Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (April 2014)
24 slides from Wesdome Gold Mines's investor presentation, April 2014
Slide 1: Corporate Presentation April 2014
Corporate C t Presentation P t ti April 2014
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Language regarding Forward-Looking Information This presentation contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release including, without limitation, st
Slide 3: Who We Are: Canadian Gold Miners and Explorers
Who We Are: Canadian Gold Miners and Explorers Established 27 year of unhedged gold production since 1987 1.3 million ounces of production since 1987 Well Managed Canada only – no other metals Least dilutive producer in peer group Zero to 2% Royalties on properties, no hedging Cash and B
Slide 4: Wesdome is Producing in Canada
Wesdome is Producing in Canada Productive land packages near Wawa, Val d’Or and Thunder Bay Low geopolitical risk, 2 of the best mining jurisdictions in the world, Ontario & Quebec Withi ttwo off Canada’s Within C d ’ highest hi h t concentrations t ti off hi historic t i goldld producers d Two
Slide 5: Margin Improvement Programs
Margin Improvement Programs 1. Reduction of unit costs at Eagle River underground through: A. Acceleratingg capital p development p B. Equipment standardization C. Reducing dilution D. P Power optimization ti i ti 2 Decrease Eagle River Mill unit costs through: 2. A. Circuit upgrades B. Increasing M
Slide 6: Production and Exploration
Production and Exploration Organic Growth at Eagle River UG Mine and Mishi Open Pit Mine Production estimate for 2014 is 50,000 50 000 oz 10% increase in gold production from our centrally located Eagle River Mill Significant Si ifi t exploration l ti potential, t ti l llow costt exploration l t
Slide 7: High Grade Eagle River Mine Exploration Targets
High Grade Eagle River Mine Exploration Targets OPEN OPEN OPEN 7
Slide 8: Growing Reserves at High Grade Eagle River
Growing Reserves at High Grade Eagle River Eagle River Complex Eagle River + Mishi Mines - Proven + Probable Reserves 300,000 281,000 250,000 234,000 ces Gold 219,000 200,000 167,000 150,000 Ounc 110 000 110,000 100,000 73,000 50,000 0 2008 2009 2010 2011 2012 2013 8
Slide 9: Eagle River Central Mill Complex – Wawa, ON
Eagle River Central Mill Complex – Wawa, ON 9
Slide 10: Mishi Open Pit Mine
Mishi Open Pit Mine Mishi Open Pit Mine is a gold deposit Mishi Pit Gold Production (Ozs) 10,000 containing Reserves & Resources M Measured d + IIndicated di d off 8 000 8,000 7,000 5.3 million tonnes at 2.1 gAu/t or 6,000 4,776 360,000 , oz. 4,000 2 362 2,362 2,000 Located 2 km from Eagle River
Slide 11: Kiena and Wesdome Complex – Val d'Or, Québec
Kiena and Wesdome Complex – Val d’Or, Québec Kiena resources: 521,000 oz. M&I 598,000 oz. Inferred On care and maintenance Production 2006 – 2013 Significant exploration potential Higher grade targets 11
Slide 12: Discoveries: Presqu'ile and Dubuisson North
Discoveries: Presqu’ile and Dubuisson North 12
Slide 13: High Grade Near Surface Targets at Kiena
High Grade Near Surface Targets at Kiena Presqu’ile (February 27, 2013) 71.03 g/t – 2.9 m 30.39 g/t – 3.0 m 5.04 5 04 g/t /t – 6.8 68m Dubuisson North (June 13, 13 2012) 16.75 g/t – 12.5 m 10.65 10 65 g/t – 4.3 43m 7.26 g/t – 3.2 m 13
Slide 14: Moss Lake Gold
Moss Lake Gold 3.1 Moz global resource 1.4 Moz Indicated [40M tonnes at 1.1 gAu/tonne in-situ] 1 7 Moz Inferred [50M tonnes at 1.1 1.7 1 1 gAu/tonne in-situ] in situ] Located 100km due West of Thunder Bay, Ontario Mineral resource geometry favours open pit mining techniques 2012 metallurgica
Slide 15: Recent Corporate Highlights
Recent Corporate Highlights 2014 Q1 Gold Bullion Revenue of $23.1 million 2013 Q4 Gold Bullion Revenue of $19.9 million Working Capital Improvement 2013 Q4 Cash Flow from Operations of $7.5M 2013 Q3 Cash Flow from Operations of $2.3M 2013 Q2 Cash C h FlFlow ffrom O Operations ti off $1 $1.8M 8
Slide 16: Capital Structure
Capital Structure Stock Exchange Listing WDO – TSX Shares Outstanding (April 2014) Basic 111.11 million 111 illi Fully Diluted 114.4 million Fully Diluted (Debenture Fully Converted) 117.2 million Current Share Price (April 2014) $0.80 Market Capitalization $89 million Fully Diluted $92 million Full
Slide 17: Well Managed Capital Structure – Low Dilution
Well Managed Capital Structure – Low Dilution Dilution of a 1% Stake Purchased in Q4, 2007 1.20 1.00 0.80 WDO CRJ 0.60 LSG SGR SAS 0.40 RIC BRD 0.20 - 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 18: Well Managed Balance Sheet
Well Managed Balance Sheet Strong Balance Sheet (December 31, 2013) Cash and gold inventory1 of $14.7 Million Working Capital of $ 8.5 8 5 Million Quick ratio = 0.78 Adjusted Quick ratio2 = 1.68 Current ratio = 1.85 1 85 Balance Sheet (March 31, 2013) Cash C h andd gold ld inventory i t
Slide 19: Proven Track Record
Proven Track Record Growing Gold Resources and Reserves Wesdome Global Resources now at 5.1 Million Ozs Eagle River Reserves increased to 4.6 years, continuous production since 1995 Very High Grade, Grade new zones discovered Mishi Resources over 5 million tonnes over 2g/tonne Consolidated
Slide 20: Why Invest in Wesdome?
Why Invest in Wesdome? 1. Profitable. All in breakeven near $1,320 per oz Canadian. 2 L 2. Low risk. i k One O off the th best b t Balance B l Sheets Sh t iin our peer group, with ith low l long-term debt. 3 Growth 3. Growth. Increasing gold resources and gold reserves thru discovery and acquisition
Slide 21: Appendix A – 2013 Reserves
Appendix A – 2013 Reserves* Grade Contained Gold Mineral Reserves Tonnes (gAu/t) (oz) Eagle River – Proven 109,000 11.7 41,000 Eagle River – 411,000 9.7 128,000 Probable Eagle River – 2P - 520,000 10.1 169,000 2013 Eagle River – 2P - 2012 435,000 10.0 140,000 Mishi – Proven 198,000 2.5 16,000 Mishi
Slide 22: Appendix B – 2013 Resources
Appendix B – 2013 Resources* Mineral Resources Tonnes Grade (gAu/t) Contained Gold (oz) Eagle River – Indicated 167,000 8.3 44,000 E l River Eagle Ri – Inferred I f d 437 000 437,000 75 7.5 105 000 105,000 Kiena – Measured 639,000 3.3 68,000 Kiena – Indicated 3,247,000 3.6 373,000 Kiena – M+I 3,886,
Slide 23: Appendix C – Management Team
Appendix C– Management Team Rolly Uloth, President & CEO served as President of the Company from May 2007 to December 2009 and was a director from 1999 to 2009, serving as Chairman from 2006 to 2009 Philip Ng, M.Eng, P.Eng.,– Chief Operating Officer Professional Engineer with 20 years of experie
Slide 24: Appendix D – Shareholders
Appendix D – Shareholders Summary of Significant Shareholders of Wesdome*: Management (~7%) Sprott Asset Management (~9%) Gabelli & Co Inc TD Asset Management Mackenzie Financial Tocqueville T ill Asset A t Management M t Resolute Funds (~20%) Agnico Eagle 24 *Source: ThompsonReuters
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