June 2018 Building Canada’s Next Mid- Tier Gold Producer
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 $3.60/$1.64 (Average daily BMO Capital Markets volume 650,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 134.2 M Market Capitalization Echelon Wealth Partners $270M Eight Capital Partners Options and RSU’s ($2.63 June 12, 2018) Industrial Alliance 7.2 M Laurentian Bank Cash Position Warrants Mackie Research $26.5 M (May 1, 2018) 0 National Bank Financial No Debt PI Financial Fully Diluted Major Shareholders 141.4 M 1832 Asset Management, Van Management and Directors 2.2% Eck, Oppenheimer, Royal Bank Investment Management, Mackenzie Financial, US Global, Gabelli TSX:WDO | 4
Two Year Share Price Performance GDXJ methodology change announced, rebalance results WDO added to GDXJ (18 M shares) in 12 M shares liquidated from index Resolute Funds reduces position from 20% to Eagle River 303 E Lens discovery Kiena exploration ramp 9.97% announced; Kiena Deep potential completes, Zone A expands 550 m laterally announced Deep drilling continues to return consistent, high grade results 2017 gold Kiena Deep production exceeded Resolute Funds discovery liquidates position announced TSX:WDO | 5
Canadian Gold Company with Three 100% Owned Projects Over 30 years of continuous gold production • 2017 earned mine profit $31.5 M (41% increase over 2016) • 2017 operating cash flow $27.2 M or $0.20/share (21% • increase over 2016) 3 2017 Eagle River Complex production: 58,980 ozs from 2 high • 2 grade mines (24% increase over 2016) 1 2017 Eagle River head grades 10.6 g/t (2016: 7.8 g/t) • 2018 Guidance: 62,000 – 68,000 ozs (Q1 2018: 17,949 ozs) • Drilling High grade discovery 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: Build Canada’s Next Intermediate Gold Producer Long Term: Objective: Near Term: EXPLORE BUILD 2 MINES STRENGTHEN Eagle River Eagle River Development of high 7 and 300 zones Diversify from single • • grade zones remain open asset producer to 2 Operational Near mine • mines, one in Ontario • improvements, cost exploration ongoing and one in Quebec reduction Kiena Kiena Airborne mag survey • Increase production Kiena Deep completed on large • to 150,000 – 200,000 discovery Aug 2016 Kiena land package 50,000 metre drill ounces per year, Explore other targets • • program from decrease costs and on land package such recently completed as Wesdome increase cash flow exploration ramp property and former Siscoe Mine TSX:WDO | 7
Q1 2018 Financial Results in $000s Three months ended March 31, Increase 2018 2017 /decrease Revenues $ 26,217 $ 20,100 30% Expenses Cost of sales 18,764 16,118 16% Corporate and general 1,077 1,431 (25%) Share-based payments 867 864 - Kiena care and maintenance 456 221 106% Write-off of mining equipment 281 - - 21,445 18,634 15% Operating income 4,772 1,466 226% Other expenses (111) (331) (66%) Income before income and mining taxes 4,661 1,135 311% Mining and income tax expense 1,802 440 310% Net income $ 2,859 $ 695 311% Operating cash flows $ 12,423 $ 4,318 Free cash flows 1 $ 3,216 $ (5,942) Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non- 1 IFRS measurements to the financial statements. TSX:WDO | 8
Operating Improvements Result in Increased Production and Lower Costs Gold production and ASIC 70,000 $2,000 $1,800 60,000 $1,600 50,000 $1,400 $1,200 40,000 Ounces $1,000 30,000 $800 $600 20,000 $400 10,000 $200 0 $0 2013 A 2014 A 2015 A 2016 A 2017 A 2018 F Other costs (1) Cash costs Gold production (1) Other costs includes sustaining capital, in-mine exploration, corporate costs and equipment lease payments. TSX:WDO | 9
2018 Guidance: Production to Increase by 10%, Costs 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 | 10
Cash Flow Projections and Gold Price Sensitivity TSX:WDO | 11
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 March 21, 2018 available on the Company’s • website and sedar.com TSX:WDO | 12
Exploration: Two Properties Attain Highest Grade Hits in 2017 Source: Mining Intelligence/Mining.com TSX:WDO | 13
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 | 14
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