June 2017 Wesdome Gold Mines Annual and Special Meeting of Shareholders
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
Board of Directors: Significant Industry Experience - Over 40 years experience in the mineral exploration and mining industry Charles Page, P.Geo - Most recently President and CEO of Queenston Mining, leading the discovery and Chairman development of the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by Osisko Mining - Chartered Professional Accountant and member of the Chartered Professional Accountants of Ontario and Canada Charles Main, CPA, CA - Over 30 years experience in finance and mining industries - Most recently Chief Financial Officer of Yamana Gold from 2003 – 2017 - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production Duncan Middlemiss, P. Eng - Over 10 years of executive management experience Chief Executive Officer - Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January 2016 - Over 15 years experience in geotechnical engineering and project management in the mining Nadine Miller, P. Eng space - Former Business Development Manager at SNC-Lavalin’s Mining and Metallurgy unit - Over 35 years experience in the mining industry within operations, project and business Warwick Morely-Jepson development - Formerly Chief Operating Officer and Executive VP of Kinross Gold Crop Rolly Uloth - Over 45 years of senior management experience - Co founder of Rosedale Transport, fifth largest trucking company in Ontario - Former Head of Global Mining and Metals at National Bank Financial Markets Bill Washington, MBA - Over 25 years experience in capital markets, focused exclusively on the mining sector TSX:WDO | 3
Executive Management Team - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production Duncan Middlemiss, P. Eng - Over 10 years of executive management experience Chief Executive Officer - Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January 2016 - Former principal at Grant Thorton LLP Hemdat Sawh, CPA, CA - Over 16 years executive management experience at publicly traded mining companies Chief Financial Officer - Most recently Chief Financial Officer of Scorpio Mining until its merger with US Silver - Professional engineer with over 20 years experience in Canadian underground and open pit mines Philip Ng, P.Eng, M.Eng - Most recently held the position of COO at Queenston Mining prior to its takeover by Osisko Mining; Chief Operating Officer prior to that spent 5 years as VP Operations at Claude Resources - Professional geologist with over 30 years experience, 20+ years with Wesdome George Mannard, P,Geo, MSc.A - Co-credited with the discovery of Louvicourt VP, Exploration - Developed 8 new gold mines - Professional engineer with over 30 years experience in Canadian mines Benoit Laplante, P.Eng, MSc.A - Numerous senior level positions at intermediate and junior producers including Noranda, Aurizon, and VP, Corporate Development North American Palladium - Over 10 years experience in the development and execution of investor relations programs for publicly Lindsay Carpenter Dunlop traded resource companies VP, Investor Relations - Most recently 5 years as Director of Investor Relations at Kirkland Lake Gold - 20 years of corporate secretarial, corporate governance and securities regulation experience with a Heather Laxton focus on the mining sector in Canada, Europe, Russia and West Africa Corporate Secretary & CGO - Most recently Corporate Secretary at Kirkland Lake Gold Marc-Andre Pelletier - Over 20 years experience in operating gold mines in Canada VP, Quebec Operations - Most recently VP Operations at St Andrew Goldfields TSX:WDO | 4
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.47 (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 | 5
One Year Share Price Performance TSX:WDO | 6
Review of the Last 12 Months July 2016 Duncan Middlemiss appointed CEO upon Rolly Uloth’s retirement • August 2016 Kiena Deep Discovery in Val d’Or, Quebec announced • October 2016 Q3/16 Production of 15,667 ounces, a 29% improvement over Q2/16 as a result of an operations optimization plan to re- • sequence underground development and lower costs November 2016 Q3/16 Free cash flow generation of $4.6 M • January 2017 Largest exploration program in the Company’s history announced - $13.1 M spend amongst all four properties: Eagle River • Underground Mine, Mishi Open Pit Mine, Kiena Complex, and Moss Lake Discovery of the 303 E Lens at the Eagle River Underground Mine in Wawa, Ontario – wide widths and high grades • February 2017 Drilling Expands Kiena Deep discovery to 550 M laterally • FY/16 Operating Cash Flow of CAD$19.9 M vs FY/15 CAD$10.0 M • FY/16 Net Income of CAD$7.8 M or $0.06/share vs FY/15 loss of (CAD$4.7 M or 0.04/share) • Mineral reserves net of 2016 production increased for the fourth consecutive year • April 2017 Operations optimization program continues to bear fruit – Q1/17 production of 15,162 ounces, multiple high grade zones in • production which will continue for the next few years May 2017 Cost cutting program beginning to demonstrate results – Q1/17 operating costs of $1,056/ounce, in the low end of • Company cost guidance range. Costs expected to be lower in H2/17 Decision taken to drive an exploration ramp at Kiena • Company becomes debt free after convertible debenture comes due ($5.0 M of $7.0 M converted) • Board strengthened with two new director nominees, Charles Main and Warwick Morely-Jepson • Development of the 303 E Lens begins, stope production expected in Q4/17 • TSX:WDO | 7
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