Wesdome Gold Mines Ltd. press release

Wesdome Reports Third Quarter 2026 Financial Results

2026-11-05

TSX - Toronto Stock Exchange · Gold · Silver · Canada · Corporate Finance

Reaffirms 2026 production and AISC guidance

Toronto, Ontario--(Newsfile Corp. - November 4, 2026) - Wesdome Gold Mines Ltd. (TSX: WDO) (OTCQX: WDOFF) ("Wesdome" or the "Company") today announced its financial results for the three and nine months ended September 30, 2026 ("Q3 2026" and "YTD 2026"). Preliminary operating results for Q3 2026 were disclosed in the Company's press release dated October 13, 2026. Management will host a conference call tomorrow, November 5, 2026 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q3 2026 Highlights

-

Strong safety performance:High Potential Incident Frequency Rate declined 63% year-over-year to 0.79, reflecting the strong commitment to safety across the organization.

-

Production and costs: Consolidated gold production for the third quarter was 41,287 ounces, an 18% decrease compared to Q3 2025. In Q3 2026, cash costs per ounce of gold sold1increased by 36% to US$1,287, and all-in sustaining costs per ounce sold1increased 26% to US$1,789 compared to Q3 2025.

-

Revenue growth: Consolidated Q3 2026 revenue2increased by 9% to $251 million compared to Q3 2025. The average realized price of gold sold was US$4,279 per ounce in Q3 2026.

-

Gross profit and cash margin growth: In Q3 2026, gross profit increased by 4% year-over-year to $155 million and operating cash margin1grew by 4% to $175 million.

-

Net income:Q3 2026 net income increased to $89.7 million, or $0.62 earnings per share, an increase of $2.8 million compared to Q3 2025.

-

EBITDA1:EBITDA1was $157 million in Q3 2026, a 5% increase relative to Q3 2025.

-

Cash flow1:Q3 2026 net cash from operating activities was $102 million, or $0.71 per share3, while free cash flow1was $52 million, or $0.36 per share.

-

Strong liquidity position: As at September 30, 2026, the Company had liquidity of $735 million, including $380 million in cash and US$250 million of fully undrawn capacity available under its revolving credit facility.

Anthea Bath, President and Chief Executive Officer, commented: "We reiterate full-year production guidance and expect a strong fourth quarter, with both Eagle River and Kiena finishing within their respective guidance ranges, albeit below the midpoint. Higher throughput at Eagle River, additional mining fronts at Kiena and exploration success underpin our longer-term growth opportunity.

"At Eagle River, our fill-the-mill strategy delivered record quarterly throughput and a 19% reduction in production costs per tonne compared with Q2. Third-quarter grade was affected by lower than expected grade in one stope and incomplete mining of one sill. Key Q4 stopes are already drilled off, and high-grade ore continues to reconcile well with our reserve model, supporting our confidence in a stronger finish.

"At Kiena, seasonal workforce planning gaps reduced equipment utilization and productivity, delaying the mining sequence. Two higher-grade Kiena Deep stopes originally scheduled for Q3 are now planned for Q4, while lower-grade Presqu'île development ore represented a larger share of third-quarter mill feed. We have identified the resourcing planning gaps and have a plan in place to improve execution. Positive grade reconciliation and Presqu'île's transition to stope production further support our Q4 outlook.

"Nearly $220 million in year-to-date free cash flow and $735 million in quarter-end liquidity give us the capacity to advance development and exploration while continuing to return capital to shareholders."

Consolidated Financial and Operating Highlights

| In 000s, except per units and per share amounts | | | | | | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | | | | | | | | Financial results | | | | | | Revenues² | 250,588 | 230,284 | 817,145 | 626,450 | | Cost of sales | 75,641 | 61,841 | 235,873 | 181,046 | | Gross profit | 155,447 | 149,005 | 511,474 | 384,551 | | Operating cash margin¹ | 174,947 | 168,443 | 581,272 | 445,404 | | EBITDA¹ | 157,491 | 149,509 | 539,343 | 407,178 | | Net income | 89,723 | 86,923 | 302,560 | 232,092 | | Earnings per share | 0.62 | 0.58 | 2.06 | 1.54 | | Adjusted net income¹ | 89,723 | 86,923 | 305,331 | 228,252 | | Adjusted net income per share¹ | 0.62 | 0.58 | 2.07 | 1.52 | | Net cash from operating activities | 102,347 | 118,168 | 351,650 | 299,155 | | Operating cash flow per share³ | 0.71 | 0.78 | 2.39 | 1.99 | | Net cash used in financing activities | (51,171) | (400) | (181,267) | (268) | | Net cash used in investing activities | (62,169) | (39,439) | (144,314) | (156,091) | | Free cash flow¹ | 51,548 | 78,919 | 219,126 | 179,258 | | Free cash flow per share¹ | 0.36 | 0.52 | 1.49 | 1.19 | | | | | | | | Average USD/CAD exchange rates | 1.3989 | 1.3775 | 1.3847 | 1.3989 | | | | | | | | Operating results | | | | | | Gold produced (ounces) | 41,287 | 50,465 | 130,414 | 138,938 | | Gold sold (ounces) | 41,800 | 47,400 | 131,500 | 138,600 | | | | | | | | Per ounce of gold sold¹ | | | | | | Cost of sales⁴ ($/oz) | 1,810 | 1,305 | 1,794 | 1,306 | | Cost of sales⁴ (US$/oz) | 1,294 | 947 | 1,295 | 934 | | Cash costs¹ ($/oz) | 1,801 | 1,300 | 1,783 | 1,301 | | Cash costs¹ (US$/oz) | 1,287 | 944 | 1,288 | 930 | | AISC¹ ($/oz) | 2,503 | 1,954 | 2,420 | 2,009 | | AISC¹ (US$/oz) | 1,789 | 1,419 | 1,748 | 1,436 | | Average realized price¹ ($/oz) | 5,986 | 4,853 | 6,203 | 4,515 | | Average realized price¹ (US$/oz) | 4,279 | 3,523 | 4,480 | 3,228 | | | | | | | | Financial position | | | | | | Cash | 379,934 | 265,893 | 379,934 | 265,893 | | Working capital⁵ | 410,298 | 274,495 | 410,298 | 274,495 | | Total assets | 1,289,574 | 1,035,161 | 1,289,574 | 1,035,161 | | Current liabilities | 65,821 | 72,371 | 65,821 | 72,371 | | Total liabilities | 223,174 | 204,849 | 223,174 | 204,849 |

Eagle River (Ontario, Canada)

The Eagle River Mine, a wholly-owned subsidiary of Wesdome, is an underground operation situated on approximately 400 square kilometres in northern Ontario, approximately 50 kilometres west of Wawa within the Mishibishu Greenstone Belt. Built in 1995, Eagle River has produced more than two million ounces of gold since commissioning and has an 8-year reserve mine life as at December 31, 2025.

Operational and Financial Results

| | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | Ore milled (tonnes) | 79,820 | 71,575 | 223,990 | 180,208 | | Head grade (g/t) | 10.1 | 15.3 | 10.7 | 15.9 | | Average mill recoveries (%) | 95.9 | 97.3 | 96.3 | 96.8 | | Gold production (oz) | 24,758 | 34,296 | 74,402 | 88,907 | | Gold sold (ounces) | 24,500 | 32,700 | 74,150 | 87,400 | | | | | | | | Production costs per tonne milled¹ ($) | 511 | 495 | 574 | 557 | | | | | | | | Costs per oz of gold sold ($/oz) | | | | | | Operating cash margin¹ | 4,200 | 3,673 | 4,318 | 3,304 | | Cost of sales | 1,807 | 1,181 | 1,883 | 1,238 | | Cash costs¹ | 1,798 | 1,176 | 1,873 | 1,233 | | All-in sustaining costs¹ | 2,578 | 1,657 | 2,507 | 1,824 | | | | | | | | Costs per oz of gold sold (US$/oz) | | | | | | Operating cash margin¹ | 3,002 | 2,666 | 3,119 | 2,362 | | Cost of sales | 1,292 | 857 | 1,361 | 885 | | Cash costs¹ | 1,285 | 853 | 1,352 | 882 | | All-in sustaining costs¹ | 1,843 | 1,203 | 1,810 | 1,304 | | | | | | |

| In $000s, except per unit and per share amounts | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | Gold revenue from mining operation | 146,941 | 158,539 | 459,113 | 396,540 | | | | | | | | Cost of sales | | | | | | Mining | 19,157 | 16,242 | 57,226 | 49,333 | | Processing | 7,545 | 6,334 | 22,604 | 19,264 | | Site administration and camp costs | 14,360 | 12,920 | 45,331 | 37,042 | | Change in inventories | (287) | (71) | 3,341 | (5,212) | | Royalties | 3,497 | 3,185 | 11,098 | 7,780 | | | 44,272 | 38,610 | 139,600 | 108,207 | | Silver revenue | (230) | (169) | (701) | (424) | | Total cash costs | 44,042 | 38,441 | 138,899 | 107,783 | | | | | | | | Cost of sales per ounce of gold sold | 1,807 | 1,181 | 1,883 | 1,238 | | Cash cost per ounce of gold sold1 | 1,798 | 1,176 | 1,873 | 1,233 | | | | | | | | Operating cash margin1 | 102,899 | 120,098 | 320,214 | 288,757 | | | | | | | | All-in sustaining costs1 | | | | | | Sustaining mine exploration and development | 9,792 | 8,370 | 24,512 | 24,787 | | Sustaining mine capital equipment | 6,193 | 3,360 | 12,981 | 15,071 | | Sustaining tailings management facility | (47) | 469 | 102 | 1,093 | | Corporate and general allocation | 3,054 | 3,435 | 8,975 | 9,998 | | Payment of sustaining lease liabilities | 139 | 107 | 392 | 676 | | | 63,173 | 54,182 | 185,861 | 159,408 | | | | | | | | All-in sustaining costs per ounce of gold1 | 2,578 | 1,657 | 2,507 | 1,824 | | | | | | | | Cost of sales per tonne milled1 | 555 | 539 | 623 | 600 | | Production costs per tonne milled1 | 511 | 495 | 574 | 557 | | | | | | | | Total capital expenditures | 21,010 | 12,836 | 48,021 | 41,950 | | | | | | |

Operating Highlights

Eagle River gold production decreased by 28% to 24,758 ounces in Q3 2026 from 34,296 ounces in Q3 2025, reflecting the initial phase of the mine's transition to a longer-life higher tonnage mine operating model as part of its fill-the-mill strategy. Tonnes increased 12%, setting a new quarterly record. Higher throughput was more than offset by a 34% decrease in average head grade, which reflects the mining sequence and the updated reserve plan. That plan brings lower-grade stopes and incremental-cut-off development ore into the mill feed alongside high-grade production. Mined grades continue to reconcile well with the reserve model.

In the first three quarters of 2026, Eagle River produced 74,402 ounces, a 16% decrease from 88,907 ounces in the same period of 2025. Tonnes processed increased 24% and grade decreased 33%.

Mill throughput of 79,820 tonnes in Q3 2026 was 12% higher than Q3 2025, reflecting improved mine and mill availability. Year-to-date throughput of 223,990 tonnes was 24% higher than in the same period in 2025, as productivity initiatives deliver more consistent tonnage to the mill.

Despite a 12% increase in tonnes processed in Q3 2026, production costs increased slightly to $511 per tonne from $495 per tonne in Q3 2025 due to inflationary pressure on wages, supplies, fuel, and insurance that have been broadly felt across the industry as well as advancing production drilling to create stope inventory, offsetting fixed cost leverage. Production costs per tonne in the first three quarters of 2026 increased by 3% to $574 per tonne compared to $557 per tonne in the first three quarters of 2025, reflecting similar factors and increased focus on maintenance in both the mine and the mill to improve availability. Production costs per tonne declined by 19% from Q2 2026 due to the increased productivity and removal of one-off items. As throughput continues to increase, we expect higher volumes to further reduce production costs per tonne.

Financial Highlights

In Q3 2026, Eagle River's gold revenue decreased by 7% to $146.9 million from $158.5 million in Q3 2025 due to a 25% decrease in ounces sold, offset by the higher average realized price of gold. During the first three quarters of 2026, Eagle River's gold revenue increased by 16% to $459.1 million from $396.5 million in the same period in 2025 due to the increase in the average realized price of gold sold, partly offset by a 15% decrease in ounces sold.

Cost of sales in Q3 2026 was $44.3 million, an increase of 15% relative to the comparative period in 2025 primarily due to a $4.1 million increase in volume-driven costs in the mine and mill operating costs, inflationary impacts, contractors and maintenance costs, costs associated with increased royalties mainly due to higher average gold price, partially offset by a change in inventory levels of $0.2 million.

Cost of sales for the first three quarters of 2026 totaled $139.6 million, a 29% increase compared to the same period in 2025. This was principally driven by an $11.2 million increase in mine and mill operating costs due to similar factors described above and increased royalties from higher gold prices, further elevated by an $8.6 million change in inventory levels.

Cash costs per ounce of gold sold increased by 53% to $1,798 (US$1,285) per ounce sold in Q3 2026 from $1,176 (US$853) per ounce sold in Q3 2025 largely due to a 25% decrease in ounces sold, inflationary impacts, contractors and maintenance costs. Similarly, cash costs per ounce of gold sold increased by 52% to $1,873 (US$1,352) per ounce sold in the first three quarters of 2026 from $1,233 (US$882) per ounce sold in the comparative period in 2025 due to increased cost of sales and a 15% decrease in ounces sold.

In Q3 2026, AISC per ounce of gold sold increased by 56% to $2,578 (US$1,843) from $1,657 (US$1,203) in Q3 2025, due to higher cash costs per ounce sold, a 31% increase in sustaining capital expenditures, and a 25% decrease in ounces sold.

During the first three quarters of 2026, AISC per ounce of gold sold increased by 37% to $2,507 (US$1,810) per ounce sold from $1,824 (US$1,304) per ounce sold in the same period in 2025, due to higher cash cost per ounce sold and a 15% decrease in ounces sold, partially offset by an 8% reduction in sustaining capital expenditures. Capital expenditures are expected to remain elevated in Q4 2026 as Eagle River advances deferred development and capital projects. Higher gold production in Q4 2026 is expected to partially offset the continued sustaining capital expenditures, resulting in lower AISC per ounce sold. Eagle River's full-year AISC per ounce sold is expected to remain within its guidance range of US$1,525 - US$1,675.

Exploration Update

Expanding the 6 Central Zone

The 6 Central Zone continues to be a priority exploration area given its intermediate depth, proximity to existing mine infrastructure and geological similarities to the 300 Zone at comparable elevations. Drilling during the third quarter continued testing down-plunge opportunities, with recent results supporting the interpretation that the high-grade trend extends at depth. Infill and conversion drilling within existing block model domains was also completed in preparation for the Company's year-end resource model updates.

Growing the 720 Falcon Zone

The 720 Falcon Zone remains a key area of focus given its shallow depth, proximity to existing mine infrastructure, down-plunge potential and opportunity for continuation further west where surface IP surveys have highlighted resistivity and chargeability anomalies. Infill and conversion drilling within existing block model domains was completed during the third quarter and are expected to be included in the Company's year-end resource model updates.

Targeting Up-Plunge Continuity at the 800 Zone

Assay results from infill drilling targeting a gap in the interpreted up-plunge continuity of mineralization support the geological interpretation and potential continuity of the 800 Zone. These results, together with higher-grade intercepts from holes testing down-plunge extensions, have further highlighted the exploration potential of the 800 Zone and increased its priority within the exploration program. Follow-up drilling is planned for the fourth quarter to further evaluate the extent and continuity of mineralization.

Growth Drilling in the 700 Zone

Assay results from growth drilling in the shallow parts of the mine continued to demonstrate thickness and grades, confirming continuation of the mineralization. Infill drilling as part of conversion has commenced and will continue for the balance of the year.

Global Model and the 300 Zone

The global model is an important component of the mine's exploration strategy, identifying opportunities to extend known mineralized zones, improve geological confidence and support future mineral resource growth and conversion. The global model is continuously updated as new geological, drilling, and other technical information becomes available. New prospective areas are added for both conversion and growth as the geological understanding of the Eagle River system evolves, while areas that have been sufficiently drill tested, or are no longer considered priorities based on technical or geological considerations, are reprioritized.

Global model targets are integrated into Eagle River's ongoing underground drilling programs, with typically three to four of the mine's five underground exploration drill rigs testing these areas. During the quarter, drilling continued across several global model targets in the deeper portions of the 300 Zone.

Surface Exploration

At the Eagle River Mine area, surface holes continued testing an area of mineralization to the east of No Name Lake, where historic widely spaced drill holes intersected mineralization. The surface holes were designed to infill and confirm continuation of No Name Lake mineralization. Results will be reported in the next quarter.

At 200 Zone, surface holes commenced a program testing the potential continuation of high-grade mineralization to the west and down plunge. Results will be reported next quarter.

At Dorset Main, Dorset West, and Cameron Iron Formation, drilling for geometallurgical sampling for leach and recovery test work, and deportment studies, was completed, with test work planned for next quarter.

Surface drilling continued at Mishi open pit, evaluating the down-plunge potential of mineralization, and expanding the continuation of near-surface mineralization as part of overall resource evaluation. Results are expected to be reported in Q4 2026.

Partial results were received from helicopter-supported scout holes drilled at Magnacon East to evaluate the sub-surface potential of quartz veins that returned high-grade assays from rock chip samples collected during semi-regional structural mapping. The assays to date support surface results, with full results to be reported next quarter.

Assay results are pending for helicopter-supported scout holes drilled at Feather River, located approximately 8 kilometres east of the Magnacon Mine, to evaluate the continuation of quartz veins and sulphide-rich horizons highlighted by previous work which included geologic mapping, local IP surveys, and scout drilling which returned anomalous intercepts.

The Mishi Deposit, Magnacon Deposit, Magnacon East target, and Feather River target are all located along the Mishibishu Deformation Zone, a 10 kilometre long under explored structural trend that remains prospective for hosting mineralization.

Kiena(Quebec, Canada)

Kiena is a high-grade underground gold mine located in Val-d'Or within the prolific Abitibi Greenstone Belt of northwestern Quebec. The operation is 100% owned and operated by Wesdome Gold Mines Ltd. and features a fully permitted processing mill with a capacity of approximately 2,040 tonnes per day.

Operational and Financial Results

| | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | Ore milled (tonnes) | 63,797 | 50,147 | 180,962 | 149,136 | | Head grade (g/t) | 8.2 | 10.2 | 9.8 | 10.6 | | Average mill recoveries (%) | 98.5 | 98.7 | 98.7 | 98.8 | | Gold production (oz) | 16,529 | 16,169 | 56,012 | 50,031 | | Gold sold (oz) | 17,300 | 14,700 | 57,350 | 51,200 | | | | | | | | Production costs per tonne milled1($) | 492 | 463 | 532 | 488 | | | | | | | | Costs per oz of gold sold ($/oz) | | | | | | Operating cash margin1 | 4,165 | 3,289 | 4,552 | 3,060 | | Cost of sales | 1,813 | 1,580 | 1,679 | 1,423 | | Cash costs1 | 1,805 | 1,576 | 1,666 | 1,418 | | All-in sustaining costs1 | 2,396 | 2,615 | 2,309 | 2,326 | | | | | | | | Costs per oz of gold sold (US$/oz) | | | | | | Operating cash margin1 | 2,977 | 2,387 | 3,287 | 2,187 | | Cost of sales | 1,296 | 1,147 | 1,212 | 1,017 | | Cash costs1 | 1,290 | 1,144 | 1,204 | 1,014 | | All-in sustaining costs1 | 1,713 | 1,899 | 1,667 | 1,663 | | | | | | |

| In $000s, except per unit and per share amounts | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | Gold revenue from mining operation | 103,277 | 71,512 | 356,631 | 229,241 | | | | | | | | Cost of sales | | | | | | Mining | 18,672 | 16,140 | 60,179 | 46,932 | | Processing | 4,286 | 3,686 | 12,932 | 11,037 | | Site administration | 7,413 | 5,767 | 22,159 | 16,441 | | Change in inventories | 998 | (2,362) | 1,003 | (1,571) | | | 31,369 | 23,231 | 96,273 | 72,839 | | Silver revenue | (140) | (64) | (700) | (245) | | Total cash costs | 31,229 | 23,167 | 95,573 | 72,594 | | | | | | | | Cost of sales per ounce of gold sold | 1,813 | 1,580 | 1,679 | 1,423 | | Cash cost per ounce of gold sold1 | 1,805 | 1,576 | 1,666 | 1,418 | | | | | | | | Operating cash margin1 | 72,048 | 48,345 | 261,058 | 156,647 | | | | | | | | All-in sustaining costs1 | | | | | | Sustaining mine exploration and development | 6,214 | 7,052 | 19,805 | 20,600 | | Sustaining mine capital equipment | 891 | 3,294 | 4,984 | 13,559 | | Sustaining tailings management facility | - | 1,498 | 456 | 2,326 | | Corporate and general allocation | 3,060 | 3,435 | 11,460 | 9,998 | | Payment of lease liabilities | 58 | - | 142 | - | | | 41,452 | 38,446 | 132,420 | 119,077 | | | | | | | | All-in sustaining costs per ounce of gold1 | 2,396 | 2,615 | 2,309 | 2,326 | | | | | | | | Cost of sales per tonne milled | 492 | 463 | 532 | 488 | | Production costs per tonne milled1 | 492 | 463 | 532 | 488 | | | | | | | | Capital expenditures | 29,210 | 26,306 | 83,661 | 77,414 | | | | | | |