December 2017 A Solid Foundation for a Promising Future
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, costs of production, targeted cost reductions, capital expenditures, the success of exploration activities, permitting time lines, government regulation of mining operations, the future price of gold and other minerals, and the timing and issuance of permits. Generally, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” and variations of such words and phrases or statements that certain actions, events, or results “may”, “could”, “would”, “might”, or “will”, “occur” or “be achieved” or the negative connotation thereof. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company’s projects, the timing and amount of estimated future production and the costs thereof, capital expenditures, the availability of any additional capital required to bring future projects into production, the failure of plant, equipment or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome’s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. TSX:WDO | 2
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.77 (Average daily Clarus Securities volume 900,000 shares) Desjardins Capital Markets Shares Outstanding Echelon Wealth Partners 133.9 M Market Capitalization Eight Capital Partners $240M Industrial Alliance Options ($1.83 Nov 15, 2017) Laurentian Bank 5.9 M Mackie Research Cash Position Warrants National Bank Financial $22.6 M (November 8, 2017) 0 PI Financial No Debt Fully Diluted Major Shareholders 139.8 M Resolute Funds, Van Eck, Royal Management and Directors 2.2% Bank Investment Management, US Global, Oppenheimer, Mackenzie Financial, 1832 Asset Management, Gabelli TSX:WDO | 3
WDO Two-Year Share Price Performance GDXJ methodology change announced, rebalance WDO added to GDXJ (18 results in 12 M shares M shares) liquidated from index Eagle River 303 E Lens discovery announced; Kiena Resolute Funds reduces Deep potential expands position from 20% to 550 m laterally announced 9.97% Kiena Deep discovery announced Resolute Funds beings to reduce position TSX:WDO | 4
Executive Management Team - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production Duncan Middlemiss, P. Eng - Over 10 years of executive management experience Chief Executive Officer - Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January 2016 - Over 35 years of experience in financial management and reporting, regulatory compliance, M&A, and P&L management Ben Au, CPA, CA - Over 11 years at Agnico Eagle Mines in increasingly senior financial reporting roles Chief Financial Officer - Most recently Chief Financial Officer of St Andrew Goldfields Ltd until its acquisition by Kirkland Lake Gold - Professional engineer with over 20 years experience in operating gold mines in Canada Marc-Andre Pelletier, P.Eng - Over 9 years at Barrick Gold in increasingly senior operational management roles Chief Operating Officer - Most recently VP Operations at St Andrew Goldfields until its acquisition by Kirkland Lake Gold - Professional geologist with over 30 years experience in domestic and international gold exploration Michael Michaud, P.Geo and mining VP, Exploration - Former Principal of SRK Consulting Inc - Most recently Chief Geologist at Iamgold - Over 10 years experience in the development and execution of investor relations programs for Lindsay Carpenter Dunlop publicly traded resource companies VP, Investor Relations - Most recently 5 years as Director of Investor Relations at Kirkland Lake Gold - 20 years of corporate secretarial, corporate governance and securities regulation experience with a Heather Laxton focus on the mining sector in Canada, Europe, Russia and West Africa Corporate Secretary & CGO - Most recently Corporate Secretary at Kirkland Lake Gold - Over 20 year experience in human resources focusing on policy development, compliance, and change Stacy Kimmett management VP, Human Resources - Most recently Sr. Director, Human Resources at St Andrew Goldfields TSX:WDO | 5
Canadian Gold Company with Three 100% Owned Projects 30 years of continuous gold production • YTD 2017 operating cash flow $15 M • Eagle River Complex produced 43,184 ozs • produced YTD 2017 from 2 high grade mines 1 Eagle River YTD head grades 10.3 g/t (2016: 7.8 • 3 g/t) 2 Executing an aggressive company wide • exploration program on all assets High grade discovery Aug 2016 at Kiena Complex • 3 2 1 Kiena, Val d’Or, Quebec Moss Lake, Thunder Bay, Ont. Eagle River Complex, Wawa, Production Suspended 2013 Ont. Open Pit Gold Deposit Past Prod.: 1.75 M oz Operating Mine Complex, two Resources: Indicated 1.4M oz, Resources: M&I 450,000 oz, deposits feed central mill @ Inferred 1.7M oz Inf. 400,000 oz ~850 tpd Fully Permitted Mine/Mill Past Prod.: 1.1 M oz Complex on Standby Reserves: P&P 446,000 oz Resources: M&I 330,000 oz, Inf. 225,000 oz TSX:WDO | 6
Corporate Strategy EXPLORE DEVELOP STRENGTHEN - Stabilize and Longer Term -Pipeline of - Potential for Objective Near Term development projects: improve Wawa diversified operations through production from - Early success at mine development of three mines in two brownfields additional high grade provinces, Ontario exploration at Kiena zones, providing and Quebec Complex (shaft and greater production permitted mill) - Increased output flexibility - Commenced drill and lowered costs program at newly - Operational -Maximizing the consolidated Moss improvements such potential of all the Lake property as ventilation, power, assets and equipment - Near-mine exploration on surface - Ongoing mine at Eagle River and step exploration to out at Mishi Open Pit diversify production locations TSX:WDO | 7
Operating Two of Canada’s High Grade Gold Mines Eagle River Underground Ranks 2nd Mishi Open Pit Ranks 3rd 6 5 Reserve Grade (g/t) Reserve Grade (g/t) 4 3 2.0 2 1 0 Meliadine Meadowbank Mishi Canadian Malartic Detour Lake Rainy River Young-Davidson Source: National Bank Financial TSX:WDO | 8
2017 Production and Cost Guidance 2017 Guidance: Combined gold production guidance: Eagle River Underground Mine 45,000 – 49,000 ounces @ 8.8 – 9.2 g/t 52,000 and 58,000 ounces Mishi Open Pit Mine 7,000 – 9,000 ounces @ 1.8 - 2.2 g/t Q1 2017 Production Results: 2017 Production on track Eagle River Underground Mine 13,588 ounces @ 11.5 g/t Mishi Open Pit Mine 1,574 ounces @ 1.7 g/t H1/17 Combined Operating Cost per ounce: Q2 2017 Production Results: CAD$1,030 - $1,130 per ounce Eagle River Underground Mine 10,597 ounces @ 9.8 g/t (USD$765 – $835 per ounce) Mishi Open Pit Mine 1,932 ounces @ 1.8 g/t H1/17 Combined All-In Sustaining Costs per ounce Q3 2017 Production Results: sold: Eagle River Underground Mine 13,313 ounces @ 9.7 g/t CAD$1,450 - $1,550 per ounce Mishi Open Pit Mine 2,181 ounces @ 2.0 g/t (USD$1,075 - $1,150 per ounce) Sustaining Capex ~CAD$13 – $17 M per year Growth/Project Capex of ~CAD$3 M Eagle River reserve grade: 9.2 g/t Potential to increase tonnage from the Eagle River Underground Mine Total YTD Gold production 2017: 43,185 ounces Scoping Study at Mishi Open Pit Mine to determine appropriate open pit scenario Mishi reserve grade: 2.0 g/t TSX:WDO | 9
Recommend
More recommend
