Business
Wesdome earns $0.02 per share in Q1
Wesdome earns $0.02 per share in Q1
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":"\n\n\n\n May 17, 2010 (Canada NewsWire Group) -- Wesdome Gold Mines Ltd (WDO: TSX) ("Wesdome" or the "Company") is pleased to report its unaudited financial and operating results from its Canadian operations for the first quarter ended March 31, 2010. This information should be read in conjunction with the Company's interim unaudited financial statements and Management's Discussion and Analysis for the first quarter ended March 31, 2010 which will be available for viewing on the Company's website at www.wesdome.com and on SEDAR (www.sedar.com). All figures are in Canadian dollars unless otherwise specified.\nThe Company owns the Eagle River gold mining operation in Wawa, Ontario and the Kiena mining complex in Val d'Or, Quebec. The Eagle River mine commenced commercial production on January 1, 1996, and the Kiena mine on August 1, 2006.\n\n\n >\n\n\nDonovan Pollitt, President & CEO comments "I am pleased that we have come through our forecasted lowest grade quarter of the year with modest earnings and relatively strong cash flow from operations. We look forward to stronger production in subsequent quarters and intend to add value through extensive drilling and development of our wholly-owned properties in 2010".\n\nOVERALL PERFORMANCE\n\nAt March 31, 2010, the Company had working capital of $37.0 million. From an operating viewpoint, revenue exceeded operating costs by $6.8 million, and incurred $4.5 million in capital costs including exploration, development and equipment. Cash flow from operations totalled $5.7 million and net income was $2.3 million or $0.02 per share.\nBoth mining operations were producing from lower grade areas in their mining sequences during the first quarter and, therefore, cash cost per ounce rose to $753Cdn per ounce from $619Cdn per ounce in the fourth quarter of 2009. Considering this slow start to the year, we are pleased with the financial results.\nExternal factors which influenced results were a 20% increase in the $Cdn/$US exchange rate and a mild winter resulting in more favourable energy costs and consumption levels.\n\n\n >\n\n\nDuring the first quarter, combined operations produced 16,359 ounces of gold and 17,000 ounces were sold at an average price of $1,152 per ounce. Bullion inventory at March 31, 2010, stood at 13,391 ounces which is carried at cost. The co...