Wesdome Announces 2020 Fourth Quarter and Full Year Financial Results

2021-03-10 / @nasdaq

TORONTO, March 10, 2021 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) (“Q4 2020”) and full year 2020 financial results. The Company’s full consolidated financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.wesdome.com. All figures are stated in Canadian dollars unless otherwise noted.

Key highlights of 2020:

Production of 90,278 ounces.
Company free cash flow¹ generation of $29.0 million, net of investing $40.5 million into the Kiena Complex, an increase of 332% over 2019.
Net income increased by 24% from 2019 and adjusted net income¹ increased by 31% from 2019.
Operating cash flow increased by 44% from 2019.
Increased Eagle River Reserves by 5% net of 93,132 ounces of depletion.
Increased Eagle River inferred Resources by 22%.
Kiena Mine Complex Mineral Resources total 796,000 ounces of indicated and 656,000 ounces inferred.
Inferred Resources in the Kiena Deep A Zones of 120,400 ounces.
Processed a portion of the bulk sample from Kiena generating $3.6 million.

Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

Mr. Duncan Middlemiss, President and CEO commented, “2020 was a unique, and at times challenging year as we were faced with the ongoing COVID-19 pandemic. First and foremost, I am very pleased to report that none of our sites or offices had any reported cases of the COVID-19 virus. Despite having to operate both sites at reduced capacities in order to protect our employees, we were able to achieve a number of important milestones this year, such as achieving our production guidance at Eagle River, increasing free cash flow by $22.3 million over 2019, and advancing the Kiena Complex through to mining and milling of a bulk sample.

Loss of operational efficiencies due to the evolving pandemic did have an impact on costs, and the volume of diamond drilling. Both operating and AISC costs came in higher than guidance as a result of these measures and the inherent inefficiencies of social distancing in underground operations. We have taken the continuing pandemic into account when forecasting our 2021 cost guidance. Production guidance for the year is 92,000 – 105,000 ounces with grades expecting to average between 13.0 and 15.0 g/t.

At the Eagle River mine, we completed 50,000 metres of drilling, replaced 93,132 ounces of depletion, and added an additional 30,000 ounces. As well, we increased the inferred resources by 22%, while slightly increasing grade to 12.5 g/t. Current mineral reserves at Eagle River as of December 31, 2020 are 581,000 ounces of gold from 1.4 Mt at an overall grade of 13.4 g/t Au; as compared to the mineral reserves as of December 31, 2019 of 1.2 Mt at a grade of 14.4 g/t Au containing 550,000 ounces of gold. In 2021, we plan to conduct significantly more drilling with metres budgeted to range between 164,000 and 174,000 metres. This is split out as 60,000 – 70,000 metres of underground exploration drilling, 50,000 metres of underground definition drilling, and 54,000 metres of surface drilling. The exploration drilling will focus on the 300 E Zone, Falcon 7 Zone and west of 7 Zone, and east of currently mined areas in the central area of the mine diorite.

At Kiena, while we were not able to generate the planned volume of drilling due to the Quebec government mandated shut down of operations and the ongoing effects of regional quarantines, we were still able to convert a large portion of A Zone inferred resources to indicated ounces, which has been used as the basis for our PFS, on track to be published in Q2 2021. We expect to be in a position to make a restart decision shortly thereafter which would set us on a path in a short timeframe to Wesdome realizing a second producing asset. We expect to have our final reconciliation of the bulk sample in the near term and early indications are very positive in terms of grades and tonnes. We are also guiding first production for the Kiena mine this year of 15,000 – 25,000 ounces.”

Operating and financial highlights of the full year 2020 results include:

Gold production of 90,278 ounces from the Eagle River Complex (2019: 91,688 ounces):
- Eagle River Underground 196,441 tonnes at a head grade of 14.2 grams per tonne (“g/t”) Au for 87,560 ounces produced (2019: 88,617 ounces).
- Mishi Open Pit 39,856 tonnes at a head grade of 2.7 g/t Au for 2,718 ounces produced (2019: 3,072 ounces).
Revenue of $215.5 million (2019: $164.0 million) from 91,229 ounces of gold sold at an average sales price of $2,360/oz (2019: 88,423 ounces at an average price of $1,853/oz).
Cash costs¹ of $1,053/oz or US$785/oz (2019: $825/oz or US$621/oz).
All-in sustaining costs¹ (“AISC”) of $1,396/oz or US$1,040/oz (2019: $1,293/oz or US$975/oz).
Earned mine profit¹ of $119.3 million (2019 - $90.9 million).
Operating cash flow of $102.3 million or $0.74 per share¹(2019: $71.2 million or $0.52 per share).
Free cash flow¹ of $29.0 million or $0.21 per share¹ (2019: $6.7 million or $0.05 per share).
Net income of $50.7 million or $0.36 per share (2019: $40.9 million or $0.30 per share).
Adjusted net income¹ of $50.7 million or $0.36 per share (2019: $38.6 million or $0.28 per share).
Earnings before interest, taxes and depreciation and amortization (“EBITDA”) for 2020 of $102.3 million (2019: $80.7 million).
Cash position at the end of the year of $63.5 million.

Operating and financial highlights of Q4 2020 results include:

Eagle River Complex gold production of 20,006 ounces (Q4 2019: 21,332 ozs).
- Eagle River Underground 53,551 tonnes at a head grade of 11.7 g/t Au for 19,667 ounces produced (Q4 2019: 20,894 ounces).
- Mishi Open Pit 3,555 tonnes at a head grade of 3.5 g/t Au for 339 ounces produced (Q4 2019: 438 ounces).
- Q4 production was negatively impacted by mechanical downtime associated with the cone crusher in the mill and underground geotechnical challenges affecting the grade performance in one stope.
19,889 gold ounces sold (Q4 2019: 22,100 ozs).
Cash costs¹of $1,162/oz (US$892/oz) (Q4 2019: $786/oz or US$595/oz).
AISC¹ of $1,567/oz or US$1,203/oz (Q4 2019: $1,305/oz or US$988/oz).
Earned mine profit¹of $25.2 million (Q4 2019: $25.8 million).
Operating cash flow of $12.9 million or $0.09 per share¹(Q4 2019: $15.9 million or $0.12 per share).
Free cash outflow¹of $8.8 million or $(0.06) per share (Q4 2019: free cash outflow of $3.2 million or $(0.02) per share).
Net income¹ of $8.5 million or $0.06 per share (Q4 2019: $12.1 million or $0.09 per share).

Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.

EAGLE RIVER COMPLEX RESERVES AND RESOURCES

MINERAL RESERVES – EAGLE RIVER ^{(see notes)}		December 31, 2020			December 31, 2019
		Tonnes (000s)	Grade (g/t Au)	Contained ounces	Tonnes (000s)	Grade (g/t Au)	Contained ounces

Eagle River	Proven	370	12.6	150,000	331	15.5	165,000
	Probable	982	13.7	431,000	855	14.0	385,000
	Proven + Probable	1,352	13.4	581,000	1,186	14.4	550,000

*Reported at 5.3 g/t Au cut off

MINERAL RESERVES – MISHI ^{(see notes)}		December 31, 2020			December 31, 2019
		Tonnes (000s)	Grade (g/t Au)	Contained ounces	Tonnes (000s)	Grade (g/t Au)	Contained ounces

MISHI	Proven	52	2.5	4,200	8	1.9	500
	Probable	50	3.4	5,500	108	2.9	10,000
	Proven + Probable	102	3.0	9,700	116	2.8	10,500

MINERAL RESOURCES (Exclusive of Mineral Reserves) ^{(see notes)}		December 31, 2020			December 31, 2019
		Tonnes (000s)	Grade (g/t Au)	Contained ounces	Tonnes (000s)	Grade (g/t Au)	Contained ounces

EAGLE RIVER	Measured	23	12.1	9,000	25	10.1	8,000
	Indicated	320	9.0	93,000	355	9.0	103,000
	Measured + Indicated	343	9.2	102,000	380	9.0	111,000
	Inferred	510	12.5	205,000	403	12.3	159,000


MINERAL RESOURCES (Exclusive of Mineral Reserves) ^{(see notes)}		December 31, 2020			December 31, 2019
		Tonnes (000s)	Grade (g/t Au)	Contained ounces	Tonnes (000s)	Grade (g/t Au)	Contained ounces

MISHI
Open pit	Indicated	-	-	-	-	-	-
	Inferred	2,808	1.6	147,000	2,808	1.6	147,000
Underground	Indicated	-	-	-	-	-	-
	Inferred	373	5.4	65,000	373	5.4	65,000
MISHI TOTAL	Indicated	-	-	-	-	-	-
	Inferred	3,182	2.1	212,000	3,182	2.1	212,000

EAGLE RIVER PROVEN AND PROBABLE RESERVE BREAKDOWN BY ZONE¹

The following table provides a breakdown of Mineral Reserves and Resources at Eagle River by structure to illustrate the growing significance of these recent developments.

	December 31, 2020				December 31, 2019
Zone	Tonnes (000s)	Grade (g/t Au)	Contained Ounces	Percent		Tonnes (000s)	Grade (g/t Au)	Contained Ounces	Percent

No. 300	756	14.9	362,000	62		798	15.5	397,000	72
No. 7	394	12.6	160,000	28		267	12.9	110,500	20
No. 8	111	10.7	38,000	7		103	11.6	38,500	7
Other	91	7.2	21,000	3		18	6.9	4,000	1
TOTAL	1,352	13.4	581,000	100		1,186	14.4	550,000	100

Reported at 5.43 g/t Au cut off at the Eagle River Mine.
Numbers reflect rounding to nearest 1,000 tonnes and ounces.
Mineral Resources are exclusive of reserves.
Mineral Resources are not in the current mine plan and therefore do not have demonstrated economic viability.
All Mineral Reserves and Mineral Resources estimates have been made in accordance with the Standards of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) and NI 43-101 and assume a gold price of $2,047 (US$1,599) per ounce for the reserves and a gold price of $2,191 (US$1,712) per ounce for the resources, with a $1 USD → CAD exchange rate of $1.28).
Mineral Resources are reported in-situ with no dilution provision.
A density or tonnage factor of 2.7 tonnes per cubic m (t/m³) is applied at both Eagle River Mine and Mishi Mine.
At Eagle River Mine, all high assays are cut to either 60.0 – 140.0 g/t Au for individual zones.
All Mineral Reserves at Eagle River employ a 1.5 m minimum width, a 3.0 g/t Au minimum grade for continuity and include 1.0 m of external dilution and 10% lost ore and metallurgical recoveries of 97.0%.
At Mishi the 7 lenses considered in the Mineral Resource calculations are cut between 6.0 to 45.0 g/t Au. All high blasthole assays are cut to 10 g/t Au.
All In-Pit Mineral Reserves at Mishi employ a 1.0 g/t cut-off grade and a 3.0 m minimum width. Estimates provide for 10% dilution, 10% lost ore and metallurgical recoveries of 83%.
Mishi Mineral Reserves currently have a life of mine stripping ratio of 13.0 tonnes of waste per tonne of ore.
Mishi In-Pit Mineral Resources extend to a depth of 110.0 m, employing a 0.5 g/t cut-off grade, a 3.0 m minimum width and are reported in-situ with no dilution or lost ore provisions.
Mishi Underground Mineral Resources are reported in-situ employing a 3.0 g/t cut-off grade and a 1.5 m minimum mining width.
Qualified Persons for the Mineral Reserves and Mineral Resources estimates as per NI 43-101 include Marc-André Pelletier P. Eng, COO, and Michael Michaud, P.Geo., VP Exploration of Wesdome.

EXPLORATION HIGHLIGHTS

Production and Exploration Highlights	Achievements
Eagle River	Ongoing extension and definition drilling of the 300 East Zone has continued to return high grade gold intersections. The 300 East Zone, previously defined from the 750 m-level to 1,000 m-level, has now been extended to the 1,400 m-level. The down plunge extension is a relatively more tabular zone that now measures in excess of 100 metres along strike with above average widths and grades, and remains open down plunge. In addition, limited drilling has intersected a new zone of mineralization approximately 40 m north and in the hanging wall of the high grade 300 East zone. Hole 925-E-172 returned 43.1 g/t Au (29.0 g/t Au capped) over 1.5 m true width. This zone remains open down plunge and along strike and highlights the potential of finding additional sub-parallel zones in this area and will remain a priority throughout 2021. 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. The 311 West Zone remains open up plunge and along strike to the west within the mafic volcanics, and will be a focus of 2021 drilling. Total metres drilled in 2021 are budgeted to range between 164,000 and 174,000 m for five underground and three surface drill rigs, including underground exploration of 60,000 – 70,000 m, underground definition drilling of 50,000m, and surface exploration drilling 54,000 m. The Company was able to replace the depletion of 2020 mined reserves and add 5% more mineral reserves. Current mineral reserves at Eagle River Complex as of December 31, 2020 are 591,000 ounces of gold from 1.5 Mt at an overall grade of 12.6 g/t Au; as compared to the mineral reserves as of December 31, 2019 of 1.3 Mt at a grade of 13.4 g/t Au containing 560,000 ounces of gold.
Kiena	Over the past year, underground drilling was focused on definition drilling of the A Zone, which increased the Kiena Deep A Zones Indicated Resources by 77% from 405,100 ounces to 717,400 ounces of gold since 2019, at a similar cut-off grade of 3.0 g/t Au., (see press release dated December 15, 2020). Drilling has since refocused on expansion drilling, not only at the A Zone and VC Zone, but at other prospective targets within the mine area. As part of this exploration focus, initial drilling has already successfully expanded the size of known mineralized zones, with follow-up drilling expected to contribute to future resource updates. Drilling of the VC1 zone has continued to return a number of high grade intersections and has now confirmed the previous interpretation that the VC1 zone is a separate structure having a different orientation than the A Zone. The mineralization of the VC1 zone has transitioned from a more sulphide-rich variety found in the upper extents of the mine, to a quartz-rich environment with visible gold present at depth. The VC1 zone extends 475 m down plunge from 67 Level to 107 Level, where development and drilling are presently being completed. The VC1 zone remains open at depth and will be a focus for ongoing drilling. Initial sill development was completed on the Kiena Deep A Zone on 111 Level. The development has confirmed the continuity of the A Zone high grade gold mineralization along strike. Visible gold is associated with folded quartz veins which are located within an overall zone of strong amphibole alteration. The mill was restarted to process the A zone bulk sample in December, of which a total of 1,500 ounces of gold have been sold. More gold from the mill circuit clean-up has been recovered and will be refined later in Q1, followed by the final reconciliation of the bulk sample, once all the information is available. The Kiena infrastructure has been well-maintained, and will enable a quick restart once a production decision is made. The Pre-Feasibility Study (“PFS”) is progressing well, and it is expected to be completed in Q2, with a scheduled re-start decision shortly thereafter. The pre-production timeframe is forecast to be less than six months, potentially driving the Kiena Mine into commercial production in Q4 of this year. The 2021 exploration program at Kiena consists of 65,000 m of underground drilling and 42,000 m of surface drilling

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Marc-André 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 2020 Fourth Quarter and Full Year Financial Results Conference Call: March 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: 6284876

Webcast link: https://edge.media-server.com/mmc/p/a8c7w7dc

ABOUT WESDOME
Wesdome Gold Mines is in its 30^th year of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Quebec. The Kiena Complex is a fully permitted former mine with a 930 metre shaft and 2,000 tonne per day mill. The Company is in the process of divesting of its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario, which is being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 139.4 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
duncan.middlemiss@wesdome.com		lindsay.dunlop@wesdome.com


220 Bay Street, 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						Years Ended
		December 31,						December 31,
		2020			2019			2020		2019
Operating data
Milling (tonnes)
Eagle River		53,551			23,257			196,441		122,405
Mishi		3,555			9,108			39,856		46,405
Throughput ²		57,106			32,365			236,297		168,809
Head grades (g/t)
Eagle River		11.7			28.6			14.2		23.1
Mishi		3.5			1.9			2.7		2.5
Recovery (%)
Eagle River		98.0			97.6			97.7		97.3
Mishi		84.5			77.1			77.8		82.4
Production (ounces)
Eagle River		19,667			20,894			87,560		88,617
Mishi		339			438			2,718		3,072
Total gold produced ²		20,006			21,332			90,278		91,688
Total gold sales (ounces)		19,889			22,100			91,229		88,423

Eagle River Complex (per ounce of gold sold) ¹
Average realized price	$	2,430		$	1,954		$	2,360	$	1,853
Cash costs		1,162			786			1,053		825
Cash margin	$	1,268		$	1,168		$	1,307	$	1,028
All-in Sustaining Costs ¹	$	1,567		$	1,305		$	1,396	$	1,293

Mine operating costs/tonne milled ¹	$	400		$	470		$	389	$	424

Average 1 USD → CAD exchange rate		1.3030			1.3200			1.3415		1.3269

Cash costs per ounce of gold sold (US$) ¹	$	892		$	595		$	785	$	621
All-in Sustaining Costs (US$) ¹	$	1,203		$	988		$	1,040	$	975

Financial Data
Mine profit ¹	$	25,211		$	25,816		$	119,250	$	90,900
Net income	$	8,491		$	12,077		$	50,715	$	40,945
Net income adjusted ¹	$	8,491		$	12,077		$	50,715	$	38,576
Earnings before interest, taxes, depreciation and amortization¹	$	18,017		$	23,276		$	102,342	$	80,722
Operating cash flow	$	12,893		$	15,907		$	102,292	$	71,163
Free cash flow	$	(8,813	)	$	(3,211	)	$	29,009	$	6,714
Per share data
Net income	$	0.06		$	0.09		$	0.36	$	0.30
Adjusted net income ¹	$	0.06		$	0.09		$	0.36	$	0.28
Operating cash flow¹	$	0.09		$	0.12		$	0.74	$	0.52
Free cash flow ¹	$	(0.06	)	$	(0.02	)	$	0.21	$	0.05

Notes

Refer to the Company’s 2020 Annual Management Discussion and Analysis on pages 28 – 35, entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
Totals for tonnage and gold ounces information may not add due to rounding.

Wesdome Gold Mines Ltd.
Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars)

	As at December 31, 2020		As at December 31, 2019
Assets
Current
Cash and cash equivalents	$	63,480	$	35,657
Receivables and prepaids		4,243		1,996
Sales tax receivable		4,731		3,344
Inventories		12,451		19,667
Total current assets		84,905		60,664

Restricted cash		657		657
Deferred financing cost		827		988
Mineral properties, plant and equipment		128,670		116,765
Exploration properties		143,524		106,644
Total assets	$	358,583	$	285,718

Liabilities
Current
Borrowings	$	-	$	3,636
Payables and accruals		21,123		19,219
Income and mining tax payable		3,481		1,419
Current portion of lease liabilities		5,901		3,781
Total current liabilities		30,505		28,055

Lease liabilities		5,604		5,889
Deferred income and mining tax liabilities		37,354		23,829
Decommissioning provisions		22,270		21,443
Total liabilities		95,733		79,216

Equity
Equity attributable to owners of the Company
Capital stock		179,540		174,789
Contributed surplus		6,472		5,590
Retained earnings		76,838		26,123
Total equity attributable to owners of the Company		262,850		206,502

	$	358,583	$	285,718

Wesdome Gold Mines Ltd.
Consolidated Statements of Income (loss) and Comprehensive Income (loss)
(Expressed in thousands of Canadian dollars except for per share amounts)

	Three Months Ended						Years Ended
	December 31						December 31
		2020			2019			2020			2019

Revenues	$	48,362		$	43,223		$	215,466		$	163,974
Cost of sales		(30,483	)		(22,804	)		(125,386	)		(94,806	)
Gross profit		17,879			20,419			90,080			69,168

Other expenses
Corporate and general		2,231			1,745			7,378			6,668
Stock-based compensation		524			346			2,786			2,987
Write-down of exploration properties		2,034			-			2,034			-
Write-down of mining equipment		427			247			427			247
		5,216			2,338			12,625			9,902

Operating income		12,663			18,081			77,455			59,266

Quebec exploration credits refund		-			-			-			2,867
Interest expense		(294	)		(315	)		(1,096	)		(679	)
Accretion of decommissioning provisions		(89	)		(71	)		(354	)		(372	)
Interest and other income		(902	)		(131	)		(1,105	)		351
Income before income and mining taxes		11,378			17,564			74,900			61,433

Income and mining tax expense
Current		4,426			1,440			10,660			4,918
Deferred		(1,539	)		4,047			13,525			15,570
		2,887			5,487			24,185			20,488

Net income and total
comprehensive income	$	8,491		$	12,077		$	50,715		$	40,945

Earnings per share
Basic	$	0.06		$	0.09		$	0.36		$	0.30
Diluted	$	0.06		$	0.09		$	0.36		$	0.29

Weighted average number of common
shares (000s)
Basic		139,482			137,867			139,045			136,931
Diluted		142,874			141,670			142,569			140,550

Wesdome Gold Mines Ltd.
Consolidated Statements of Total Equity
(Expressed in thousands of Canadian dollars)

						Retained
	Capital		Contributed			Earnings/			Total
	Stock		Surplus			(Deficit)			Equity

Balance, December 31, 2018	$	166,387	$	5,777		$	(14,955	)	$	157,209
Net income for the year ended
December 31, 2019		-		-			40,945			40,945
Exercise of options		5,361		-			-			5,361
Value attributed to options exercised		2,613		(2,613	)		-			-
Value attributed to options expired		-		(133	)		133			-
Value attributed to DSUs redeemed		175		(175	)		-			-
Value attributed to RSUs exercised		253		(253	)		-			-
Stock-based compensation		-		2,987			-			2,987

Balance, December 31, 2019	$	174,789	$	5,590		$	26,123		$	206,502

Net income for the year ended
December 31, 2020		-		-			50,715			50,715
Exercise of options		2,847		-			-			2,847
Value attributed to options exercised		1,327		(1,327	)		-			-
Value attributed to RSUs exercised		577		(577	)		-			-
Stock-based compensation		-		2,786			-			2,786
Balance, December 31, 2020	$	179,540	$	6,472		$	76,838		$	262,850

Wesdome Gold Mines Ltd.
Consolidated Statements of Cash Flows
(Unaudited, expressed in thousands of Canadian dollars)

	Three Months Ended						Years Ended
	December 31						December 31
		2020			2019			2020			2019

Operating Activities
Net income		8,491			12,077			50,715			40,945
Depreciation and depletion		6,345			5,397			26,346			21,732
Stock-based compensation		524			346			2,786			2,987
Accretion of decommissioning provisions		89			71			354			372
Deferred income and mining tax expense		(1,539	)		4,047			13,525			15,570
Amortizstion of deferred financing cost		111			86			370			86
Interest expense		294			325			1,096			703
Write-down of mining equipment and exploration properties		2,461			247			2,461			247
Loss on disposal of equipment		-			52			-			52
Foreign exchange loss on lease financing		(140	)		-			(36	)		-
		16,636			22,648			97,617			82,694
Net changes in non-cash working capital		(35	)		(5,271	)		13,272			(7,851	)
Mining and income tax paid		(3,708	)		(1,470	)		(8,597	)		(3,680	)
Net cash from operating activities		12,893			15,907			102,292			71,163

Financing Activities
Exercise of options		442			1,716			2,847			5,361
Debt issue less of deferred cost		-			(742	)		(209	)		2,562
Repayment of borrowings		-			-			(3,636	)		-
Repayment of lease liabilities		(1,316	)		(901	)		(4,847	)		(5,030	)
Termination of lease arrangements		-			-			-			(3,952	)
Interest paid		(294	)		(312	)		(1,096	)		(676	)
Net cash used in financing activities		(1,168	)		(239	)		(6,941	)		(1,735	)

Investing Activities
Additions to mining properties		(8,984	)		(9,905	)		(27,956	)		(33,542	)
Additions to exploration properties		(11,406	)		(8,312	)		(40,480	)		(25,220	)
Funds held against standby letter of credit		-			-			-			(657	)
Net changes in non-cash working capital		(1,367	)		(405	)		908			(1,730	)
Net cash used in investing activities		(21,757	)		(18,622	)		(67,528	)		(61,149	)

Increase (decrease) in cash and cash equivalents		(10,033	)		(2,954	)		27,823			8,279
Cash and cash equivalents - beginning of year		73,513			38,611			35,657			27,378
Cash and cash equivalents - end of year		63,480			35,657			63,480			35,657

Cash and cash equivalents consist of:
Cash	$	63,480		$	35,657		$	63,480		$	35,657
	$	63,480		$	35,657		$	63,480		$	35,657

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