TORONTO, May 05, 2020 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first quarter (“Q1 2020”) financial results. All figures are stated in Canadian dollars unless otherwise noted.Mr. Duncan Middlemiss, President and CEO commented, “In Q1, mill availability improved to 89%, resulting in 55,874 tonnes milled at a head grade of 14.0 grams per tonne (“g/t Au”) for 24,457 ounces produced, 36% increase over the previous year (Q1 2019: 17,955 ounces) at the Eagle River Underground Mine. With our strong production and favourable gold price, the company was able to generate $16.7 million in free cash flow, thereby resulting in a cash position at the end of the quarter of $49.4 million.  Cash costs of $1,120 (US$833) and all-in sustaining costs of $1,423 (US$1,058) per ounce increased over Q1 2019 ($866 or US$651 per ounce) and ($1,311 or US$986 per ounce) because of lower grades and the decision to accelerate the processing of the stockpiles in response to the uncertainty surrounding the impact of COVID-19.   The Eagle River mine is in reduced operations mode due to management of COVID-19. As a result, and because of accelerated mining of the stockpile, we expect slightly lower production in Q2, but we are maintaining annual guidance of 90,000 – 100,000 ounces and operating cost guidance of $800 – $875 (US$615 – $670) and AISC guidance of $1,280 – $1350 (US$985 – $1,040) per ounce. As a result of the uncertainty related to COVID-19, it is likely that we will not drill our planned 237,000 metres this year. Further impacts are likely and an update on our progress, along with a revised capex forecast, will be provided as more details become available.  At Kiena, a definitive restart date has not been provided by the Government, but May 11, 2020 is a possibility.  We will resume all drilling and development as soon as the Government allows exploration to commence, and the preliminary economic assessment will be published later this month.On behalf of management and the board of directors, I would like to thank all our employees for their efforts and cooperation with new protocols and procedures during these unprecedented times.”Key operating and financial highlights of the Q1 2020 results include:Gold production of 25,122 ounces from the Eagle River Complex, a 32% increase over the same period in the previous year (Q1 2019: 19,010 ounces):Eagle River Underground 55,874 tonnes at a head grade of 14.0 grams per tonne (“g/t Au”) for 24,457 ounces produced, 36% increase over the previous year (Q1 2019: 17,955 ounces).Mishi Open Pit 11,047 tonnes at a head grade of 2.5 g/t Au for 665 ounces produced (Q1 2019: 1,055 ounces).Revenue of $57.3 million, a 76% increase over the previous year (Q1 2019: $32.5 million).Ounces sold 26,500 at an average sales price of $2,162/oz (Q1 2019: 18,760 ounces at an average price of $1,733/oz).Earned mine profit¹ of $27.6 million, a 70% increase over Q1 2019 (Q1 2019 – $16.3 million).Operating cash flow of $33.4 million or $0.24 per share¹ as compared to $12.6 million or $0.09 per share for the same period in 2019.Free cash flow of $16.7 million, net of an investment of $9.2 million in Kiena, or $0.12 per share¹ (Q1 2019: free cash outflow flow of ($0.4 million or nil per share). Net income of $11.5 million or $0.08 per share (Q1 2019: $8.1 million or $0.06 per share) and Net income (adjusted)¹ of $11.5 million or $0.08 per share (Q1 2019: $5.7 million or $0.04 per share). Cash position increased to $49.4 million compared to $35.7 million in the previous quarter.Cash costs¹ of $1,120/oz or US$833/oz, a 29% increase over the same period in 2019 (Q1 2019: $866/oz or US$651/oz) due to the lower head grade and the decrease in the stockpile levels. All-in sustaining costs (“AISC”) ¹ of $1,423/oz or US$1,058/oz, a 9% increase over the same period in 2019 (Q1 2019: $1,311/oz or US$986/oz), due to the lower head grade and the decrease in stockpile levels.1. Refer to the Company’s 2020 First Quarter Management Discussion and Analysis, section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.Technical DisclosureThe technical content of this release has been compiled, reviewed and approved by Marc-Andre 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 ResourcesThe 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 2020 First Quarter Financial Results Conference Call:North American Toll Free: + 1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Conference ID:  2377817
Webcast link: https://edge.media-server.com/mmc/p/a94d2d3nWebcast can also be accessed under the News and Events section of the Company’s website (www.wesdome.com)ABOUT WESDOME
Wesdome Gold Mines has had over 30 years of continuous gold mining operations in Canada.  The Company is 100% Canadian focused with a pipeline of projects in various stages of development.  The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Quebec.  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.  The Company has approximately 138.5 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.For further information, please contact: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.comThis 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.
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