WDO:CC - Wesdome Announces 2022 Fourth Quarter and Full Year Financial Results

February, 22 2023 04:40 PM Wesdome Gold Mines Ltd.

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 6 ^th 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)
Revenue ² of $265.5 million, a 1% increase over the previous year (2021: $262.9 million).
Ounces sold ³ 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 margin ¹^,2^,4 of $95.7 million, a 34% decrease over the previous year (2021 - $145.4 million).
Operating cash flows ²^,4 decreased by 50% to $65.2 million or $0.46 per share ¹ 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 share ¹ (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 income ^2,4 $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 costs ¹^,^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;
AISC ¹^,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 margin ¹ 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 share ¹ 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 share ¹ (Q4 2021: free cash outflow of $3.2 million or ($0.02) per share).
Net loss and Net loss (adjusted) ¹ of $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 costs ¹ 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);
AISC ¹ increased by 51% to $2,136/oz or US$1,573/oz (Q4 2021: $1,412 or US$1,121 per ounce).
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 financial statements.
2. 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.
3. FY 2021 excludes 1,793 ounces from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.
4. 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.
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.

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 sold ¹ 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 sold ¹ 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.

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 sold ¹ 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).

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

Participants may register for the call at the link below to obtain dial in details. Preregistration is required for this event. It is recommended you join 10 minutes prior to the start of the event.
Participant Registration Link:
https://register.vevent.com/register/BIcb64cd10b9f843d79897899900fca10c
Webcast Link:
https://edge.media-server.com/mmc/p/oab6ykxp
The webcast can also be accessed under the news and events section of the company’s website

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:

Warwick Morley-Jepson

Lindsay Carpenter Dunlop

Interim CEO

VP Investor Relations

416-360-3743 ext. 2029

416-360-3743 ext. 2025

w.morley-jepson@wesdome.com

lindsay.dunlop@wesdome.com

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

PDF Available: http://ml.globenewswire.com/Resource/Download/aefa4829-b8c6-46cc-9c4e-386901079d1c

Company Name:	Wesdome Gold Mines Ltd.
Stock Symbol:	WDO:CC
Market:	TSXC
Website:	wesdome.com

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