Wesdome Announces 2021 Third Quarter Financial Results

Kiena Progresses Towards Commercial Production

TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces third quarter (“Q3 2021”) financial results. All figures are stated in Canadian dollars unless otherwise noted.


Achievements for Q3 include:

  • Eagle River Complex production of 23,833 ounces Au and YTD production of 76,773 ounces Au sets up well for achieving mid to high end of 2021 guidance (92,000 ounces Au – 105,000 ounces Au)
  • Kiena pre commercial production of 5,511 ounces ramping up as planned. Good progress made on Tailings Management Facility enhancements, Paste Fill Plant construction, and mobile equipment procurement advancing this asset towards commercial production status
  • The company remains well funded with $69.5 M of cash on hand which allows for organically funding the Kiena restart and aggressive company wide exploration program

Mr. Duncan Middlemiss, President and CEO commented, “During the quarter, the Company completed a significant milestone with the successful restart of the Kiena mill, the commencement of underground mining, and the increase in mine construction activities associated with the mine restart. The restart at Kiena has been entirely internally funded, with no debt or dilution to the Company. We produced 5,511 pre-commercial production ounces, and expect 2021’s total production from the asset to be within guidance range of 15,000 – 25,000 ounces. As expected, due to initial start up focused on the lower grade S50 zone, located closest to existing development, Kiena cash costs of $1,844 (US$1,463 per ounce) and AISC of $1,891 (US$1,501) per ounce, are not reflective of the asset long term. We expect to be in full commercial production at this asset in Q2 2022. As we continue to ramp up our production, we continue to expect costs to trend downward.

At Eagle, cash costs of $987 (US$783) per ounce and AISC of $1,451 (US$1,152) per ounce were within our guidance range. Operating cash flows were $33.9 million or $0.24 per, and cash margin was $35.3 million. Free cash outflow of $9.1 million was incurred, net of an investment of a $41.1 million investment into the operations, including $27.5 million at Kiena. Year to date, production at Eagle River of 76,773 ounces, leaves us very well positioned to meet the mid to high point of our guidance range of 92,000 ounces – 105,000 ounces.

With the higher costs realized in Q3 from the Kiena start up, year to date combined cash costs of $983 (US$785) per ounce and AISC cost of $1,406 ($US1,123) are slightly above our US cost guidance range of $900 – $1,000 (US$680 – $770) per ounce for cash costs and $1,300 – $1,450 (US$980 – $1090) per ounce AISC. The Kiena costs are pre-commercial production and we expect to achieve full year production guidance. We expect reductions in unit costs as Kiena comes progresses towards commercial production, expected mid next year.

Q3 2021 was a very successful quarter in terms of achieving our stated corporate goals. We now are on the path to having our second operating high-grade underground gold mine, de-risking the Company’s single asset producer status, and bringing us that much closer to our objective of becoming Canada’s next intermediate gold producer.”

The Company also announces today the resignation of Marc-Andre Pelletier, Chief Operating Officer, effective January 15, 2022. Marc will be pursuing another opportunity in a more senior role, a natural progression in his career trajectory. We wish to sincerely thank him for his extensive contributions to the Company, and his key role in the reopening of the Kiena mine, and wish him all the best in his new endeavour.”


Key operating and financial highlights of the Q3 2021 results include:

  • Gold production of 29,344 ounces, which includes 5,511 Kiena pre-commercial ounces, is a 47% increase over the same period in the previous year (Q3 2020: 20,008 ounces):

    • Eagle River Underground 56,003 tonnes at a head grade of 13.4 grams per tonne for 23,621 ounces produced, 22% increase over the previous year (Q3 2020: 19,319 ounces).
    • Mishi Open Pit 3,727 tonnes at a head grade of 2.3 g/t Au for 212 ounces produced (Q3 2020: 689 ounces).
    • Kiena 30,470 tonnes at a head grade of 5.8 grams per tonne for 5,511 pre-commercial ounces produced.
  • Revenue of $67.5 million, a 23% increase over the previous year (Q3 2020: $55.0 million).
  • Ounces sold were 30,000 at an average sales price of $2,249/oz (Q3 2020: 21,700 ounces at an average price of $2,532/oz).
  • Cash margin

    1

    of $35.3 million, a 10.0% increase over Q3 2020 (Q3 2020 – $32.1 million).
  • Operating cash flows increased by 33% to $33.9 million or $0.24 per share

    1

    as compared to $25.6 million or $0.18 per share for the same period in 2020.
  • Free cash outflow of $9.1 million, net of an investment of $27.5 million in Kiena, or ($0.06) per share

    1

    (Q3 2020: free cash flow of $3.3 million or $0.02 per share).
  • Net income of $15.3 million or $0.11 per share (Q3 2020: $14.6 million or $0.10 per share) and Net income (adjusted)

    1

    of $18.3 million or $0.13 per share (Q3 2020: $14.6 million or $0.10 per share).
  • Cash position increased to $69.5 million compared to $67.8 million in the previous quarter.
  • Cash costs

    1

    of $1,072/oz or US$851/oz, a 2% increase over the same period in 2020 (Q3 2020: $1,052/oz or US$790/oz) due to the inclusion of the higher cost Kiena pre-commercial ounces ($1,844 (US$1,463) per ounce), which increased the cash cost per ounce sold by $85 (US$67) per ounce;
  • All-in sustaining costs (“AISC”)

    1

    increased by 7% to $1,495/oz or US$1,186/oz (Q3 2020 – $1,395 (US$1,047) per ounce) due to the inclusion of the higher cost Kiena pre-commercial ounces ($1,891 (US$1,501) per ounce), which increased the AISC per ounce sold by $44 (US$35), combined with higher sustaining capital, corporate and general expenses and lease payments.

1

Refer to the Company’s 2021 Third Quarter Management Discussion and Analysis, section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

Production and

Exploration Highlights

Achievements

Eagle River
  • Q3 2021 Eagle River production increased by 22% from Q3 2020 to 23,621 ounces of gold, due to a 25% increase in total throughput; offset partially by a 3% decrease in head grade. Head grade at Eagle River in Q3 2021 averaged 13.4 g/t.
  • Q3 2021 Cash cost of $987 (US$783) per ounce of gold sold

    1

    decreased by 6% or $66 from Q3 2020 primarily due to a 24% increase in ounces sold.
  • Q3 2021 AISC of $1,451 (US$1,152) per ounce of gold sold

    1

    increased by 6% or $56 from Q3 2020 primarily due to higher mine development and infrastructure spending; partially offset by a 24% increase in ounces sold.
  • Generated $34.2 million in cash margin in Q3 2021 compared to $32.1 million in the same period in 2020, despite the average realized Canadian gold price being 11% lower at $2,249/oz (Q3 2020 – $2,532/oz).
  • The Eagle River underground ore processed was slightly lower in Q3 2021 due to two weeks of scheduled downtime for the installation of a new cone crusher and the annual mill maintenance. Production in Q4 is expected to increase to 650 tpd as no project maintenance downtime is planned. Ventilation improvements continue at depth, which has increased the air flow in the deepest section of the ramp area. Production from the Falcon Zone started late in Q3 and will continue in Q4, providing a new high-grade area.   Initial sill development has been completed on the Falcon 7 zone on the 622 and 635 levels in support of the current mining. Chip sampling and test holes taken on these two horizons during the initial development confirms earlier exploration drill results by returning high gold grades over continuous strike length. 622 level chip sampling yielded 54.3 grams of gold per tonne (g/t Au) (uncapped) and 37.9 g/t Au (capped at 125 g/t Au) over an average thickness of 2.1 metres (m) over a continuous strike length of 75.6 m. Also, 635 level chip sampling yielded 67.3 g/t Au (uncapped) and 34.3 g/t Au (capped) over an average thickness of 1.9 m over 61.0 m. Additionally the Company is continuing to develop and explore the 311 West Zone along the western margin of the mine diorite. The zone has transitioned from the diorite into the adjacent mafic volcanics, again highlighting the potential of the volcanic rocks to host gold mineralization, similar to that observed at the neighbouring Falcon 7 zone.
  • Additional underground exploration is ongoing further to the east of the current mining areas, in the east-central area of the mine, to test for parallel zones north of the historic 8 and 6 zones. A comprehensive structural study has been completed and is being utilized to assist the exploration targeting.
  • Surface drilling is ongoing with 2 drills both east and west of the mine to follow up on anomalous values returned from the regional drilling program in 2020.

Kiena
  • During Q3 2021, operations at the Kiena Mine commenced, producing 5,511 ounces from the lower grade S-50 zone. The mill start-up in July went according to plan with no major issues. Mine operations were halted for 18 days in September for upgrading of the hoist system which has now been completed. Progress on the paste fill plant and tailings management area construction is on schedule. All key mobile equipment has been ordered and we have already received four underground haulage trucks with the remainder of the equipment scheduled to arrive by Q2 of 2022.
  • Total throughput was 30,470 tonnes or 331 tpd and the head grade averaged 5.8 g/t.
  • Generated $1.1 million in cash margin despite the high cash costs of $1,844 per ounce of gold sold

    1

    due to low pre-commercial production levels.
  • Late in Q3, first stope production began at the higher grade A Zone, and this is expected to increase significantly in the coming quarters. The reconciliation of the A zone bulk sample that was processed in Q4 2020 recovered 6% more gold than the MRE with a feed grade of 15.7 g/t Au versus model grade of 14.7 g/t Au. Total gold produced from the 7,032 tonnes milled was 3,479 ounces with gold recovery in the Kiena mill of 98.2%.
  • The new Footwall Zone was initially announced in March of this year. To date, the Footwall Zone is defined by new intersections of gold mineralization located within a 50 metre (‘m’) wide corridor adjacent to the footwall of A2 Zone. The Footwall Zone corridor remains open laterally and down plunge. The location of new gold intercepts in recent holes suggest that the Footwall Zone extends over 300 m along plunge. The deepest hole returned 41.2 g/t Au (uncapped) over 51.2 m core length.
  • Ongoing drilling also continues to better define and expand the Kiena Deep A Zone predominantly along the lateral extensions of the zone. The high grades intersected will be included in future resource updates. One hole returned 132.1 g/t Au over 7.4 m core length (27.6 g/t Au capped, 3.9 m true width) A Zone.
  • Initial surface drilling has focused on the Presqu’ile and Shawkey areas located northwest and southeast of the Kiena Mine, respectively. Since July 2021, two drills on barges have been testing the continuity of some gold anomalies in the Jacola Formation which host the Kiena mine. Recent drilling at Presqu’ìle zones returned 1515.0 g/t Au over 0.5 m core length.
  • Wesdome finalized the purchase of the Tarmac Gold Property from Globex Mining Enterprises. The Property consists of 6 claims covering 94 hectares located entirely within Wesdome’s Kiena Mine Complex and less than 2 kilometers northeast of the Kiena underground mine, all located beneath Lac De Montigny.



Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng, Chief Operating Officer, 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.


Wesdome Gold Mines 2021 Third Quarter Financial Results Conference Call

November 11, 2021 at 10:00 am ET

North American Toll Free:

+ 1


(844) 202-7109


International Dial-In Number:

+1


(703) 639-1272


Conference ID:

1534619



Webcast link:




https://edge.media-server.com/mmc/p/8rk2xyk3


The webcast can also be accessed under the News and Events section of the Company’s website (


www.wesdome.com


)


ABOUT WESDOME


Wesdome is Canadian focused with two producing underground gold mines.  The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Québec.  The Eagle River Underground Mine in Wawa, Ontario is currently producing gold at a rate of 92,000 – 105,000 ounces per year.    The Kiena Complex is a fully permitted mine with a 930-metre shaft and 2,000 tonne-per-day mill, and a restart of operations was announced on May 26, 2021.  The Company has completed a PFS in support of the production restart decision. Wesdome is actively exploring both underground and on surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Company also retains meaningful exposure to the Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario through its equity position in Goldshore Resources Inc. The Company has approximately 140.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.


For further information, please contact:



Duncan Middlemiss or Lindsay Carpenter Dunlop
President and CEO VP Investor Relations
416-360-3743   ext. 2029 416-360-3743   ext. 2025


[email protected]



[email protected]

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


This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. 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. The Company has included in this news release certain non-IFRS performance measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per ounce reflect actual mine operating costs incurred during the fiscal period divided by the number of ounces produced. These measures are not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.



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

Nine Months Ended

September 30,

September 30,

2021
2020
2021
2020

Operating data

Milling

(tonnes)




Eagle River

56,003

44,667

172,600

142,890
Mishi

3,727

11,533

30,293

36,301
Kiena

30,470

0

30,470

0
Throughput

2


90,200

56,200

233,363

179,191

Head grades (g/t)




Eagle River

13.4

13.8

13.8

15.1
Mishi

2.3

2.5

2.4

2.7
Kiena

5.8

0.0

5.8

0.0

Recovery (%)




Eagle River

97.9

97.7

97.5

97.6
Mishi

78.0

74.7

81.4

77.8
Kiena

97.9

0.0

97.9

0.0







Production

(ounces)




Eagle River

23,621

19,319

74,853

67,893
Mishi

212

689

1,920

2,379
Kiena

5,511

0

5,511

0

Total gold produced


2


29,344

20,008

82,284

70,272

Total gold sales

(ounces)

4


30,000

21,700

80,957

71,340





Eagle River Complex

(per ounce of gold sold)

1






Average realized price
$

2,254
$ 2,532
$

2,240
$ 2,341
Cash costs

987
1,052

966
1,022
Cash margin
$

1,267
$ 1,480
$

1,274
$ 1,319
All-in Sustaining Costs

1

$

1,451
$ 1,395
$

1,413
$ 1,348


Mine operating costs/tonne milled

1

$

388
$ 389
$

347
$ 385




Average 1 USD → CAD exchange rate

1.2600
1.3321

1.2513
1.3541




Cash costs per ounce of gold sold (


US$


)

1

$

783
$ 790
$

772
$ 755
All-in Sustaining Costs (


US$


)

1

$

1,152
$ 1,047
$

1,129
$ 995



Kiena Mine (per ounce of gold sold)

1






Average realized price
$

2,210
$ 0
$

2,210
$ 0
Cash costs

3


1,844
0

1,243
0
Cash margin
$

366
$ 0
$

967
$ 0
All-in Sustaining Costs

1, 3

$

1,891
$ 0
$

1,288
$ 0


Mine operating costs/tonne milled

1

$

335
$ 0
$

335
$ 0




Average 1 USD → CAD exchange rate

1.2600
1.3321

1.2513
1.3541




Cash costs per ounce of gold sold (


US$


)

1

$

1,463
$ 0
$

993
$ 0
All-in Sustaining Costs (


US$


)

1

$

1,501
$ 0
$

1,029
$ 0




Financial Data


Cash margin

1

$

35,306
$ 32,116
$

97,672
$ 94,039
Net income
$

15,344
$ 14,614
$

110,254
$ 42,224
Net income adjusted

1

$

18,266
$ 14,614
$

44,467
$ 42,224
Earnings before interest, taxes, depreciation and amortization

1

$

32,828
$ 28,564
$

84,302
$ 84,325
Operating cash flow
$

33,890
$ 25,560
$

82,798
$ 89,399
Free cash flow
$

(9,087)
$ 3,295
$

(18,119)
$ 37,822
Per share data

Net income
$

0.11
$ 0.10
$

0.79
$ 0.30
Adjusted net income

1

$

0.13
$ 0.10
$

0.32
$ 0.30
Operating cash flow

1

$

0.24
$ 0.18
$

0.59
$ 0.64
Free cash flow

1

$

(0.06)
$ 0.02
$

(0.13)
$ 0.27
1 Refer to the Company’s 2021 Third Quarter Management Discussion and Analysis, section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
2 Totals for tonnage and gold ounces information may not add due to rounding.
3 YTD 2021 includes a $0.4 million charge for product inventory costs from the sale of 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020.
4 YTD 2021 includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020.



Wesdome Gold Mines Ltd.



Consolidated Statements of Financial Position


(Unaudited, expressed in thousands of Canadian dollars)


As at September



30, 2021

As at December

31, 2020

Assets
Current
Cash and cash equivalents $
69,473
$ 63,480
Receivables and prepaids
12,690

8,974
Share consideration receivable
4,930

Inventories
17,780

12,451
Total current assets
104,873

84,905




Restricted cash
657
657
Deferred financing costs
840

827
Mining properties, plant and equipment
203,053
128,670
Mines under development
179,029
Exploration properties
10,826
143,524
Share consideration receivable
13,585
Investment in associate
19,451
Total assets $
532,314

$ 358,583





Liabilities
Current
Payables and accruals
$
38,823
$ 21,123
Income and mining tax payable

3,961

3,481
Current portion of lease liabilities

6,466
5,901
Total current liabilities

49,250

30,505




Lease liabilities

7,753

5,604
Deferred income and mining tax liabilities

75,259

37,354
Decommissioning provisions

21,832
22,270
Total liabilities

154,094

95,733


Equity
Equity attributable to owners of the Company
Capital stock

184,849

179,540
Contributed surplus

6,279

6,472
Retained earnings

187,092

76,838
Total equity attributable to owners of the Company

378,220

262,850

$
532,314

$ 358,583


Wesdome Gold Mines Ltd.



Consolidated Statements of Income and Comprehensive Income


(Expressed in thousands of Canadian dollars except for per share amounts)


Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020
2021

2020






Revenues
$
67,548
$ 55,000
$
177,402

$ 167,104

Cost of sales

(39,636)

(30,487)

(99,674)

(94,903)

Gross profit

27,912

24,513

77,728

72,201







Other expenses





Corporate and general
2,565

1,371

7,797

5,147
Stock-based compensation
558

518

2,071

2,262
Reversal of impairment charges




(58,563)

Gain on disposal of mining equipment
(3)



(3)

Impairment charge on exploration properties
4,394



7,507


7,514

1,889

(41,191)

7,409







Operating income

20,398

22,624

118,919

64,792






Gain on sale of Moss Lake exploration properties




39,143

Interest expense
(325)

(263)

(855)

(802)
Accretion of decommissioning provisions
(176)

(88)

(410)

(265)
Share of loss of associate
(15)



(104)

Fair value adjustment on share consideration

receivable

368



360

Other income (expenses)
464

(294)

(239)

(203)
Income before income and mining taxes
20,714

21,979

156,814

63,522







Income and mining tax expense





Current
3,309

2,195

8,655

6,234
Deferred
2,061

5,170

37,905

15,064

5,370

7,365

46,560

21,298







Net income and total


comprehensive income
$
15,344
$ 14,614
$
110,254

$ 42,224







Earnings per share




Basic $
0.11
$ 0.10
$
0.79

$ 0.30
Diluted $
0.11
$ 0.10
$
0.77

$ 0.30







Weighted average number of common




shares (000s)



Basic
140,432

139,308

139,872

138,898
Diluted
143,069

142,969

142,653

142,478


Wesdome Gold Mines Ltd.



Consolidated Statements of Total Equity


(Unaudited, expressed in thousands of Canadian dollars)


Capital

Contributed

Retained

Total


Stock


Surplus

Earnings


Equity







Balance, December 31, 2019 $ 174,789 $ 5,590 $ 26,123 $ 206,502
Net income for the period ended
September 30, 2020 42,224 42,224
Exercise of options
2,405 2,405
Value attributed to options exercised
1,103 (1,103)
Value attributed to RSUs exercised
577 (577)
Stock-based compensation
2,262 2,262
Balance, September 30, 2020
$ 178,874 $ 6,172 $ 68,347 $ 253,393


Balance, December 31, 2020
$
179,540

$
6,472

$
76,838

$
262,850
Net income for the period ended
September 30, 2021







110,254


110,254
Exercise of options

3,045








3,045
Value attributed to options exercised

1,478


(1,478)






Value attributed to RSUs exercised

786


(786)






Stock-based compensation




2,071





2,071
Balance, September 30, 2021
$
184,849

$
6,279

$
187,092

$
378,220


Wesdome Gold Mines Ltd.



Consolidated Statements of Cash Flows


(Unaudited, expressed in thousands of Canadian dollars)



Three months ended



September 30,

Nine months ended



September 30,


2021

2020
2021

2020





Operating Activities





Net income
$
15,344
$ 14,614
$
110,254

$ 42,224
Depreciation and depletion

7,395

6,322

19,945

20,001
Stock-based compensation

558

518

2,071

2,262
Accretion of decommissioning provisions

176

88

410

265
Deferred income and mining tax expense

2,061

5,170

37,905

15,064
Amortization of deferred financing cost

104

98

328

269
Interest expense

325

263

855

802
Reversal of impairment charges





(58,563)

Gain on sale of Moss Lake exploration properties





(39,143)

Impairment charge on exploration properties

4,394



7,507

Gain on disposal of mining equipment

(3)



(3)

Share of loss of associate

15



104

Fair value adjustment on share consideration

(368)



(360)

receivable

Foreign exchange loss (gain) on lease financing

64

(83)
(15)

94


30,065

26,990
81,295

80,981
Net changes in non-cash working capital

6,638

2,139
9,677

13,307
Mining and income tax paid

(2,813)

(3,569)
(8,174)

(4,889)

Net cash from operating activities


33,890

25,560
82,798

89,399






Financing Activities





Exercise of options

1,814

623
3,045

2,405
Deferred financing costs

(5)


(339)

(198)
Repayment of borrowings





(3,636)
Repayment of lease liabilities

(1,877)

(1,322)
(5,277)

(3,531)
Interest paid

(325)

(263)
(855)

(802)

Net cash used in financing activities


(393)

(962)
(3,426)

(5,762)









Investing Activities



Additions to mining properties

(12,620)
(6,981)
(30,492)
(18,972)
Additions to mines under development

(27,481)

(40,882)
Additions to exploration properties


(13,962)
(23,267)
(29,074)
Purchase of exploration property

(1,000)

(1,000)
Cash proceeds on sale of Moss Lake, net



11,762
of transaction costs


Proceeds on disposal of mining assets

73

73
Net changes in non-cash working capital

9,205
3,125
10,427

2,265

Net cash used in investing activities

(31,823)

(17,818)
(73,379)

(45,781)





Increase in cash and cash equivalents
1,674

6,780
5,993

37,856
Cash and cash equivalents – beginning of the period
67,799

66,733
63,480

35,657
Cash and cash equivalents – end of the period $
69,473

$ 73,513
$
69,473

$ 73,513





Cash and cash equivalents consist of:




Cash
$
69,473

$ 73,513
$
69,473

$ 73,513

$
69,473

$ 73,513
$
69,473

$ 73,513






PDF available:

http://ml.globenewswire.com/Resource/Download/e37cd418-08dc-4a5d-8365-7f0c39932948



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