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Wesdome Gold Mines Announces 2022 Second Quarter Financial Results
TORONTO, Aug. 10, 2022 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces its second quarter financial results.
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":" TORONTO, Aug. 10, 2022 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces its second quarter financial results. All figures are stated in Canadian dollars unless otherwise noted. Duncan Middlemiss, President and CEO commented, “At Eagle River, the one-time challenges which temporarily impacted production, such as the hoist rope manufacturing defect and the leach tank failure have since been addressed. Head grade at Eagle River in Q2 averaged 9.6 g/t, which is below the 2022 grade guidance of 12.1 -13.4 g/t Au. However, once both issues were resolved, we were able to mine and process the significantly higher-grade ore originally planned for June. At Kiena, the supply chain challenges, which delayed delivery of the underground equipment in Q1 2022 and negatively affected our development rates, have also delayed delivery of key electrical components for the completion of the paste backfill plant. Consequently, the mining rate has been slower to ramp up, which now puts us approximately 3-4 months behind our original 2022 plan. We look forward to the completion of the paste fill plant (now expected to be commissioned in Q4 2022) to speed up our production cycle and mitigate delays. As previously disclosed on July15, combined production in Q2 was 27,240 ounces resulting in total H1 2022 production of 52,851 ounces. Challenges such as global supply chain related delays, inflationary cost pressures, and lost productivity from COVID related absences persisted into Q2 and beyond. Subsequent to the quarter both operations were shut down for planned maintenance. During July, the Kiena hoist was shutdown for three weeks for planned refurbishment and at Eagle the mill was shutdown for two weeks for annual scheduled maintenance and thickener refurbishment. As a result of lower production and sales than planned, both cash costs for the quarter of $1,538 (US$1,205) and AISC of $2,020 (US$1,582) were above our guidance range of $875 - $970 (US$700 - $775) for cash costs and $1,270 - $1,400 (US$1,015 - $1,125) per ounce. Free cash outflow for the quarter was $28.6 million, net of an investment of $31.2 million in Kiena, or ($0.20) per share. This is our final year of elevated growth capital (primarily at Kiena) as commercial production is expected in Q4. In the beginning of the year, the Company se...