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Wesdome Announces 2022 Third Quarter Financial Results

By: via GlobeNewswire

TORONTO, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces its third quarter financial results. All figures are stated in Canadian dollars unless otherwise noted.

Duncan Middlemiss, President and CEO commented, “During Q3, we are pleased to have made significant advancements on the build out at Kiena, such as completing the hoist refurbishment project during the July shut down. As well, the remaining key electrical components for the paste plant were delivered and installed, and have been successfully powered. Post quarter end, construction is being finalized, and pre-commissioning activities have started. We expect the plant to be fully operational in Q4. Once this is achieved, the Company can declare commercial production at the Kiena mine.

At Eagle, initial mining of the Falcon zone in the volcanic host rock resulted in one stope returning lower grades than forecast. However, ongoing development and drilling throughout the year has continued to better define the higher-grade shoots within the Falcon Zone and improved our confidence in forecasting production going forward. Additionally, recent surface and underground drilling, from the 355 m-level exploration drift, has extended the up-plunge extent of the Falcon 7 zone to surface. As the mill was on shut down in July for planned mill thickener refurbishment work, production was relatively in line with Q2 2022 with higher production planned for Q4.

Year to date, previously released combined production of 75,734 ounces positions the Company is currently tracking to produce near the low end of its 120,000 – 140,000 ounce revised guidance range and the higher end of our cost guidance range, which relies on significant production late in the fourth quarter. Costs have been higher than previously guided at the start of the year due to a number of factors, primarily lower grade at Eagle River as a result of grade underperformance in the Falcon Zone, supply chain delays resulting in less ounces produced than budgeted at Kiena, and inflationary pressures. The ground conditions in Kiena Deep, specific to the schist and komatiite in the footwall of the A Zone remain challenging, and the equipment delays encountered earlier in the year (now received with the exception of some bolting equipment), have resulted in the development and mining rates being slower to ramp up than originally anticipated. Ramp up activities at Kiena will continue during 2023 as the development deficit incurred is being addressed. With learnings from mining the new Falcon Zone at Eagle in 2022, and as we integrate Kiena, 2023 is expected to be a consolidation year with financial improvement expected as growth capital at Kiena tapers off, and production increases throughout the year.”

2022 GuidanceInitialRevisedYTD 2022
Achievement
Gold production   
Eagle River95,000 – 105,000 ounces85,000 – 95,000 ounces54,495 ounces
Mishi1,000 – 2,000 ounces1,000 – 2,000 ounces2,005 ounces
Kiena64,000 – 73,000 ounces34,000 – 43,000 ounces19,234 ounces
 160,000 – 180,000 ounces120,000 – 140,000 ounces75,734 ounces
    
Head grade (g/t Au)   
Eagle River12.1 – 13.410.5 – 11.710.6
Mishi2.0 – 2.52.9 – 3.33.2
Kiena10.6 – 11.88.6 – 9.59.5
    
Cash cost per ounce 1$875 - $970
(US$700 – US$775)		$1,260 - $1,390
(US$980 – US$1085)		$1,485
(US$1,158)
AlSC per ounce 1$1,270 - $1,400
(US$1,015 – US$1,125)		$1,765 - $1,950
(US$1,370 – US$1,520)		$1,975
(US$1,539)


Key operating and financial highlights of the Q3 2022 results include:

  • Gold production of 22,883 ounces, including 5,208 Kiena pre-commercial ounces, is a 22% decrease over the same period of the previous year (Q3 2021: 29,344 ounces):
    • Eagle River Underground milled 52,247 tonnes at a head grade of 10.7 grams per tonne for 17,405 ounces produced, a 26% decrease over the same period in the previous year (Q3 2021: 23,621 ounces).
    • Mishi Open Pit milled 3,595 tonnes at a head grade of 2.8 grams per tonne for 270 ounces produced (Q3 2021: 212 ounces).
    • Kiena milled 16,112 tonnes at a head grade of 10.2 grams per tonne for 5,208 pre-commercial ounces produced.
  • Revenue of $61.8 million, an 8% decrease over the same period of the previous year (Q3 2021: $67.5 million).
  • Ounces sold were 27,500 at an average sales price of $2,246/oz (Q3 2021: 30,000 ounces at an average price of $2,249/oz).
  • Cash margin1 of $17.0 million, a 52% decrease over the same period of the previous year (Q3 2021: $35.3 million).
  • Operating cash flows decreased by 62% to $12.9 million or $0.09 per share1 as compared to $33.9 million or $0.24 per share for the same period in 2021.
  • Free cash outflow of $23.2 million, net of an investment of $22.8 million in Kiena, or ($0.16) per share1 (Q3 2021: free cash outflow of $9.1 million or ($0.06) per share1).
  • Net loss of $3.9 million or ($0.03) per share (Q3 2021: Net income - $14.5 million or $0.10 per share) and Net loss (adjusted)1 of $3.9 million or ($0.03) per share (Q3 2021: $17.4 million or $0.12 per share)
  • Cash position at the end of the quarter of $24.7 million.
  • Cash costs1 of $1,628/oz or US$1,247/oz, an 52% increase over the same period in 2021 (Q3 2021: $1,072/oz or US$851/oz);
  • AISC1 increased by 48% to $2,217/oz or US$1,698/oz over the same period in 2021(Q3 2021: $1,495 or US$1,186 per ounce).
    1. Refer to the Company’s 2021 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the consolidated financial statements.



Production and Exploration Highlights		Achievements
Eagle River Complex
  • Q3 2022 Eagle River underground ore production decreased by 26% from Q3 2021 to 17,405 ounces due to lower head grade and throughput. In July, the mill performed a planned shutdown to refurbish its thickener, resulting in 15 days of downtime. Head grade at Eagle River in Q3 2022 averaged 10.7 g/t, which is within the revised 2022 grade guidance of 10.5 -11.7 g/t Au. Production was negatively impacted as two underground crews were sent off-site in September due to members testing positive for Covid.
  • Q3 2022 cash cost of $1,473 (US$1,128) per ounce of gold sold1 increased by 49% or $486 per ounce from Q3 2021 due to a 30% decrease in ounces sold, and a 4% increase in overall aggregate site operating costs resulting from higher costs incurred on operating development, improvements made to strengthen the technical and mine management team at site, general maintenance improvements, and inflationary pressures, driven by higher labour costs and an increase in commodity inputs, including higher fuel and energy costs.
  • Q3 2022 AISC of $2,259 (US$1,730) per ounce of gold sold1 increased by 56% or $808 per ounce from Q3 2021 due to a 30% decrease in ounces sold, a 32% increase in capital spending primarily resulting from the stage 5 tailings dam lift, and a 4% increase in overall aggregate site operating costs resulting from higher costs incurred on operating development, improvements made to strengthen the technical and mine management team at site, general maintenance improvements, and inflationary pressures, driven by higher labour costs and an increase in commodity inputs, including higher fuel and energy costs.
  • Generated a cash margin in Q3 2022 of $14.6 million compared to $34.2 million in Q3 2021 due to the 30% decrease in ounces sold, and the 4% increase in overall aggregate site operating costs.
  • The new 355 m level development is now complete along the western extent of the mine infrastructure. The development extends 400 m west of the mine into the volcanic rocks that host the Falcon 7 zone. This development provides drill platforms to test for gold mineralization near the Falcon 7 zone further along strike, and for parallel zones. In the future it will provide access for mining and will improve operational planning, as it is situated away from the main mining area at depth.
  • Most recently, surface, and underground drilling from the newly established 355 m level exploration drift, has defined the up-plunge extent of the Falcon 7 zone. Highlights of the recent drilling include 11.1 g/t Au over 3.0 m core length and 26.5 g/t Au over 2.0 m core length.
  • In addition, a number of drill holes have intersected mineralization in subparallel zones in the hanging wall of the Falcon 7 zone, including a recent hole that returned 40.3 g/t Au over 1.5 m. One hole, further to the west along strike from the Falcon 7 zone, near the historic 9 zone, returned 19.4 g/t au over 0.7 m.
 
  • Exploration drilling completed much further to the east, within the central portion of the mine diorite defined a new lens of gold mineralization. This lens is interpreted to be east of and along strike from the 7 Zone structure, which is host to the Falcon 7 zone further to the west in the volcanic rocks and the 7 zone currently being mined within the mine diorite. Recent highlights include 27 g/t Au over 4.6 m and 40.4 g/t Au over 3.0 m core length. This new lens will now be drilled and accessed from adjacent underground infrastructure along the previous mined 8 zone approximately 100 m to the south.
  • Additionally, initial surface drilling within the volcanic rocks, 150 metres east and down dip of the previously mined 2 Zone intersected altered volcanic rocks with quartz veining and VG. One hole returned 233.0 g/t Au over 0.4 metres.
Kiena
  • Generated $2.4 million in cash margin despite the high cash costs of $1,963 (US$1,504) per ounce of gold sold1 due to low pre-commercial production levels. Kiena performed a planned hoist refurbishment shutdown in July, which resulted in 24 days of downtime.
  • Now that the paste fill plant components have all been received, construction is being finalized and pre-commissioning activities have begun. Commissioning of the paste fill plant is still expected in Q4 2022. Pending completion of the paste plant in Q4, the Company will declare commercial production, which signifies that the required operational infrastructure is in place.
  • The ground conditions in Kiena Deep specific to the schist and komatiite in the footwall of the A Zone remain challenging and the global supply chain disruption continues to delay delivery of critical bolting equipment (originally planned to be delivered in March 2022), which has resulted in the development and mining rates being slower to ramp up than originally anticipated. Ramp-up activities at Kiena will continue during 2023 as the development deficit incurred is being addressed.
  • The recent discovery of the South Limb and Footwall zones show the underexplored exploration potential of the Kiena Deep Zone, and therefore, the potential to increase the number of ounces per vertical metre and to provide additional working faces during mining. The discovery of these zones highlights the potential to add ounces in additional zones in this area within the basalt and is the focus of the current drilling. We expect to report these results in the near future.
  • Underground drills are active on 33 level to test historic zones and encouraging drill results further to the southeast along strike from the Kiena mine.
  • From surface, drilling has focused on the Presqu’île Zone located 2 kilometres west of the Kiena Mine. Highlights include 24.3 g/t over 3.3 m core length and 30.0 g/t Au over 9.4 m core length. Given the significant upside that the Presqu’île zone could represent for Kiena, the Company is currently evaluating options to fast-track an exploration ramp from surface. It could also easily be connected to Kiena’s existing underground ramp network, providing access to surface for the existing operation.
  • To the east of the mine, surface drilling has been focused near the recent discoveries at the Shawkey and Bourgo zones and most recently at the historic Dubuisson zone. Recent drilling has intersected gold mineralization in albite altered diorites with tourmaline and gold, which is interpreted to be a different style and later stage of mineralization compared to Kiena Deep. We continue to focus our drilling in this area and will report results in the near term for this drilling. Given that these zones are relatively close to the existing 33 level development, these areas represent a potential additional source of ore for the Kiena mill.

Wesdome Gold Mines 2022 Third Quarter Financial Results conference call:

November 10, 2022 at 10:00 am ET. Registration is required.

Participant registration link:
https://register.vevent.com/register/BIa0c662c27f454f2e96c3c3beeea0d9d8

Webcast link:
https://edge.media-server.com/mmc/p/9m82jvc3

The webcast can also be accessed under the News and Events section of the Company’s website (www.wesdome.com)

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Frederic Langevin, Eng, Chief Operating Officer, a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects.

ABOUT WESDOME
Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently re-started Kiena mine in Quebec. The Company also retains meaningful exposure to the Moss Lake gold deposit in Ontario through its equity position in Goldshore Resources Inc. The Company’s primary goal is to responsibly leverage this operating platform and high-quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold producer. Wesdome trades on the Toronto Stock Exchange under the symbol “WDO,” with a secondary listing on the OTCQX under the symbol “WDOFF.”

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 St, 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 EndedNine Months Ended
  September 30, September 30,
  2022  2021  2022  2021 
Operating data        
Milling(tonnes)        
Eagle River 52,247  56,003  165,428  172,600 
Mishi 3,595  3,727  23,153  30,293 
Kiena 16,112  30,470  63,752  30,470 
Throughput2 71,954  90,200  252,333  233,363 
Head grades (g/t)        
Eagle River 10.7  13.4  10.6  13.8 
Mishi 2.8  2.3  3.2  2.4 
Kiena 10.2  5.8  9.5  5.8 
Recovery (%)        
Eagle River 96.6  97.9  96.6  97.5 
Mishi 83.0  78.0  83.5  81.4 
Kiena 98.5  97.9  98.4  97.9 
         
Production(ounces)        
Eagle River 17,405  23,621  54,495  74,853 
Mishi 270  212  2,005  1,920 
Kiena 5,208  5,511  19,234  5,511 
Total gold produced2 22,883  29,344  75,734  82,284 
Total gold sales(ounces)4 27,500  30,000  81,500  80,957 
         
Eagle River Complex(per ounce of gold sold)1      
Average realized price$2,247 $2,254 $2,343 $2,240 
Cash costs 1,473  987  1,377  966 
Cash margin$774 $1,267 $966 $1,274 
All-in Sustaining Costs1$2,259 $1,451 $1,989 $1,413 
         
Mine operating costs/tonne milled1$475 $388 $412 $347 
         
Average 1 USD → CAD exchange rate 1.3056  1.2600  1.2828  1.2513 
         
Cash costs per ounce of gold sold (US$)1$1,128 $783 $1,073 $772 
All-in Sustaining Costs (US$)1$1,730 $1,152 $1,551 $1,129 
         
Kiena Mine (per ounce of gold sold)1        
Average realized price$2,244 $2,209 $2,314 $2,209 
Cash costs3, 5 1,963  1,844  1,746  1,243 
Cash margin$281 $365 $568 $966 
All-in Sustaining Costs1, 3, 5$2,126 $1,891 $1,941 $1,288 
         
Mine operating costs/tonne milled1$869 $335 $643 $335 
         
Average 1 USD → CAD exchange rate 1.3056  1.2600  1.2828  1.2513 
         
Cash costs per ounce of gold sold (US$)1$1,581 $1,463 $1,361 $993 
All-in Sustaining Costs (US$)1$1,628 $1,501 $1,513 $1,029 
         
Financial Data        
Cash margin1$16,993 $35,307 $69,208 $97,673 
Net income$(3,899)$14,486 $(11,179)$106,526 
Net income adjusted1$(3,899)$17,408 $(2,329)$45,141 
Earnings before interest, taxes, depreciation and amortization1$4,814 $31,848 $34,308 $87,964 
Operating cash flow$12,945 $33,890 $54,939 $82,798 
Free cash flow$(23,193)$(9,087)$(58,565)$(18,119)
Per share data        
Net income$(0.03)$0.10 $(0.08)$0.76 
Adjusted net income1$(0.03)$0.12 $(0.02)$0.32 
Operating cash flow1$0.09 $0.24 $0.39 $0.59 
Free cash flow1$(0.16)$(0.06)$(0.41)$(0.13)
         


  1. Refer to the Company’s 2021 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the consolidated financial statements.
  2. Totals for tonnage and gold ounces may not add due to rounding.
  3. YTD 2021 includes a $0.4 million charge for product inventory costs from the sale of 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020.
  4. YTD 2021 includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020
  5. In determining the Cash cost per ounce and AISC per ounce, the total ounces sold includes 1,793 ounces of gold from the Kiena bulk sample, which was processed in Q4 2020 and sold in Q1 2021.


Wesdome Gold Mines Ltd.
Condensed Interim Statements of Financial Position
(Unaudited, expressed in thousands of Canadian dollars)

    
 As at September 30, 2022 As at December 31, 2021
Assets   
Current   
Cash and cash equivalents$24,741  $56,764 
Receivables and prepaids 10,327   13,793 
Inventories 19,338   17,918 
Income and mining tax receivable 3,870   - 
Share consideration receivable -   4,560 
Total current assets 58,276   93,035 
    
Restricted cash 1,176   657 
Deferred financing costs 1,570   758 
Mining properties, plant and equipment 207,377   212,394 
Mines under development 294,525   214,089 
Exploration properties 1,139   1,139 
Marketable securities 600   1,860 
Share consideration receivable 4,565   10,729 
Investment in associate 9,534   19,058 
Total assets$578,762  $553,719 
    
Liabilities   
Current   
Payables and accruals$59,334  $40,093 
Borrowings 27,414   - 
Income and mining tax payable -   5,490 
Current portion of lease liabilities 6,985   7,789 
Total current liabilities 93,733   53,372 
    
Lease liabilities 4,004   6,786 
Deferred income and mining tax liabilities 73,981   77,195 
Decommissioning provisions 18,824   21,191 
Total liabilities 190,542   158,544 
    
Equity   
Equity attributable to owners of the Company   
Capital stock 192,753   187,911 
Contributed surplus 6,501   5,859 
Retained earnings 190,466   201,645 
Accumulated other comprehensive loss (1,500)  (240)
Total equity attributable to owners of the Company 388,220   395,175 
Total liabilities and equity$578,762  $553,719 
    


Wesdome Gold Mines Ltd.
Condensed Interim Statements of Income/(Loss) and Comprehensive Income/(Loss)
(Expressed in thousands of Canadian dollars except for per share amounts)

 Three Months Ended Nine Months Ended
 September 30, September 30,
  2022   20211   2022   20211 
        
Revenues$61,823  $67,548  $190,448  $177,402 
Cost of sales (56,294)  (39,636)  (152,374)  (99,674)
Gross profit 5,529   27,912   38,074   77,728 
        
Other expenses       
Corporate and general 2,918   2,565   9,514   7,797 
Stock-based compensation 823   558   2,453   2,071 
Exploration and evaluation 5,273   -   12,442   - 
Reversal of impairment charges -   -   -   (58,563)
Impairment charge on exploration properties -   4,394   -   7,507 
Loss (gain) on disposal of mining equipment 74   (3)  62   (3)
Total other expenses (income) 9,088   7,514   24,471   (41,191)
        
Operating (loss) income (3,559)  20,398   13,603   118,919 
        
Gain on sale of Moss Lake exploration properties -   -   -   34,330 
Impairment of investment in associate -   -   (11,800)  - 
Fair value adjustment on share consideration receivable (1,552)  (612)  (7,391)  909 
Interest expense (588)  (325)  (1,167)  (855)
Accretion of decommissioning provisions (239)  (176)  (618)  (410)
Share of income (loss) of associate 155   (15)  (388)  (104)
Loss on dilution of ownership (35)  -   (669)  - 
Other (expense) income (1,420)  464   (1,363)  (239)
(Loss) income before income and mining taxes (7,238)  19,734   (9,793)  152,550 
        
Income and mining tax (recovery) expense       
Current 325   3,309   4,601   8,655 
Deferred (3,664)  1,939   (3,215)  37,369 
Total income and mining tax (recovery) expense (3,339)  5,248   1,386   46,024 
        
Net (loss) income$(3,899) $14,486  $(11,179) $106,526 
        
Other comprehensive loss       
Change in fair value of marketable securities (360)  -   (1,260)  - 
Total comprehensive (loss) income$(4,259) $14,486  $(12,439) $106,526 
        
        
(Loss) earnings per share       
Basic$(0.03) $0.10  $(0.08) $0.76 
Diluted$(0.03) $0.10  $(0.08) $0.75 
        
Weighted average number of common       
shares (000s)       
Basic 142,487   140,432   142,260   139,872 
Diluted 142,487   143,069   142,260   142,653 
        
  1. Q3 2021 has been restated to correct an error in the valuation of the share consideration receivable related to the sale of the Moss Lake Project which closed on May 31, 2021.  The proceeds have been restated to $44.7 million from $49.5 million, which has decreased the gain on sale of the Moss Lake properties to $30.2 million (net of tax of $4.1 million) from $34.6 million (net of tax of $4.5 million).  The Q3 2021 net income has decreased by $0.9 million resulting from the mark-to-market of the share consideration receivable.  Basic earnings per share for Q3 2021 changed from $0.11 to $0.10 per share and basic earnings per share for Q3 YTD 2021 changed from $0.79 to $0.76 per share.


Wesdome Gold Mines Ltd.
Condensed Interim Statements of Changes in Equity
(Unaudited, expressed in thousands of Canadian dollars)

       Accumulated  
       Other  
 Capital Contributed Retained ComprehensiveTotal
 Stock Surplus Earnings1 Loss Equity1
          
Balance, December 31, 2020$179,540  $6,472  $70,357  $-  $256,369 
Net income for the period ended         
September 30, 2021 -   -   106,526   -   106,526 
Exercise of options 3,045   -   -   -   3,045 
Value attributed to options exercised 1,478   (1,478)  -   -   - 
Value attributed to RSUs exercised 786   (786)  -   -   - 
Stock-based compensation -   2,071   -   -   2,071 
Balance, September 30, 2021$184,849  $6,279  $176,883  $-  $368,011 
          
          
Balance, December 31, 2021$187,911  $5,859  $201,645  $(240) $395,175 
Net loss for the period ended         
September 30, 2022 -   -   (11,179)  -   (11,179)
Other comprehensive loss -   -   -   (1,260)  (1,260)
Exercise of options 3,031   -   -   -   3,031 
Value attributed to options exercised 1,173   (1,173)  -   -   - 
Value attributed to RSUs exercised 638   (638)  -   -   - 
Stock-based compensation -   2,453   -   -   2,453 
Balance, September 30, 2022$192,753  $6,501  $190,466  $(1,500) $388,220 
          
  1. See footnote in the condensed interim statements of income/(loss) and comprehensive income/(loss) for details of the restatement in Q3 2021.


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

 Three Months Ended September 30, Nine Months Ended September 30,
  2022   20211   2022   20211 
        
Operating Activities       
Net (loss) income$(3,899) $14,486  $(11,179) $106,526 
Depreciation and depletion 11,464   7,395   31,134   19,945 
Stock-based compensation 823   558   2,453   2,071 
Accretion of decommissioning provisions 239   176   618   410 
Deferred income and mining tax expense (3,664)  1,939   (3,215)  37,369 
Amortization of deferred financing cost 99   104   268   328 
Interest expense 588   325   1,167   855 
Reversal of impairment charges -   -   -   (58,563)
Gain on sale of Moss Lake exploration properties -   -   -   (34,330)
Impairment charge on exploration properties -   4,394   -   7,507 
Loss (gain) on disposal of mining equipment 74   (3)  62   (3)
Impairment of investment in associate -   -   11,800   - 
Fair value adjustment on share consideration receivable 1,552   612   7,391   (909)
Share of (income) loss of associate (155)  15   388   104 
Loss on dilution of ownership 35   -   669   - 
Foreign exchange loss (gain) on borrowings 1,569   64   1,460   (15)
Net changes in non-cash working capital 6,978   6,638   25,884   9,677 
Mining and income tax paid (2,758)  (2,813)  (13,961)  (8,174)
Net cash from operating activities 12,945   33,890   54,939   82,798 
        
Financing Activities       
Proceeds from revolving credit facility 25,928   -   40,884   - 
Repayment of revolving credit facility -   -   (14,810)  - 
Exercise of options -   1,814   3,031   3,045 
Deferred financing costs (1,079)  (5)  (1,079)  (339)
Repayment of lease liabilities (2,300)  (1,877)  (6,731)  (5,277)
Interest paid (588)  (325)  (1,167)  (855)
Net cash from (used in) financing activities 21,961   (393)  20,128   (3,426)
        
Investing Activities       
Additions to mining properties (11,058)  (12,620)  (24,380)  (30,492)
Additions to mines under development (22,780)  (27,481)  (82,393)  (40,882)
Additions to exploration properties -   -   -   (23,267)
Purchase of exploration property -   (1,000)  -   (1,000)
Cash proceeds on sale of Moss Lake, net of transaction costs -   -   -   11,762 
Funds held against standby letter of credit (25)  -   (519)  - 
Proceeds on disposal of mining equipment 182   73   202   73 
Net changes in non-cash working capital -   9,205   -   10,427 
Net cash used in investing activities (33,681)  (31,823)  (107,090)  (73,379)
        
Increase (decrease) in cash and cash equivalents 1,225   1,674   (32,023)  5,993 
Cash and cash equivalents - beginning of period 23,516   67,799   56,764   63,480 
Cash and cash equivalents - end of period$24,741  $69,473  $24,741  $69,473 
        
Cash and cash equivalents consist of:       
Cash$24,741  $69,473  $24,741  $69,473 
 $24,741  $69,473  $24,741  $69,473 
        

 

  1. See footnote in the condensed interim statements of income/(loss) and comprehensive income/(loss) for details of the restatement in Q3 2021.


PDF available: http://ml.globenewswire.com/Resource/Download/6a2d82ea-6558-41df-b7e7-d6fdd9cf73b7


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