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WESDOME ANNOUNCES 2019 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

TORONTO, March 10, 2020 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (WDO.TO) (“Wesdome” or the “Company”) (“Q4 2019”) and full year 2019 financial results.  The Company’s full consolidated financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.wesdome.com. All figures are stated in Canadian dollars unless otherwise noted.

Key highlights of 2019:

  • Production increased by 28% over 2018.
  • Cash costs decreased by 9% over 2018.
  • Eagle River Complex free cash flow generation of $48.4 million.
  • Company free cash flow1 generation of $6.6 million, net of investing $25.1 million into the Kiena Complex.
  • Net income increased 2.7 times over 2018 and adjusted net income1 increased 2.5 times over 2018.
  • Operating cash flow increased by 1.5 times over 2018.
  • Increased Eagle River reserves by 36% net of 91,066 ounces of depletion.
  • Increased Eagle River reserve grade by 20% to 14.4 grams per tonne
  • Increased Eagle River Measured and Indicated Resources by 258%, or 3.6 times over 2018.
  • Increased Kiena Mineral Indicated Resources at the Deep A Zone by 4.1 times over 2018.
  • Concluded a $45.0 million Secured Credit Facility.

Refer to the Company’s 2019 Annual Management Discussion and Analysis on pages 29 – 36, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

Mr. Duncan Middlemiss, President and CEO commented, “In 2019, we continued to decrease costs and build up free cash flow, largely driven by an almost doubling of production at Eagle River over the last three years. Cash costs of $825 per ounce (US$621 per ounce) and all-in sustaining costs of $1,293/oz (US$975) per ounce were both below guidance, due to higher grades.

Eagle River reserves increased by 36% net of production, and reserve grade increased by 20%. Measured and Indicated resources increased by 258%. Looking ahead, in 2020 we plan to further increase production at Eagle River Complex, with guidance of 90,000 – 100,000 ounces, and increase the exploration and definition drilling to 105,500 metres (2019: 71,000 metres). 

The Eagle River operations generated $48.4 million of free cash flow, of which the majority was reinvested in major exploration programs at Kiena.

Kiena indicated resources at the Deep A Zone increased by 308% over the initial estimate in 2018.  The Kiena project is also advancing very well. The PEA is on track to be completed in Q2 2020, and concurrently we are drilling 85,000 metres in 2020 (2019: 59,000 metres). After the PEA, we plan to update our resource statement to incorporate an additional 60,000 metres of drilling since our last update and complete a pre-feasibility study which will establish reserves.

Company-wide in 2019 we generated $6.6 million in free cash flow, or $0.05 per share, compared to $2.8 million or $0.02 per share in 2018. On behalf of management and the board of directors, I would like to thank both teams at Eagle River and Kiena for a job done very well and safely. We experienced a 30% improvement in our safety performance and of all the achievements in 2019 we are especially proud of that one.”

Operating and financial highlights of the full year 2019 results include:

  • Gold production of 91,688 ounces from the Eagle River Complex (2018: 71,625 ounces):
    • Eagle River Underground 122,405 tonnes at a head grade of 23.1 grams per tonne (“g/t”) Au for 88,617 ounces produced (2018: 67,315 ounces).
    • Mishi Open Pit 46,405 tonnes at a head grade of 2.5 g/t Au for 3,072 ounces produced (2018: 4,310 ounces).

  • Revenue of $164.0 million (2018: $116.0 million) from 88,423 ounces of gold sold at an average sales price of $1,853/oz (2018: 70,480 ounces at an average price of $1,645/oz).

  • Cash costs1 of $825/oz or US$621/oz (2018: $905/oz or US$699/oz).

  • All-in sustaining costs1 (“AISC”) of $1,293/oz or US$975/oz (2018: $1,276/oz or US$985/oz).

  • Earned mine profit1 of $90.9 million (2018 - $52.1 million).

  • Operating cash flow of $71.1 million or $0.52 per share1 (2018: $46.3 million or $0.34 per share).

  • Free cash flow1 of $6.6 million or $0.05 per share1 (2018: $2.8 million or $0.02 per share).

  • Adjusted net income1 of $38.6 million or $0.28 per share (2018: $14.9 million or $0.11 per share).

  • Earnings before interest, taxes and depreciation and amortization (“EBITDA”) for 2019 of $80.7 million (2018: $43.3 million).

  • Cash position at the end of the year of $35.7 million.

  • Mineral Reserves at Eagle River of 550,000 contained gold ounces (1,186,000 tonnes at 14.4 g/t Au), of which 72% is located in the high grade 300 Zone.

  • Indicated & Measured Mineral Resources at Eagle River increased to 111,000 contained gold ounces (380,000 tonnes at 9.0 g/t Au).

  • Mineral Reserves at Mishi of 10,500 contained gold ounces (116,000 tonnes at 2.8 g/t Au).

Operating and financial highlights of Q4 2019 results include:

  • Eagle River Complex gold production of 21,332 ounces (Q4 2018: 17,254 ozs).
    • Eagle River Underground 23,257 tonnes at a head grade of 28.6 g/t Au for 20,894 ounces produced (Q4 2018: 16,712 ounces).
    • Mishi Open Pit 9,108 tonnes at a head grade of 1.9 g/t Au for 438 ounces produced (Q4 2018: 542 ounces).

  • 22,100 gold ounces sold (Q4 2018: 18,077 ozs).

  • Cash costs1 of $786/oz (US$595/oz) (Q4 2018: $937/oz or US$710/oz).

  • AISC1 of $1,305/oz or US$988/oz (Q4 2018: $1,371/oz or US$1,038/oz).

  • Earned mine profit1 of $25.8 million (Q4 2018: $12.5 million).

  • Operating cash flow of $15.8 million or $0.11 per share1 (Q4 2018: $8.6 million or $0.06 per share).

  • Free cash outflow1 of $3.3 million or $(0.02) per share (Q4 2018: free cash outflow of $4.5 million or $(0.03) per share).

  • Adjusted net income1 of $12.1 million or $0.09 per share (Q4 2018: $2.6 million or $0.02 per share).

1. Refer to the Company’s 2019 Annual Management Discussion and Analysis on pages 29 – 36, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

EXECUTIVE MANAGEMENT CHANGE 

Ben Au, will retire as the Company’s Chief Financial Officer on March 31, 2020 and his responsibilities will transfer to Scott Gilbert, the Company’s Vice President – Financial Systems and Cost Control since December 2018, will be appointed as the Chief Financial Officer effective on March 31, 2020. Scott has worked very closely with Mr. Au to ensure a seamless transition.  Mr. Gilbert has over 25 years of financial experience in the mining industry.  His portfolio of experience includes companies such as Kinross, Centerra Gold, IAMGOLD, St Andrew’s Goldfield’s and Harte Gold.  Scott has held several senior finance positions and continually achieved strong financial results through leadership and experience. 

Duncan Middlemiss, President and CEO commented, "I am very grateful to have spent over 10 years working with Ben at various mining companies where he consistently and impressively, led our organization’s financial department.  Ben has done an outstanding job as Wesdome’s Chief Financial Officer, where he was instrumental in implanting stronger systems and cost controls.  While we all will miss working with him, his retirement is well-deserved and we wish him all the very best.

In addition, I look forward to the contributions that Scott will bring to Wesdome in our next chapter and I am confident in his abilities and experience as the next CFO.  Scott has mentored with Ben for years and they bring similar strengths to our team.”

EAGLE RIVER COMPLEX RESERVES AND RESOURCES

MINERAL RESERVES – EAGLE RIVER (see notes) December 31, 2019 December 31, 2018
    Tonnes
(000s)
Grade
(g/t Au)
Contained ounces Tonnes
(000s)
Grade
(g/t Au)
Contained ounces
               
Eagle River Proven 331 15.5 165,000 188 14.7 89,000
  Probable 855 14.0 385,000 860 11.4 315,000
  Proven + Probable 1,186 14.4 550,000 1,048 12.0 404,000
               

 

MINERAL RESERVES – MISHI December 31, 2019 December 31, 2018
    Tonnes
(000s)
Grade
(g/t Au)
Contained ounces Tonnes
(000s)
Grade
(g/t Au)
Contained ounces
               
Mishi Proven 8 1.9 500 14 2.2 1,000
  Probable 108 2.9 10,000 110 2.9 10,000
  Proven + Probable 116 2.8 10,500 124 2.8 11,000
               

 

MINERAL RESOURCES
(Exclusive of Mineral Reserves)
(see notes)
December 31, 2019 December 31, 2018
    Tonnes
(000s)
Grade
(g/t Au)
Contained ounces Tonnes
(000s)
Grade
(g/t Au)
Contained ounces
               
Eagle River Measured 25.0 10.1 8,000 11.0 10.4 4,000
  Indicated 355.0 9.0 103,000 97.0 8.8 28,000
  Measured + Indicated 380.0 9.0 111,000 109.0 9.0 31,000
  Inferred 403.0 12.3 159,000 433.0 11.4 159,000
               
   

 
 
MINERAL RESOURCES (Exclusive of Mineral Reserves) (see notes) December 31, 2019 December 31, 2018
    Tonnes
(000s)
Grade
(g/t Au)
Contained ounces Tonnes
(000s)
Grade
(g/t Au)
Contained ounces
               
Mishi              
Open pit Indicated - - - - - -
  Inferred 2,808 1.6 147,000 2,808 1.6 147,000
Underground Indicated - - - - - -
  Inferred 373 5.4 65,000 373 5.4 65,000
Mishi Total Indicated - - - - - -
  Inferred 3,182 2.1 212,000 3,182 2.1 212,000
               

EAGLE RIVER PROVEN AND PROBABLE RESERVE BREAKDOWN BY ZONE1

The following table provides a breakdown of Mineral Reserves and Resources at Eagle River by structure to illustrate the growing significance of these recent developments.

  December 31, 2019 December 31, 2018
Structure Tonnes (000s) Grade
(g/t Au)
Contained Ounces Percent Tonnes
(000s)
Grade
(g/t Au)
Contained Ounces Percent
                 
No.300 798 15.5 397,000 72 503 12.4 201,000 50
No. 7 267 12.9 110,500 20 300 13.1 126,000 31
No. 8 103 11.6   38,500 7 135 11.1 48,000 12
Other 18 6.9 4,000 1 110 8.2 29,000 7
TOTAL 1,186 14.4 550,000 100 1,048 12.0 404,000 100
                 
  1. Numbers reflect rounding to nearest 1,000 tonnes and ounces.
  2. Mineral Resources are exclusive of reserves.
  3. Mineral Resources are not in the current mine plan and therefore do not have demonstrated economic viability.
  4. All Mineral Reserves and Mineral Resources estimates have been made in accordance with the Standards of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) and NI 43-101 and assume a gold price of $1,750 (US$1,363) per ounce for the reserves and a gold price of $1,900 (US$1,474) per ounce for the resources, with a $1 USD → CAD exchange rate of $1.3).
  5. Mineral Resources are reported in-situ with no dilution provision.
  6. A density or tonnage factor of 2.7 tonnes per cubic m (t/m3) is applied at both Eagle River Mine and Mishi Mine.
  7. At Eagle River Mine, all high assays are cut to either 60.0 – 140.0 g/t Au for individual zones.
  8. All Mineral Reserves at Eagle River employ a 1.5 m minimum width, a 3.0 g/t Au minimum grade for continuity and include 1.0 m of external dilution and 10% lost ore and metallurgical recoveries of 96.5%.
  9. Falcon Zone mineral resources are included as part of Eagle River Mineral Resources.
  10. At Mishi the 7 lenses considered in the Mineral Resource calculations are cut between 6.0 to 45.0 g/t Au.  All high blasthole assays are cut to 10 g/t Au.
  11. All In-Pit Mineral Reserves at Mishi employ a 1.0 g/t cut-off grade and a 3.0 m minimum width. Estimates provide for 10% dilution, 10% lost ore and metallurgical recoveries of 83%.
  12. Mishi Mineral Reserves currently have a life of mine stripping ratio of 2.2 tonnes of waste per tonne of ore.
  13. Mishi In-Pit Mineral Resources extend to a depth of 110.0 m, employing a 0.5 g/t cut-off grade, a 3.0 m minimum width and are reported in-situ with no dilution or lost ore provisions.
  14. Mishi Underground Mineral Resources are reported in-situ employing a 3.0 g/t cut-off grade and a 1.5 m minimum mining width.
  15. Qualified Persons for the Mineral Reserves and Mineral Resources estimates as per NI 43-101 include Marc-André Pelletier P. Eng, COO, and Michael Michaud, P.Geo., VP Exploration of Wesdome.

PRODUCTION AND EXPLORATION HIGHLIGHTS


Mine or Projects
Achievements
Eagle River
  • Ongoing extension and definition drilling of the 300 East Zones. In particular, the 303 Lens, has continued to return high grade gold intersections.  The 303 Lens defines a zone where increased widths and grades have been returned. This zone has now been extended an additional 300 m down plunge to the 1,300 m-level.
  • Surface drilling continues to extend and better define the Falcon Zones, located in volcanic rocks approximately 200 m west of the mine diorite. Surface drilling has continued to expand the zone of mineralization to a depth of 4400 m elevation (i.e. 600 vertical m below surface) and over a strike of 200 m.
  • In order to better test the down plunge extension of the Falcon Zones, a drill rig has been positioned underground on the 772 m elevation. Initial drilling from underground has intersected visible gold mineralization in quartz veining approximately 70 m down plunge of the Falcon Zones. Assaying of this hole returned 160.5 g/t Au over 3.9 m. Given the steep easterly plunge defined by the recent drilling, it is interpreted that the Falcon 7 Zone now extends an additional 500 m down plunge and is the up-plunge extension of the 7 Zone currently being mined near the 1,000 m elevation. This down plunge extension of the Falcon Zones is located proximal to existing mine infrastructure, and as such, remains one of the priorities for surface and underground drilling in the first half of 2020.  The Falcon Zones have the potential to provide additional workplaces required to increase the throughput rate from Eagle River underground.
  • A 33,500 m surface drilling program is planned for 2020 to concentrate on better defining and expanding the Falcon Zones and later in the year focus on regional targets west of the mine diorite where recent surface sampling has returned numerous anomalous gold values.
 
Kiena
  • Seven underground drills are now in operation completing the infill and up and down plunge extension drilling of the Kiena Deep A Zone. This drilling has continued to confirm the overall continuity of the geometry and the high-grade gold mineralization of the Kiena Deep A Zone and identify additional mineralization outside of the most recent resource estimate. Recent drilling has extended the gold mineralization of the A Zone an additional 100 m down plunge and now extends a total in excess of 830 m. 
  • The 79 Level Ramp has been completed in early 2020.  It provides optimal drill platforms for testing the up-plunge extension of the Kiena Deep A Zone between the 670 m-level and the 1050 m-level and will serve as a haulage drift for any future production from this area as it accesses the main shaft level dump pocket.  Initial drilling on 79 Level intersected a new zone of gold mineralization in a previously untested area along strike from the S50 Zone.
  • Increased Kiena Deep A Zone Indicated resources from 99,300 ounces to 405,100 ounces and resource grade from 9.95 g/t Au to 18.55 g/t Au.  Increased Kiena Deep A Zone inferred resources from 241,100 ounces to 332,000 ounces and resource grade from 11.43 g/t Au to 15.27 g/t Au.
  • The Preliminary Economic Assessment (“PEA”) study is ongoing and is expected to be completed in Q2 2020.
  • The completed PEA and subsequent resource update will lead into a more detailed Pre-Feasibility Study (“PFS”) based upon positive results and exploration success. The intention of the PFS is to come to a production decision and restart the Kiena Mine as Wesdome’s second operating mine, thereby significantly de-risking the Company.

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Marc-André Pelletier, P. Eng, Chief Operating Officer, 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 2019 Fourth Quarter and Full Year Financial Results Conference Call: March 11, 2020 at 10:00 am ET

North American Toll Free: + 1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Conference ID:  1667826
Webcast link: https://edge.media-server.com/mmc/p/a3swamnc

ABOUT WESDOME
Wesdome Gold Mines is in its 30th 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 138.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO.”

For further information, please contact:

Duncan Middlemiss or Lindsay Carpenter Dunlop
President and CEO   VP Investor Relations
416-360-3743  ext. 2029   416-360-3743  ext. 2025
duncan.middlemiss@wesdome.com   lindsay.dunlop@wesdome.com

220 Bay Street, 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

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

 

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,  
    2019     2018     2019   2018  
Operating data                  
Milling (tonnes)                  
Eagle River   23,257     50,536     122,405   185,171  
Mishi   9,108     8,478     46,405   70,633  
Throughput 2   32,365     59,014     168,809   255,804  
Head grades (g/t)                  
Eagle River   28.6     10.6     23.1   11.7  
Mishi   1.9     2.4     2.5   2.3  
Recovery (%)                  
Eagle River   97.6     97.0     97.3   96.4  
Mishi   77.1     81.9     82.4   82.4  
Production (ounces)                  
Eagle River   20,894     16,712     88,617   67,315  
Mishi   438     542     3,072   4,310  
Total gold produced 2   21,332     17,254     91,688   71,625  
Total gold sales (ounces)   22,100     18,077     88,423   70,480  
                   
Eagle River Complex (per ounce of gold sold) 1              
Average realized price $ 1,954   $ 1,628   $ 1,853 $ 1,645  
Cash costs   786     937     825   905  
Cash margin $ 1,168   $ 691   $ 1,028 $ 741  
All-in Sustaining Costs 1 $ 1,305   $ 1,371   $ 1,293 $ 1,276  
                   
Mine operating costs/tonne milled 1 $ 470   $ 306   $ 424 $ 250  
                   
Average 1 USD → CAD exchange rate   1.3200     1.3204     1.3269   1.2957  
                   
Cash costs per ounce of gold sold (US$) 1 $ 595   $ 710   $ 621 $ 699  
All-in Sustaining Costs (US$) 1 $ 988   $ 1,038   $ 975 $ 985  
                   
Financial Data                  
Mine profit 1 $ 25,816   $ 12,495   $ 90,900 $ 52,124  
Net income $ 12,077   $ 2,643   $ 40,945 $ 14,858  
Net income adjusted 1 $ 12,077   $ 2,643   $ 38,576 $ 14,858  
Earnings before interest, taxes, depreciation and amortization 1 $ 23,276   $ 10,329   $ 80,722 $ 43,266  
Operating cash flow $ 15,821   $ 8,632   $ 71,077 $ 46,300  
Free cash flow $ (3,297 ) $ (4,491 ) $ 6,628 $ 2,824  
Per share data                  
Net income $ 0.09   $ 0.02   $ 0.30 $ 0.11  
Adjusted net income 1 $ 0.09   $ 0.02   $ 0.28 $ 0.11  
Operating cash flow 1 $ 0.11   $ 0.06   $ 0.52 $ 0.34  
Free cash flow 1 $ (0.02 ) $ (0.03 ) $ 0.05 $ 0.02  
                   

Notes

  1. Refer to the Company’s 2019 Annual Management Discussion and Analysis on pages 29 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
  2. Totals for tonnage and gold ounces information may not add due to rounding.

 

Wesdome Gold Mines Ltd.
Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars)

       As at
December 31,
2019
   As at
December 31,
2018
 
Assets            
Current            
  Cash and cash equivalents     $ 35,657   $ 27,378    
  Receivables and prepaids       1,996     548    
  Sales tax receivable       3,344     2,342    
  Inventories       19,667     8,302    
Total current assets       60,664     38,570    
             
Restricted cash       657     -    
Deferred financing cost       988     -    
Mineral properties, plant and equipment       116,765     89,643    
Exploration properties       106,644     81,424    
Total assets     $ 285,718   $ 209,637    
             
Liabilities            
Current            
  Borrowings     $ 3,636   $ -    
  Payables and accruals       19,219     22,526    
  Income and mining tax payable       1,419     180    
  Current portion of lease liabilities       3,781     4,552    
Total current liabilities       28,055     27,258    
             
Lease liabilities       5,889     5,248    
Deferred income and mining tax liabilities       23,829     8,259    
Decommissioning provisions       21,443     11,663    
Total liabilities       79,216     52,428    
             
Equity            
Equity attributable to owners of the Company            
  Capital stock       174,789     166,387    
  Contributed surplus       5,590     5,777    
  Retained earnings (deficit)       26,123     (14,955 )  
Total equity attributable to owners of the Company       206,502     157,209    
             
      $ 285,718   $ 209,637    


Wesdome Gold Mines Ltd.

Consolidated Statements of Income (loss) and Comprehensive Income (loss)
(Expressed in thousands of Canadian dollars except for per share amounts)

      Three Months Ended   Years Ended  
      December 31   December 31  
        2019       2018       2019       2018    
                     
Revenues     $ 43,223     $ 29,462     $ 163,974     $ 116,042    
Cost of sales       (22,804 )     (22,162 )     (94,806 )     (81,930 )  
Gross profit       20,419       7,300       69,168       34,112    
                     
Other expenses                    
Corporate and general       1,745       1,337       6,668       5,259    
Stock-based compensation       346       349       2,987       2,614    
Kiena care and maintenance       -       565       -       1,695    
Write-down of mining equipment       247       -       247       290    
        2,338       2,251       9,902       9,858    
                     
Operating income       18,081       5,049       59,266       24,254    
                     
Quebec exploration credits refund       -       -       2,867       -    
Interest expense       (315 )     (83 )     (679 )     (274 )  
Accretion of decommissioning provisions       (71 )     (99 )     (372 )     (412 )  
Interest and other income       (131 )     184       351       1,412    
Income before income and mining taxes       17,564       5,051       61,433       24,980    
                     
Income and mining tax expense                    
  Current       1,440       842       4,918       2,713    
  Deferred       4,047       1,566       15,570       7,409    
        5,487       2,408       20,488       10,122    
                     
Net income and total                    
  comprehensive income     $ 12,077     $ 2,643     $ 40,945     $ 14,858    
                     
Earnings per share                    
  Basic     $ 0.09     $ 0.02     $ 0.30     $ 0.11    
  Diluted     $ 0.09     $ 0.02     $ 0.29     $ 0.11    
                     
Weighted average number of common                    
  shares (000s)                    
  Basic       137,867       135,132       136,931       134,577    
  Diluted       141,670       138,531       140,550       136,451    
                     


Wesdome Gold Mines Ltd.

Consolidated Statements of Total Equity
(Expressed in thousands of Canadian dollars)

              Retained      
      Capital   Contributed   Earnings/   Total  
      Stock   Surplus   (Deficit)   Equity  
                     
Balance, December 31, 2017     $ 164,161   $ 3,967     $ (29,905 )   $ 138,223  
Net income for the year ended                    
  December 31, 2018       -     -       14,858       14,858  
Exercise of options       1,514     -       -       1,514  
Value attributed to options exercised       712     (712 )     -       -  
Value attributed to options expired       -     (92 )     92       -  
Stock-based compensation       -     2,614       -       2,614  
                     
Balance, December 31, 2018     $ 166,387   $ 5,777     $ (14,955 )   $ 157,209  
                     
Net income for the year ended                    
  December 31, 2019       -     -       40,945       40,945  
Exercise of options       5,361     -       -       5,361  
Value attributed to options exercised       2,613     (2,613 )     -       -  
Value attributed to options expired       -     (133 )     133       -  
Value attributed to DSUs redeemed       175     (175 )     -       -  
Value attributed to RSUs exercised       253     (253 )     -       -  
Stock-based compensation       -     2,987       -       2,987  
                     
Balance, December 31, 2019     $ 174,789   $ 5,590     $ 26,123     $ 206,502  
                     


Wesdome Gold Mines Ltd.

Consolidated Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)

      Three Months Ended   Years Ended
      December 31   December 31
        2019       2018       2019       2018  
                   
Operating Activities                  
  Net income     $ 12,077     $ 2,643     $ 40,945     $ 14,858  
  Depreciation and depletion       5,397       5,195       21,732       18,012  
  Stock-based compensation       346       349       2,987       2,614  
  Accretion of decommissioning provisions       71       99       372       412  
  Deferred income and mining tax expense       4,047       1,566       15,570       7,409  
  Interest on long-term debt and other       325       83       703       274  
  Write-down of mining equipment       247       -       247       290  
  Loss on disposal of equipment       52       24       52       24  
        22,562       9,959       82,608       43,893  
  Net changes in non-cash working capital       (5,271 )     1,184       (7,851 )     5,611  
  Mining tax paid       (1,470 )     (2,511 )     (3,680 )     (3,204 )
Net cash from operating activities       15,821       8,632       71,077       46,300  
                   
Financing Activities                  
  Exercise of options       1,716       515       5,361       1,514  
  Debt issue less of deferred cost       (656 )     -       2,648       -  
  Repayment of lease liabilities       (901 )     (1,086 )     (5,030 )     (3,632 )
  Termination of lease arrangements       -       -       (3,952 )     -  
  Interest paid       (312 )     (83 )     (676 )     (274 )
Net cash used in financing activities       (153 )     (654 )     (1,649 )     (2,392 )
                   
Investing Activities                  
  Additions to mining properties       (9,905 )     (6,338 )     (33,542 )     (18,349 )
  Additions to exploration properties       (8,312 )     (5,699 )     (25,220 )     (21,495 )
  Funds held against standby letter of credit       -       -       (657 )     -  
  Net changes in non-cash working capital       (405 )     723       (1,730 )     1,222  
Net cash used in investing activities       (18,622 )     (11,314 )     (61,149 )     (38,622 )
                   
Increase (decrease) in cash and cash equivalents     (2,954 )     (3,336 )     8,279       5,286  
Cash and cash equivalents - beginning of year       38,611       30,714       27,378       22,092  
Cash and cash equivalents - end of year     $ 35,657     $ 27,378     $ 35,657     $ 27,378  
                   
Cash and cash equivalents consist of:                  
  Cash     $ 35,657     $ 13,378     $ 35,657     $ 13,378  
  Term deposits       -       14,000       -       14,000  
      $ 35,657     $ 27,378     $ 35,657     $ 27,378  
                   

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