July 2017 A Solid Foundation for a Promising Future
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, costs of production, targeted cost reductions, capital expenditures, the success of exploration activities, permitting time lines, government regulation of mining operations, the future price of gold and other minerals, and the timing and issuance of permits. Generally, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” and variations of such words and phrases or statements that certain actions, events, or results “may”, “could”, “would”, “might”, or “will”, “occur” or “be achieved” or the negative connotation thereof. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company’s projects, the timing and amount of estimated future production and the costs thereof, capital expenditures, the availability of any additional capital required to bring future projects into production, the failure of plant, equipment or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome’s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. TSX:WDO | 2
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.50 (Average daily Clarus Securities volume 900,000 shares) Echelon Wealth Partners Shares Outstanding Eight Capital Partners 133.8 M Market Capitalization Industrial Alliance $440M Laurentian Bank Options ($3.29 June 20, 2017) National Bank Financial 5.2 M PI Financial Cash Position Warrants Major Shareholders $29.6 M (Mar 31, 2017) 0 Resolute Funds, Van Eck, Royal No Debt Bank Investment Management, Fully Diluted US Global, Oppenheimer, 139 M Mackenzie Financial, 1832 Asset Management and Directors 2.2% Management, Gabelli TSX:WDO | 3
Canadian Gold Company with Three 100% Owned Projects 30 years of continuous gold production • 2016 Cash flow from operations $19.9 M • Eagle River Complex produced 47,737 ozs in • 2016 from 2 high grade mines Executing an aggressive company wide • exploration program on all assets 1 3 2 High grade discovery Aug 2016 at Kiena • Complex Drilling initiated at Moss Lake Dec 2016 • 3 2 1 Kiena, Val d’Or, Quebec Moss Lake, Thunder Bay, Ont. Eagle River Complex, Wawa, Production Suspended 2013 Ont. Open Pit Gold Deposit Past Prod.: 1.75 M oz Operating Mine Complex, two Resources: Indicated 1.4M oz, Resources: M&I 450,000 oz, deposits feed central mill @ Inferred 1.7M oz Inf. 400,000 oz ~850 tpd Fully Permitted Mine/Mill Past Prod.: 1.1 M oz Complex on Standby Reserves: P&P 446,000 oz Resources: M&I 330,000 oz, Inf. 225,000 oz TSX:WDO | 4
Corporate Strategy EXPLORE DEVELOP STRENGTHEN - Stabilize and Longer Term -Pipeline of - Potential for Objective Near Term development projects: improve Wawa diversified operations through production from - Early success at mine development of three mines in two brownfields additional high grade provinces, Ontario exploration at Kiena zones, providing and Quebec Complex (shaft and greater production permitted mill) - Increased output flexibility - Commenced drill and lowered costs program at newly - Operational -Maximizing the consolidated Moss improvements such potential of all the Lake property as ventilation, power, assets and equipment - Near-mine exploration on surface - Ongoing mine at Eagle River and step exploration to out at Mishi Open Pit diversify production locations TSX:WDO | 5
Operating Two of Canada’s High Grade Gold Mines Eagle River Underground Ranks 2nd Mishi Open Pit Ranks 3rd 6 5 Reserve Grade (g/t) Reserve Grade (g/t) 4 3 2.0 2 1 0 Meliadine Meadowbank Mishi Canadian Malartic Detour Lake Rainy River Young-Davidson Source: National Bank Financial TSX:WDO | 6
2017 Production and Cost Guidance 2017 Guidance: Combined gold production Eagle River Underground Mine 45,000 – 49,000 ounces @ 8.8 – 9.2 g/t 52,000 and 58,000 ounces Mishi Open Pit Mine 7,000 – 9,000 ounces @ 1.8 - 2.2 g/t Q1 2017 Production Results: Q1 2017 Production on track: Eagle River Underground Mine 13,588 ounces @ 11.5 g/t 15,162 ounces Mishi Open Pit Mine 1,574 ounces @ 1.7 g/t Combined Operating Cost per ounce: CAD$1,030 - $1,130 per ounce (USD$765 – $835 per ounce) Combined All-In Sustaining Costs per ounce sold: CAD$1,450 - $1,550 per ounce (USD$1,075 - $1,150 per ounce) Eagle River reserve grade: 9.2 g/t Sustaining Capex ~CAD$13 – $17 M per year Growth/Project Capex of ~CAD$3 M Potential to increase tonnage from the Eagle River Underground Mine Scoping Study at Mishi Open Pit Mine to determine appropriate open pit scenario Mishi reserve grade: 2.0 g/t TSX:WDO | 7
Q1 2017 Operating Results Operational Results – 1 st Quarter 2017 and 2016 Quarter ended March 31 2017 2016 Eagle tonnes milled 38,578 39,839 Mishi tonnes milled 36,641 36,287 Total tonnes milled 75,219 76,126 Eagle grade (g/t) 11.5 5.6 Mishi grade (g/t) 1.7 1.8 Eagle River Mine mill recovery (%) 95.3 88.0 Mishi Mine mill recovery (%) 80.9 85.0 Eagle recovered grade (g/t) 11.0 4.9 Mishi recovered grade (g/t) 1.3 1.5 Eagle ounces produced 13,588 6,254 Mishi ounces produced 1,574 1,782 Total ounces produced 15,162 8,036 Ounces sold 12,320 8,100 Average realized price (CAD$/oz) 1,631 1,640 Production cash costs (CAD$/oz) 1,056 1,766 All-in-sustaining costs (CAD$/oz) 1,474 2,428 Revenue 20 M 13M Cash Flow from Operations (loss) $5M ($2.8M) Net Income (loss) $695,000 ($3.3M) EPS $0.01 ($0.03) Free Cash Flow ($4.1M) ($7.1M) TSX:WDO | 8
Operations Optimization 2017 • Cost cutting program underway • Upgrading equipment Production • Completion of ventilation raise system (surface to 960m) • Development into higher grade reserve blocks and accelerated • Filtration system at mill improved with new velvet Development backing on drum filters • Added capacity with the recommissioning of belt filter • Drifting on 7 Zone at the 890 metre level (42 m @ 11.26 g/t cut • Drifting on 7 Zone at the 945 metre level (63 m @ 12.63 g/t cut) • 7 Zone commenced production late 2016, well ahead of Grade schedule • Additional definition drilling • New 303 East lens - unprecedented widths at high grades close to mine infrastructure • Tighter dilution controls in place TSX:WDO | 9
Eagle River Mine: 1.1 M oz of Production Quartz diorite stock (2 km x 0.5 km) hosts 1.1 M oz of past production • at Eagle River from 8, 6 and 2 Zone structures (1995 to 2017) Parallel 7 and 300 Zones to north offer new potential throughout the mine • 2016 Production: 40,252 oz. (170,369 t @ 7.9g/t) • 7 Zone Surface TSX:WDO | 10
Eagle River Parallel Gold Zones Remain Open open open 4200 elev 4200 elev open Section 9400E (looking west) Section 9400E (looking west) 100 m open Discovery of two new parallel gold zones in 2013 • Exploration in 2014 and 2015 leads to reserve growth with expanding potential within mine footprint • Mining of 300 Zone began in Q3 – 2015, 7 Zone in production since Q4 2016 • Recent widths at 300 North Zone wider than previously encountered • TSX:WDO | 11
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