TORONTO, Feb. 26, 2015 /CNW/ - Wesdome Gold Mines Ltd. (TSX-WDO) is pleased to announce financial and operational results for the fourth quarter and twelve months ended December 31, 2014. All figures in the release are in Canadian dollars unless stated otherwise.
Mr. Rolly Uloth, President and CEO commented, "2014 was a transformational year for the Company, reflective in this year's financial and operational results. Profits were up, all-in sustaining costs lowered by 9.6%, and significant improvements were made to our safety and environmental records."
"More importantly, a number of accomplishments were achieved to position the Company for significant organic production growth in years 2016 to 2022. Mill improvements have resulted in daily throughput rates averaging 900 tonnes per day in 2015, proven and probable reserves at Eagle River increased by 57%, and the discovery of two additional high grade zones parallel to our main producing structure will enable the Company to deliver growth at higher grades at the mine starting in 2016. 2015 will be a development year to access these zones (311 is being developed now, for production in the second half of 2015 and the 711 zone will begin production in 2017), and due to their close proximity to existing mine infrastructure developed without material increase to current sustaining capital expenditures. Despite this, production in 2015 is expected to exceed 2014's results and come in between 55,000 – 57,000 ounces as production is increasing from Mishi open pit to offset a lower grade cycle and development year at Eagle River. The Company expects to have an update on its 3 – 5 year production growth during the first half of 2015."
HIGHLIGHTS OF YEAR 2014
- Free cash flow generated in 2014 was $11.8 million or $0.11 per share, an increase of 398% compared to the same period in 2013 ($2.4 million or ($0.02) per share).
- Cash flow from operations for the year ended December 31, 2014 was $28.1 million, an increase of 111% compared to the same period in 2013 ($13.3 million).
- Revenue for the year ended December 31, 2014 was $82.4 million compared to $79.7 million during the same period in 2013 due to higher mined grades, despite lower gold prices.
- Production from the Eagle River Complex for the year ended December 31, 2014 was 52,575 ounces, an increase of 16% compared to 2013 (45,210 ounces). Recovered grades from the underground Eagle River mine were 12.2 grams per tonne, and 2.1 grams per tonne from the open pit Mishi mine.
- Sold ounces for the year ended December 31 2014 were 58,230 ounces, an increase of 24% compared to the same period in 2013 (46,800 ounces). Average sales price for 2014 was CAD$1,408.
- All-in sustaining costs for 2014 totalled CAD$1,278 per ounce (USD$1,150), a decrease of 9.6% compared to 2013 (CAD$1,401, USD$1,360 per ounce). Operating cost per ounce for 2014 was CAD$924 per ounce (USD $832) a decrease of 16% compared to the same period in 2013(CAD$1,078, USD$1,046 per ounce).
- Cash position at year ending December 31, 2014 was $15.4 million, an increase of 169% compared to the same period in 2013 ($5.6 million).
- Eagle River Proven and Probable reserves increase 57% to 265,000 ounces at an average grade of 10.1 gAu/tonne and Mishi Proven and Probable surface mineable reserves increase 8% to 121,000 ounces at an average grade of 2.1 gAu/tonne. Both reserve blocks remain open to expansion.
HIGHLIGHTS OF THE FOURTH QUARTER 2014
- Free cash flow generated during the fourth quarter was $4.3 million (0.04), an increase of 20% compared to the previous quarter ($3.4 million, $0.03 per share).
- Revenue for the quarter was $20.9 million, operating cash flow was $8.4 million. This compares to revenue of $22.3 million and cash flow from operations of 7.8 million in the previous quarter.
- Production for the fourth quarter 2014 was 12,981 ounces a slight increase of 4.2% compared to the previous quarter (12,456 ounces).
- Average daily mill throughput increased from 400 tonnes per day 2013 to 648 tonnes per day in the fourth quarter.
- All-in sustaining costs for the quarter were CAD$1,370 per ounce (USD$1,178), and operating costs were CAD$1,012 per ounce (USD$871 per ounce) compared to the previous quarter (AISC CAD$1,290, USD$1,184 per ounce, operating costs CAD$967, USD$888 per ounce).
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada that employ a profit growth approach. The Company is currently producing from its Eagle River and Mishi gold mines in Wawa, Ontario, which have earned consistent free cash flow during times of low gold prices. Wesdome's corporate goal is to build a profitable, long-life, sustainable gold mining Company with modest initial capital costs. This strategy has enabled the Company to acquire strategic property and infrastructure assets in two politically stable and historically proven mining camps. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 110.9 million shares issued and outstanding and trades on the Toronto Stock 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. 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.
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SOURCE Wesdome Gold Mines Ltd.
For further information: Lindsay Carpenter Dunlop, Vice President, Investor Relations, 416-360-3743 ext. 25, email@example.com; or Rolly Uloth, President and CEO, 416-360-3743 ext. 29; 8 King St. East, Suite 811, Toronto, ON, M5C 1B5, Toll Free: 1-866-4-WDO-TSX, Phone: 416-360-3743, Fax: 416-360-7620, Website: www.wesdome.com