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Wesdome Announces 2020 First Quarter Financial Results; Generates $16.7 Million in Free Cash Flow
TORONTO, May 05, 2020 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first quarter (“Q1 2020”) financial re
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":" TORONTO, May 05, 2020 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first quarter (“Q1 2020”) financial results. All figures are stated in Canadian dollars unless otherwise noted. Mr. Duncan Middlemiss, President and CEO commented, “In Q1, mill availability improved to 89%, resulting in 55,874 tonnes milled at a head grade of 14.0 grams per tonne (“g/t Au”) for 24,457 ounces produced, 36% increase over the previous year (Q1 2019: 17,955 ounces) at the Eagle River Underground Mine. With our strong production and favourable gold price, the company was able to generate $16.7 million in free cash flow, thereby resulting in a cash position at the end of the quarter of $49.4 million. Cash costs of $1,120 (US$833) and all-in sustaining costs of $1,423 (US$1,058) per ounce increased over Q1 2019 ($866 or US$651 per ounce) and ($1,311 or US$986 per ounce) because of lower grades and the decision to accelerate the processing of the stockpiles in response to the uncertainty surrounding the impact of COVID-19. The Eagle River mine is in reduced operations mode due to management of COVID-19. As a result, and because of accelerated mining of the stockpile, we expect slightly lower production in Q2, but we are maintaining annual guidance of 90,000 – 100,000 ounces and operating cost guidance of $800 – $875 (US$615 – $670) and AISC guidance of $1,280 - $1350 (US$985 - $1,040) per ounce. As a result of the uncertainty related to COVID-19, it is likely that we will not drill our planned 237,000 metres this year. Further impacts are likely and an update on our progress, along with a revised capex forecast, will be provided as more details become available. At Kiena, a definitive restart date has not been provided by the Government, but May 11, 2020 is a possibility. We will resume all drilling and development as soon as the Government allows exploration to commence, and the preliminary economic assessment will be published later this month. On behalf of management and the board of directors, I would like to thank all our employees for their efforts and cooperation with new protocols and procedures during these unprecedented times.” Key operating and financial highlights of the Q1 2020 results include: Gold production of 25,122 ounces from the Eagle River Complex...