Available liquidity of $133 million, including $22.1 million in cash, and $111 million in available credit, reflecting $11 million of gross issuance under the at-the-market (“ATM”) program during the period.
  • Subsequent to quarter end, a careful review of near-term operating and financial projections concluded that use of the ATM facility is no longer required.

 

Charles Main, Lead Independent Director during Warwick Morley-Jepson’s tenure as Interim President and CEO, commented, “On behalf of the Board, we want to thank Warwick for his dedication and leadership in stabilizing the Company over the last six months. We look forward to working with Warwick in his continuing role as independent Chair of the Board.”

 

Following the appointment of a permanent CEO and Warwick’s return to the independent Chair position the Company has eliminated the Lead Director role. Mr. Main will resume his position as Independent Director.

 

Anthea Bath, President and CEO of Wesdome stated, “Since starting as President and Chief Executive Officer on July 1, 2023, I have had the privilege to visit both sites and spend time with our teams and stakeholders. I come away confident that Wesdome will become a responsible, efficient, and value-driven free cash flow platform for growth.

 

“In the second quarter of 2023, Wesdome delivered a solid operational quarter and continues to track well relative to guidance, with production at Eagle River and Kiena delivering above our quarterly budget despite impacts from regional forest fires in the period. During the quarter we also made strong progress on our key projects including ramp development to the 129 level at Kiena, which remains ahead of schedule. Looking ahead to the second half of 2023, we completed our planned shut down at Eagle River for mill upgrades in July, with the mill offline for two weeks. With higher capital spending also planned for the third quarter, we now expect to see an improving cash flow profile in the back end of the year. This cash flow will allow us to continue improving working capital levels.”

 

Anthea concluded, “Finally, after a careful and deliberate review of our preliminary operating and financial plans, we have greater confidence in the near-term grade profile at Kiena and, therefore, anticipate a production and free cash flow rebound next year. Combined with an improved liquidity position, backstopped by the strength of our credit facility, we now believe that equity issuance under the ATM facility is no longer required. As Wesdome turns a corner late this year, we will remain committed to reducing borrowings under our $150 million credit facility as well as advancing and optimizing our high-quality portfolio.”

 

Management Update

 

Subsequent to the quarter-end, Mr. Scott Gilbert advised that he will be leaving Wesdome to pursue another opportunity in the mining industry. Mr. Gilbert has already initiated the process of transitioning his responsibilities and will be available to provide support as needed.

 

The Company has appointed Mr. Jonathan Singh as Interim Chief Financial Officer effective September 12, 2023. Mr. Singh is a professional accountant (CPA, CGA) with more than 19 years of experience in progressive senior financial leadership roles within the resource industry. The Company has commenced a recruitment process to select a permanent CFO.

 

Anthea commented, “Scott has been an invaluable member of the leadership team at Wesdome for nearly 6 years, having joined the Company in 2018 and serving as our Chief Financial Officer since 2020. I would like to thank Scott on behalf of the entire team and Board at Wesdome for his leadership, hard work, and financial acumen, all of which have been instrumental in growing the business into a diversified gold producer. We wish him every success in his future endeavors.”

 

    Q2 2023 Q1 2023 Q2 2022 YTD 2023 YTD 2022
             
Ore milled (tonnes)            
Eagle River   64,672 48,133 59,964 112,805 113,181
Mishi   0 6,150 7,685 6,150 19,558
Kiena   51,824 42,324 26,478 94,148 47,640
Total Ore Milled   116,496 96,607 94,127 213,103 180,379
             
Head grade (grams per tonne, “g/t”)            
Eagle River   11.4 13.5 9.6 12.3 10.6
Mishi   0.0 2.3 2.8 2.3 3.3
Kiena   5.0 5.9 10.6 5.4 9.3
             
Gold production (ounces)            
Eagle River   22,845 20,159 17,756 43,004 37,090
Mishi   0 332 570 332 1,735
Kiena   8,147 7,877 8,914 16,024 14,026
Total Gold Production   30,992 28,368 27,240 59,360 52,851
             
Production sold (ounces)   32,000 30,000 26,000 62,000 54,000
             

 

 

Operations and Financial Results Comparison to Q2 2022
Gold production of 30,992 ounces. Gold production increased by 14% compared to 27,240 ounces in Q2 2022 primarily due to higher grade at the Eagle River Complex, and despite the impact from the regional forest fires in June at Kiena. New quarterly throughput records established at both sites.

YTD gold production of 59,360 ounces, an increase of 12% when compared to YTD 2022 production of 52,851 ounces.

Cash costs of $1,743 (US$1,298) per ounce of gold sold1. Cash costs1 in Canadian dollars increased by 13% from Q2 2022 of $1,538 (US$1,205) per ounce due to a 39% increase in aggregate mine operating costs; partially offset by a 23% increase in ounces sold. At Eagle River, the aggregate cash costs increased by 23% due to more ore development metres, waste movement, improvements to strengthen the technical and mine management team and general maintenance of aging site infrastructure. At Kiena the aggregate cash costs increased by 77% due to a 96% increase in throughput and increased staffing levels required to support commercial production, which was declared on December 1, 2022.
AISC of $2,238 (US$1,666) per ounce of gold sold1. AISC1 in Canadian dollars increased by 11% from Q2 2022 of $2,020 (US$1,582) per ounce due to the increased cash costs, an increase in capital spending at Eagle River resulting from the replacement of aging site infrastructure, and the inclusion of sustaining mining exploration and development costs at Kiena.
Cash margin of $28.7 million1. Cash margin1 increased by 31% or $6.8 million from Q2 2022 due to higher ounces sold and a higher Canadian dollar realized gold price; partially offset by increased cash operating costs.
Operating cash flow of $14.0 million or $0.09 per share1. Increased by 16% or $1.9 million (Q2 2022 – $12.1 million or $0.08 per share1) due to the higher cash margin, reduced tax instalments; partially offset by the decrease in cash from working capital changes.
Free cash outflow of $5.3 million or ($0.04) per share1. The free cash outflow1 decreased by $23.3 million (Q2 2022 – $28.6 million or ($0.20) per share1) primarily due to the increased operating cash flow and decreased capital spending. Invested $17.8 million in capital expenditures at Eagle River and Kiena in the quarter as compared to $38.3 million in Q2 2022.
Net loss and adjusted net loss1 attributable to shareholders of $5.0 million or ($0.03) per share. Net loss decreased by $9.3 million (Q2 2022 – $14.3 million or ($0.10 per share) primarily because of the Q2 2022 after-tax impairment of an investment in associate of $8.9 million.

After removing these one-time items, the adjusted net loss1 decreased by $0.4 million from Q2 2022.

  1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.

 

Production Metrics and Exploration Updates Performance
Eagle River Complex
  • Q2 2023 production increased by 25% from Q2 2022 to 22,845 ounces due to a 28% increase in head grade; offset partially by a 4% decrease in throughput, which was sourced entirely from the Eagle River underground as the Mishi Pit stockpile was fully depleted in Q1 2023. 64,672 tonnes processed in Q2 represents a new quarterly throughput record from the UG mine as a standalone source of ore for the mill.
  • Q2 2023 cash cost of $1,526 (US$1,136) per ounce of gold sold1 increased by 9% or $131 per ounce from Q2 2022 due to a 23% 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, and general maintenance improvements; partially offset by a 13% increase in ounces sold.
  • Q2 2023 AISC of $2,019 (US$1,504) per ounce of gold sold1 increased by 4% or $79 per ounce from Q2 2022 due to higher cash costs and site infrastructure spending; partially offset by a 13% increase in ounces sold.
  • Generated $13.6 million in cash margin net AISC1 in Q2 2023 compared to $8.8 million in Q2 2022 due to the 13% increase in ounces sold and the higher average Canadian dollar gold price; partially offset by the 23% increase in overall aggregate site operating costs and the 12% increase in site infrastructure spending.
  • Recent exploration drilling within the mine diorite, has extended the 300 East Zone to the 1,600 m-level and remains open down plunge. Several of these holes have intersected wider widths along the eastern margin of the zone and is interpreted to be the result of intersecting structures with one hole returning 77.6 g/t Au over 9.4 m core length (40.7 g/t Au cut, 6.0 m true width). Drilling is continuing in this area to better define this wider part of the zone.
  • The drilling of the 300 East Zone confirms the continuity of the mineralization at depth, thus suggesting that many other similar parallel zones, such as 808, 811, 818, 711 and 7 East, have this same potential to continue at depth and will be tested with ongoing drilling.
  • On surface, exploration drilling is scheduled to commence in H2 2023 to test targets within the volcanic rocks adjacent to and east and west of the mine diorite. Last year’s surface drilling returned a number of encouraging results, along strike of, and subparallel to the Falcon 7 Zone, and also the interpreted western extension of the mine 311 West and 5 Zones. Approximately 700 metres further to the west, drilling near the historic 9 Zone returned 19.4 g/t au over 0.7 m. All of these areas will be drilled in this year’s program.
  • On the eastern side of the mine diorite, previous drilling within the volcanic rocks 150 metres east and down dip of the historic 2 zone intersected quartz veining and VG that graded 233.0 g/t Au over 0.4 metres. Similar to the Falcon zones located west of the mine diorite, the drilling highlights the potential of discovering additional zones within volcanic rocks east of the mine diorite.
Kiena
  • Q2 2023 production decreased by 9% from Q2 2022 to 8,147 ounces due to a 53% decrease in head grade; partially offset by a 96% increase in throughput (51,824 tonnes, a new quarterly record since restart of operations, despite impact from forest fires in June). The head grade is above the 2023 grade guidance of 3.7 – 4.7 due to an overall positive reconciliation of recovered diluted material from previous mining, and a higher proportion of ore sourced from the higher grade Kiena Deep
  • Q2 2023 AISC of $2,755 (US$2,052) per ounce of gold1 sold increased by 21% or $471 per ounce as compared to Q2 2022 due to increased cash costs and sustaining mine exploration and development costs; offset partially by a 58% increase in ounces sold. The costs remain consistent with the plan and will decrease once full production levels are achieved.
  • Q2 2023 cash margin net AISC1 of negative $0.7 million decreased by $1.2 million compared to $0.5 million in Q2 2022 due to the increased overall aggregate cash cost and the inclusion of sustaining development and exploration costs; offset partially by the 58% increase in ounces sold and the favourable movement Canadian dollar gold price.
  • Development of the ramp to the 129 level, which provides access to the A Zone of Kiena Deep, continued to track ahead of schedule during Q2 2023, positioning the mine to achieve better than planned production levels in 2024 based on the updated Kiena schedule.
  • Underground exploration drilling is ongoing to better define and expand the South Limb zone with the intent to add to the current mineral resource base at year end. Drilling is also ongoing on 33 level east of the Kiena mine to test the strike and dip extensions of the Martin and Wish zones.
  • Surface drilling is ongoing at the Presqu’ile zone, located approximately 2 kilometres west of the Kiena mine, to better define and subsequently convert the current inferred resource to indicated for the anticipated conversion into mineral reserves at year end. The excavation of an exploration ramp from surface will provide drilling access to the near-surface Presqu’ile Zone, is expected to proceed in H2 2023 after the required permits are secured.
  • The recent surface exploration results at Shawkey and Dubuisson zones highlight the potential to increase the resource base in areas adjacent to mine infrastructure, thus potentially providing a second source of mill feed for the underutilized Kiena mill. Both of these zones are proximal to the 33 level track drift development that extends over 3 kilometres east of the Kiena mine shaft towards the Dubuisson Zone.
  • At Shawkey, surface drilling at the end of 2022 intersected wide zones of alteration and mineralization with one hole returning 2.3 g/t Au over 72.0 m within a diorite. The zone has been extended to 200 metres up dip and along strike and remains open along strike to the north-west as well as down dip. Future drilling in this area next year will be able to better define the geometry and therefore the potential of this zone. At Dubuisson, drilling has confirmed that the mineralization occurs along shear zones located at the contact between diorite and ultramafic rocks. One hole returned 9.8 g/t over 25.2 m core length (9.8 g/t Au capped*, 17.2 m true width).
  1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.

 

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 as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission 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.

 

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’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 Six Months Ended  
    June 30,   June 30,  
    2023     2022     2023     2022    
Operating data                  
Milling (tonnes)                  
Eagle River   64,672     59,964     112,805     113,181    
Mishi   0     7,685     6,150     19,558    
Kiena   51,824     26,478     94,148     47,640    
Throughput 2   116,496     94,127     213,103     180,379    
Head grades (g/t)                  
Eagle River   11.4     9.6     12.3     10.6    
Mishi   0.0     2.8     2.3     3.3    
Kiena   5.0     10.6     5.4     9.3    
Recovery (%)                  
Eagle River   96.5     95.6     96.7     96.6    
Mishi   0.0     81.2     72.5     83.6    
Kiena   97.7     98.5     97.8     98.3    
                   
Production (ounces)                  
Eagle River   22,845     17,756     43,004     37,090    
Mishi   0     570     332     1,735    
Kiena   8,147     8,914     16,024     14,026    
Total gold produced 2   30,992     27,240     59,360     52,851    
Total gold sales (ounces)   32,000     26,000     62,000     54,000    
                   
Eagle River Complex (per ounce of gold sold) 1              
Average realized price $ 2,625   $ 2,382   $ 2,584   $ 2,389    
Cash costs   1,526     1,395     1,353     1,330    
Cash margin $ 1,099   $ 987   $ 1,231   $ 1,059    
All-in Sustaining Costs 1 $ 2,019   $ 1,940   $ 1,859   $ 1,858    
                   
Mine operating costs/tonne milled 1 $ 503   $ 387   $ 474   $ 386    
                   
Average 1 USD → CAD exchange rate   1.3428     1.2768     1.3477     1.2715    
                   
Cash costs per ounce of gold sold (US$) 1 $ 1,136   $ 1,093   $ 1,004   $ 1,046    
All-in Sustaining Costs (US$) 1 $ 1,504   $ 1,519   $ 1,379   $ 1,461    
                   
Kiena Mine (per ounce of gold sold) 1                  
Average realized price $ 2,676   $ 2,372   $ 2,642   $ 2,355    
Cash costs 3, 5   2,257     2,018     2,261     1,622    
Cash margin $ 419   $ 354   $ 381   $ 733    
All-in Sustaining Costs 1 $ 2,755   $ 2,284   $ 2,868   $ 1,834    
                   
Mine operating costs/tonne milled 1 $ 379   $ 557   $ 430   $ 567    
                   
Average 1 USD → CAD exchange rate   1.3428     1.2768     1.3477     1.2715    
                   
Cash costs per ounce of gold sold (US$) 1 $ 1,681   $ 1,581   $ 1,678   $ 1,276    
All-in Sustaining Costs (US$) 1 $ 2,052   $ 1,789   $ 2,128   $ 1,442    
                   
Financial Data                  
Cash margin 1 $ 28,722   $ 21,873   $ 63,130   $ 52,215    
Net loss $ (5,014 ) $ (14,331 ) $ (5,359 ) $ (7,280 )  
Net income (loss) adjusted 1 $ (5,014 ) $ (5,481 ) $ (1,757 ) $ 1,570    
Earnings before interest, taxes, depreciation and amortization 1 $ 22,020   $ 8,844   $ 48,144   $ 29,494    
Operating cash flow $ 13,979   $ 12,101   $ 19,099   $ 41,994    
Free cash outflow 1 $ (5,279 ) $ (28,576 ) $ (24,876 ) $ (35,372 )  
Per share data                  
Net income $ (0.03 ) $ (0.10 ) $ (0.04 ) $ (0.05 )  
Adjusted net income 1 $ (0.03 ) $ (0.04 ) $ (0.01 ) $ 0.01    
Operating cash flow 1 $ 0.09   $ 0.08   $ 0.13   $ 0.30    
Free cash flow 1 $ (0.04 ) $ (0.20 ) $ (0.17 ) $ (0.25 )  
                   
  1. 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 consolidated financial statements.
  2. Totals for tonnage and gold ounces may not add due to rounding.

 

 

 

 Wesdome Gold Mines Ltd.
Condensed Interim Statements of Financial Position

(Unaudited, expressed in thousands of Canadian dollars)
     As at June 30, 2023   As at December 31, 2022  
Assets          
Current          
Cash and cash equivalents   $ 22,067     $ 33,185    
Receivables and prepaids     16,227       12,755    
Inventories     24,261       22,119    
Income and mining tax receivable     5,988       6,494    
Share consideration receivable     2,233       2,994    
Total current assets     70,776       77,547    
           
Restricted cash     1,176       1,176    
Deferred financing costs     1,147       1,411    
Mining properties, plant and equipment     519,202       525,860    
Exploration properties     1,339       1,139    
Marketable securities     600       960    
Share consideration receivable     1,760       2,576    
Investment in associate     5,320       8,458    
Total assets   $ 601,320     $ 619,127    
           
Liabilities          
Current          
Payables and accruals   $ 30,883     $ 54,734    
Borrowings     38,779       54,697    
Current portion of lease liabilities     4,028       6,160    
Total current liabilities     73,690       115,591    
           
Lease liabilities     2,065       3,126    
Deferred income and mining tax liabilities     78,288       82,950    
Decommissioning provisions     19,819       18,941    
Total liabilities     173,862       220,608    
           
Equity          
Equity attributable to owners of the Company          
Capital stock     237,957       205,361    
Contributed surplus     9,421       7,359    
Retained earnings     181,580       186,939    
Accumulated other comprehensive loss     (1,500 )     (1,140 )  
Total equity attributable to owners of the Company     427,458       398,519    
Total liabilities and equity   $ 601,320     $ 619,127    
           

 

 

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of (Loss) / Income and Comprehensive (Loss) / Income
(Unaudited, expressed in thousands of Canadian dollars except for per share amounts)
  Three Months Ended   Six Months Ended
  June 30,   June 30,
    2023       2022       2023       2022  
               
Revenues $ 84,555     $ 61,931     $ 161,256     $ 128,625  
Cost of sales   (84,048 )     (51,374 )     (145,466 )     (96,080 )
Gross profit   507       10,557       15,790       32,545  
               
Other expenses              
Corporate and general   4,007       3,221       7,669       6,596  
Stock-based compensation   1,551       1,554       3,325       1,630  
Retirement costs               1,190        
Exploration and evaluation   1,267       4,213       2,227       7,169  
Loss (gain) on disposal of mining equipment   99       (10 )     317       (12 )
Total other expenses   6,924       8,978       14,728       15,383  
               
Operating (loss) income   (6,417 )     1,579       1,062       17,162  
               
Impairment of investment in associate         (11,800 )     (2,700 )     (11,800 )
Fair value adjustment on share consideration receivable   459       (3,605 )     (1,577 )     (5,839 )
Interest expense   (1,175 )     (316 )     (2,484 )     (579 )
Accretion of decommissioning provisions   (246 )     (208 )     (490 )     (379 )
Share of loss of associate   (310 )     (131 )     (666 )     (543 )
Gain (loss) on dilution of ownership   228       (429 )     228       (634 )
Other income   91       322       145       57  
Loss before income and mining taxes   (7,370 )     (14,588 )     (6,482 )     (2,555 )
               
Income and mining tax expense (recovery)              
Current   1,522       1,788       3,540       4,276  
Deferred   (3,878 )     (2,045 )     (4,663 )     449  
Total income and mining tax expense (recovery)   (2,356 )     (257 )     (1,123 )     4,725  
               
Net loss $ (5,014 )   $ (14,331 )   $ (5,359 )   $ (7,280 )
               
Other comprehensive loss              
Change in fair value of marketable securities   (30 )     (1,410 )     (360 )     (900 )
Total comprehensive loss $ (5,044 )   $ (15,741 )   $ (5,719 )   $ (8,180 )
               
               
Loss per share              
Basic $ (0.03 )   $ (0.10 )   $ (0.04 )   $ (0.05 )
Diluted $ (0.03 )   $ (0.10 )   $ (0.04 )   $ (0.05 )
               
  Weighted average number of common shares (000s)              
Basic   148,001       142,478       146,242       142,146  
Diluted   148,001       142,478       146,242       142,146  
               

 

 

 

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   Earnings   Loss   Equity
                   
Balance, December 31, 2021 $ 187,911     $ 5,859     $ 201,645     $ (240 )   $ 395,175  
Net loss for the period ended June 30, 2022               (7,280 )           (7,280 )
Other comprehensive loss                     (900 )     (900 )
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         1,630                   1,630  
Balance, June 30, 2022 $ 192,753     $ 5,678     $ 194,365     $ (1,140 )   $ 391,656  
                   
                   
Balance, December 31, 2022   205,361       7,359       186,939       (1,140 )     398,519  
Net loss for the period ended June 30, 2023               (5,359 )           (5,359 )
At-the-Market offering:                  
Common shares issued for cash   31,988                         31,988  
Agents’ fees and issuance costs   (1,331 )                       (1,331 )
Other comprehensive loss                     (360 )     (360 )
Exercise of options   676                         676  
Value attributed to options exercised   276       (276 )                  
Value attributed to RSUs exercised   616       (616 )                  
Value attributed to PSUs exercised   371       (371 )                  
Stock-based compensation         3,325                   3,325  
Balance, June 30, 2023 $ 237,957     $ 9,421     $ 181,580     $ (1,500 )   $ 427,458  

 

 

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)
 
  Three months ended June 30,   Six months ended June 30,  
    2023       2022       2023       2022    
                 
Operating Activities                
Net loss $ (5,014 )   $ (14,331 )   $ (5,359 )   $ (7,280 )  
Depreciation and depletion   28,215       11,316       47,340       19,670    
Stock-based compensation   1,551       1,554       3,325       1,630    
Accretion of decommissioning provisions   246       208       490       379    
Deferred income and mining tax (recovery) expense   (3,878 )     (2,045 )     (4,663 )     449    
Amortization of deferred financing cost   132       85       264       169    
Interest expense   1,175       316       2,484       579    
Loss (gain) on disposal of mining equipment   99       (10 )     317       (12 )  
Impairment of investment in associate         11,800       2,700       11,800    
Fair value adjustment on share consideration receivable   (459 )     3,605       1,577       5,839    
Share of loss of associate   310       131       666       543    
(Gain) loss on dilution of ownership   (228 )     429       (228 )     634    
Foreign exchange gain on borrowings   (6 )     (77 )     (7 )     (109 )  
Net changes in non-cash working capital   (8,169 )     4,642       (26,773 )     18,906    
Mining and income tax refund (paid)   5       (5,522 )     (3,034 )     (11,203 )  
Net cash from operating activities   13,979       12,101       19,099       41,994    
                 
Financing Activities                
Proceeds from At-the-Market offering   10,998             31,988          
Agents’ fees and issuance costs   (401 )           (1,331 )        
Proceeds from revolving credit facility         14,956             14,956    
Repayment of revolving credit facility   (7,963 )     (14,810 )     (15,918 )     (14,810 )  
Exercise of options         264       676       3,031    
Repayment of lease liabilities   (1,410 )     (2,345 )     (3,194 )     (4,431 )  
Interest paid   (1,175 )     (316 )     (2,484 )     (579 )  
Net cash from (used in) financing activities   49       (2,251 )     9,737       (1,833 )  
                 
Investing Activities                
Additions to mining properties   (17,848 )     (7,132 )     (40,581 )     (13,322 )  
Additions to mines under development         (31,200 )           (59,613 )  
Purchase of exploration property               (200 )        
Funds held against standby letter of credit         (494 )           (494 )  
Proceeds on disposal of mining equipment   827       20       827       20    
Net cash used in investing activities   (17,021 )     (38,806 )     (39,954 )     (73,409 )  
                 
Decrease in cash and cash equivalents   (2,993 )     (28,956 )     (11,118 )     (33,248 )  
Cash and cash equivalents – beginning of period   25,060       52,472       33,185       56,764    
Cash and cash equivalents – end of period $ 22,067     $ 23,516     $ 22,067     $ 23,516    
                 
Cash and cash equivalents consist of:                
Cash $ 22,067     $ 23,516     $ 22,067     $ 23,516    
  $ 22,067     $ 23,516     $ 22,067     $ 23,516    
                 

 

 

Posted August 11, 2023

Share this news article

MORE or "UNCATEGORIZED"


OUTBACK ANNOUNCES ACQUISITION OF FINNISH GOLD PROJECT PORTFOLIO FROM S2 RESOURCES AND CONCURRENT $5 MILLION FINANCING

Outback Goldfields Corp. (TSX-V: OZ) (OTCQB: OZBKF) is pleased to... READ MORE

March 2, 2024

Denison Reports Impressive Financial and Operational Results for 2023 Including Significant Increase in Phoenix ISR Project Economics and a $134 Million Gain on Physical Uranium Holdings

Denison Mines Corp. (TSX: DML) (NYSE American: DNN) filed its Au... READ MORE

March 2, 2024

FIRST QUANTUM ANNOUNCES CLOSING OF $1,150 MILLION BOUGHT DEAL OFFERING, CLOSING OF $1,600 MILLION SENIOR SECURED SECOND LIEN NOTES OFFERING AND UPDATE ON COMPREHENSIVE REFINANCING

First Quantum Minerals Ltd. (TSX: FM) announced that it has compl... READ MORE

February 29, 2024

VIZSLA SILVER ANNOUNCES CLOSING OF $34.5 MILLION BOUGHT DEAL FINANCING

Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) (Frankfurt: 0G3)... READ MORE

February 29, 2024

New Found Makes New Discovery With 35 g/t Au Over 17m Including 1,910 g/t Au Over 0.3m at “Vegas Zone”

New Found Gold Corp.  (TSX-V: NFG, NYSE-A: NFGC) is pleased to a... READ MORE

February 29, 2024

Copyright 2024 The Prospector News