Business
Wesdome Gold Mines announces third quarter financial results; generates CAD$3.4 million in free cash flow
WDO:TSX TORONTO , Nov. 6, 2014 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WD...
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":"\n\n\n \n \n\nWDO:TSX\n\n \n\n\n\nTORONTO, Nov. 6, 2014 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) today announces its financial and operational results for the third quarter and first nine months of 2014. All figures are in Canadian dollars unless stated otherwise. \n\nMr. Rolly Uloth, President and CEO commented, \"I am pleased to report that the third quarter is the fourth consecutive quarter the Company has generated positive free cash flow, building our cash position to $10.7 million from $8.3 million in the previous quarter. Some profits were used to be active on our Normal Course Issuer Bid, where during the quarter 203,500 shares were bought back and retired. Over the last year, the Company has been expanding its milling capacity and reliability, and the benefits of these programs are beginning to take effect. During the third quarter, throughput increased by 54% and production based cash costs on a per tonne basis decreased by 33%. A profit growth approach to production while managing unit costs remains a priority as we continue to demonstrate financial strength. Guidance for 2014 was revised upwards to 52,000 ounces last quarter, which we are on track to meet or exceed. Initial guidance for 2015 is 55,000 ounces, with the increase coming primarily from the low-cost Mishi open pit. Current mill capacity supports this increased production rate.\" \n\nHIGHLIGHTS:\n\n\nDuring the third quarter, the Company generated CAD$3.4 million in free cash flow, or $0.03 per share during the third quarter in 2014. Free cash flow for the first nine months of the year totalled CAD$7.6 million or $0.07 per share. \nRevenue generated for the quarter totalled CAD$22.3 million, cash flow from operations totalled CAD$7.9 million, and net income totalled CAD$2.2 million or $0.02 per share. For the first nine months of the year revenue, cash flow from operations and net income were CAD$61.5 million, CAD$19.7 million, and CAD$9.3 million or $0.09 per share, respectively. \nDuring the third quarter 12,456 ounces of gold were produced at a recovered grade of 10.1 grams per tonne at Eagle River and 2.4 grams per tonne at Mishi.  Overall, the Eagle River Complex produced 45% more gold in the current quarter over the same period in 2013.  Total year to date production is 39,776 ounces at a recovered grade of 12.0 grams per tonne at the Eag...