Mr. Rolly Uloth reports
WESDOME GOLD MINES ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Wesdome Gold Mines Ltd. has released its financial results for the second quarter of 2016.
2016 second quarter summary
- Gold production of 12,147 ounces:
- Eagle River mine underground production of 10,210 ounces at a recovered grade of seven grams per tonne (g/t) with a mill recovery of 93 per cent;
- Mishi open-pit mine production of 1,937 ounces at a recovered grade of 1.8 g/t with a mill recovery of 86 per cent;
- Total mill throughput of 78,851 tonnes averaging 866 tonnes per calendar day;
- Revenue of $18.4-million on gold sales of 11,265 ounces at an average realized price of $1,637 ($1,271 (U.S.)) per ounce, compared with $13.3-million in the previous quarter due to higher production;
- Mine operating profit of $4.5-million compared with a loss of $1.1-million in the previous quarter due to higher recovered grades;
- Net income of $1.8-million, or one cent per share, compared with a net loss of $3.3-million, or three cents per share, in the previous quarter. After adjusting for Kiena care and maintenance cost of $600,000, annual general meeting cost $600,000 and net-of-exploration credit refund of $2.6-million, it had net income of $400,000 or zero per share, compared with a net loss of $2.9-million or two cents per share in the previous quarter;
- Operating cash flow of $4.9-million, or four cents per share, compared with a negative cash flow of $2.8-million, or two cents per share, in the previous quarter. After adjusting for Kiena care and maintenance cost, annual general meeting cost and exploration credit refund, operating cash flow was $3.5-million compared with a negative cash flow $2.3-million in the previous quarter;
- Production cash costs per ounce were $1,188 ($922 (U.S.)), a 33-per-cent decrease from $1,766 ($1,285 (U.S.)) per ounce in the previous quarter;
- All-in sustaining costs per ounce (AISC) on a production basis were $1,687 ($1,309 (U.S.)), a 31-per-cent decrease from $2,428 ($1,767 (U.S.)) per ounce in the previous quarter, reflecting increased exploration counteracted by significantly improved production in the current quarter;
- Cash and cash equivalents of $26.8-million, 3,002 ounces of gold in inventory at market price of $5.1-million and working capital of $16.6-million as at June 30, 2016, resulting from financing and disposition of non-core assets;
- Exploration drilling extends high-grade 7 zone 200 metres and initial drifting confirms continuity.
Underground exploration drilling program launched at Kiena
Rolly Uloth, president and chief executive officer, commented: "Higher production and recovered grades led to lower costs and improved financial performance in the second quarter. Concurrent with improving near-term production results, the operations team has been developing additional high-grade zones located close to existing infrastructure. The 811 zone's strike length opens up at depth and will be accessed in the fourth quarter of this year. Another zone that is being developed, the 7 zone, will be ready for stope production in early 2017. Of particular interest is a sill drift on the 300 zone which has encountered 140 metres of strong grades and continues west beyond available drilling information."
Charles Page, chairman, added: "Subsequent to quarter-end, Wesdome announced the appointment of Duncan Middlemiss as president and CEO. Mr. Middlemiss has extensive mine management and planning experience. A review of operations, including these recent developments, will refine the existing guidance in Q3 2016."
FINANCIAL RESULTS -- THREE AND SIX MONTHS 2016 AND 2015
(in thousands, except per-share amounts)
Three months ended June 30, Six months ended June 30,
2016 2015 2016 2015
Revenue $ 18,447 $ 17,202 $ 31,731 $ 31,644
Mine operating profit 4,493 3,103 3,388 4,660
Net income (loss) 1,837 (746) (1,463) (1,517)
Net income (loss) adjusted 409 (88) (2,445) (366)
Basic net income (loss) per share 0.01 (0.01) (0.01) (0.01)
Basic net income (loss) per share
adjusted 0.00 (0.00) (0.02) (0.00)
Cash flows from operating
activities 4,885 1,436 2,099 1,569
Cash flows from operating
activities adjusted 3,457 2,094 1,117 2,720
Cash and cash equivalents 26,802 4,067 26,802 4,067
Working capital 16,598 3,287 16,598 3,287
OPERATIONAL RESULTS -- THREE AND SIX MONTHS 2016 AND 2015
Three months ended June 30, Six months ended June 30,
2016 2015 2016 2015
Eagle tonnes milled 45,305 46,340 85,144 86,155
Mishi tonnes milled 33,546 36,313 69,833 55,602
Total tonnes milled 78,851 82,653 154,977 141,757
Eagle recovered grade (g/t) 7.0 6.6 6.0 6.8
Mishi recovered grade (g/t) 1.8 2.3 1.7 2.1
Eagle ounces produced 10,210 9,848 16,464 18,751
Mishi ounces produced 1,937 2,628 3,719 3,865
Total ounces produced 12,147 12,476 20,183 22,616
Ounces sold 11,265 11,740 19,365 21,373
Average realized price (CAD$/oz) 1,637 1,465 1,639 1,481
Average realized price (US$/oz) 1,271 1,192 1,231 1,199
Production cash costs (CAD$/oz) 1,188 1,161 1,419 1,244
Production cash costs/oz (US$/oz) 922 945 1,066 1,007
All-in sustaining costs (CAD$/oz) 1,687 1,582 1,982 1,745
All-in sustaining costs (US$/oz) 1,309 1,287 1,489 1,413
The contents of this press release have been verified and approved by the company's chief operating officer, Philip Ng, PEng, a qualified person for the purpose of National Instrument 43-101 -- standards of disclosure for mineral projects.
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