December 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
Canadian Gold Company with Three 100% Owned Projects Over 30 years of continuous gold production • 2018 Guidance: 70,000 – 75,000 ozs (YTD 2018: • 54,371 ozs) Drilling High grade discovery at Kiena Complex • 3 Eagle River Operations funding $23 M • 2 1 exploration and development at Kiena YTD 2018 free cash flow generation of $7.3 M • Q3 2018 fourth consecutive quarter of free cash • flow generation 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 | 3
Corporate Structure 52 Week High/Low Symbol Analyst Coverage TSX:WDO $4.19/$1.70 (Average daily BMO Capital Markets volume 800,000 shares) Canaccord Genuity Shares Outstanding Clarus Securities 134.2 M Market Capitalization Desjardins Capital Markets $490 M Echelon Wealth Partners Options and RSU’s ($3.77 December 17, 2018) Eight Capital Partners 7.2 M Industrial Alliance Cash Position Warrants Laurentian Bank $30M (November 1, 2018) 0 Mackie Research No Debt National Bank Financial Fully Diluted PI Financial Management and Directors 141.4 M Major Shareholders 2.2% 1832 Asset Management, Van Eck, Oppenheimer, Royal Bank Investment Management, Mackenzie Financial, US Global, Gabelli TSX:WDO | 4
Share Price Performance Six Month One Year Three Year Five Year TSX:WDO | 5
Building Canada’s Next Mid -Tier Gold Producer Proven building blocks to increase shareholder New high-grade gold discovery in permitted, de- watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO | 6
Q3 & YTD 2018 Operating Results Amounts are denominated in Canadian Third Quarter Year -to-date dollars 2018 2017 Variance % +/( -) 2018 2017 Variance % +/( -) Ore milled (tonnes) Eagle River 46,777 44,421 2,356 5% 134,635 117,959 16,676 14% Mishi 4,076 38,638 (34,562) (89)% 62,155 114,396 (52,241) (46)% 50,854 83,058 (32,204) (39)% 196,790 232,355 (35,565) (15)% Head grade (grams per tonne, “g/t”) Eagle River 13.3 9.7 3.6 38% 12.2 10.3 1.9 18% Mishi 3.4 2.0 1.4 69% 2.3 1.8 0.5 27% Gold production (ounces) Eagle River 19, 437 13,313 6,124 46% 50,602 37,498 13,104 35% Mishi 358 2,181 (1,823) (84)% 3,769 5,687 (1,918) (34)% Total gold production 19,795 15,493 4,302 28% 54,371 43,185 11,186 26% Production sold (ounces) 18,401 13,069 5,332 41% 52,404 38,419 13,985 36% Revenue from gold sales ($ $28.9 $2 1.2 $7.7 36 % $86.6 $64.5 $22.1 34% millions) 2 Average realized price per $1,571 $1,619 ($48) (3)% $1,651 $1,656 ($5) - % ounce 3 Notes: Numbers may not add due to rounding. Revenue for year-to-date 2017 includes $0.9 million in gold sales from the cleanup of the Kiena mill. Average realized price per ounce is a non-GAAP measure and is calculated by dividing the reported revenue from gold sales by the number of ounces sold for a given period. TSX:WDO | 7
2018 Production Guidance Raised to 70,000 – 75,000 Ounces TSX:WDO | 8
Q3 2018 Financial Results, 4 Consecutive Quarters of Free Cash Flow Generation 1 Refer to the section entitled “Non - IFRS Performance Measures” for the reconciliation of these non -IFRS measurements to the financial statements. TSX:WDO | 9 3 Revenues for Q2, 2018, Q1 2018 and Q4 2017 includes insignificant amounts from the sale of by-product silver (nil for other periods). 4 Revenues in Q2 2017 and Q3/Q4 2016 include $0.9 million and $2.4 million, respectively in revenue generated from gold recovery from the clean up of the Kiena mill (nil for other periods).
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 th e C ompany’s • website and sedar.com TSX:WDO | 10
Eagle River Parallel Structure Reserve Breakdown Percentage of P + P Reserve Ounces Structure Tonnage Grade (gAu/tonne) Contained Ounces Proven and Probable Reserves No. 8 205,000 10.5 69,000 17% No. 300 514,000 13.4 222,000 53% No. 7 228,000 13.2 97,000 23% Other 112,000 7.8 28,000 7% Total 1,059,000 12.2 416,000 100% Reserves and Resources as at December 31, 2017. • The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, 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 th e C ompany’s • website and sedar.com 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 intrusive (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
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