Wesdome Announces Third Quarter 2023 Financial Results

Rhea-AI Summary

Wesdome Gold Mines Ltd. (TSX: WDO) announces Q3 2023 financial results, including 27,760 ounces of gold produced, a $3.2 million net loss, and $142.6 million in available liquidity. The company reaffirms 2023 production guidance of 110,000 to 130,000 ounces and cost guidance for cash costs, all-in sustaining costs, and capital expenditures.

Positive

• Wesdome Gold Mines Ltd. has reaffirmed its 2023 production guidance, indicating stability and confidence in its operations and future plans.
• The company's payable gold production in Q3 2023 was 27,760 ounces at cash costs per ounce of $1,755 and all-in sustaining costs per ounce of $2,711, reflecting strong financial performance.

Negative

• The Q3 2023 net loss of $3.2 million and adjusted net loss of $2.6 million may raise concerns about the company's profitability and financial management.

TORONTO, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces third quarter (“Q3 2023”) financial results. Management will host a conference call tomorrow, Thursday November 9, 2023, at 10:00 a.m. Eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.

Third Quarter 2023 Highlights

• Payable gold production in the third quarter was 27,760 ounces at cash costs per ounce¹ of $1,755 (US$1,308) and all-in sustaining costs (“AISC”) per ounce ¹ of $2,711 (US$2,021). Q3 was forecasted as the lightest cash flow quarter of the year due to timing of capital outlays and planned downtime at Eagle River.
• At Kiena, development of the ramp to the 129-level mining horizon tracked ahead of schedule. Delineation drilling to date has also confirmed the continuity, thickness, and high grade of the A zone at depth, as per the reserve block model.
• Cash margins¹ were $22.2 million, and free cash flow¹ was $10.7 million. During the quarter Wesdome received a $12.5 million tax refund.
• Quarterly net loss of $3.2 million ($0.02) per share in the third quarter of 2023 and adjusted net loss¹ of $2.6 million  ($0.02) per share. Positive operating cash flow of $45.1 million ($0.30 per share).
• Available liquidity of $142.6 million, including $31.6 million in cash and $111 million of undrawn availability under the Company’s revolving credit facility.
• Reaffirming consolidated 2023 production guidance of 110,000 to 130,000 ounces as well as cost guidance for cash costs, all-in sustaining costs and capital expenditures.

Anthea Bath, President and CEO, commented, “In the recent quarter, we made solid progress in advancing development and de-risking our future strategic plans. Eagle River reported consistent results after the completion of mill and infrastructure upgrades during an annual shutdown, and Kiena's ramp development remains ahead of schedule, with  access to the 129-metre level achieved  after quarter end in November. Elevated cost levels during the quarter were due to planned downtime and timing of capital outlays.

Reaching the 129-level metre at Kiena was an important milestone for Wesdome as it will enable access to the higher-grade Deep A zone stopes in the first half of next year. Also, efforts continue to further de-risk our 2024 mine plans, with delineation drilling reinforcing our block model and overall mine strategy. Site preparation for the Presqu’Île ramp portal and related infrastructure is also underway following the receipt of permits at the end of the quarter.

At Eagle River, performance on various fronts continues to exceed budget. An asset optimization initiative is being launched internally to optimize the unit cost structure of the asset with a view to value by investigating alternative mining and material handling methods, cut-off grade levels, and planning methodologies.

We are expecting a strong finish to this year and based on our year-to-date performance, we are well positioned to deliver on the mid-point of production and cost guidance. Looking ahead, preliminary plans for 2024 continue to point to a  production and operating cash flow rebound which will support total capital investment levels similar to this year.”

Financial and Operating Highlights

A summary of the Company’s consolidated financial and operating results for the nine months ended September 30, 2023 are presented below:

(in thousands of Canadian dollars, unless otherwise indicated)	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Financial Results
Revenues	69,696		61,823		230,952		190,448
Cost of sales	71,450		56,294		216,916		152,374
Cash margin1	22,233		16,993		85,393		69,208
Net loss attributable to shareholders	(3,248	)	(3,899	)	(8,607	)	(11,179	)
Net income ($/sh)	(0.02	)	(0.03	)	(0.06	)	(0.08	)
Adjusted attributable net loss1	(2,573	)	(3,899	)	(4,330	)	(2,329	)
Adjusted attributable net loss1 ($/sh)	(0.02	)	(0.03	)	(0.03	)	(0.02	)
Operating cash flow	45,076		12,945		64,175		54,939
Operating cash flow ($/sh)	0.30		0.09		0.44		0.39
Cash flow from financing activities	(2,370	)	21,961		7,367		20,128
Cash flow from investing activities	(33,191	)	(33,681	)	(73,145	)	107,090
Free cash flow1	10,672		(23,193	)	(14,204	)	(58,565	)
Free cash flow1 ($/sh)	0.07		(0.16	)	(0.10	)	(0.41	)
Operating Results
Gold produced (oz)	27,760		22,883		87,119		75,734
Gold sold (oz)	27,000		27,500		89,000		81,500
Average realized gold price ($/oz)	2,579		2,246		2,592		2,334
Average realized gold price (US$/oz)	1,923		1,720		1,926		1,819
Cash costs1 ($/oz)	1,755		1,628		1,633		1,485
All-in sustaining costs1 ($/oz)	2,711		2,217		2,293		1,975
All-in sustaining costs1 (US$/oz)	2,021		1,698		1,704		1,539
Financial Position
Cash and cash equivalents	31,582		24,741		31,582		24,741
Working capital	(18,839	)	(35,457	)	(18,839	)	(35,457	)
Total assets	605,364		578,762		605,364		578,762
Current liabilities	87,577		93,733		87,577		93,733
Total liabilities	180,981		190,542		180,981		190.542

Notes:

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

Eagle River, Ontario

	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Ore milled (tonnes)
Eagle River	55,153	52,247	167,959	165,428
Mishi	-	3,595	6,150	23,153
Total Ore Milled	55,153	55,842	174,109	188,581
Head grade (grams per tonne, “g/t”)
Eagle River	11.9	10.7	12.1	10.6
Mishi	-	2.8	2.3	3.2
Total head grade	11.9	10.2	12.1	9.7
Recoveries (%)
Eagle River	96.7	96.6	96.7	96.6
Mishi	-	83.0	72.5	83.5
Total Gold recovery	96.7	96.3	96.7	96.0
Gold production (ounces)
Eagle River	20,391	17,405	63,395	54,495
Mishi	-	270	332	2,005
Total Gold Production	20,391	17,675	63,727	56,500
Production sold (ounces)	19,600	18,800	66,100	57,600
Production costs per tonne milled1	503	475	485	412
Cash margin1 ($/oz)	1,134	774	1,202	966
Cash costs1 ($/oz)	1,442	1,473	1,380	1,377
All-in sustaining costs1 ($/oz)	2,467	2,259	2,039	1,989

For the three months ended September 30, 2023 and 2022, production increased by 15% from Q3 2022 to 20,391 ounces due to a 16% increase in head grade offset by a 1% decrease in throughput; higher grades and lower tonnes processed are due in part to the Mishi Pit stockpile being fully depleted in Q1 2023, therefore not contributing to 2023 Q3 production. In 2022, Mishi had contributed 3,595 tonnes grading 2.82g/t to production. Higher grades were also achieved from the underground mine as a result of strong performances in the Falcon and 300 zones, in line with expectations. The mill performed its annual two weeks maintenance in July.

Q3 2023 cash cost of $1,442 (US$1,075) per ounce of gold sold¹ decreased by 2% or $31 per ounce from Q3 2022 primarily due to a 4% increase in ounces sold.

Q3 2023 AISC of $2,467 (US$1,839) per ounce of gold sold¹ increased by 9% or $208 per ounce from Q3 2022 due to higher cash costs and site infrastructure spending; partially offset by a 4% increase in ounces sold.

Generated $2.1 million in cash margin net AISC¹ in Q3 2023 compared to $(0.2) million in Q3 2022 primarily due to the 4% increase in ounces sold and the higher average Canadian dollar gold price; partially offset by the 2% increase in overall aggregate site operating costs and the 50% increase in site infrastructure spending.

Kiena, Quebec

	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Ore milled (tonnes)	47,351	16,112	141,499	63,752
Head grade (grams per tonne, “g/t”)	4.9	10.2	5.2	9.5
Recoveries (%)	98.4	98.5	98.0	98.4
Gold production (ounces)	7,369	5,208	23,392	19,234
Production sold (ounces)	7,400	8,700	22,900	23,900
Production costs per tonne milled1	402	869	419	643
Cash margin1 ($/oz)	0	280	258	568
Cash costs1 ($/oz)	2,585	1,963	2,365	1,746
All-in sustaining costs1 ($/oz)	3,359	2,126	3,027	1,941

For the three months ended September 30, 2023 and 2022, production increased by 41% from Q3 2022 to 7,369 ounces due to a 194% increase in throughput offset by a 52% decrease in head grade; the lower grades achieved so far in 2023 are the result of mining lower grade ore from the Martin and S50 zones to supplement limited production from Kiena Deep. Positive reconciliation continued into Q3, with the newly commissioned A2 zone (satellite zone running parallel to A Zone on levels 118, 116 and 114 and located entirely in the footwall schists) being a significant contributor. Development of the ramp to the 129 level mining horizon continued to track ahead of schedule during Q3 2023, positioning the mine to ramp up gold production in 2024. Delineation drilling into the 129 level horizon was initiated during the quarter from the ramp, and preliminary results confirm the continuity, thickness and high grade of the A zone at depth, as per the reserve block model.

Q3 2023 cash cost of $2,585 (US$1,927) per ounce of gold sold¹ increased by 32% or $622 per ounce from Q3 2022 primarily due to a 15% decrease in ounces sold and 12% increase in aggregate mine operating costs.

Q3 2023 AISC of $3,359 (US$2,504) per ounce of gold¹ sold increased by 58% or $1,233 per ounce as compared to Q3 2022 due to the increased cash costs and the sustaining mine exploration and development costs, mine capital equipment costs and a 15% decrease in ounces sold. The costs remain consistent with the plan and will decrease as the mine increases gold production levels in 2024.

Q3 2023 cash margin net AISC¹ of negative $5.7 million decreased by $6.7 million compared to $1.0 million in Q3 2022 due to the increased overall aggregate cash cost, the inclusion of sustaining development and exploration costs and a 15% decrease in ounces sold; offset partially by the higher average Canadian dollar gold price.

Exploration Updates

Eagle River

Recent exploration drilling within the mine diorite, has extended the 300 East Zone to the 1,600 m-level and remains open down plunge.

The drilling has confirmed 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.

Initial surface and underground exploration drilling, commenced in July 2023 to test the volcanic rocks west of the mine diorite, has returned high grades within 200 metres from surface, while the first underground hole 750 metres down plunge has also intersected similar mineralization. Highlights of the initial surface drilling of the volcanic rocks returned 64.4 g/t Au over 0.4 m core length. These intersections suggest that a newly defined shoot could be located in this area.

Kiena

Underground exploration drilling has been focused on better delineating Kiena Deep A zones in advance of the planned mining. Limited exploration has been completed to extend and better define the deeper portion of the Kiena Deep zones. This drilling will be increased in the future once more optimal drill platforms are established.

Recent surface drilling at the Presqu’ile zone has confirmed not only the continuity of the gold mineralization and the validity of the geologic model, but also the potential for down plunge extensions towards the east. Highlights of recent in-fill drilling include 32.5 g/t over 3.0 m core length. The drilling will be used to convert resources into reserves at year end.

The excavation of an exploration ramp from surface to access the near-surface Presqu’ile Zone will be underway in Q4 2023 now that the necessary permits have been secured.

2023 Outlook

	2023 Guidance		YTD 2023 Performance
Gold production
Eagle River	80,000 – 90,000 ounces		63,395 ounces
Mishi	-		332 ounces
Kiena	30,000 – 40,000 ounces		23,392 ounces
Total	110,000 – 130,000 ounces		87,119 ounces
Head grade (g/t Au)
Eagle River	11.5 – 12.5		12.1
Mishi	-		2.3
Kiena	3.7 – 4.7		5.2
Cash cost per ounce 1	$1,500 - $1,670 (US$1,150 – US$1,290)		$1,633 (US$1,214)
AlSC per ounce 1	$2,100 - $2,340 (US$1,620 – US$1,800)		$2,293 (US$1,704)

¹ Operating cost per ounce sold and all-in sustaining cost per ounce are non-IFRS measures, please reference the Company’s interim management discussion and analysis for the period ended September 30, 2023

Third Quarter 2023 Conference Call and Webcast

The financial statements and management discussion and analysis will be available on the company’s website at www.wesdome.com and on SEDAR+ www.sedarplus.ca. A conference call and webcast to discuss these results will be held on November 9, 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/BI342316b2dae64c7fa72b789b4ffcb8a1
  
  
• Webcast Link: https://edge.media-server.com/mmc/p/4bu4ty2t
  
  
• The webcast can also be accessed under the news and events section of the company’s website

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.

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 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:

Lindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 2025
invest@wesdome.com

To receive Wesdome’s news releases by email, please register using the Wesdome website at www.wesdome.com

Cautionary Note Regarding Forward-Looking Information and Statements
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.

FINANCIAL AND OPERTAIONAL RESULTS
		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	)

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Financial Position
(Unaudited, expressed in thousands of Canadian dollars)
		As at September 30, 2023				As at December 31, 2022
Assets
Current
Cash		$	31,582			$	33,185
Receivables and prepaids			9,962				12,755
Inventories			25,636				22,119
Income and mining tax receivable			-				6,494
Share consideration receivable			1,558				2,994
Total current assets			68,738				77,547
Restricted cash			2,718				1,176
Deferred financing costs			1,014				1,411
Mining properties, plant and equipment			525,649				525,860
Exploration properties			1,339				1,139
Marketable securities			480				960
Share consideration receivable			1,425				2,576
Investment in associate			4,001				8,458
Total assets		$	605,364			$	619,127
Liabilities
Current
Payables and accruals		$	43,056			$	54,734
Borrowings			38,766				54,697
Income and mining tax payable			2,317				-
Current portion of lease liabilities			3,438				6,160
Total current liabilities			87,577				115,591
Lease liabilities			1,453				3,126
Deferred income and mining tax liabilities			72,670				82,950
Decommissioning provisions			19,281				18,941
Total liabilities			180,981				220,608
Equity
Equity attributable to owners of the Company
Capital stock			237,922				205,361
Contributed surplus			9,749				7,359
Retained earnings			178,332				186,939
Accumulated other comprehensive loss			(1,620	)			(1,140	)
Total equity attributable to owners of the Company			424,383				398,519
Total liabilities and equity		$	605,364			$	619,127

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Loss and Comprehensive Loss
(Unaudited, expressed in thousands of Canadian dollars except for per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenues	$	69,696			$	61,823			$	230,952			$	190,448
Cost of sales		(71,450	)			(56,294	)			(216,916	)			(152,374	)
Gross profit		(1,754	)			5,529				14,036				38,074
Other expenses
Corporate and general		4,707				2,918				12,376				9,514
Stock-based compensation		328				823				3,653				2,453
Retirement costs		-				-				1,190				-
Exploration and evaluation		2,935				5,273				5,162				12,442
(Gain) loss on disposal of mining equipment		(5	)			74				312				62
Total other expenses		7,965				9,088				22,693				24,471
Operating (loss) income		(9,719	)			(3,559	)			(8,657	)			13,603
Impairment of investment in associate		(900	)			-				(3,600	)			(11,800	)
Interest expense		(1,114	)			(588	)			(3,598	)			(1,167	)
Fair value adjustment on share consideration receivable		(1,010	)			(1,552	)			(2,587	)			(7,391	)
Share of (loss) income of associate		(328	)			155				(994	)			(388	)
Accretion of decommissioning provisions		(269	)			(239	)			(759	)			(618	)
(Loss) gain on dilution of ownership		(91	)			(35	)			137				(669	)
Other income (expense)		363				(1,420	)			508				(1,363	)
Loss before income and mining taxes		(13,068	)			(7,238	)			(19,550	)			(9,793	)
Income and mining tax expense (recovery)
Current		(4,202	)			325				(662	)			4,601
Deferred		(5,618	)			(3,664	)			(10,281	)			(3,215	)
Total income and mining tax expense (recovery)		(9,820	)			(3,339	)			(10,943	)			1,386
Net loss	$	(3,248	)		$	(3,899	)		$	(8,607	)		$	(11,179	)
Other comprehensive loss
Change in fair value of marketable securities		(120	)			(360	)			(480	)			(1,260	)
Total comprehensive loss	$	(3,368	)		$	(4,259	)		$	(9,087	)		$	(12,439	)
Loss per share
Basic	$	(0.02	)		$	(0.03	)		$	(0.06	)		$	(0.08	)
Diluted	$	(0.02	)		$	(0.03	)		$	(0.06	)		$	(0.08	)
Weighted average number of common
shares (000s)
Basic		148,952				142,487				147,155				142,260
Diluted		148,952				142,487				147,155				142,260

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
September 30, 2022		-				-				(11,179	)			-				(11,179	)
Other comprehensive loss		-				-				-				(1,260	)			(1,260	)
Exercise of options		3,031				-				-				-				3,031
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
Balance, December 31, 2022	$	205,361			$	7,359			$	186,939			$	(1,140	)		$	398,519
Net loss for the period ended
September 30, 2023		-				-				(8,607	)			-				(8,607	)
At-the-Market offering:
Common shares issued for cash		31,988				-				-				-				31,988
Agents' fees and issuance costs		(1,366	)			-				-				-				(1,366	)
Other comprehensive loss		-				-				-				(480	)			(480	)
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		-				3,653				-				-				3,653
Balance, September 30, 2023	$	237,922			$	9,749			$	178,332			$	(1,620	)		$	424,383

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,
				2023				2022				2023				2022
Operating Activities
Net loss			$	(3,248	)		$	(3,899	)		$	(8,607	)		$	(11,179	)
Depreciation and depletion				23,987				11,464				71,327				31,134
Stock-based compensation				328				823				3,653				2,453
Accretion of decommissioning provisions				269				239				759				618
Deferred income and mining tax recovery				(5,618	)			(3,664	)			(10,281	)			(3,215	)
Amortization of deferred financing cost				133				99				397				268
Interest expense				1,114				588				3,598				1,167
(Gain) loss on disposal of mining equipment				(5	)			74				312				62
Impairment of investment in associate				900				-				3,600				11,800
Fair value adjustment on share consideration receivable				1,010				1,552				2,587				7,391
Share of loss (income) of associate				328				(155	)			994				388
Loss (gain) on dilution of ownership				91				35				(137	)			669
Foreign exchange loss (gain) on borrowings				4				1,569				(3	)			1,460
Net changes in non-cash working capital				13,275				6,978				(13,498	)			25,884
Mining and income tax refund (paid)				12,508				(2,758	)			9,474				(13,961	)
Net cash from operating activities				45,076				12,945				64,175				54,939
Financing Activities
Proceeds from At-the-Market offering				-				-				31,988				-
Agents' fees and issuance costs				(35	)			-				(1,366	)			-
Proceeds from revolving credit facility				10,000				25,928				10,000				40,884
Repayment of revolving credit facility				(10,013	)			-				(25,931	)			(14,810	)
Exercise of options				-				-				676				3,031
Repayment of lease liabilities				(1,208	)			(2,300	)			(4,402	)			(6,731	)
Deferred financing costs				-				(1,079	)			-				(1,079	)
Interest paid				(1,114	)			(588	)			(3,598	)			(1,167	)
Net cash (used in) from financing activities				(2,370	)			21,961				7,367				20,128
Investing Activities
Additions to mining properties				(31,654	)			(11,058	)			(72,235	)			(24,380	)
Additions to mines under development				-				(22,780	)			-				(82,393	)
Purchase of exploration property				-				-				(200	)			-
Funds held against standby letter of credit				(1,542	)			(25	)			(1,542	)			(519	)
Proceeds on disposal of mining equipment				5				182				832				202
Net cash used in investing activities				(33,191	)			(33,681	)			(73,145	)			(107,090	)
Increase (decrease) in cash				9,515				1,225				(1,603	)			(32,023	)
Cash - beginning of period				22,067				23,516				33,185				56,764
Cash - end of period			$	31,582			$	24,741			$	31,582			$	24,741

Cautionary Note Regarding Non-GAAP Financial Measures

Average realized price per ounce of gold sold
Average realized price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers’ reports and filings.

In 000s, except per unit amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Revenues per financial statements	69,696		61,823		230,952		190,448
Silver revenue from mining operations	(77	)	(54	)	(233	)	(203	)
Gold revenue from mining operations (a)	69,619		61,769		230,719		190,245
Ounces of gold sold (b)	27,000		27,500		89,000		81,500
Average realized price gold sold CAD (c) = (a) ÷ (b)	2,579		2,246		2,592		2,334
Average 1 USD → CAD exchange rate (d)	1.3414		1.3056		1.3456		1.2828
Average realized price gold sold USD (c) ÷ (d)	1,923		1,720		1,926		1,819

Cash costs per ounce of gold sold
Cash cost per ounce of gold sold is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. The Company has included this non-IFRS performance measure throughout this document as Wesdome believes that this generally accepted industry performance measure provides a useful indication of the Company’s operational performance. 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. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table provides a reconciliation of total cash costs per ounce of gold sold to cost of sales per the financial statements for each of the last eight quarters:

In 000s, except per unit amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Cost of sales per financial statements	71,450		56,294		216,916		152,374
Depletion and depreciation	(23,987	)	(11,464	)	(71,327	)	(31,134	)
Silver revenue from mining operations	(77	)	(54	)	(233	)	(203	)
Cash costs (a)	47,386		44,776		145,356		121,037
Ounces of gold sold (b)	27,000		27,500		89,000		81,500
Cash costs per ounce of gold sold (c) = (a) ÷ (b)	1,755		1,628		1,633		1,485
Average 1 USD → CAD exchange rate (d)	1.3414		1.3056		1.3456		1.2828
Cash costs per ounce of gold sold USD (c) ÷ (d)	1,308		1,247		1,214		1,158

Production costs per tonne milled
Mine-site cost per tonne milled is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. As illustrated in the table below, this measure is calculated by adjusting cost of sales, as shown in the statements of income for non-cash depletion and depreciation, royalties and inventory level changes and then dividing by tonnes processed through the mill. Management believes that mine-site cost per tonne milled provides additional information regarding the performance of mining operations and allows Management to monitor operating costs on a more consistent basis as the per tonne milled measure reduces the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, the estimated revenue on a per tonne basis must be in excess of the production cost per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs prepared in accordance with IFRS. This measure supplements production cost information prepared in accordance with IFRS and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance.

In 000s, except per unit amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Cost of sales per financial statements	71,450		56,294		216,916		152,374
Depletion and depreciation	(23,987	)	(11,464	)	(71,327	)	(31,134	)
Royalties	(1,029	)	(766	)	(3,199	)	(2,491	)
Inventory adjustments	384		(3,518	)	382		35
Mining and processing costs, before inventory adjustments (a)	46,818		40,546		142,772		118,784
Ore milled (tonnes) (b)	102,505		71,954		315,608		252,333
Production costs per tonne milled (a) ÷ (b)	457		563		452		471

Cash margin
Cash margin is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. It is calculated as the difference between gold sales revenue from mining operations and cash mine site operating costs (see Cash cost per ounce of gold sold under this Section above) per the Company’s Financial Statements. The Company believes it illustrates the performance of the Company’s operating mines and enables investors to better understand the Company’s performance in comparison to other gold producers who present results on a similar basis.

In 000s, except per unit amounts	Q3 2023	Q3 2022	YTD 2023	YTD 2022
Gold revenue from mining operations (per above)	69,619	61,769	230,719	190,245
Cash costs (per above)	47,386	44,776	145,356	121,037
Cash margin	22,233	16,993	85,363	69,208
Per ounce of gold sold (Canadian dollar):
Average realized price (a)	2,579	2,246	2,592	2,334
Cash costs (b)	1,755	1,628	1,633	1,485
Cash margin (a) – (b)	824	618	959	849

All-in sustaining costs
All-in sustaining costs (“AISC”) include mine site operating costs incurred at Wesdome mining operations, sustaining mine capital and development expenditures, mine site exploration expenditures and equipment lease payments related to the mine operations and corporate administration expenses. The Company believes that this measure represents the total costs of producing gold from current operations and provides Wesdome and other stakeholders with additional information that illustrates the Company’s operational performance and ability to generate cash flow. This cost measure seeks to reflect the full cost of gold production from current operations on a per-ounce of gold sold basis. New project and growth capital are not included.

In 000s, except per unit amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Cost of sales, per financial statements	71,450		56,294		216,916		152,374
Depletion and depreciation	(23,987	)	(11,464	)	(71,327	)	(31,134	)
Silver revenue from mining operations	(77	)	(54	)	(233	)	(203	)
Cash costs	47,386		44,776		145,356		121,037
Sustaining mine exploration and development	9,683		5,134		27,191		15,686
Sustaining mine capital equipment	10,360		2,232		15,158		4,298
Tailings management facility	15		3,692		29		3,897
Corporate and general	4,707		2,918		12,376		9,514
Less: Corporate development	(161	)	(87	)	(402	)	(224	)
Payment of lease liabilities	1,208		2,300		4,402		6,731
All-in Sustaining costs (AISC) (a)	73,198		60,965		204,110		160,939
Ounces of gold sold (b)	27,000		27,500		89,000		81,500
AISC (c) = (a) ÷ (b)	2,711		2,217		2,293		1,975
Average 1 USD → CAD exchange rate (d)	1.3414		1.3056		1.3456		1.2828
AISC USD (c) ÷ (d)	2,021		1,698		1,704		1,539

Free cash flow and operating and free cash flow per share
Free cash flow is calculated by taking net cash provided by operating activities less cash used in capital expenditures and lease payments as reported in the Company’s financial statements. Free cash flow per share is calculated by dividing free cash flow by the weighted average number of shares outstanding for the period.

Operating cash flow per share is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Operating cash flow per share is calculated by dividing cash flow from operating activities in the Company’s Financial Statements by the weighted average number of shares outstanding for each year. It may not be comparable to information in other gold producers’ reports and filings.

In 000s, except per share amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Net cash provided by operating activities per financial statements (c)	45,076		12,945		64,175		54,939
Sustaining mine exploration and development	(9,683	)	(5,134	)	(27,191	)	(15,686	)
Sustaining mine capital equipment	(10,360	)	(2,232	)	(15,158	)	(4,298	)
Tailings management facility	(15	)	(3,692	)	(29	)	(3,897	)
Ventilation project	-		-		-		(499	)
Capitalized development, exploration and evaluation expenditures	-		(5,550	)	-		(21,644	)
Mines under development capital equipment	-		(17,230	)	-		(60,749	)
Growth mine exploration and development	(4,111	)	-		(12,787	)	-
Growth mine capital equipment	(7,485	)	-		(17,070	)	-
Purchase of mineral properties	-		-		(200	)	-
Surface exploration at Eagle River	-		-		-		-
Funds held against standby letters of credit	(1,542	)	-		(1,542	)	-
Payment of lease liabilities	(1,208	)	(2,300	)	(4,402	)	(6,731	)
Free cash flows (a)	10,672		(23,193	)	(14,204	)	(58,565	)
Weighted number of shares (000s) (b)	148,952		142,487		147,155		142,260
Per Share data
Operating cash flow (c) ÷ (b)	0.30		0.09		0.44		0.39
Free cash flow (a) ÷ (b)	0.07		(0.16	)	(0.10	)	(0.41	)

Net income (adjusted) and Adjusted net income per share
Adjusted net income (loss) and adjusted net income (loss) per share are non-IFRS performance measures and do not constitute a measure recognized by IFRS and do not have standardized meanings defined by IFRS, as well both measures may not be comparable to information in other gold producers’ reports and filings. Adjusted net income (loss) is calculated by removing the one-time gains and losses resulting from the disposition of non-core assets, non-recurring expenses and significant tax adjustments (mining tax recognition and exploration credit refunds) not related to current period’s income, as detailed in the table below. Wesdome discloses this measure, which is based on its financial statements, to assist in the understanding of the Company’s operating results and financial position.

In 000s, except per share amounts	Q3 2023		Q3 2022		YTD 2023		YTD 2022
Net (loss) income per financial statements	(3,248	)	(3,899	)	(8,607	)	(11,179	)
Adjustments for:
Impairment of investment in associate	900		-		3,600		11,800
Retirement costs	-		-		2,102		-
Total adjustments	900		-		5,702		11,800
Related income tax effect	(225	)	-		(1,425	)	(2,950	)
	675		-		4,277		8,850
Net (loss) income adjusted (a)	(2,573	)	(3,899	)	(4,330	)	(2,329	)
Weighted number of shares (000s) (b)	148,952		142,487		147,155		142,260
Per Share data
Net adjusted (loss) income (a) ÷ (b)	(0.02	)	(0.03	)	(0.03	)	(0.02	)

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FAQ

What are Wesdome Gold Mines Ltd.'s Q3 2023 financial results?

Wesdome Gold Mines Ltd. reported a net loss of $3.2 million and adjusted net loss of $2.6 million in Q3 2023.

What is Wesdome Gold Mines Ltd.'s 2023 production guidance?

The company reaffirmed its 2023 production guidance of 110,000 to 130,000 ounces.

What were Wesdome Gold Mines Ltd.'s Q3 2023 gold production figures?

The company produced 27,760 ounces of gold in Q3 2023.

What were Wesdome Gold Mines Ltd.'s Q3 2023 cash costs and all-in sustaining costs per ounce?

The cash costs per ounce were $1,755, and the all-in sustaining costs per ounce were $2,711 in Q3 2023.