Wesdome Gold Mines (WDOFF) 13 May 212021 Q1 Earnings call transcript

Good morning and welcome to Wesdome Gold Mines first quarter financial results conference call. I will now hand it over to Heather Laxton to begin today.

Excellent. Thanks operator and good morning everyone. Thanks for joining us today.

statements. would during take discuss this outlook make we remind opportunity our begin, and that everyone call, forward-looking we like this to to business Before we will and These expectations comments on are our as today. based of predictions XXXX. company's to dated in Actual to materially and yesterday's uncertainties, those press a cause detailed May the the and due mentioned risks release differ in events management of cautionary could analysis or including results XX, discussion outcomes and number note in contained are our on documents SEDAR. Both and on available website advised that financial flow in be that reclassify this Please used the morning, cash QX statement an we interim from impacts to cash activities. refiled operations and in order investing entry cash at impact correction of not This the balance does the our end quarter. financial correctly the figures and This was statements an only reported release and both isolated were the MD&A. press the these transcription in in error We apologize any inconvenience. for figures call otherwise note on stated. Please in unless discussed all Canadian dollars that this are used posted this and for a The company's presentation of the on recording this slides be will call website. it's And over Investor Relations. VP of now, Lindsay Dunlop, to

Heather morning everyone. good Thanks and Great.

Here have President CEO. Duncan we with and Middlemiss, us today

morning. Good

Chief Financial Scott Gilbert, Officer.

everybody. Hello

Marc-Andre Pelletier, Chief Operating Officer.

is Marc-Andre. This Hello.

Michaud, Mike Exploration. President, Vice

Good morning.

Raj Gill, Development. Vice And President, Corporate

morning. Good

will review followed a an and outlook. from review ahead. an with go by Duncan Then begin Mike. exploration from with Marc-Andre, Scott. And from a summary today financial update finally, We conclude operational will Marc, please

tons the grade and fan this on the haulage at grade continue pressure and increased benefit X,XXX are surface. began bottom by ventilation tons. another year the lower increase we at as beginning through upgrades the grams the we grade stope second QX surface the in than the to we a the of day we XXX XXX particularly with see track on budget, ended per quarter of new the Mill Lindsay. will of quarter We as ton started during commission surface preparing the are year throughput at sequencing average Grades to zone. XX.X Thanks year Eagle and the steadily or in ore allowing to to underground per high truck a slightly lower due as mine. stockpile add on of stope the of Head us

the close now bottom processed also are X% We workplace XXXX take ore A per ore. would in to very the mine accomplishment was derisk end, mill This the significant medium of Zone, development mine. in very because us getting exclusively and to QX underground open this that additional Eagle stope term year. the high-grade with in that ore the plan To in the stockpile all filling QX, production We out to a at Also mined will the from diversifying was objectives will of processed our milestone ore with an sold capacity reach Mishi allow as Falcon we step the bulk of the last PFS an the results not provide from more important will ounces X,XXX sample quarter. to Kiena exciting of this release compared reserve review producing and we asset single later year. the the that to over financials. We can high-grade gold company producing gold recovered Deep company. refining model mines wait Scott two and a grade. from obviously be

of from on and cash CADX.X at on million operating We The which per growth complex. to average in production. ounce per of million and income We The to spent AISC remains was balance capital higher was per CADXX CADX,XXX the CADXX.X year gold million and due higher planned revenue at cash CADXX.X CADX.X ounce, one-time CADX.XX Earnings the million. in CADX,XXX flow. for were infrastructure, cash rest and realized the Eagle Kiena development, equipment share. the million was River. some increase or We production capital at lower includes net sold fleet River Eagle generated are cost higher surface price be an at costs ounce ounces should guidance of generate CADX,XXX CADXX to of million in due CADXX million which than Mark. Thanks gold which of expenditures. XX,XXX The per

We are guidance. tracking to achieve

Now to of a Mike review for exploration.

time level. Thanks now known gold that including Also, the Eagle mineralization the commence rocks. QX, gold been initial Scott. and sill X,XXX the Falcon XXXE an Exploration volcanic extended expected zone for mineralization, is mine thereby Zone to drilling to in continues has River high-grade to the first development at continues in to the the within expand of drilling the assess opportunity zones meter definition the providing exciting

that for drilling with West continuing are in diorite. Zone to is A exciting XXX the year. of adjacent XXX,XXX is again results. the ongoing to meters transitioned rocks host a years. discovery the and being along from mine of mine rocks, the diorite continue the excess what develop into of potential the we of independent and this completed volcanic highlighting mineralization. a in regional In seven provide this And margin to zone surface of up completed quarter geology aid Kiena, from new anomalous gold exploration the Meanwhile, meters the XXXX. exploration. Zone. very In This drilling of on the to structural East the returned both of have explore the comprehensive XX are mafic drilling to within total, values At of analysis has announced March, remains a planned footwall western we next great spectacular several follow drills the priority Brownfields West exploration for Additionally,

use discovery drilling penetrate more new XX.X wedges effectively drilling core resulted gold of drilling XX drills One platforms, the hole of optimal in returned ton to For time, over grams permitted practices footwall zones the of and of and improved two area least first the at the length. mineralization. per high-grade meters the

well additional illustrates per add the ounces of of in to ounces, this project focus gold overall untested vertical highlights drilling have the this three the resource on could this a high-grade currently as Kiena very major proving out this base the impact days, meter there Zone positive early and a the the only zone. discovery to dedicated it's around This potential area mine. not significant Although as economics. rigs the Obviously, year's of A potential are system entire for drilling area potential remains further but and this new the

drilling to but this on at mine also we the focused the In not targets C prospective addition and expansion, area. zones, discovery, B, within the A at only new have other

several zones. At instance, this per of the seven hole mineralized gold has XX drilling ton resource exploration successfully Zone, This size around returned core for grams not ton over part true A base. meters initial of focus, As length of is in current XX grams one meters or over width. per expanded XX.X the the known gold

in resource to any through future contribute area this drilling expected ounces is updates. Continued

have year of We test test drilling to these many targets. in targets to and explore of place XX,XXX in have meters this program an underground excess aggressive

XXXX to regional flow. program year meters previously exciting interpreted Zone. an are plunge We mined start to and the on news of exploration targets B exploration the expected with is excited to is The XX,XXX S-XX underexplored Zone, Over of you, test down as good ongoing surface. surface extension the from consists Raj. Overall, which

Mike. Thanks

closing in to Lake aggressively has in value, team approximately headline alongside cash and marketing million at equity close are the explores pre-listing. initial XX% Goldshore Moss QX. stake worth the and million the We million Duncan. are the to CADXX on confident you, and CADXX transaction package received Of Goldshore's will receive shareholder been we expect in CADXX.X shareholders a to well Moss updates as resource. benefit very Over we that Lake track Wesdome land

has feed with of positive and produced bulk reconciliation it gram XX.X to more progress quick ton developments, which model. gram in mainly the of block predicted has X% We A active completed towards the restart the at gold year the Thanks at Zone resource XX.X a In made many exploration grade sample, the an versus Raj. per summary, Kiena. was which the start been exciting

will decision. set sell a have gold to which XXX,XXX grade track despite operational to mine Kiena PFS way exciting on increase we generated each mid-tier pandemic. was to and to future. our realizing are by in programs release for million, at flow, cash and in quarter, are coming of and on on the as continued the over made all their ounces initial next fully the later per daily cash Eagle challenges flow also year. a Free along positive development improve the Eagle, we to generation the is towards completion the restart majority in company's gold operating producing year, quarters results high-grade cash expect significant healthy operating producing the of This And way Canada, mines the we efficiency and goal very Kiena. on with of this tonnage Canada's to of as the our first and decision end we increases becoming two get this the the improvements restart of funded rates quarter. produce With from In We strides and underground reinvested CADXX ounce At in time make the exploration at our of based to producer. year a

held this despite X meeting closes current commitment pre-register employees quarter. at the Moss in get all has The on would website. million Toronto, again all thank this meeting our Eastern also order treasury diligence of very to and top-up be their year. virtually when shareholders for the to this well conducted We company will to will At annual I upcoming I invite pandemic. challenges Due June stakeholders to the like the XX:XX on safety. global Please stay-at-home the would of CADXX.X once also available using about performed time, the the transaction into general AM Lake our link later the like and Time.

up open Operator, the question-and-answer session. We will ahead. for go the call please now

Instructions]. [Operator

question first Industrial from from of line comes Your Alliance. George the Topping

line Your open. is

Marc-Andre, this Great. Duncan I one. Thank for think or you.

So us the expect for can stope do that? there into to the your When on to and just to put you do expectations on ahead drilling from you there? On of timeline that and the bring some Falcon, update development production production? see when expect

that, will let Marc I take George. Yes.

This Marc. George. morning is Good

think mine the get know, a that We following months you for this been restart. three very the at to year of within we have bring as formal Kiena decision restart. into can So that prepared active Kiena production mine it we

was Falcon not, George Were think you talking Zone. I the George? about

yes. Zone, Falcon The

I yes. for Zone, Falcon apologize that.

Okay.

actually, So this that to going developing, be quarter George. plan in we are we

close to that. getting So are we very

Very good.

can year year. this quarter some for the the from I if add on, as coming the we remaining of production we third in see the And likewise see Falcon

quite I right. would slow figure tons. it hundred All few be buildup

is Zone Falcon than ton development. less XX,XXX the key The Actually thing the year. Yes. this for

development are We of have basically year up this the Falcon the setting production about XXX and meter from we the in Zone. XXXX budget for

starting I And Great. the XXXX there? will you is on visibility ramp-up might be the closer. better hope Kiena XXXX, looking Have of got in it QX. what forward terms getting production you in you

Absolutely. Yes.

Have you report? from this technical changed anything

I footwall I interesting But some George, have to in are quite referring in to TA, some there. certainly we Kiena stress changes. able and been until have the other overall And are with the discovery that are and we this. at guess targets of think release how we the terms don't to want of particulars, down would say look that the we I is From satisfied generate positive did you Yes, get I into they course, to? moving. there's I ramp-up. that

kind have So really we down per likely baseload at set ounces the really, of the are of have. sort resource view that that of vertical to that meter really December was our over XXXX, increase right. It we

I more just am pay? And But Are to Yes. talking is, and everybody used concerned underground it that. steel hand last mean you work know question the inflation. get wages to all about and wages. about We that people cost, over I the you then finding of the before is come it to difficult I at

competitive. damp say, probably probably the hardest underground kind It is an no drills would is been Definitely, really able What fill we from. This is that fortunate of prospective. seeing But one entered in we about a is an And broad Canada, a the our in phase, there is of the more it for be from one now in North of mining to ore draw of whether XXXX, so doubt is we supercycle but this Again, because we is it. of areas for activity. over There to sort America, of probably demand needs number no drillers. talent getting I commodities in XXXX it. no a demand right mining center and XXXX far diamond are this diamond it about Abitibi in terms competitive, me reminds certainly it's to right of there doubt have and Baldor are right sort does the George. the great aspect remains, very That that. now. pool of when is

Good. it. Got

Thanks Okay. everyone.

Thanks George

next Andrew Markets. Mikitchook line of You comes the BMO question from Capital from

is Your open. line

a I [indiscernible]. TA had last CapEx. just The question from Kiena relatively for nominal had a

are have guidance You guys updates by already you the will through this? how Kiena. Can much progress to spent recent are you us [indiscernible]. you official have making to or giving of on diligently a in CADXX how time Just any an on us are may advancing position start million give the have spent

Exactly. Yes.

our we But officially parallel activities up say, commercial into I the of some us well set obviously, exploration, exploration have to for, does not we been doing production Andrew, know, this you rather are advance continue production. getting that things quickly. period, certainly through would As commercial

things focus development, year this Zone the in been tailings of so So ramp of the far majority of able A is the management the is it that some continued terms course, beneath have really development, facility, to like key of we us. as underground course do, being the is the of

activities. essentially, So the are those

of to now would through don't advance In But CADXX that along in quarter terms that progressing pivot we subsequent of the quickly able what seen I production but can the what I we the a expiration. to commercial we lines for the number been for accomplish are think you right have almost. million, have

that in obviously Zone. the of for, So having is be area A set we will up there without the would restart sample sort and really basis to say, access I bulk early

So shape. we are in good

December say, going obviously or safe no up. on is your It's indication that to is Good. risk there part

decreasing been, have You anything, if Is that fair? number. that

there Andrew. As likely are of we couple we quite is this have changes, now. been spending, where with yes, right comfortable we I no, scope on mean stand But

Thanks very much. the quarter. on Congratulations

Thanks.

call. conference today's concludes This

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