TORONTO, ON--(Marketwired - February 22, 2017) - Wesdome Gold Mines Ltd. (TSX: WDO) ("Wesdome" or "The Company") today announces fourth quarter (Q4) and full year financial results for the year ended December 31, 2016. All figures are stated in Canadian dollars unless otherwise noted.
2016 SUMMARY:
2016 EXPLORATION AND CORPORATE DEVELOPMENT HIGHLIGHTS:
FOURTH QUARTER SUMMARY:
Note:
1 | Refer to the section entitled "Non-IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the Financial Statements |
Mr. Duncan Middlemiss, President and CEO, commented on the 2016 year-end results, "This was a transitional year for Wesdome with many achievements and positive changes. Despite a slow start to production, operating results improved throughout the year. The team brought higher grade stopes into the mine plan ahead of schedule and controlled production costs, even as additional investments were made to expand mineral reserves, re-new our capital equipment, and extend our operating infrastructures. Work continues to increase gold production from the Eagle River Underground Mine where our margins are highest. This, along with higher gold prices resulted in higher operating cash flow and net income over 2015, despite lower production. Free cash flow was lower than 2015 primarily due to increased exploration spending and reserve development. This exploration work is necessary to determine the appropriate production profile scenario at the Eagle River Complex."
"Wesdome had an exceptional year for exploration. Eagle River reserves increased 15% net of depletion, 300 E Zone was drilled further and delineated, where the widths are significantly greater than previously encountered at Eagle River. The 7 Zone was traced 200 metres up plunge towards surface. These results set the path for diversified working places underground with the goal of raising and stabilizing quarter to quarter production. We are very excited by the Kiena Deep discovery in Val d'Or, Quebec. Since announcing the discovery in August 2016, we have increased the number of drills from 2 to 4 and results continue to deliver grades substantially higher than the historic production grade profile at Kiena of 4.5 g/t. Step out holes confirmed mineralization now tested along 550 metres of strike length, indicating a potential large new gold system. We expect to make a decision on underground ramp development in the short term."
"In 2017, we expect production to increase over 2016's levels to range between 52,000 - 58,000 ounces at operating costs between CAD$1,030 - $1,130 per ounce (USD$765 - $835 per ounce). We have implemented a cost-cutting program at the Eagle River Complex which is starting to yield results, and underground development work completed in 2016 has resulted in improved mine sequencing. We have a total of eleven drills on four assets -- three underground at Eagle River, two at Mishi, four at Kiena and two at Moss Lake. Our asset base is strong and these are appropriate levels of exploration in order to return value to shareholders."
Quarter ended December 31 | Year ended December 31 | |||||||
2016 | 2015 | 2016 | 2015 | |||||
(in $000, except per share amounts) | ||||||||
Revenue1 | 22,166 | 23,622 | 84,031 | 73,465 | ||||
Mine operating profit2 | 7,133 | 7,767 | 26,036 | 17,680 | ||||
Net income (loss) | 2,352 | 1,110 | 7,786 | (4,701) | ||||
Net income adjusted2 | 3,047 | 1,977 | 7,988 | 3,186 | ||||
Basic income (loss) per share | 0.02 | 0.01 | 0.06 | (0.04) | ||||
Basic income per share adjusted2 | 0.02 | 0.02 | 0.06 | 0.03 | ||||
Cash flows from operating activities | 4,976 | 5,153 | 19,927 | 10,055 | ||||
Cash flows from operating activities adjusted2 | 5,671 | 5,783 | 20,129 | 12,771 | ||||
Free cash flow2 | (3,735) | 2,736 | (8,437) | (5,719) | ||||
Cash and cash equivalents | 26,760 | 15,424 | 26,760 | 15,424 | ||||
Working capital | 15,561 | 12,507 | 15,561 | 12,507 | ||||
Quarter ended December 31 | Year ended December 31 | |||||||
2016 | 2015 | 2015 | 2015 | |||||
Eagle tonnes milled | 42,607 | 42,185 | 170,369 | 173,189 | ||||
Mishi tonnes milled | 30,714 | 33,100 | 138,688 | 132,038 | ||||
Total tonnes milled | 73,321 | 75,285 | 309,037 | 305,227 | ||||
Eagle River head grade (g/t) | 8.2 | 9.2 | 7.9 | 7.8 | ||||
Mishi head grade (g/t) | 1.6 | 2.3 | 2.0 | 2.6 | ||||
Eagle River underground mill recovery (%) | 94.6 | 94.2 | 93.5 | 94.9 | ||||
Mishi Open Pit mill recovery (%) | 81.6 | 79.6 | 85.4 | 87.3 | ||||
Eagle recovered grade (g/t) | 7.7 | 8.7 | 7.4 | 7.4 | ||||
Mishi recovered grade (g/t) | 1.3 | 1.9 | 1.7 | 2.2 | ||||
Eagle ounces produced | 10,595 | 11,625 | 40,252 | 41,013 | ||||
Mishi ounces produced | 1,292 | 1,945 | 7,485 | 9,457 | ||||
Total ounces produced | 11,887 | 13,570 | 47,737 | 50,470 | ||||
Ounces sold | 13,490 | 16,023 | 48,680 | 49,804 | ||||
Average realized price (CAD$/oz) | 1,655 | 1,474 | 1,676 | 1,475 | ||||
Average realized price (US$/oz) | 1,240 | 1,104 | 1,265 | 1,153 | ||||
Production cash costs (CAD$/oz) | 1,185 | 1,029 | 1,194 | 1,115 | ||||
Production cash costs/oz (US$/oz) | 888 | 770 | 901 | 872 | ||||
All-in-sustaining costs (CAD$/oz) | 1,702 | 1,388 | 1,707 | 1,542 | ||||
All-in-sustaining costs (US$/oz) | 1,275 | 1,039 | 1,289 | 1,206 | ||||
Average 1 USD to CAD exchange rate | 1.3344 | 1.3353 | 1.3253 | 1.2790 | ||||
Notes:
1 | Revenue for the year ended December 31, 2016 includes $2.4 M gold sales from the Kiena Complex mill cleanup in Q3 2016. | |
2 | Refer to the section entitled "Non-IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the Financial Statements. | |
MINERAL RESERVES |
||||||||||||||
Mine | Category | Tonnes | Grade | Contained | ||||||||||
(g/t) |
Ounces | |||||||||||||
Dec 31, 2016 |
Dec 31, 2015 |
Dec 31, 2014 |
Dec 31, 2013 |
|||||||||||
Eagle River | Proven | 208,000 | 10.2 | 68,000 | 53,000 | 39,000 | 41,000 | |||||||
Probable | 949,000 | 9.0 | 276,000 | 247,000 | 226,000 | 128,000 | ||||||||
Proven + Probable | 1,157,000 | 9.2 | 344,000 | 300,000 | 265,000 | 169,000 | ||||||||
Mishi | Proven | 259,000 | 1.8 | 15,000 | 11,000 | 12,000 | 16,000 | |||||||
Probable | 1,361,000 | 2.0 | 87,000 | 120,000 | 109,000 | 96,000 | ||||||||
Proven + Probable | 1,620,000 | 2.0 | 102,000 | 131,000 | 121,000 | 112,000 | ||||||||
TOTAL | 446,000 | 431,000 | 386,000 | 281,000 | ||||||||||
MINERAL RESOURCES (Exclusive of Reserves) |
||||||||||||||
Mine | Category | Tonnes | Grade | Contained | ||||||||||
(g/t) |
Ounces | |||||||||||||
Dec 31, 2016 |
Dec 31, 2015 |
Dec 31, 2014 |
Dec 31, 2013 |
|||||||||||
Eagle River | Inferred | 327,000 | 8.1 | 85,000 | 170,000 | 80,000 | 105,000 | |||||||
Mishi Open Pit | Indicated | 3,679,000 | 2.1 | 248,000 | 248,000 | 248,000 | 248,000 | |||||||
Inferred | 764,000 | 2.4 | 59,000 | 59,000 | 59,000 | 59,000 | ||||||||
Mishi Underground | Indicated | 567,000 | 4.5 | 82,000 | 82,000 | 82,000 | 82,000 | |||||||
Inferred | 437,000 | 5.8 | 81,000 | 81,000 | 81,000 | 81,000 | ||||||||
TOTAL | Indicated | 330,000 | 330,000 | 330,000 | 330,000 | |||||||||
Inferred | 225,000 | 310,000 | 220,000 | 245,000 | ||||||||||
EAGLE RIVER PROVEN AND PROBABLE RESERVE BREAKDOWN BY ZONE |
||||||||
Structure | Tonnage | Grade (g/t) | Contained Ounces | Percent (oz) | ||||
No. 8 | 255,000 | 10.6 | 87,000 | 25 | ||||
No. 300 | 456,000 | 9.0 | 132,000 | 38 | ||||
No. 7 | 310,000 | 9.2 | 91,000 | 27 | ||||
Other | 136,000 | 7.8 | 34,000 | 10 | ||||
TOTAL | 1,157,000 | 9.2 | 344,000 | 100 | ||||
Notes to Mineral Reserves and Mineral Resources Tables:
TECHNICAL DISCLOSURE
The technical and scientific disclosure in this press release has been prepared and approved by George Mannard, P. Geo., Vice President, Exploration and Philip Ng, Chief Operating Officer of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards.
CONFERENCE CALL DETAILS:
Wesdome will be hosting a call to discuss these results at 9am ET on February 23, 2017. Participants are invited to join using the following information:
Wesdome Gold Mines 2016 Fourth Quarter and Full Year Financial Results Conference Call:
North American Toll Free: +1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Passcode: 73151421
Webcast link: http://edge.media-server.com/m/p/959b3kdf
Webcast can also be accessed under the News and Events section of the Company's website (www.wesdome.com)
ABOUT WESDOME
Wesdome Gold Mines is in its 29th year of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d'Or, Quebec. The Kiena Complex is a fully permitted former mine with a 930 metre shaft and 2,000 tonne per day mill. The Company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario, which is being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 130 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO."
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. 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. The Company has included in this news release certain non-IFRS performance measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per ounce reflect actual mine operating costs incurred during the fiscal period divided by the number of ounces produced. These measures are not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
For further information, please contact:
Duncan Middlemiss
President and CEO
416-360-3743 ext. 29
[email protected]
Lindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 25
[email protected]
8 King St. East, Suite 811
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743
Fax: 416-360-7620
Website: www.wesdome.com