Wesdome Announces 2023 First Quarter Financial Results

TORONTO, May 10, 2023 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first quarter (“Q1 2023”) financial results. All figures are stated in Canadian dollars unless otherwise noted.

Warwick Morley-Jepson, Board Chair and Interim CEO commented, “The year is off to a solid start with combined production results of 28,368 ounces coming in ahead of budget. We continued to make excellent progress on the Kiena production ramp, currently at the 123 level. Once the ramp reaches the 129 level late this year and we can develop 129L station, we will be able to take advantage of the significant ounces per vertical metre increase which is expected to result in materially better unit economics in 2024. At Eagle River, production exceeded our internal targets. Grade reconciliation in the Falcon Zone has significantly improved now that additional drilling and ore development is in place. Our balance sheet is also continuing to benefit from higher production and gold prices, as well as disciplined use of our ATM financing. During the quarter, we paid down $8 million of debt, $12 million in Accounts Payables and expect to continue aggressively paying down our credit facility throughout the rest of the year.”

  Q1 2023Q1 2022 
     
 Ore milled (tonnes)   
 Eagle River48,13353,217 
 Mishi6,15011,873 
 Kiena42,32421,162 
 Total Ore Milled96,60786,252 
     
 Head grade (grams per tonne, “g/t”)   
 Eagle River13.5 11.6 
 Mishi2.3 3.6 
 Kiena5.9 7.7 
     
 Gold production (ounces)   
 Eagle River20,15919,334 
 Mishi3321,165 
 Kiena7,8775,112 
 Total Gold Production28,36825,611 
     
 Production sold (ounces)30,00028,000 
     


First quarter 2023 highlights:

  • At Eagle, production exceeded our internal targets. Grade reconciliation in the Falcon Zone has significantly improved now that additional drilling and ore development is in place. Q1 2023 cash costs of $1,192 (US$881) per ounce and AISC of $1,709 (US$1,264) per ounce of gold were below combined guidance and are expected to be maintained.
  • At Kiena, we continued to make excellent strides towards the successful ramp-up of mining activities in 2023 and beyond. Development of the ramp to the 129L giving access to the A Zone of Kiena Deep continued to track ahead of schedule which positions the mine well for increased production levels in 2024. Longer term, excavation of an exploration ramp from surface to access the near-surface Presqu’ile Zone is expected to proceed in H2 2023 after the required permits are secured. With an existing large resource base, efforts in 2023 will focus on converting a portion of these resources to reserves. The Kiena mill has excess capacity with a permitted rate of 2,000 tonnes per day, therefore bringing a potential new source of ore into the mine plan could be accomplished quickly and for low costs.
  • Kiena Cash costs of $2,267 per ounce, ($US1,676) and AISC costs of $3,048 per ounce ($US2,254) were higher than guidance due to increased staffing in preparation for the production ramp up and associated construction costs. Costs are expected to decrease throughout the second half of the year and further in 2024 as the mine reaches higher production levels taking advantage of the higher grades and larger ore volumes at depth.
  • Total Cash margin was $34.4 million, a 13% increase over Q1 2022, however net income and free cash flows were negative as the Company completes the final projects on the production ramp up at Kiena, namely the ramp to the 129 metre level. Assuming that all else remains the same, the Company expects, at current gold prices, to be free cash flow neutral this year, positioning itself well to be free cash flow positive in 2024.
  • The Company is well positioned to deliver on its production guidance of 110,000 – 130,000 ounces and cash cost guidance of $1,500 - $1,670 per ounce (US$1,150 - $1,290), as well as AISC of $2,100 - $2,340 per ounce, (US$1,620 - $1,800).
  • Wesdome raised $20.1 million of net proceeds from issuing 2,987,500 common shares under the ATM program. The Company ended the quarter with $25.1 million in cash, and a $47 million balance on the revolving credit facility (December 31, 2022 $55 million) in accordance with our strategy to accelerate the paydown of the outstanding balance on our credit facility, thereby de-risking our balance sheet.
Operations and Financial Results

Comparison to Q1 2022
Gold production of 28,368 ounces.

Gold production increased by 11% (Q1 2022 - 25,611 ounces) due to Kiena producing 7,877 ounces in Q1 2023 compared to 5,112 ounces in Q1 2022, and Eagle River complex producing 20,491 ounces, which is consistent with the same period in the prior year.
Cash costs of $1,407 (US$1,040) per ounce of gold sold1.Cash costs1 in Canadian dollars increased by 9% from Q1 2022 of $1,295 (US$1,023) per ounce due to a 16% increase in aggregate mine operating costs; partially offset by a 7% increase in ounces sold. The aggregate cash costs increased by $4.9 million or 21% at Eagle River mainly due to increased ore development metres (timing), waste movement, improvements made to strengthen the technical and mine management team at site, general maintenance of site infrastructure and inflationary pressure. Kiena’s aggregate cash costs increased by $1.1 million or 8% primarily due to a 100% increase in throughput and increased staffing levels required to support commercial production, which was declared on December 1, 2022.
AISC of $1,977 (US$1,462) per ounce of gold sold1.AISC1 in Canadian dollars increased by 17% from Q1 2022 of $1,695 (US$1,339) per ounce due to the increased cash costs, an increase in capital spending at Eagle River resulting from the replacement of aging site infrastructure and the inclusion of sustaining mining exploration and development costs at Kiena.
Cash margin of $34.4 million1.Cash margin1 increased by 13% or $4.1 million from Q1 2022 due to higher ounces sold and a higher Canadian dollar realized gold price; partially offset by increased cash operating costs.
Operating cash flow of $5.1 million or $0.04 per share1.Decreased by 83% or $24.8 million (Q1 2022 - $29.9 million or $0.21 per share1) primarily due to the decrease in cash from working capital changes; partially offset by the higher cash margin.

Free cash outflow of $19.6 million or ($0.14) per share1.The free cash outflow1 increased by $12.8 million (Q1 2022 - $6.8 million or ($0.05) per share1) primarily due to the decrease in cash from working capital changes; partially offset by the higher cash margin and reduced capital spending. Invested $22.7 million in capital expenditures at Eagle River and Kiena in the quarter as compared to $34.6 million in Q1 2022.
Net loss attributable to shareholders of $0.3 million or $nil per share.

Adjusted net income1 attributable to shareholders of $3.3 million or $0.02 per share.

Net income decreased by $7.4 million (Q1 2022 - $7.1 million or $0.05 per share) because of the increased depletion and depreciation of $10.8 million resulting from a larger depreciable asset base as the Kiena assets are now being depreciated, the after-tax impairment of the investment in associate of $2.0 million and the after-tax retirement costs of $1.6 million; partially offset by the higher cash margin.

After removing these one-time items, the adjusted net income1 decreased by $3.8 million from Q1 2022.

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.

 

Production Metrics and Exploration Updates UpdaHighlightsPerformance
Eagle River Complex
  • Overall gold production from the Eagle River Complex remained consistent in Q1 2023 compared to Q1 2022 with 20,491 ounces produced. Despite lower throughput from the Eagle River underground, Q1 2023 gold production increased by 4% from Q1 2022 and exceeded internal targets due to processing additional higher-grade ounces from the Falcon Zone. Mishi produced 332 ounces in Q1 2023, and the stockpile has now been fully depleted.
    • Eagle River Underground 48,133 tonnes at a head grade of 13.5 grams per tonne for 20,159 ounces produced, 4% increase over the same period in the previous year (Q1 2022: 19,334 ounces).
    • Mishi Open Pit 6,150 tonnes at a head grade of 2.3 grams per tonne for 332 ounces produced (Q1 2022: 1,165 ounces).
  • Q1 2023 cash cost of $1,192 (US$881) per ounce of gold sold1 decreased by 6% or $70 per ounce from Q1 2022 due to a 28% increase in ounces sold; partially offset by a 21% increase in overall aggregate site operating costs resulting from higher operating costs incurred due to more ore development metres, waste movement, improvements made to strengthen the technical and mine management teams at site, general maintenance improvements and inflationary pressures, driven by higher labour costs and an increase in commodity inputs, including higher fuel and energy costs.
  • Q1 2023 AISC of $1,709 (US$1,264) per ounce of gold sold1 decreased by 3% or $62 per ounce from Q1 2022 due to a 28% increase in ounces sold; partially offset by the higher cash costs and site infrastructure spending.
  • Generated $20.1 million in cash margin net AISC1 in Q1 2023 compared to $11.8 million in Q1 2022 due to the 28% increase in ounces sold and the higher average Canadian dollar gold price; partially offset by the 21% increase in overall aggregate site operating costs and the 51% increase in site infrastructure spending.
  • At December 31, 2022, Eagle River’s proven and probable mineral reserves totaled 400,000 ounces (762,000 tonnes grading 16.3 g/t Au); measured and indicated mineral resources (exclusive of reserves) were 186,000 (466,000 tonnes grading 12.4 g/t gold); and inferred mineral resources were 281,000 ounces (586,000 tonnes grading 14.9 g/t gold).
  • As a result of drilling to the west of Eagle River, the Company believes there is potential for the delineation of a parallel Falcon structure and further to the East along the down dip extension of the high grade 300 Zone that could meaningfully enhance future operational flexibility of the asset. With an existing large resource base, efforts in 2023 will focus on converting a portion of these resources to reserves. Total metres budgeted for 2023 are 97,000 m by five underground drills, including 49,000 m of definition drilling, 40,000 m of underground exploration drilling and 8,000 m of surface exploration drilling.
Kiena
  • Q1 2023 production increased by 54% from Q1 2022 to 7,877 ounces due to a 100% increase in throughput; partially offset by a 23% decrease in head grade. The head grade is above the 2023 grade guidance of 3.7 – 4.7 due to an overall positive reconciliation of recovered diluted material from removal of material from previously mined stopes. Grades are still expected to align with guidance for the remainder of the year.
  • Q1 2023 cash cost of $2,267 (US$1,676) per ounce of gold sold1 increased by 66% or $904 primarily due to a 35% decrease in ounces sold, and an increase in overall aggregate cash costs resulting from throughput increasing by 100% and increased staffing levels required to support commercial production, which was declared on December 1, 2022. Kiena produced 42,324 tonnes at a head grade of 5.9 grams per tonne for 7,877 ounces, 54% increase over the same period of the previous year (Q1 2022: 5,112 ounces)
  • Q1 2023 AISC of $3,048 (US$2,254) per ounce of gold1 sold increased by 98% or $1,507 per ounce as compared to $1,541 (US$1,217) in Q1 2022 due to a 35% decrease in ounces sold, the increased cash costs and the sustaining mine exploration and development costs.
  • Q1 2023 cash margin net AISC1 of negative $2.8 million decreased by $10.1 million compared to $7.4 million in Q1 2022 due to a 35% decrease in ounces sold and the inclusion of sustaining development and exploration costs.
  • The pastefill plant, which was commissioned in Q4 of 2022, has performed well, achieving its design throughput and quality of product. Yielding the expected improvements in stope cycle times and reduction in dilution.
  • Development of the ramp to the 129L which provides access to the A Zone of Kiena Deep continued to track ahead of schedule during Q1 2023, which positions the mine well for increased production levels in 2024.
  • At Kiena, proven and probable mineral reserves totalled 606,000 ounces (1,658,000 tonnes grading 11.4 g/t Au); measured and indicated mineral resources (exclusive of reserves) were 164,000 (971,000 tonnes grading 5.3 g/t gold); and inferred mineral resources were 668,000 ounces (3,498,000 tonnes grading 5.9 g/t gold).
  • The Company is following up on multiple initial discoveries made last year, including the south limb of the A Zone and several adjacent hanging wall zones which remain outside the current mineral reserves.
  • Recent drill results have extended the Kiena Deep A Zone 125 m down plunge. The A Zone now extends continuously from 1,100 m to approximately 2,000 m below surface and remains open at depth.
  • Additionally, the latest drilling results have also continued to better define and expand the Footwall Zones. Lenses FWZ_1 to FWZ_4 were intersected by holes N112-6861, N112-6861W1, and N112-6862W2.
  • The excavation of an exploration ramp from surface to access the near-surface Presqu’ile Zone is expected to proceed in H2 2023 after the required permits are secured. With an existing large resource base, efforts in 2023 will focus on converting a portion of these resources to reserves.
  • Total metres budgeted for 2023 is 33,000 m, which is made up from 18,000 m of underground exploration drilling, 10,000 m of definition drilling and 5,000 m of surface exploration drilling on a barge.

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Frédéric Langevin, Eng, Chief Operating Officer of the Company and Michael Michaud, P.Geo., Vice President, Exploration of the Company and each a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “SEC”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

First Quarter 2023 Conference Call and Webcast

The Company will release its first quarter 2023 financial results after market close on Wednesday, May 10, 2023. At that time, the financial statements and management discussion and analysis will be available on the company’s website at www.wesdome.com and on SEDAR www.sedar.com A conference call and webcast to discuss these results will be held on Thursday May 11 at 10:00 am ET.  

  • Participants may register for the call at the link below to obtain dial in details. Preregistration is required for this event. It is recommended you join 10 minutes prior to the start of the event.
  • Participant Registration Link:

https://register.vevent.com/register/BI10a0c8d0e83a4371b94467e2f3eb1722

  • Webcast Link:

https://edge.media-server.com/mmc/p/zcqburxt

  • The webcast can also be accessed under the news and events section of the company’s website

The webcast can also be accessed under the News and Events section of the Company’s website (www.wesdome.com)

ABOUT WESDOME
Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently commissioned Kiena mine in Quebec. The Company also retains meaningful exposure to the Moss Lake gold deposit in Ontario through its equity position in Goldshore Resources Inc. The Company’s primary goal is to responsibly leverage this operating platform and high-quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold producer. Wesdome trades on the Toronto Stock Exchange under the symbol “WDO,” with a secondary listing on the OTCQX under the symbol “WDOFF.”

For further information, please contact:

Warwick Morley-Jepson
Board Chair & Interim CEO
416-360-3743 ext. 2029
w.morley-jepson@wesdome.com
orLindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 2025
lindsay.dunlop@wesdome.com
   
220 Bay St, Suite 1200
Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: www.wesdome.com
  


FORWARD-LOOKING INFORMATION

This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the benefits of achieving commercial production at Kiena, the Company’s expected capital expenditure in 2023, the timing around reaching the Kiena Deep A Zone, the Company’s ability to be cash flow positive and its annual production run rate. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

 

Wesdome Gold Mines Ltd.
Summarized Operating and Financial Data
(Unaudited, expressed in thousands of Canadian dollars, except per share and per unit amounts and otherwise indicated)
   
  Three Months Ended
  March 31,
  2023  2022 
Operating data    
Milling (tonnes)    
Eagle River 48,133  53,217 
Mishi 6,150  11,873 
Kiena 42,324  21,162 
Throughput 2 96,607  86,252 
Head grades (g/t)    
Eagle River 13.5  11.6 
Mishi 2.3  3.6 
Kiena 5.9  7.7 
Recovery (%)    
Eagle River 96.9  97.4 
Mishi 72.5  84.8 
Kiena 97.9  98.0 
     
Production (ounces)    
Eagle River 20,159  19,334 
Mishi 332  1,165 
Kiena 7,877  5,112 
Total gold produced 2 28,368  25,611 
Total gold sales (ounces) 30,000  28,000 
     
Eagle River Complex (per ounce of gold sold) 1  
Average realized price$2,545 $2,396 
Cash costs 1,192  1,262 
Cash margin$1,353 $1,134 
All-in Sustaining Costs 1$1,709 $1,771 
     
Mine operating costs/tonne milled 1$475 $385 
     
Average 1 USD → CAD exchange rate 1.3525  1.2662 
     
Cash costs per ounce of gold sold (US$) 1$881 $997 
All-in Sustaining Costs (US$) 1$1,264 $1,399 
     
Kiena Mine (per ounce of gold sold) 1    
Average realized price$2,588 $2,344 
Cash costs 3, 5 2,267  1,364 
Cash margin$321 $980 
All-in Sustaining Costs 1$3,048 $1,541 
     
Mine operating costs/tonne milled 1$426 $579 
     
Average 1 USD → CAD exchange rate 1.3525  1.2662 
     
Cash costs per ounce of gold sold (US$) 1$1,676 $1,077 
All-in Sustaining Costs (US$) 1$2,254 $1,217 
     
Financial Data    
Cash margin 1$34,408 $30,342 
Net income (loss)$(345)$7,051 
Net income adjusted 1$3,257 $7,051 
Earnings before interest, taxes, depreciation and amortization 1$26,124 $20,650 
Operating cash flow$5,120 $29,893 
Free cash flow$(19,597)$(6,796)
Per share data    
Net income$0.00 $0.05 
Adjusted net income 1$0.02 $0.05 
Operating cash flow 1$0.04 $0.21 
Free cash flow 1$(0.14)$(0.05)
     

1. Refer to the Company’s 2021 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the consolidated financial statements.
2. Totals for tonnage and gold ounces may not add due to rounding.

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Financial Position
(Unaudited, expressed in thousands of Canadian dollars)
     
     
   As at March 31, 2023 December 31, 2022
Assets    
Current    
Cash and cash equivalents $ 25,060  $33,185 
Receivables and prepaids  13,862   12,755 
Inventories  30,786   22,119 
Income and mining tax receivable  7,515   6,494 
Share consideration receivable  1,943   2,994 
Total current assets  79,166   77,547 
     
Restricted cash  1,176   1,176 
Deferred financing costs  1,279   1,411 
Mining properties, plant and equipment  528,141   525,860 
Exploration properties  1,339   1,139 
Marketable securities  630   960 
Share consideration receivable  1,591   2,576 
Investment in associate  5,402   8,458 
Total assets $ 618,724  $619,127 
     
Liabilities     
Current    
Payables and accruals $ 42,514  $54,734 
Borrowings  46,744   54,697 
Current portion of lease liabilities  4,620   6,160 
Total current liabilities  93,878   115,591 
     
Lease liabilities  2,208   3,126 
Deferred income and mining tax liabilities  82,165   82,950 
Decommissioning provisions  20,119   18,941 
Total liabilities  198,370   220,608 
     
Equity    
Equity attributable to owners of the Company    
Capital stock  227,360   205,361 
Contributed surplus  7,870   7,359 
Retained earnings  186,594   186,939 
Accumulated other comprehensive loss  (1,470)  (1,140)
Total equity attributable to owners of the Company  420,354   398,519 
Total liabilities and equity $ 618,724  $619,127 
     

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Income and Comprehensive Income
(Unaudited, expressed in thousands of Canadian dollars except for per share amounts)
 
       
       
       
   Three Months Ended March 31, 
    2023   2022  
       
Revenues  $ 76,701  $66,694  
Cost of sales   (61,418)  (44,706) 
Gross profit   15,283   21,988  
       
Other expenses      
Corporate and general   3,662   3,375  
Stock-based compensation   1,774   76  
Retirement costs   1,190   -  
Exploration and evaluation   960   2,956  
Loss (gain) on disposal of mining equipment   218   (2) 
Total other expenses   7,804   6,405  
       
Operating income    7,479   15,583  
       
Impairment of investment in associate   (2,700)  -  
Fair value adjustment on share consideration receivable   (2,036)  (2,234) 
Interest expense   (1,309)  (263) 
Accretion of decommissioning provisions   (244)  (171) 
Share of loss of associate   (356)  (412) 
Loss on dilution of ownership   -   (205) 
Other expenses   54   (265) 
Income before income and mining taxes   888   12,033  
       
Income and mining tax expense (recovery)       
Current   2,018   2,488  
Deferred   (785)  2,494  
Total income and mining tax expense   1,233   4,982  
       
Net (loss) income  $ (345) $7,051  
       
Other comprehensive (loss) income      
Change in fair value of marketable securities   (330)  510  
Total comprehensive (loss) income  $ (675) $7,561  
       
(Loss) Earnings per share      
Basic  $ (0.00) $0.05  
Diluted  $ (0.00) $0.05  
       
Weighted average number of common      
  shares (000s)      
Basic   144,463   141,830  
Diluted   144,463   143,467  
       

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Changes in Equity
(Unaudited, expressed in thousands of Canadian dollars)
            
         Accumulated  
         Other  
   Capital Contributed Retained Comprehensive Total
   Stock Surplus Earnings (Loss) IncomeEquity
            
Balance, December 31, 2021  $187,911  $5,859  $201,645  $(240) $395,175 
            
Net income for the period ended   -   -   7,051   -   7,051 
March 31, 2022           
Other comprehensive income   -   -   -   510   510 
Exercise of options   2,767   -   -   -   2,767 
Value attributed to options exercised  1,051   (1,051)  -   -   - 
Value attributed to RSUs exercised  638   (638)  -   -   - 
Stock-based compensation   -   76   -   -   76 
Balance, March 31, 2022  $192,367  $4,246  $208,696  $270  $405,579 
            
            
Balance, December 31, 2022  $205,361  $7,359  $186,939  $(1,140) $398,519 
            
Net loss for the period ended       (345)    (345)
March 31, 2023           
At-the-Market offering:           
Common shares issued for cash   20,990   -   -   -   20,990 
Agents' fees and issuance costs   (930)  -   -   -   (930)
Other comprehensive loss   -   -   -   (330)  (330)
Exercise of options   676   -   -   -   676 
Value attributed to options exercised  276   (276)  -   -   - 
Value attributed to RSUs exercised  616   (616)  -   -   - 
Value attributed to PSUs exercised  371   (371)  -   -   - 
Stock-based compensation   -   1,774   -   -   1,774 
Balance, March 31, 2023  $ 227,360  $ 7,870  $ 186,594  $ (1,470) $ 420,354 
            

 

Wesdome Gold Mines Ltd.
Condensed Interim Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)
    
   Three Months Ended March 31,
    2023   2022 
      
Operating Activities     
Net (loss) income  $ (345) $7,051 
Depreciation and depletion   19,125   8,354 
Stock-based compensation   1,774   76 
Accretion of decommissioning provisions   244   171 
Deferred income and mining tax (recovery) expense   (785)  2,494 
Amortization of deferred financing cost   132   84 
Interest expense   1,309   263 
Loss (gain) on disposal of mining equipment   218   (2)
Impairment of investment in associate   2,700   - 
Fair value adjustment on share consideration receivable   2,036   2,234 
Share of loss of associate   356   412 
Loss on dilution of ownership   -   205 
Foreign exchange loss (gain) on borrowings   (1)  (32)
Net changes in non-cash working capital   (18,604)  14,264 
Mining and income tax paid   (3,039)  (5,681)
Net cash from operating activities   5,120   29,893 
      
Financing Activities     
Proceeds from At-the-Market offering   20,990   - 
Agents' fees and issuance costs   (930)  - 
Repayment of revolving credit facility   (7,955)  - 
Exercise of options   676   2,767 
Repayment of lease liabilities   (1,784)  (2,086)
Interest paid   (1,309)  (263)
Net cash from financing activities   9,688   418 
      
Investing Activities     
Additions to mining properties   (22,733)  (6,190)
Additions to mines under development   -   (28,413)
Purchase of exploration property   (200)  - 
Net cash used in investing activities   (22,933)  (34,603)
      
Decrease in cash and cash equivalents   (8,125)  (4,292)
Cash and cash equivalents - beginning of period   33,185   56,764 
Cash and cash equivalents - end of period  $ 25,060  $52,472 
      
Cash and cash equivalents consist of:     
Cash  $ 25,060  $52,472 
Term deposits   -   - 
   $ 25,060  $52,472 

PDF available: 

http://ml.globenewswire.com/Resource/Download/d63fea87-3630-480a-99ab-edaadd1861f4

 


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