March 2018 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
Wesdome Gold Mines Ltd. Proven building blocks to New high-grade gold increase shareholder value discovery in permitted, de-watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO | 3
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.64 (Average daily BMO Capital Markets volume 900,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 133.9 M Market Capitalization Echelon Wealth Partners $250M Eight Capital Partners Options ($2.00 Feb 15, 2018) Industrial Alliance 5.9 M Laurentian Bank Cash Position Warrants M Partners $22.6 M (November 8, 2017) 0 Mackie Research No Debt National Bank Financial Fully Diluted PI Financial 139.8 M Major Shareholders Management and Directors 2.2% Van Eck, Royal Bank Investment Management, US Global, Oppenheimer, Mackenzie Financial, 1832 Asset Management, Gabelli TSX:WDO | 4
Two Year Share Price Performance GDXJ methodology change WDO added to GDXJ (18 M shares) announced, rebalance results in 12 M shares liquidated from index Eagle River 303 E Lens Resolute Funds reduces discovery announced; Kiena position from 20% to Deep potential expands 9.97% Resolute 550 m laterally announced Funds Kiena Deep discovery 2017 gold further announced production reduces exceeded Resolute Funds beings position to reduce position TSX:WDO | 5
Canadian Gold Company with Three 100% Owned Projects 30 years of continuous gold production • 2017 9-month operating cash flow $15 M • 2017 Eagle River Complex production: 58,980 • ozs from 2 high grade mines 3 2017 Eagle River head grades 10.6 g/t (2016: 7.8 2 • 1 g/t) Reserve and resource update Q1 2018 • High grade discovery Aug 2016 at Kiena Complex • 3 2 1 Eagle River Complex, Wawa, Kiena, Val d’Or, Quebec Moss Lake, Thunder Bay, Ont. Ont. Production Suspended 2013 Open Pit Gold Deposit Operating Mine Complex, two Past Prod.: 1.75 M oz Resources: Indicated 1.4M oz, deposits feed central mill @ Resources: M&I 450,000 oz, Inferred 1.7M oz ~850 tpd Inf. 400,000 oz Past Prod.: 1.1 M oz Fully Permitted Mine/Mill Reserves: P&P 518,000 oz Complex on Standby Resources: M&I 342,000 oz, Inf. 225,000 oz TSX:WDO | 6
Corporate Strategy Long Term: Objective: Near Term: EXPLORE DEVELOP STRENGTHEN Eagle River 7 and 300 zones Become a • remain open diversified Near mine • producer with exploration ongoing Eagle River exciting organic Kiena Development of Kiena deep discovery production growth • • high grade zones August 2016 Continued Development of • • Continue to exploration ramp operational increase nearing completion improvements production, Moss Lake Fewer limitations decrease costs and • with consolidated increase cash flow land package TSX:WDO | 7
Mineral Reserves (2017 Year End) 21% increase in Eagle River ounces; grade increased by 32% Reserves and Resources as at December 31, 2017. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for the Company and a Qualified Person • within the meaning of NI 43-101 For details, please refer to the Company’s press release dated February 26, 2018 and AIF dated February 22, 2017 available on the Company’s • website and sedar.com TSX:WDO | 8
2017 Gold Production Guidance Exceeded Q1 2017 Q2 2017 Q3 2017 Q4 2017 Guidance 2017 Gold Produced 15,162 12,529 15,493 15,797 58,980 52,000 – (ounces) 58,000 Cash cost per 1,099 1,237 982 1,021* 1,078* 1,030 – ounce sold 1,130 (CAD$/ounce) AISC per ounce 1,446 1,718 1,446 1,322* 1,519* 1,450 – (CAD$/ounce) 1,550 Gold Sold 12,320 13,030 13,069 19,351 57,770 (ounces) Average realized 1,631 1,715 1,619 1,618 1,643 gold price (CAD$/ounce) Gross Revenue 20.1 22.3 21.2 31.3 94.9 (CAD$ millions) Notes: Q4 and FY 2017 cash and AISC cost figures are estimates only TSX:WDO | 9
Grade Control: Quality Tonnes vs Quantity Gold Head Grades 12 Grams of gold per tonne 10 8 6 4 2 0 2015 2016 2017 2018 (est) Year TSX:WDO | 10
2018 Guidance: AISC to Reduce by 10% Amounts are denominated in Canadian Guidance dollars Gold production Eagle River 55,000 – 59,000 ounces Mishi 7,000 - 9,000 ounces 62,000 – 68,000 ounces Head grade (g/t) Eagle River 10.1 – 10.5 Mishi 2.4 – 2.8 Operating cost per ounce 1 $950 - $1,025 US$750-US$800 All-in sustaining cost per ounce 1 $1,400 - $1,475 US$1,100 – US$1,160 1 Operating cost per ounce and All-in sustaining cost per ounce are non-GAAP measures, please reference the Company’s management discussion and analysis for the period ended September 30, 2017 filed on SEDAR for their calculations. TSX:WDO | 11
Exploration: Two Properties Attain Highest Grade Hits in 2017 Source: Mining Intelligence/Mining.com TSX:WDO | 12
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 • 2017 Production: 50,996 ounces (152,591 t @ 10.6 g/t) • 7 Zone Surface TSX:WDO | 13
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 - 2017 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 and 303 East Zones wider than previously encountered • TSX:WDO | 14
Eagle Drilling to Diversify Production Locations Longitudinal Section Looking North 300 Zone West Eu-778: 121.3 g/t over 2.0 m CL EU-779: 1115.7 g/t over 2.4 m CL EU-780L 79.1 g/t over 3.5 m CL EU-781: 65.2 g/t over 4.0 m CL EU-782: 230.2 g/t over 2.5 m CL 300 Zone East – North Lens (New) 670-125: 8.6 g/t over 32.4 m TW 670-130: 14.7 g/t over 11.5 m TW Main Lens: 670-130 9.9 g/t over 7.5 m TW 670-73: 12.2 g/t over 3.5 m TW 670-99: 49.9 g/t over 1.8 m TW 303 East Lens (New) 844-E-27: 28.72 gAu/t uncut (19.03 gAu/t cut) over 20.67 m true TW 844-E-28: 20.75 gAu/t uncut (13.36 gAu/t cut) over 17.94 m TW 7 Zone EU-759W: 20.4 g/tAu over 5.6 m CL EU-782: 29.5 g/tAu over 3.0 m CL EU-783: 101.0 g/tAu over 2.7 m CL TSX:WDO | 15
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