Wesdome Gold Mines Ltd. press release

Wesdome Reports Strong Second Quarter 2026 Results and Reaffirms Full-Year Production and Cost Guidance

2026-08-13

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

Toronto, Ontario--(Newsfile Corp. - August 13, 2026) - Wesdome Gold Mines Ltd. (TSX: WDO) (OTCQX: WDOFF) ("Wesdome" or the "Company") today announced its financial results for the three and six months ended June 30, 2026 ("Q2 2026" and "H1 2026"). Preliminary operating results for Q2 2026 were disclosed in the Company's press release dated July 13, 2026. Management will host a webcast tomorrow morning, August 14, 2026 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q2 2026 Highlights

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Strong safety performance: High Potential Incident Frequency Rate declined 69% year-over-year to 0.67, reflecting the strong commitment to safety across the organization. Total Recordable Incident Frequency Rate of 1.67 in Q2 2026.

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Production and costs: Consolidated gold production for the second quarter was 43,824 ounces, a 2% increase compared to Q2 2025. Q2 2026 cash costs per ounce of gold sold1increased by 45% to US$1,342 and all-in sustaining costs ("AISC") per ounce of gold sold1increased by 15% to US$1,763 compared to Q2 2025.

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Revenue growth: Consolidated Q2 2026 revenue increased by 28% to $267 million compared to Q2 2025. The average realized price of gold sold was US$4,365 per ounce in Q2 2026.

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Expanding margins: Gross profit increased by 22% year-over-year in Q2 2026 to $161 million and operating cash margin1grew by 23% to $184 million.

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Net income: Q2 2026 net income of $94 million, or $0.64 earnings per share, an increase of $11.3 million compared to Q2 2025.

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EBITDA1: EBITDA1was $170 million in Q2 2026, a 23% increase relative to Q2 2025.

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Cash flow1: Q2 2026 net cash from operating activities was $88 million, or $0.59 per share3, with free cash flow1of $42 million, or $0.28 per share. Free cash flow1decreased to $42 million, or $0.28 per share, from $53 million, or $0.35 per share, in Q2 2025 driven by higher net income offset by a combined increase in tax payments, receivables, supplies inventories, mine exploration and development and capital equipment purchases.

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Strong liquidity position: As at June 30, 2026, the Company had liquidity of $746 million, including $391 million in cash and US$250 million of undrawn full capacity available under its revolving credit facility.

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Expanded capital returns: The Company is delivering capital returns to shareholders while preserving flexibility to act opportunistically, within a framework that continues to prioritize fully funded organic growth:

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Dividend declaration: On June 24, the Company declared a quarterly cash dividend of $0.0306 per common share or $0.1224 per common share on an annualized basis.

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Share buyback expansion: Through Q2 2026, the Company purchased and cancelled 3.2 million common shares for approximately $82 million at an average price of $25.66 per share. On June 24, 2026, the Company announced it was expanding its normal course issuer bid, authorizing the purchase of an incremental 3.0 million shares, bringing the total aggregate number of shares the Company intends to repurchase up to approximately 9.0 million shares or 6% of its public float. In July 2026, the Company repurchased an additional 1.8 million shares for approximately $46 million. The total number of shares purchased at the end of July was 7.8 million shares.

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Updated technical reports confirm extended mine lives and growth potential at Eagle River and Kiena: Filed independent NI 43-101 technical reports for Eagle River and Kiena, confirming 1.4 million ounces of consolidated proven and probable reserves and 8-year reserve-based mine plans through 2033 at both operations, with significant organic growth potential from resource conversion and exploration targets.

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Kiena ramp breakthrough achieved, enhancing operational flexibility: Kiena's new ramp reached surface in Q2 2026, establishing continuous ramp access that boosts underground materials and equipment flexibility and enables the ongoing ventilation expansion project, expected to double mine ventilation capacity to support production growth at Kiena.

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Discovery in Kiena Deep, Norbenite Footwall:As reported in the Company's press release dated June 22, 2026, drilling in Kiena Deep discovered a new parallel zone beyond the Norbenite Fault, previously interpreted as barren footwall, highlighted by 6.9 g/t over 42.1 metres, confirming an entirely new mineralized corridor, called the Norbenite Footwall, spanning at least 150 vertical metres. This discovery represents a significant new exploration opportunity for future resource growth at Kiena.

Anthea Bath, President and Chief Executive Officer, commented: "Q2 2026 demonstrated the operational momentum we have been building across both assets, giving us the confidence to reaffirm our full year production and cost guidance.

"At Eagle River, the integration of global model ore into our fill-the-mill strategy is now a structural part of how we run the mine. This approach is driving higher mill throughput and, as we move through the second half of the year, we expect grade improvement, keeping Eagle River firmly on track to deliver its full year production and cost targets.

"Kiena's performance this quarter was a genuine inflection point. Production increased 28% year over year with unit costs in line with plan. In July we brought the first Presqu'île stope online, successfully adding another mining front beyond Kiena Deep. Operating across multiple areas of the mine provides greater flexibility and reduces grade variability, while ongoing operational improvements and optimization initiatives support a steady ramp-up in production over time.

"Overall, it was a strong quarter with higher margins and robust EBITDA. Free cash flow was negatively impacted by several items, most notably the timing of a $21 million prepaid tax installment. Based on our current forecasts, we expect quarterly free cash flow to increase significantly over the balance of the year.

"Perhaps most importantly for investors, there is greater visibility into Wesdome's long-term value proposition. Our June technical report update established eight-year reserve mine lives at both mines, providing a foundation for production and cash flow while preserving significant upside from operational optimization, resource conversion and exploration. Together with our strong balance sheet, we have the flexibility to invest in organic growth while also returning capital through our quarterly dividend and expanded share buyback program. We have two long-life assets, a clear pathway to grow production, and emerging district-scale opportunities around both operations. Our focus now is on converting that potential into sustainable growth and increasing value per share."

Consolidated Financial and Operating Highlights

| In 000s, except per units and per share amounts | | | | | | | | | | | | | | | Q2 2026 | | | Q2 2025 | | | H1 2026 | | | H1 2025 | | | | | | | | | | | | | | | | | | Financial results | | | | | | | | | | | | | | Revenues² | | 266,764 | | | 208,548 | | | 566,557 | | | 396,166 | | | Cost of sales | | 82,332 | | | 59,181 | | | 160,232 | | | 119,205 | | | Gross profit | | 161,213 | | | 132,172 | | | 356,027 | | | 235,546 | | | Operating cash margin¹ | | 184,432 | | | 149,367 | | | 406,325 | | | 276,961 | | | | | | | | | | | | | | | | | EBITDA¹ | | 169,675 | | | 138,399 | | | 381,908 | | | 257,758 | | | Net income | | 93,955 | | | 82,696 | | | 212,837 | | | 145,169 | | | Earnings per share | | 0.64 | | | 0.55 | | | 1.43 | | | 0.97 | | | Adjusted net income¹ | | 96,271 | | | 78,856 | | | 215,608 | | | 141,329 | | | Adjusted net income per share¹ | | 0.65 | | | 0.52 | | | 1.45 | | | 0.94 | | | Net cash from operating activities | | 87,538 | | | 100,920 | | | 249,359 | | | 181,076 | | | Operating cash flow per share³ | | 0.59 | | | 0.67 | | | 1.67 | | | 1.21 | | | Net cash (used in) from financing activities | | (81,766 | ) | | (1,303 | ) | | (130,152 | ) | | 43 | | | Net cash used in investing activities | | (45,475 | ) | | (79,987 | ) | | (82,145 | ) | | (116,652 | ) | | Free cash flow¹ | | 41,772 | | | 52,924 | | | 167,634 | | | 100,428 | | | Free cash flow per share¹ | | 0.28 | | | 0.35 | | | 1.13 | | | 0.67 | | | | | | | | | | | | | | | | | Average USD/CAD exchange rates | | 1.3838 | | | 1.3841 | | | 1.3777 | | | 1.4095 | | | | | | | | | | | | | | | | | Operating results | | | | | | | | | | | | | | Gold produced (ounces) | | 43,824 | | | 42,781 | | | 89,127 | | | 88,473 | | | Gold sold (ounces) | | 44,100 | | | 45,900 | | | 89,700 | | | 91,200 | | | | | | | | | | | | | | | | | Per ounce of gold sold¹ | | | | | | | | | | | | | | Cost of sales⁴ ($/oz) | | 1,867 | | | 1,289 | | | 1,786 | | | 1,307 | | | Cost of sales⁴ (US$/oz) | | 1,349 | | | 932 | | | 1,297 | | | 927 | | | Cash costs¹ ($/oz) | | 1,857 | | | 1,285 | | | 1,775 | | | 1,302 | | | Cash costs¹ (US$/oz) | | 1,342 | | | 929 | | | 1,288 | | | 924 | | | AISC¹ ($/oz) | | 2,439 | | | 2,115 | | | 2,382 | | | 2,038 | | | AISC¹ (US$/oz) | | 1,763 | | | 1,528 | | | 1,729 | | | 1,446 | | | Average realized price¹ ($/oz) | | 6,040 | | | 4,539 | | | 6,305 | | | 4,339 | | | Average realized price¹ (US$/oz) | | 4,365 | | | 3,279 | | | 4,576 | | | 3,078 | | | | | | | | | | | | | | | | | Financial position | | | | | | | | | | | | | | Cash | | 390,927 | | | 187,564 | | | 390,927 | | | 187,564 | | | Working capital⁵ | | 402,149 | | | 199,273 | | | 402,149 | | | 199,273 | | | Total assets | | 1,245,097 | | | 932,996 | | | 1,245,097 | | | 932,996 | | | Current liabilities | | 68,190 | | | 71,166 | | | 68,190 | | | 71,166 | | | Total liabilities | | 219,789 | | | 197,577 | | | 219,789 | | | 197,577 | |

1. Refer to "Non-IFRS Performance Measures" for the reconciliation of non-IFRS measurements to the financial statements. 2. Revenue includes $0.4 million for Q2 2026, $0.2 million for Q2 2025, $1.0 million for H1 2026 and $0.4 million for H1 2025, from the sale of by-product silver. 3. Operating cash flow per share is calculated by dividing net cash from operating activities by basic weighted average number of common shares. 4. Cost of sales per ounce sold is calculated by dividing the cost of sales by the number of ounces sold. 5. Working capital is the sum of current assets less current liabilities on the statements of financial position.

REVIEW OF OPERATING MINES

Eagle River (Ontario, Canada)

Operating and Financial Results

| | | Q2 2026 | | | Q2 2025 | | | H1 2026 | | | H1 2025 | | | Eagle River operating results | | | | | | | | | | | | | | Ore milled (tonnes) | | 72,439 | | | 48,623 | | | 144,170 | | | 108,633 | | | Head grade (g/t) | | 9.7 | | | 16.9 | | | 11.1 | | | 16.2 | | | Average mill recoveries (%) | | 96.2 | | | 96.7 | | | 96.5 | | | 96.5 | | | Gold production (oz) | | 21,798 | | | 25,612 | | | 49,644 | | | 54,611 | | | Gold sold (ounces) | | 22,300 | | | 27,000 | | | 49,650 | | | 54,700 | | | | | | | | | | | | | | | | | Production costs per tonne milled¹ ($) | | 631 | | | 626 | | | 609 | | | 597 | | | | | | | | | | | | | | | | | Costs per oz of gold sold ($/oz) | | | | | | | | | | | | | | Operating cash margin¹ | | 3,770 | | | 3,332 | | | 4,377 | | | 3,083 | | | Cost of sales | | 2,225 | | | 1,211 | | | 1,920 | | | 1,272 | | | Cash costs¹ | | 2,218 | | | 1,207 | | | 1,911 | | | 1,268 | | | All-in sustaining costs¹ | | 2,800 | | | 1,929 | | | 2,471 | | | 1,924 | | | | | | | | | | | | | | | | | Costs per oz of gold sold (US$/oz) | | | | | | | | | | | | | | Operating cash margin¹ | | 2,724 | | | 2,407 | | | 3,177 | | | 2,188 | | | Cost of sales | | 1,608 | | | 875 | | | 1,395 | | | 903 | | | Cash costs¹ | | 1,603 | | | 872 | | | 1,386 | | | 899 | | | All-in sustaining costs¹ | | 2,023 | | | 1,394 | | | 1,794 | | | 1,365 | | | | | | | | | | | | | | | |

1. Refer to the section entitled "Non-IFRS Performance Measures" for the reconciliation of non-IFRS measurements to the financial statements.

| In $000s, except per unit and per share amounts | | Q2 2026 | | | Q2 2025 | | | H1 2026 | | | H1 2025 | | | Gold revenue from mining operation | | 133,537 | | | 122,551 | | | 312,172 | | | 238,001 | | | | | | | | | | | | | | | | | Cost of sales | | | | | | | | | | | | | | Mining | | 20,741 | | | 16,439 | | | 38,069 | | | 33,091 | | | Processing | | 7,943 | | | 6,535 | | | 15,059 | | | 12,930 | | | Site administration and camp costs | | 16,769 | | | 12,087 | | | 30,972 | | | 24,121 | | | Change in inventories | | 247 | | | (4,626 | ) | | 3,628 | | | (5,140 | ) | | Royalties | | 3,912 | | | 2,265 | | | 7,600 | | | 4,595 | | | | | 49,612 | | | 32,700 | | | 95,328 | | | 69,597 | | | Silver revenue | | (148 | ) | | (114 | ) | | (471 | ) | | (255 | ) | | Total cash costs | | 49,464 | | | 32,586 | | | 94,857 | | | 69,342 | | | | | | | | | | | | | | | | | Cost of sales per ounce of gold sold | | 2,225 | | | 1,211 | | | 1,920 | | | 1,272 | | | Cash cost per ounce of gold sold1 | | 2,218 | | | 1,207 | | | 1,911 | | | 1,268 | | | | | | | | | | | | | | | | | Operating cash margin1 | | 84,073 | | | 89,965 | | | 217,315 | | | 168,659 | | | | | | | | | | | | | | | | | All-in sustaining costs1 | | | | | | | | | | | | | | Sustaining mine exploration and development | | 6,098 | | | 8,850 | | | 14,720 | | | 16,417 | | | Sustaining mine capital equipment | | 4,948 | | | 6,676 | | | 6,788 | | | 11,710 | | | Sustaining tailings management facility | | 80 | | | 499 | | | 149 | | | 624 | | | Corporate and general allocation | | 1,712 | | | 3,240 | | | 5,921 | | | 6,563 | | | Payment of sustaining lease liabilities | | 128 | | | 233 | | | 253 | | | 569 | | | | | 62,430 | | | 52,084 | | | 122,688 | | | 105,225 | | | | | | | | | | | | | | | | | All-in sustaining costs per ounce of gold1 | | 2,800 | | | 1,929 | | | 2,471 | | | 1,924 | | | | | | | | | | | | | | | | | Cost of sales per tonne milled1 | | 685 | | | 673 | | | 661 | | | 641 | | | Production costs per tonne milled1 | | 631 | | | 626 | | | 609 | | | 598 | | | | | | | | | | | | | | | | | Total capital expenditures | | 15,530 | | | 16,386 | | | 27,011 | | | 29,114 | | | | | | | | | | | | | | | |

1. Refer to the section entitled "Non-IFRS Performance Measures" for the reconciliation of non-IFRS measurements to the financial statements

Operating Highlights

Eagle River gold production decreased by 15% to 21,798 ounces in Q2 2026 from 25,612 ounces in Q2 2025. The decrease was in line with the Company's plan in Q2 2026 and reflects the blending of Global Model ore as part of Eagle River's fill-the-mill strategy, which increased tonnes processed by 49%, partly offset by a 43% decrease in average grade. The lower average grade reflects the addition of economic ounces and tonnes from the Global Model and mine plan sequence in the quarter, which are additive to ounces from Eagle River's high-grade ore.

Eagle River produced 49,644 ounces in the first half of 2026, a decrease of 9% compared to 54,611 ounces in the first half of 2025. In the beginning of the first half of 2026, Eagle River commenced processing Global Model ore as part of its fill-the-mill strategy, which drove a 33% increase in tonnes processed while reducing average grade by 43% in H1 2026 compared to H1 2025. In the second half of 2026, Eagle River will continue to incorporate Global Model ore into the mine plan sequence, resulting in increased mill throughput, expecting average grades to improve relative to Q2 2026. Eagle River is on track to achieve its full-year production guidance for 2026.

Mill throughput of 72,439 tonnes in Q2 2026 was 49% higher than the second quarter of 2025 reflecting higher ore and mill availability. Mill throughput of 144,170 tonnes during the first half of 2026 was 33% higher when compared to the same period in 2025 as the initiatives to continue to improve mine and mill productivity are yielding more consistent tonnage delivery to leverage the capacity of the mill complex.

Driven by a 49% increase in tonnes processed in Q2 2026, production costs increased slightly to $631 per tonne from $626 per tonne in Q2 2025, despite inflationary pressure on wages, supplies, fuel and insurance that have been broadly felt across the industry. Q2 2026 costs also included one-time costs which impacted cost per tonne by $45, whereas Q2 2025 benefited from higher inventory levels, reducing the cost per tonne by $95. Production costs per tonne in the first six months of 2026 increased by 2% to $609 per tonne compared to $598 per tonne in the first six months of 2025, reflecting similar factors. Production costs are expected to start declining in the second half of the year as several cost items incurred in Q2 2026 are not expected to recur and the cost benefits of the fill-the-mill strategy become more apparent as mill throughput continues to increase and existing fixed costs are better leveraged.

Financial Highlights

In Q2 2026, Eagle River's gold revenue increased by 9% to $133.5 million from $122.6 million in Q2 2025 due to the higher average realized price of gold sold, offset by a 17% decrease in ounces sold. During the first half of 2026, Eagle River's gold revenue increased by 31% to $312.2 million from $238.0 million in the same period in 2025 due to the 49% increase in the average realized price of gold sold, partly offset by a 9% decrease in ounces sold.

Cost of sales in Q2 2026 was $49.6 million, an increase of 52% relative to the comparative period in 2025 primarily due to a $5.7 million increase in mine and mill operating costs due to one-time costs, inflationary impacts, contractors and maintenance costs, costs associated with increased royalties mainly due to higher average gold price, and a change in inventory levels of $4.9 million.

Cost of sales for the first half of 2026 totaled $95.3 million, a 37% increase compared to the same period in 2025. This was principally driven by a $7.1 million increase in mine and mill operating costs due to similar factors described above and increased royalties from higher gold prices, further elevated by a $8.8 million change in inventory levels.

Cash costs per ounce of gold sold increased by 84% to $2,218 (US$1,603) per ounce sold in Q2 2026 from $1,207 (US$872) per ounce sold in Q2 2025 due to a 17% decrease in ounces sold and a 6% increase in throughput costs due to one-time costs, inflationary impacts, contractors and maintenance costs. Similarly, cash costs per ounce of gold sold increased by 51% to $1,911 (US$1,386) per ounce sold in the first half of 2026 from $1,268 (US$899) per ounce sold in the comparative period in 2025 due to increased cost of sales and a 9% decrease in ounces sold.

In Q2 2026, AISC per ounce of gold sold increased by 45% to $2,800 (US$2,023) from $1,929 (US$1,394) in Q2 2025, due to the increase in cash costs per ounce sold partially offset by a 31% reduction in sustaining capital expenditures due to timing and a 17% decrease in ounces sold.

During the first half of 2026, AISC per ounce of gold sold increased by 28% to $2,471 (US$1,794) per ounce sold from $1,924 (US$1,365) per ounce sold in the same period in 2025, due to higher cash cost per ounce sold partially offset by a 25% reduction in sustaining capital expenditures due to timing and a 9% decrease in ounces sold. In H2 2026, the rate of capital expenditures is expected to increase as Eagle River accelerates deferred development and capital projects including the installation of a new camp and tailings management area construction. Higher ounce production is expected to offset higher sustaining capex and result in lower AISC per ounce sold in the second half of the year. Based on the current forecast for the balance of the year, Eagle River's AISC per ounce sold is expected to fall within its full-year guidance range of $1,525 - $1,675 per ounce sold.

Exploration Update

Expanding the 6 Central Zone

The 6 Central Zone is considered a priority exploration area given its intermediate depth, proximity to existing mine infrastructure and geological similarities to the 300 Zone at comparable elevations. The zone remains underdrilled and open down plunge and laterally. The 2026 program is designed to further define the geometry and continuity of the high-grade mineralization and test its down-plunge extension, with approximately 9,600 metres planned for the year. Recent results continue to support the interpretation that the high-grade trend extends at depth, and drilling will continue in the second half of the year. Continued success could support future resource growth and provide an additional source of high-grade ore at depths shallower than those currently being mined in the 300 Zone.