Wesdome Gold Mines Ltd. (TSX:WDO) (OTCQX:WDOFF) announced its financial results for the three months ended March 31, 2025. Preliminary operating results for Q1 2025 were disclosed in the Company’s press release dated April 10, 2025.

Highlights

• Strong quarterly gold production and lower costs: Consolidated gold production was 45,692 ounces, a 37% increase compared to Q1 2024. Cost of sales per ounce sold decreased by 18% to US$923, while all-in sustaining costs per ounce sold¹ declined 17% to US$1,366. The average realized price of gold sold in Q1 2025 was US$2,882 per ounce.

• Expanding margins: Gross profit increased by 365% year-over-year to $103.4 million and cash margin¹ grew by 174% to $127.6 million.

• Record quarterly net income: Net income increased to $62.5 million, or $0.42 earnings per share, a nearly fivefold increase from Q1 2024.

• Record quarterly EBITDA: EBITDA¹ increased by 193% to $119.4 million or tripled relative to the prior year quarter mainly due to an increase in ounces sold and a higher average realized price of gold sold.

• Record net cash from operating activities and free cash flow¹: In Q1 2025, net cash from operating activities was $80.2 million, or $0.53 per share³, while free cash flow¹ was $47.5 million, or $0.32 per share.

• Increasing liquidity: As at March 31, 2025, liquidity stood at $317.9 million, including $167.9 million in cash and $150.0 million of undrawn full capacity available under its revolving credit facility, up from $273.1 million as at December 31, 2024.

• Announced value-driven acquisition of Angus Gold in April: The strategic addition of Angus Gold, which is expected to close by the end of June, will quadruple Eagle River’s land package. This is a highly logical and strategic tuck-in transaction that brings together a contiguous land package between the Eagle River mine and mill, enhancing the Company’s ability to unlock value through the drill bit.

Anthea Bath, President and Chief Executive Officer, commented: “The first quarter marked a strong start to the year with record revenue, net income and free cash flow, demonstrating the quality of our operating platform. As an unhedged producer, we are fully capturing the upside from higher gold prices, which has accelerated our cash generation and strengthened our debt-free balance sheet. We remain on track to meet full-year guidance, with higher production expected in the second half of the year.

“Eagle River delivered another strong quarter, benefiting from high-grade material from the 300 Zone and a drawdown of stockpiles. Results reflect greater operational execution and the successful implementation of 2024 initiatives that focused on increasing drilled and developed ore inventory, reducing dilution and cost discipline. The QA/QC phase of the global resource model initiative is progressing well in support of a 2026 technical report.

“Production at Kiena nearly doubled over the first quarter of 2024, supported by a full quarter of ore contribution from the high-grade Kiena Deep Zone, where initial stoping began in April 2024 and mining activities have ramped up steadily. Reconciliation continues to trend well to block model grades. First ore from the Presqu’île Zone is on track for Q2 and the 136-level horizon is targeting completion in early Q3 – both key to reducing grade variability and improving operational flexibility over the medium-term.

“A key pillar of Wesdome’s long-term value creation strategy continues to be exploration, focusing on extending mine life, unlocking near-mine growth and identifying new regional opportunities on our underexplored land packages. Building on our history of discovery and strong conversion rates, we are adopting a long-term, more integrated and focused approach to target generation and ranking, prioritizing high-impact zones while improving drilling efficiency through enhanced planning, contracting and execution.”

Consolidated Financial and Operating Highlights

Eagle River – Ontario

Eagle River, which is located 50 kilometres due west of Wawa, Ontario, consists of an underground mine (producing since 1995) and a 1,200 tonne per day mineral processing facility.

Operating Highlights

During Q1 2025, Eagle River produced 28,999 ounces of gold as compared to 24,899 ounces in Q1 2024 primarily due to a 16% increase in throughput due to stope sequencing and dilution control. As planned, during Q1 2025, 65% of tonnes produced were from two zones: 300 and 720F.

Average head grade for Q1 2025 was in-line year-over-year at 15.6 g/t as high-grade ore from the 300 Zone was offset by processing lower grade stockpiles built up at the end of 2024.

Mill throughput of 60,010 tonnes was 16% higher than the first quarter of 2024 as prior year initiatives to increase drilled and developed inventories started to deliver results. Daily throughput rose 18% year-over-year to 667 tonnes in Q1 2025 up from 567 tonnes in Q1 2024.

Unit production costs of $595 per tonne increased by 13% over Q1 2024 due to higher labour and maintenance costs, partially offset by higher processed tonnage.

Financial Highlights

In Q1 2025, Eagle River’s revenue increased by 49% to $115.5 million from $77.5 million in Q1 2024 due to a higher average realized price of gold sold as the number of ounces was in-line year-over-year.

Cost of sales in Q1 2025 was $36.9 million, an increase of 10% compared to the comparative period in 2024 primarily due to a $4.5 million increase in mine and mill operating costs driven by higher throughput and increased royalties due to more ounces produced, partially offset by a change in inventory levels of $2.2 million.

Cash costs per ounce of gold sold were $1,327 (US$925) in Q1 2025 compared to $1,227 (US$910) in Q1 2024 due to an increase in costs of sales.

In Q1 2025, AISC per ounce of gold sold increased by 15% to $1,918 (US$1,337) as compared to Q1 2024 due to 9% higher cash costs and 17% growth in sustaining capital expenditures.

Exploration Update

Drilling Continues to Delineate 300 Zone and Expand 6 Central Zone

Drilling in the 6 Central Zone confirmed the continuation of mineralization down-plunge, demonstrating similar thickness and grade. Located near existing infrastructure, the zone remains open at depth and continues to offer the opportunity to establish another new high-grade mining front at intermediate depths. The expansion of 6 Central underscores the strong potential for further discovery, reinforcing confidence in the long-term potential of the asset and its ability to support Eagle River’s fill-the-mill organic growth strategy.

Updated interpretation of the 300 Zone indicates the presence of a sub-parallel structure, now referred to as the 300 Fold Zone. Early assays show consistent thickness and tenor of mineralization, with down-plunge continuity remaining open. Notably, this mineralization dips at a more moderate angle than the steeply dipping main 300 Zone, a key observation that highlights the variability of the plunge of the shoots, giving opportunities for down-plunge continuation of domains.

Surface Exploration

As part of the ongoing surface exploration program, an induced polarization survey was completed late in 2024 that identified multiple anomalies closely associated with known deposits, indicating the potential for additional mineralization to the west of the diorite. These findings confirm the long-term potential at Eagle River and outlined several targets for further exploration. Drilling of the first anomaly commenced before the end 2024, and drilling continued in 2025 with five holes completed to date. The program intersected minor veins and mineralization, with two of the holes returning anomalous intercepts. These results are currently being interpreted and will be discussed further in the future.

Eleven surface holes were drilled at Birch Vein as part of a phase one program, evaluating historic rock chip values associated with a splay of the northwest trending Eagle River Splay shear. Several holes intersected smoky quartz veins with strong biotite alteration up to 0.5 metre thickness. The zone is considered a high priority area due to the similar geological context to the Eagle River Mine (diorite with shearing either side), and further drilling and geochemical sampling is planned.

Kiena – Quebec

Kiena is a fully permitted, integrated mining and milling operation located on a 75 km² land package in the highly prospective Val-d’Or district of Quebec. The site features a 930-metre production shaft and a mill with a permitted capacity of 2,040 tonnes per day.

Operating Highlights

In Q1 2025, Kiena produced 16,693 ounces compared to 8,423 ounces in Q1 2024. The 98% increase in production is due to the inclusion of high-grade ore from Kiena Deep, which came into production in mid-April 2024. In Q1 2025, all of the processed ore was from the high-grade Kiena Deep Zone. While it was planned that Q1 would be the lowest production quarter of the year, there was also a delay in the sequencing of some key high-grade stoping and development areas due to lower than planned equipment availability, which is being addressed.

Average head grade in the first quarter of 2025 increased by 83% to 10.8 g/t from 5.9 g/t in the comparative quarter of 2024 despite the inclusion of some low-grade material from a recovered stope in March.

Average mill recoveries increased to 98.9% in Q1 2025 relative to 98.2% in the comparative quarter of 2024, mainly due to higher average grade.

In Q1 2025, the mill processed 541 tonnes per day, up from 498 tonnes per day in the first quarter of 2024. Associated production costs per tonne increased by 5% to $489 over Q1 2024 due to higher mining and site administration costs.

Financial Highlights

Revenue at Kiena increased by 209% to $71.9 million from $23.3 million in Q1 2024, due to a 111% increase in ounces sold and a higher average realized price per ounce of gold sold.

Cost of sales in Q1 2025 was $23.1 million, an increase of 12% over the comparative period in 2024 primarily due to a $3.3 million increase in mine operating costs, which was driven by 7% higher throughput and a 98% increase in ounces produced, partially offset by a $0.8 million change in inventory levels.

Cash costs per ounce of gold sold in Q1 2025 were $1,308 (US$912), a decrease of 47% compared to $2,470 (US$1,831) in Q1 2024 primarily due to an increase in ounces sold.

AISC per ounce of gold sold decreased by 50% in Q1 2025 to $2,026 (US$1,412) from $4,078 (US$3,023) in Q1 2024 primarily due to a 111% increase in ounces sold and decreased sustaining capital expenditures partially offset by an increase in aggregate mine operating costs.

Exploration Update

VC Zone Drilling Now Accessible from 109-Level and 134-Level Drilling Expected in Mid-2025

Drilling of the VC Zone from the new 109-level exploration drift continued during the quarter. The VC Zone is a top priority for exploration in 2025 as it historically returned a high-grade intercept at the base of the mineralisation wireframe, open at depth, and demonstrates a mineralization style analogous to Kiena Deep. Drilling to date has not been successful due to ground conditions between the drilling bay and the VC Zone. Options are being reviewed to extend underground development to a more optimal location, which is expected to enable more effective drilling of both the VC Zone and nearby North Zone targets.

Drilling at Kiena’s second drill bay – the 134-level exploration drift – is scheduled to commence in late May. This represents a significant milestone as drill holes collared from the drift will cut the Kiena Deep and Footwall mineralization at a more optimal intersection angle, improving true width estimates and providing stronger geostatistical support for grade continuity and resource modeling. Infill and extension drilling from the 134-level platform will also facilitate targeting high-grade production replacement from 2027 onwards. Drilling from the 134-level drift is a top priority for H2 2025.

Kiena Deep Continues to Deliver

The ongoing exploration of the Kiena Deep Footwall zones from the 127-level ramp, along with continued testing of the Kiena Deep A Zones through infill drilling from the 127-level remuck, continues to confirm the continuity of the zone with promising results. Initial interpretations suggest that additional lenses may be delineated with further drilling. The drill information is being incorporated into an updated lithostructural model and an updated mineral resource, both of which will form the basis for the 2026 technical report.

33-Level Accessible for Drilling, Delineation of Presqu’île to Start

Rehabilitation of the 33-level development to the east has allowed the establishment of more optimal drilling platforms for the testing of Dubuisson, Duchesne and other 33-level targets. Exploration drilling on level 33 in the first quarter targeted the lateral extensions and down-plunge continuation of the No.22 Shawkey Zone. Holes confirmed the continuity of the porphyry dyke associated to this zone with further drilling planned for 2025.

At Presqu’île, ramp development continues to advance and access to the Presqu’île orebody is well established. Exploration and delineation drilling programs have been designed and surface drilling planned for Q2 2025. Underground delineation drilling commenced in early Q2 2025. In addition to delineation of the orebody ahead of mining, exploration drilling will test extensions of the orebody as it remains open down-plunge.

Presqu’île Project Update

First mine production from the Presqu’île orebody is expected in Q2 2025, which will allow for stockpiling prior to processing in H2 2025. The bulk sample permit has been received and the mining permit is expected in the fourth quarter. Infrastructure long-lead items have also been secured with crusher installation planned for Q3 and main fan installation in 2026.

The financial statements and management’s discussion and analysis will be available on the Company’s website at www.wesdome.com and on SEDAR+ www.sedarplus.ca the evening of Tuesday, May 13, 2025.

About Wesdome

Wesdome is a Canadian-focused gold producer with two high-grade underground assets – the Eagle River mine in Ontario and the Kiena mine in Quebec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a growing value-driven Canadian gold producer.