Copper Giant Resources Corp. press release
CORRECTION - Wesdome Reports Third Quarter 2024 Financial Results
TSXV - TSX Venture Exchange · Copper · Molybdenum · Gold · Silver · Zinc · Lead · Canada
TORONTO, Nov. 06, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Wesdome Gold Mines (TSX:WDO, OTCQX:WDOFF) please note that the 2025 Production Guidance table has been updated with new gold production ranges in the Eagle River, Kiena, and Consolidated data columns. The corrected release follows:
Wesdome Gold Mines Ltd. (TSX:WDO, OTCQX:WDOFF) (“Wesdome” or the “Company”) today announced its results for the three and nine months ended September 30, 2024 (“Q3 2024” and “YTD 2024”). Preliminary operating results for Q3 2024 and YTD 2024 were disclosed in the Company’s press release dated October 17, 2024. Management will host a conference call tomorrow, November 7, 2024 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q3 2024 Highlights
Consolidated gold production was 45,109 ounces, a 62% increase over the prior year quarter, at cost of sales per ounce sold of $1,783 1,4 (US$1,308), cash costs per ounce sold 1 of $1,214 (US$890) and all-in sustaining costs (“AISC”) per ounce sold 1 of $1,920 (US$1,408). The average realized price of gold sold was $3,420 (US$2,508) per ounce. Net income increased to $39.0 million, or $0.26 earnings per share, an increase of $42.2 million from the corresponding quarter in 2023 and $9.9 million, or $0.07 earnings per share, from Q2 2024. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) 1 increased to $84.6 million or by more than 6.5 times relative to the prior year quarter mainly due to an increase in ounces sold, a higher average realized price of gold sold and lower cash costs. Net cash flow from operating activities increased to $61.0 million, or $0.41 operating cash flow per share 1 , 3 , $15.9 million higher than the prior year quarter mainly due to a higher average realized price of gold sold. Cash of $82.5 million has nearly doubled since year end, resulting in available liquidity at the end of the third quarter of $232.5 million including cash and $150.0 million of undrawn full capacity available under the Company’s revolving credit facility. Free cash flow 1 increased to $30.8 million, or $0.21 per share, compared to $10.7 million, or $0.07 per share, in the corresponding period in 2023 mainly due to higher average realized price of gold sold, partially offset by an increase in capital expenditures. Consolidated 2024 production guidance range has been narrowed to between 166,000 and 176,000 ounces of gold, while increasing cash costs per ounce sold to $1,225 to $1,300 and AISC per ounce sold 1 to $1,975 to $2,100 (US$1,445 to US$1,525). During the quarter, the Company announced the appointments of Guy Belleau as Chief Operating Officer and Ronald “Jono” Lawrence as Senior Vice President, Exploration and Resources. Subsequent to quarter end, Philip C. Yee was appointed Independent Director and Chair of the Audit Committee.
Anthea Bath, President and Chief Executive Officer, commented: “Wesdome delivered a strong third quarter with sequential improvement over the first two quarters of the year. Higher production at lower costs have led to strong operating cash flow and another free cash flow 1 record, with notable improvements seen across most performance metrics compared to the prior year quarter. Our dedicated teams at Eagle River and Kiena have been instrumental in this success, while upholding our commitment to health, safety, and environmental stewardship.
“Wesdome’s financial position has strengthened considerably. Compared to year end, our cash position has doubled, we have eliminated our bank debt and increased our available liquidity by nearly $80 million. We will continue to use our financial strength to de-risk future mine plans by accelerating the rate of capital spend on mine development and exploration and making additional infrastructure investments to support our fill the mill strategy.
“Looking ahead, preliminary plans for 2025 continue to de-risk our medium-term outlook and point to growing production levels at lower costs relative to this year.”
Consolidated Financial and Operating Highlights
| In 000s, except per unit and per share amounts | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | | | | | Financial results | | | | | | | | | | Revenue 2 | 146,852 | | 69,696 | | 375,573 | | 230,952 | | | Cost of sales | 76,512 | | 71,450 | | 229,301 | | 216,916 | | | Gross profit (loss) | 70,340 | | (1,754 | ) | 146,272 | | 14,036 | | | Cash margin 1 | 94,635 | | 22,233 | | 217,498 | | 85,363 | | | EBITDA 1 | 84,600 | | 12,933 | | 193,138 | | 61,077 | | | Net income (loss) | 38,999 | | (3,248 | ) | 78,842 | | (8,607 | ) | | Earnings (loss) per share | 0.26 | | (0.02 | ) | 0.53 | | (0.06 | ) | | Adjusted net income (loss) 1 | 39,196 | | (2,573 | ) | 79,039 | | (4,330 | ) | | Adjusted net income (loss) per share 1 | 0.26 | | (0.02 | ) | 0.53 | | (0.03 | ) | | Net cash from operating activities | 60,976 | | 45,076 | | 164,561 | | 64,175 | | | Operating cash flow per share 1 ,3 | 0.41 | | 0.30 | | 1.10 | | 0.44 | | | Net cash from (used in) financing activities | 449 | | (2,370 | ) | (39,050 | ) | 7,367 | | | Net cash used in investing activities | (29,607 | ) | 33,191 | | (84,367 | ) | (73,145 | ) | | Free cash flow 1 | 30,838 | | 10,672 | | 78,723 | | (14,204 | ) | | Free cash flow per share 1 | 0.21 | | 0.07 | | 0.53 | | (0.10 | ) | | | | | | | | | | | | Average 1 USD → CAD exchange rate | 1.3637 | | 1.3414 | | 1.3603 | | 1.3456 | | | | | | | | | | | | | Operating results | | | | | | | | | | Gold produced (ounces) | 45,109 | | 27,760 | | 122,466 | | 87,120 | | | Gold sold (ounces) | 42,900 | | 27,000 | | 118,600 | | 89,000 | | | Average realized price 1 ($/oz) | 3,420 | | 2,579 | | 3,163 | | 2,592 | | | Average realized price 1 (US$/oz) | 2,508 | | 1,923 | | 2,325 | | 1,926 | | | | | | | | | | | | | Per ounce of gold sold 1 | | | | | | | | | | Cost of sales 1,4 ($/oz) | 1,783 | | 2,646 | | 1,933 | | 2,437 | | | Cost of sales 1 ,4 (US$/oz) | 1,308 | | 1,973 | | 1,421 | | 1,923 | | | Cash costs 1 ($/oz) | 1,214 | | 1,755 | | 1,329 | | 1,633 | | | Cash costs 1 (US$/oz) | 890 | | 1,308 | | 977 | | 1,214 | | | AISC 1 ($/oz) | 1,920 | | 2,711 | | 2,032 | | 2,293 | | | AISC 1 (US$/oz) | 1,408 | | 2,021 | | 1,493 | | 1,704 | | | | | | | | | | | | | Financial position | | | | | | | | | | Cash | 82,515 | | 31,582 | | 82,515 | | 31,582 | | | Working capital | 69,413 | | (18,839 | ) | 69,413 | | (18,839 | ) | | Total assets | 684,736 | | 605,364 | | 684,736 | | 605,364 | | | Current liabilities | 61,062 | | 87,577 | | 61,062 | | 87,577 | | | Non-current liabilities | 110,269 | | 93,404 | | 110,269 | | 93,404 | | | Total liabilities | 171,331 | | 180,981 | | 171,331 | | 180,981 | |
1. Refer to the section in this press release entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements. 2. Revenue includes insignificant amounts from the sale of by-product silver. 3. Operating cash flow per share is calcated by dividing net cash from activities by the weighted average number of shares. 4. Costs of sales per ounce of gold sold is calculated by dividing the cost of sales by the number of ounces sold.
Eagle River – Ontario
| Eagle River Operating Results | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | | | | | | | Ore milled (tonnes) | | | | | | Eagle River | 57,984 | 55,153 | 162,168 | 167,958 | | Mishi | - | - | - | 6,150 | | Total ore milled | 57,984 | 55,153 | 162,168 | 174,108 | | | | | | | | Head grade (grams per tonne, "g/t") | | | | | | Eagle River | 13.1 | 11.9 | 13.4 | 12.1 | | Mishi | - | - | - | 2.3 | | Total head grade | 13.1 | 11.9 | 13.4 | 12.1 | | | | | | | | Average mill recoveries (%) | | | | | | Eagle River | 97.0 | 96.7 | 96.8 | 96.7 | | Mishi | - | - | - | 72.5 | | Total gold recovery | 97.0 | 96.7 | 96.8 | 96.7 | | | | | | | | Gold production (oz) | | | | | | Eagle River | 23,688 | 20,391 | 67,859 | 63,395 | | Mishi | - | - | - | 332 | | Total gold production | 23,688 | 20,391 | 67,859 | 63,727 | | | | | | | | Gold sold (oz) | | | | | | Eagle River | 21,340 | 19,600 | 66,200 | 65,759 | | Mishi | - | - | - | 341 | | Total gold sold | 21,340 | 19,600 | 66,200 | 66,100 | | | | | | | | Production costs per tonne milled 1 ($) | 545 | 503 | 570 | 485 | | | | | | | | Costs per oz sold ($/oz) | | | | | | Cost of sales | 2,042 | 2,046 | 1,972 | 1,912 | | Cash costs 1 | 1,449 | 1,442 | 1,422 | 1,380 | | All-in sustaining costs 1 | 2,318 | 2,467 | 2,107 | 2,039 | | | | | | | | Costs per oz sold (US$/oz) | | | | | | Cost of sales | 1,497 | 1,525 | 1,449 | 1,421 | | Cash costs 1 | 1,062 | 1,075 | 1,046 | 1,025 | | All-in sustaining costs 1 | 1,700 | 1,839 | 1,549 | 1,516 |
During Q3 2024, Eagle River produced 23,688 ounces of gold as compared to 20,391 ounces in Q3 2023 primarily due to a 10% increase in head grade and 5% increase in throughput. For the first nine months of 2024, Eagle River produced 67,859 ounces of gold driven by an 11% increase in head grade, as compared to 63,727 ounces in the first nine months of 2023, which included the Mishi deposit. Eagle River head grade in the first nine months of 2024 was 13.4 g/t compared to 12.1 g/t in the first nine months of 2023.
In Q3 2024, Eagle River generated $73.6 million in revenue from the sale of 21,340 ounces of gold compared to $50.5 million from the sale of 19,600 ounces in Q3 2023. Revenue increased by 46% compared to Q3 2023 primarily due to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine months of 2024 Eagle River generated $207.0 million in revenue from the sale of 66,200 ounces of gold as compared to $170.6 million from the sale of 66,100 ounces in the first nine months of 2023. Revenue increased by 21% compared the first nine months of 2023 due to the higher average realized Canadian dollar gold price and an increase in ounces sold.
Cost of sales in Q3 2024 was $43.6 million, an increase of 9% compared to the corresponding period in 2023 primarily due to a $1.9 million increase in mine operating costs and a $0.8 million increase in depreciation and depletion expense driven by a 16% increase in ounces produced and a 5% increase in throughput. Cost of sales in the first nine months of 2024 was higher by 3% compared to the first nine months of 2023 primarily due to a 6% increase in ounces produced, driven by an 11% increase in head grade offset by slightly lower throughput.
In Q3 2024, cash costs per ounce of gold sold were $1,449 (US$1,062) compared to $1,442 (US$1,075) in Q3 2023 primarily due to an increase in mine operating costs driven by higher ounces produced and higher throughput. Cash costs per ounce of gold sold in the first nine months of 2024 were $1,422 (US$1,046), an increase of 3% compared to $1,380 (US$1,025) in the first nine months of 2023, primarily due to an increase in ounces produced.
In Q3 2024, AISC per ounce of gold sold were $2,318 (US$1,700), a 6% decrease compared to $2,467 (US$1,839) in Q3 2023, primarily due to an increase in ounces sold and lower sustaining capital expenditures. AISC per ounce of gold sold in the first nine months of 2024 were $2,107 (US$1,549), an increase of 3% compared to $2,039 (US$1,516) in the first nine months of 2023, primarily due to higher operating costs and sustaining capital expenditures.
Kiena Mine – Quebec
| Kiena Operating Results | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | | | | | | | Ore milled (tonnes) | 51,321 | 47,351 | 154,334 | 141,499 | | Head grade (g/t) | 13.1 | 4.9 | 11.1 | 5.2 | | Average mill recoveries (%) | 99.0 | 98.4 | 98.9 | 98.0 | | Gold production (oz) | 21,421 | 7,369 | 54,607 | 23,393 | | Gold sold (oz) | 21,560 | 7,400 | 52,400 | 22,900 | | | | | | | | Production costs per tonne milled 1 ($) | 426 | 402 | 424 | 419 | | | | | | | | Costs per oz sold ($/oz) | | | | | | Cost of sales | 1,524 | 4,225 | 1,881 | 3,944 | | Cash costs 1 | 981 | 2,585 | 1,212 | 2,365 | | All-in sustaining costs 1 | 1,526 | 3,359 | 1,937 | 3,027 | | | | | | | | Costs per oz sold (US$/oz) | | | | | | Cost of sales | 1,118 | 3,149 | 1,382 | 2,931 | | Cash costs 1 | 719 | 1,927 | 891 | 1,758 | | All-in sustaining costs 1 | 1,119 | 2,504 | 1,424 | 2,249 |
During Q3 2024, the Kiena mine produced 21,421 ounces of gold as compared to 7,369 ounces in Q3 2023 primarily due to a 167% increase in head grade due to the ramp-up in mining of high-grade Kiena Deep ore from the 129-level horizon in mid-April and an 8% increase in throughput. Kiena’s head grade increased to 13.1 g/t in Q3 2024 from 4.9 g/t in Q3 2023. Gold recovery increased to 99.0% compared to 98.4% in the corresponding period in 2023. In Q3 2024, the mill processed 51,321 tonnes throughput as compared to 47,351 tonnes in Q3 2023.
In the first nine months of 2024, Kiena produced 54,607 ounces of gold as compared to 23,393 ounces of gold in the first nine months of 2023 primarily due to a 113% increase in head grade and a 9% increase in throughput. Head grade at Kiena increased to 11.1 g/t in the first nine months of 2024 from 5.2 g/t in the first nine months of 2023. The rate of gold recovery increased to 98.9% from 98.0% in the corresponding period in 2023. In the first nine months of 2024, the mill processed throughput of 154,334 tonnes compared to 141,499 tonnes in the first nine months of 2023. In the second quarter Kiena began processing higher grade material from the new 129-level horizon of Kiena Deep, which is expected to continue over the balance of 2024.
In Q3 2024, Kiena generated $73.1 million in revenue from the sale of 21,560 ounces of gold as compared to $19.1 million from the sale of 7,400 ounces in Q3 2023. Revenue increased by 282% compared to Q3 2023 due to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine months of 2024, Kiena increased revenue to $168.2 million from the sale of 52,400 ounces of gold, an increase of 180% compared to $60.1 million in revenue from the sale of 22,900 ounces in the first nine months of 2023. Revenue in the first nine months of 2024 increased due to higher ounces sold and a higher average realized Canadian dollar gold price.
Cost of sales in Q3 2024 was $32.9 million, an increase of 5% over the corresponding period in 2023 primarily due to a $2.7 million increase in mine operating costs, which was due to 8% higher throughput partially offset by a change in inventory levels of $0.6 million and a $0.5 million decrease in non-cash depletion and depreciation resulting from an increase in inventories. Cost of sales in the first nine months of 2024 was $98.5 million, 9% higher than the corresponding period in 2023 primarily due to an increase in the aggregate mine operating costs as a result of a 9% increase in throughput.
Cash costs per ounce of gold sold in Q3 2024 were $981 (US$719), a decrease of 62% compared to $2,585 (US$1,927) in Q3 2023 primarily due to a 191% increase in ounces sold. Cash costs per ounce of gold sold in the first nine months of 2024 decreased by 49% to $1,212 (US$891) compared to $2,365 (US$1,758) in the first nine months of 2023 primarily due to a 129% increase in ounces sold partially offset by higher aggregate mine operating expenses due to increased throughput.
AISC per ounce of gold sold decreased by 55% in Q3 2024 to $1,526 (US$1,119) from $3,359 (US$2,504) in Q3 2023 primarily due to an increase in ounces sold partially offset by an increase in aggregate mine operating costs and sustaining capital expenditures. AISC per ounce of gold sold decreased by 36% in the first nine months of 2024 to $1,937 (US$1,424) from $3,027 (US$2,249) in the first nine months of 2023 primarily due to a 129% increase in ounces sold partially offset by an increase in aggregate mine operating costs and sustaining capital expenditures.
Outlook
The Company is tightening its 2024 guidance and reaffirming its previously disclosed 2025 consolidated production outlook. Guidance for 2024 costs, depreciation and capital expenditures, now reflects updated full-year expectations based on the Company’s operational and financial performance to date.
Consolidated 2024 gold production has been narrowed to 166,000 to 176,000 ounces from the Company’s original guidance of 160,000 to 180,000 ounces. Preliminary plans for 2025 continue to support previously disclosed consolidated production guidance of 175,000 to 210,000 ounces.
Total consolidated cash costs per ounce of gold sold is expected to be $1,225 to $1,300 per ounce sold an increase from the Company’s original guidance of $1,075 to $1,200 per ounce sold, primarily due to lower production and increased cash costs at Kiena.
Consolidated AISC per ounce of gold sold is expected to be $1,975 to $2,100 (US$1,445 to US$1,525) from $1,750 to $1,950 (US$1,325 to US$1,475), primarily due to higher total cash costs, partially offset by lower sustaining capital expenditures.
Based on strong operating performance in the first nine months of the year, 2024 production from Eagle River is now expected to be 89,000 to 93,000 ounces, compared to the original guidance range of 80,000 to 90,000 ounces at cash costs per ounce of gold sold of $1,370 to $1,425 and AISC per ounce of gold sold of $2,175 to $2,275 (US$1,595 to US$1,675).
Kiena’s 2024 production is now expected to be 77,000 to 83,000, at cash costs per ounce of gold sold of $1,065 to $1,150 and AISC per ounce of gold sold of $1,745 to $1,875 (US$1,280 to US$1,375). Execution is improving and continuing to support increased production rates, optimization of stope design parameters and the enhancement of maintenance practices. Benefits from these initiatives will continue to be realized in 2025.
2024 Guidance
| | | Eagle River | Kiena | Consolidated | | | | | | | Initial | Revised | Initial | Revised | Initial | Revised | | Production | | | | | | | | | Feed grade | (g/t) | 12.2 - 13.4 | 12.9 - 13.5 | 12.0 - 13.5 | 11.2 - 12.0 | 12.0 - 13.5 | 12.1 - 12.8 | | Gold production | (ounces) | 80,000 - 90,000 | 89,000 - 93,000 | 80,000 - 90,000 | 77,000 - 83,000 | 160,000 - 180,000 | 166,000 - 176,000 | | | | | | | | | | | Operating Costs | | | | | | | | | Depreciation and depletion | ($M) | $40 | $50 | $60 | $50 | $100 | $100 | | Corporate and general 1 | ($M) | $10 | $11 | $10 | $11 | $20 | $22 | | Exploration and evaluation 2 | ($M) | $4 | $4 | $7 | $7 | $11 | $11 | | Cash costs 3 | ($/oz) | $1,275 - $1,425 | $1,370 - $1,425 | $875 - $975 | $1,065 - $1,150 | $1,075 - $1,200 | $1,225 - $1,300 | | All-in sustaining costs 3 | ($/oz) | $2,175 - $2,275 | $2,175 - $2,275 | $1,475 - $1,625 | $1,745 - $1,875 | $1,750 - $1,950 | $1,975 - $2,100 | | All-in sustaining costs 3 | (US$/oz) | $1,595 - $1,675 | $1,595 - $1,675 | $1,100 - $1,225 | $1,280 - $1,375 | $1,325 - $1,475 | $1,445 - $1,525 | | | | | | | | | | | Capital Investment | | | | | | | | | Total capital 4 | ($M) | $55 | $60 | $65 | $70 | $120 | $130 | | Sustaining capital 3 | ($M) | $55 | $60 | $45 | $45 | $100 | $105 | | Growth capital 3 | ($M) | - | - | $20 | $25 | $20 | $25 |
Notes
1. Corporate and general costs do not include an estimated $3 million in stock-based compensation. Corporate G&A allocated to each site is included in site all-in sustaining cost calculation. 2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses. 3. This is a financial measure or ratio that is a non-IFRS financial measure or ratio. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release in the Non-IFRS Performance Measures section. 4. Initial 2024 capital Investment guidance was previously net of an estimated $5 million in capital leasing activities. Total capital expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the condensed interim statements of cash flows.