Wesdome announces 2007 year end results



    TORONTO, March 28 /CNW/ - Wesdome Gold Mines Ltd (WDO:TSX) ("Wesdome" or
the "Company") reports financial and operational results from its Canadian
operations for the fourth quarter and fiscal 2007.

    REVENUE AND EARNINGS

    Wesdome's production from its 100%-owned mines generated record revenues
of $54.7 million for the year and $14.1 million for the fourth quarter,
compared to $30.9 million and $10.5 million in 2006. Wesdome's net loss for
the year was $13.1 million ($0.14 per share) with a loss of $4.4 million in
the 4th quarter ($0.05 per share), compared to a loss of $9.5 million ($0.10
per share) and $3.9 million ($0.03 per share) for the year and 4th quarter of
2006, respectively.

    RESULTS OF OPERATIONS

    In 2007, the Eagle River, Mishi and Kiena operations produced
72,085 ounces of gold, exceeding production forecasts of 70,000 ounces. A
total of 73,200 ounces were sold and refined bullion inventory at year-end was
6,676 ounces.
    Operating and development costs exceeded revenue resulting in a mine
operating loss of $2.5 million and cost of sales, or cash cost, of $794 per
ounce. In addition to these direct costs, other costs including royalty
payments, corporate and general costs and interest costs totalled
$3.1 million.
    As previously forecast, 2007 was a development year involving a net
investment in development at both mines of $11.8 million. Diligent cost
control resulted capital cost expenditures $2 million below our previous
estimate of $13.8 million (Wesdome Press Release - April 5, 2007). The
combination of stope development now in place and tangible progress in cost
reduction put us in a strong position for 2008.
    The Kiena mine performance was weak in the first half of the year as low
grade ore was milled but improved in the second half. Increased grades and
effective cost control resulted in mine operating profit of $1.3 million in
the fourth quarter of 2007.
    At the Ontario operations, the first half was strong and the second half
was weak. A third of the year's mill feed grading 3.1 grams Au/tonne from the
Mishi open pit mine was milled in the second half. Although insufficient to
cover all of Eagle River's costs, this allowed time to develop future high
grade production areas in the western part of the mine and accumulate surface
and underground stockpiles of 14,000 tonnes of ore to start the new year.

    FOURTH QUARTER

    The fourth quarter, in a large part, influenced the overall operating
performance for the year.
    At Ontario operations, fourth quarter revenue was primarily from
low-grade Mishi ore resulting in an operating loss. This was accompanied by a
blitz in stope preparation development and its related costs and increased
mill expenses of a one-time nature.
    In Quebec, the fourth quarter was very encouraging. Improved grades and a
diligent cost control effort resulted in dramatically lower costs and a mine
operating profit of $1.3 million. Additionally, 3,209 ounces of gold
production was not sold and was carried into the new year as bullion
inventory.

    
    Ontario Mines
                                     Twelve     Eleven
                                  Months to  Months to        Three Months
                                     Dec 31,    Dec 31,         to Dec 31
                                       2007     2006(*)      2007       2006
                                 --------------------------------------------

    Eagle River Mine

      Tonnes milled                  76,676    125,400      8,911     36,200
      Recovered grade (g/t)            13.1        9.9        6.6        8.9
      Ounces produced                32,299     40,001      1,880     10,385
      Ounces sold                    35,266     38,600      7,466      9,500
      Bullion inventory (oz)          2,119      5,086      2,119      5,086

    Mishi Mine

      Tonnes milled                  43,458          -     21,890          -
      Recovered grade (g/t)             3.1          -        2.8          -
      Ounces produced                 4,382          -      1,980          -
      Ounces sold                     3,034          -      3,034          -
      Bullion inventory (oz)          1,348          -      1,348          -

    Total Ontario Mines

      Ounces produced                36,681     40,001      3,860     10,385
      Ounces sold                    38,300     38,600     10,500      9,500
      Bullion inventory (oz)          3,467      5,086      3,467      5,086

      Bullion revenue                28,593     26,644      8,044      6,744
      - Operating + development
       costs                         31,001     21,724     13,188      5,985
      -----------------------------------------------------------------------
      Mine operating profit
       (loss) ($m)                   (2,408)     4,920     (5,144)       759
      Gold price realized
       (Cdn$/oz)                        746        663        765        710

    Quebec Mine

                                     Twelve       Five
                                  Months to  Months to        Three Months
                                     Dec 31,    Dec 31,         to Dec 31
                                       2007    2006(xx)      2007       2006
                                 --------------------------------------------
    Kiena Mine Complex

      Tonnes milled                 284,757     94,200     63,013     50,700
      Recovered grade (g/t)             3.9        3.1        4.3        2.9
      Ounces produced                35,404      9,300      8,809      4,800
      Ounces sold                    34,900      6,100      7,700      5,400
      Bullion inventory (oz)          3,209      2,700      3,209      2,700

      Bullion revenue                26,167      4,269      6,006      3,790
      - Operating + development
       costs                         26,227      8,248      4,713      5,165
      -----------------------------------------------------------------------
      Mine operating profit
       (loss) ($m)                      (60)    (3,979)     1,293     (1,375)
      Gold price realized               749        700        778        702

    Total

                        Twelve Months Ended    Three Months Ended
                          December 31, 2007     December 31, 2007
                        ------------------------------------------

      Production (oz)                72,085                12,669
      Sales (oz)                     73,200                18,200
      Revenue                        54,760                14,050
      - Operating + development
       costs                         57,228                17,901
      ------------------------------------------------------------
      Operating loss ($m) (xxx)      (2,468)               (3,851)
      Bullion inventory (oz)          6,676                 6,676

    (*)   for eleven months to December 31, 2006 (post merger)
    (xx)  includes five months of commercial production from August 1, 2006
    (xxx) mine operating profit (loss) and total cash cost per ounce are
          non-GAAP performance measures
    


    CORPORATE OVERVIEW
    ------------------

    The Company owns the Eagle River and Mishi gold mining operations in
Wawa, Ontario and the Kiena Mining Complex in Val d'Or, Quebec. The Eagle
River mine has been operating since 1996. The Mishi open pit has been an
intermittent gold producer since 2002. The Kiena mine was in pre-production
development stage until August 1, 2006 when commercial production commenced.
    At year end, the Company had working capital of $7.9 million. From an
operating view, cash operating costs exceeded revenue by $2.5 million and
$11.8 million was invested in capital costs. In all, cash flow from operations
was minus $4.8 million. Non cash items, primarily amortization of
$9.4 million, brought the net loss to $13.1 million.
    Overall performance was better than forecast with capital expenditures
lower than expected, as the Company completed its planned investments in its
operations to set up a strong production scenario in 2008.
    External factors which affected results included a parabolic rise in the
$Cdn/$US exchange rate. Between the first and third quarters the $US gold
price rose $90 per ounce while declining Cdn $30 per ounce during the same
interval. Gold sales averaged Cdn$748 per ounce for the year and to date in
2008 sales have averaged close to Cdn$900 per ounce.

    OUTLOOK
    -------

    We are currently forecasting 80,000 ounces of production in 2008. We will
see the results of our 2007 investment in development bear fruit. We expect
above average grades from stopes at both Kiena and Eagle River which are
already essentially developed. Production will grow during the second and
third quarters.
    We are excited regarding recent strength in the gold market and the
prospects of our aggressive 2008 exploration program. Based on forecast
production, each Cdn$10 movement in the gold price adds $0.8 million to
corporate revenue. The gold price as of March 28, 2008, is approximately
Cdn $200 per ounce higher than our average realized price in 2007.

    Wesdome Gold Mines Ltd. is an established Canadian gold producer with
mining operations and development projects in Wawa, Ontario and Val d'Or,
Quebec. The Company has 99.8 million shares issued and trades on the TSX
Exchange under the symbol "WDO".

    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.


    
    Wesdome Gold Mines Ltd.
    Consolidated Balance Sheets
    December 31                                         2007           2006
    -------------------------------------------------------------------------

    Assets
    Current
      Cash and cash equivalents                $   7,341,064   $   5,262,530
      Term deposits                                   67,651          47,721
      Gold bullion                                 5,529,454       5,796,006
      Receivables                                  4,243,107       9,301,938
      Supplies and other                           1,735,736       1,225,928
      Marketable securities                           68,085               -
    -------------------------------------------------------------------------
                                                  18,985,097      21,634,123
    Funds held against standby letters of
     credit                                        2,541,132       2,477,075
    Capital assets                                    13,155          12,428
    Mining properties                             57,790,155      53,012,950
    Exploration properties                        27,677,643      17,259,661
    Property held for sale                         1,078,105       1,828,105
    -------------------------------------------------------------------------

                                               $ 108,085,287   $  96,224,342
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current
      Payables and accruals                    $   9,708,130   $  11,215,497
      Current portion of obligations under
       capital leases                              1,368,749       1,044,809
    -------------------------------------------------------------------------
                                                  11,076,879      12,260,306
    Obligations under capital leases               2,248,355       1,497,326
    Convertible 7% debentures                      9,038,002               -
    Reclamation obligation                         1,072,000       1,009,000
    Future income taxes                            1,506,000       2,360,000
    -------------------------------------------------------------------------
                                                  24,941,236      17,126,632
    -------------------------------------------------------------------------

    Minority interest in Moss Lake Gold
     Mines Ltd.                                      980,867         438,642
    -------------------------------------------------------------------------

    Shareholders' Equity
    Capital stock                                115,276,928      88,889,627
    Common share purchase warrants                         -          81,022
    Contributed surplus                            2,789,117       1,938,737
    Accumulated other comprehensive income          (131,915)              -
    Equity component of convertible debentures     2,079,776               -
    Deficit                                      (37,850,722)    (12,250,318)
    -------------------------------------------------------------------------
                                                  82,163,184      78,659,068
    -------------------------------------------------------------------------

                                               $ 108,085,287   $  96,224,342
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Wesdome Gold Mines Ltd.
    Consolidated Statements of Operations and Deficit
    Years Ended December 31                             2007            2006
    -------------------------------------------------------------------------

    Revenue
      Gold and silver bullion                  $  54,759,561   $  30,912,397
      Interest and other                             450,089         385,226
    -------------------------------------------------------------------------
                                                  55,209,650      31,297,623
    -------------------------------------------------------------------------

    Costs and expenses
      Operating costs                             44,326,293      22,782,407
      Development costs                           12,913,610       7,190,236
      Amortization of mining properties            9,432,874       7,936,543
      Write-down of property held for sale                 -         959,371
      Production royalties                           427,800         448,539
      Corporate and general                        1,558,146       1,477,158
      Stock compensation expense                     843,934         668,110
      Interest on long term debt                   1,075,917         111,773
      Other interest                                  29,573          74,600
      Amortization of office equipment                 2,992               -
      Accretion of reclamation obligation             63,000          44,417
    -------------------------------------------------------------------------
                                                  70,674,139      41,693,154
    -------------------------------------------------------------------------
    Loss before the following                    (15,464,489)    (10,395,531)

    Dilution gain on Moss Lake Gold Mines Ltd.       544,709          21,778
    -------------------------------------------------------------------------

    Net loss before income tax and minority
     interest                                    (14,919,780)    (10,373,753)

    Recovery of future income taxes                1,743,000         860,000

    Minority interest                                 31,493          31,329

    Net loss                                   $ (13,145,287)  $  (9,482,424)
    -------------------------------------------------------------------------
    Loss per common share
     Basic and diluted                         $       (0.14)  $       (0.11)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Deficit, beginning of year                 $ (12,250,318)  $  (2,767,894)

    Net loss                                     (13,145,287)     (9,482,424)

    Cancellation of shares held by Western
     Quebec Mines Ltd.                           (12,455,117)              -
    -------------------------------------------------------------------------
    Deficit, end of year                       $ (37,850,722)  $ (12,250,318)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Wesdome Gold Mines Ltd.
    Consolidated Statements of Comprehensive Income
    and Accumulated Other Comprehensive Income
    Years Ended December 31                             2007           2006
    -------------------------------------------------------------------------

    Net loss                                   $ (13,145,287)  $           -

    Other comprehensive loss
      Change in fair value of
       available-for-sale marketable
       securities                                   (131,915)              -
    -------------------------------------------------------------------------
    Comprehensive loss                         $ (13,277,202)  $           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accumulated other comprehensive loss,
     beginning of year                         $           -   $           -

    Other comprehensive loss                   $    (131,915)  $           -
    -------------------------------------------------------------------------

    Accumulated other comprehensive loss,
     end of year                               $    (131,915)  $           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Wesdome Gold Mines Ltd.
    Consolidated Statements of Cash Flows
    Years Ended December 31                             2007           2006
    -------------------------------------------------------------------------
    Increase (decrease) in cash and cash equivalents
      Operating activities
        Net loss                               $ (13,145,287)  $  (9,482,424)
        Amortization of mining properties          9,432,874       7,936,543
        Loan interest paid with issuance of
         shares                                            -          14,201
        Write-down of property held for sale               -         959,371
        Accretion of discount on convertible
         debentures                                  336,302               -
        Dilution gain on Moss Lake
         Gold Mines Ltd.                            (544,709)        (21,778)
        Minority interest                            (31,493)        (31,329)
        Stock compensation expense                   843,934         668,110
        Amortization of office equipment               2,992               -
        Future income taxes                       (1,743,000)       (860,000)
        Gain on disposal of mining equipment        (138,851)              -
        Accretion of reclamation obligation           63,000          44,417
    -------------------------------------------------------------------------
                                                  (4,924,238)       (772,889)
        Net changes in non-cash working capital       89,977      (2,692,484)
    -------------------------------------------------------------------------
                                                  (4,834,261)     (3,465,373)
    -------------------------------------------------------------------------
      Financing activities
        Convertible 7% debenture issued           11,539,000               -
        Convertible debenture issue costs           (757,524)              -
        Common shares and warrants issued,
         net of costs                              3,718,396      20,296,619
        Loan from Western Québec Mines Inc.          759,447       1,800,000
        Repayment of senior secured notes         (1,374,450)              -
        Exercise of options                          397,505         331,132
        Exercise of warrants                               -       4,956,180
        Shares issued by a subsidiary of the
         company to minority interests             1,147,736          50,000
        Repayment of obligations under capital
         leases                                   (1,518,366)       (817,387)
    -------------------------------------------------------------------------
                                                  13,911,744      26,616,544
        Net changes in non-cash working capital     (203,029)        (28,907)
    -------------------------------------------------------------------------
                                                  13,708,715      26,587,637
    -------------------------------------------------------------------------
    Investing activities
      Additions to mining and exploration
       properties                                (11,757,824)    (16,210,613)
      Property held for sale                               -         (30,000)
      Cash acquired on acquisition                 1,188,401         303,361
      Acquisition transaction costs                 (442,311)       (599,702)
      Additions to capital assets                     (3,719)        (12,428)
      Proceeds on disposal of mining equipment       155,000               -
      Proceeds on option to sell property            550,000          50,000
      Funds held against standby letters of
       credit                                        (64,057)        (49,931)
    -------------------------------------------------------------------------
                                                 (10,374,510)    (16,549,313)
      Net changes in non-cash working capital      3,598,520      (1,422,915)
    -------------------------------------------------------------------------
                                                  (6,775,990)    (17,972,228)
    -------------------------------------------------------------------------
    Increase in cash and cash equivalents          2,098,464       5,150,036
    Cash and cash equivalents, beginning of
     year                                          5,310,251         160,215
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year     $   7,408,715  $    5,310,251
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





For further information:

For further information: Rowland Uloth, President, Donovan Pollitt, VP
Corporate Development, 8 King St. East, Suite 1305, Toronto, ON, M5C-1B5, Toll
Free: 1-866-4-WDO-TSX, Phone: (416) 360-3743, Fax: (416) 360-7620, Email:
invest@wesdome.com, Website: www.wesdome.com

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