Connect with us

Today’s News

Wesdome Announces 2021 Third Quarter Financial Results

Kiena Progresses Towards Commercial ProductionTORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)…

Published

on

Kiena Progresses Towards Commercial Production

TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces third quarter (“Q3 2021”) financial results. All figures are stated in Canadian dollars unless otherwise noted.

Achievements for Q3 include:

  • Eagle River Complex production of 23,833 ounces Au and YTD production of 76,773 ounces Au sets up well for achieving mid to high end of 2021 guidance (92,000 ounces Au – 105,000 ounces Au)
  • Kiena pre commercial production of 5,511 ounces ramping up as planned. Good progress made on Tailings Management Facility enhancements, Paste Fill Plant construction, and mobile equipment procurement advancing this asset towards commercial production status
  • The company remains well funded with $69.5 M of cash on hand which allows for organically funding the Kiena restart and aggressive company wide exploration program   

Mr. Duncan Middlemiss, President and CEO commented, “During the quarter, the Company completed a significant milestone with the successful restart of the Kiena mill, the commencement of underground mining, and the increase in mine construction activities associated with the mine restart. The restart at Kiena has been entirely internally funded, with no debt or dilution to the Company. We produced 5,511 pre-commercial production ounces, and expect 2021’s total production from the asset to be within guidance range of 15,000 – 25,000 ounces. As expected, due to initial start up focused on the lower grade S50 zone, located closest to existing development, Kiena cash costs of $1,844 (US$1,463 per ounce) and AISC of $1,891 (US$1,501) per ounce, are not reflective of the asset long term. We expect to be in full commercial production at this asset in Q2 2022. As we continue to ramp up our production, we continue to expect costs to trend downward.

At Eagle, cash costs of $987 (US$783) per ounce and AISC of $1,451 (US$1,152) per ounce were within our guidance range. Operating cash flows were $33.9 million or $0.24 per, and cash margin was $35.3 million. Free cash outflow of $9.1 million was incurred, net of an investment of a $41.1 million investment into the operations, including $27.5 million at Kiena. Year to date, production at Eagle River of 76,773 ounces, leaves us very well positioned to meet the mid to high point of our guidance range of 92,000 ounces – 105,000 ounces.

With the higher costs realized in Q3 from the Kiena start up, year to date combined cash costs of $983 (US$785) per ounce and AISC cost of $1,406 ($US1,123) are slightly above our US cost guidance range of $900 – $1,000 (US$680 – $770) per ounce for cash costs and $1,300 – $1,450 (US$980 – $1090) per ounce AISC. The Kiena costs are pre-commercial production and we expect to achieve full year production guidance. We expect reductions in unit costs as Kiena comes progresses towards commercial production, expected mid next year.

Q3 2021 was a very successful quarter in terms of achieving our stated corporate goals. We now are on the path to having our second operating high-grade underground gold mine, de-risking the Company’s single asset producer status, and bringing us that much closer to our objective of becoming Canada’s next intermediate gold producer.”

The Company also announces today the resignation of Marc-Andre Pelletier, Chief Operating Officer, effective January 15, 2022. Marc will be pursuing another opportunity in a more senior role, a natural progression in his career trajectory. We wish to sincerely thank him for his extensive contributions to the Company, and his key role in the reopening of the Kiena mine, and wish him all the best in his new endeavour.”

Key operating and financial highlights of the Q3 2021 results include:

  • Gold production of 29,344 ounces, which includes 5,511 Kiena pre-commercial ounces, is a 47% increase over the same period in the previous year (Q3 2020: 20,008 ounces):
    • Eagle River Underground 56,003 tonnes at a head grade of 13.4 grams per tonne for 23,621 ounces produced, 22% increase over the previous year (Q3 2020: 19,319 ounces).
    • Mishi Open Pit 3,727 tonnes at a head grade of 2.3 g/t Au for 212 ounces produced (Q3 2020: 689 ounces).
    • Kiena 30,470 tonnes at a head grade of 5.8 grams per tonne for 5,511 pre-commercial ounces produced.
  • Revenue of $67.5 million, a 23% increase over the previous year (Q3 2020: $55.0 million).
  • Ounces sold were 30,000 at an average sales price of $2,249/oz (Q3 2020: 21,700 ounces at an average price of $2,532/oz).
  • Cash margin1 of $35.3 million, a 10.0% increase over Q3 2020 (Q3 2020 – $32.1 million).
  • Operating cash flows increased by 33% to $33.9 million or $0.24 per share1 as compared to $25.6 million or $0.18 per share for the same period in 2020.
  • Free cash outflow of $9.1 million, net of an investment of $27.5 million in Kiena, or ($0.06) per share1 (Q3 2020: free cash flow of $3.3 million or $0.02 per share).  
  • Net income of $15.3 million or $0.11 per share (Q3 2020: $14.6 million or $0.10 per share) and Net income (adjusted)1 of $18.3 million or $0.13 per share (Q3 2020: $14.6 million or $0.10 per share).  
  • Cash position increased to $69.5 million compared to $67.8 million in the previous quarter.
  • Cash costs1 of $1,072/oz or US$851/oz, a 2% increase over the same period in 2020 (Q3 2020: $1,052/oz or US$790/oz) due to the inclusion of the higher cost Kiena pre-commercial ounces ($1,844 (US$1,463) per ounce), which increased the cash cost per ounce sold by $85 (US$67) per ounce;
  • All-in sustaining costs (“AISC”) 1 increased by 7% to $1,495/oz or US$1,186/oz (Q3 2020 – $1,395 (US$1,047) per ounce) due to the inclusion of the higher cost Kiena pre-commercial ounces ($1,891 (US$1,501) per ounce), which increased the AISC per ounce sold by $44 (US$35), combined with higher sustaining capital, corporate and general expenses and lease payments.
1 Refer to the Company’s 2021 Third Quarter Management Discussion and Analysis, section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements. 

 

Production and
Exploration Highlights
Achievements
Eagle River
  • Q3 2021 Eagle River production increased by 22% from Q3 2020 to 23,621 ounces of gold, due to a 25% increase in total throughput; offset partially by a 3% decrease in head grade. Head grade at Eagle River in Q3 2021 averaged 13.4 g/t.
  • Q3 2021 Cash cost of $987 (US$783) per ounce of gold sold1 decreased by 6% or $66 from Q3 2020 primarily due to a 24% increase in ounces sold.
  • Q3 2021 AISC of $1,451 (US$1,152) per ounce of gold sold1 increased by 6% or $56 from Q3 2020 primarily due to higher mine development and infrastructure spending; partially offset by a 24% increase in ounces sold.
  • Generated $34.2 million in cash margin in Q3 2021 compared to $32.1 million in the same period in 2020, despite the average realized Canadian gold price being 11% lower at $2,249/oz (Q3 2020 – $2,532/oz).
  • The Eagle River underground ore processed was slightly lower in Q3 2021 due to two weeks of scheduled downtime for the installation of a new cone crusher and the annual mill maintenance. Production in Q4 is expected to increase to 650 tpd as no project maintenance downtime is planned. Ventilation improvements continue at depth, which has increased the air flow in the deepest section of the ramp area. Production from the Falcon Zone started late in Q3 and will continue in Q4, providing a new high-grade area.   Initial sill development has been completed on the Falcon 7 zone on the 622 and 635 levels in support of the current mining. Chip sampling and test holes taken on these two horizons during the initial development confirms earlier exploration drill results by returning high gold grades over continuous strike length. 622 level chip sampling yielded 54.3 grams of gold per tonne (g/t Au) (uncapped) and 37.9 g/t Au (capped at 125 g/t Au) over an average thickness of 2.1 metres (m) over a continuous strike length of 75.6 m. Also, 635 level chip sampling yielded 67.3 g/t Au (uncapped) and 34.3 g/t Au (capped) over an average thickness of 1.9 m over 61.0 m. Additionally the Company is continuing to develop and explore the 311 West Zone along the western margin of the mine diorite. The zone has transitioned from the diorite into the adjacent mafic volcanics, again highlighting the potential of the volcanic rocks to host gold mineralization, similar to that observed at the neighbouring Falcon 7 zone.
  • Additional underground exploration is ongoing further to the east of the current mining areas, in the east-central area of the mine, to test for parallel zones north of the historic 8 and 6 zones. A comprehensive structural study has been completed and is being utilized to assist the exploration targeting.
  • Surface drilling is ongoing with 2 drills both east and west of the mine to follow up on anomalous values returned from the regional drilling program in 2020.
Kiena
  • During Q3 2021, operations at the Kiena Mine commenced, producing 5,511 ounces from the lower grade S-50 zone. The mill start-up in July went according to plan with no major issues. Mine operations were halted for 18 days in September for upgrading of the hoist system which has now been completed. Progress on the paste fill plant and tailings management area construction is on schedule. All key mobile equipment has been ordered and we have already received four underground haulage trucks with the remainder of the equipment scheduled to arrive by Q2 of 2022.
  • Total throughput was 30,470 tonnes or 331 tpd and the head grade averaged 5.8 g/t.
  • Generated $1.1 million in cash margin despite the high cash costs of $1,844 per ounce of gold sold1 due to low pre-commercial production levels.
  • Late in Q3, first stope production began at the higher grade A Zone, and this is expected to increase significantly in the coming quarters. The reconciliation of the A zone bulk sample that was processed in Q4 2020 recovered 6% more gold than the MRE with a feed grade of 15.7 g/t Au versus model grade of 14.7 g/t Au. Total gold produced from the 7,032 tonnes milled was 3,479 ounces with gold recovery in the Kiena mill of 98.2%.
  • The new Footwall Zone was initially announced in March of this year. To date, the Footwall Zone is defined by new intersections of gold mineralization located within a 50 metre (‘m’) wide corridor adjacent to the footwall of A2 Zone. The Footwall Zone corridor remains open laterally and down plunge. The location of new gold intercepts in recent holes suggest that the Footwall Zone extends over 300 m along plunge. The deepest hole returned 41.2 g/t Au (uncapped) over 51.2 m core length.
  • Ongoing drilling also continues to better define and expand the Kiena Deep A Zone predominantly along the lateral extensions of the zone. The high grades intersected will be included in future resource updates. One hole returned 132.1 g/t Au over 7.4 m core length (27.6 g/t Au capped, 3.9 m true width) A Zone.
  • Initial surface drilling has focused on the Presqu’ile and Shawkey areas located northwest and southeast of the Kiena Mine, respectively. Since July 2021, two drills on barges have been testing the continuity of some gold anomalies in the Jacola Formation which host the Kiena mine. Recent drilling at Presqu’ìle zones returned 1515.0 g/t Au over 0.5 m core length.
  • Wesdome finalized the purchase of the Tarmac Gold Property from Globex Mining Enterprises. The Property consists of 6 claims covering 94 hectares located entirely within Wesdome’s Kiena Mine Complex and less than 2 kilometers northeast of the Kiena underground mine, all located beneath Lac De Montigny.

 

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng, Chief Operating Officer, and Michael Michaud, P.Geo., Vice President, Exploration of the Company and each a “Qualified Person” as defined in National Instrument 43-101 –Standards of Disclosure for Mineral Projects.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “SEC”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

Wesdome Gold Mines 2021 Third Quarter Financial Results Conference Call

November 11, 2021 at 10:00 am ET

North American Toll Free: + 1 (844) 202-7109
International Dial-In Number: +1 (703) 639-1272
Conference ID: 1534619
Webcast link: https://edge.media-server.com/mmc/p/8rk2xyk3  

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

ABOUT WESDOME
Wesdome is Canadian focused with two producing underground gold mines.  The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Québec.  The Eagle River Underground Mine in Wawa, Ontario is currently producing gold at a rate of 92,000 – 105,000 ounces per year.    The Kiena Complex is a fully permitted mine with a 930-metre shaft and 2,000 tonne-per-day mill, and a restart of operations was announced on May 26, 2021.  The Company has completed a PFS in support of the production restart decision. Wesdome is actively exploring both underground and on surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Company also retains meaningful exposure to the Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario through its equity position in Goldshore Resources Inc. The Company has approximately 140.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

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
[email protected]   [email protected]
     
     
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 Ended Nine Months Ended
    September 30,   September 30,
    2021   2020   2021   2020
Operating data                
Milling (tonnes)                
Eagle River   56,003   44,667   172,600   142,890
Mishi   3,727   11,533   30,293   36,301
Kiena   30,470   0   30,470   0
Throughput 2   90,200   56,200   233,363   179,191
Head grades (g/t)                
Eagle River   13.4   13.8   13.8   15.1
Mishi   2.3   2.5   2.4   2.7
Kiena   5.8   0.0   5.8   0.0
Recovery (%)                
Eagle River   97.9   97.7   97.5   97.6
Mishi   78.0   74.7   81.4   77.8
Kiena   97.9   0.0   97.9   0.0
                 
Production (ounces)                
Eagle River   23,621   19,319   74,853   67,893
Mishi   212   689   1,920   2,379
Kiena   5,511   0   5,511   0
Total gold produced 2   29,344   20,008   82,284   70,272
Total gold sales (ounces) 4   30,000   21,700   80,957   71,340
                 
Eagle River Complex (per ounce of gold sold) 1                
Average realized price $ 2,254 $ 2,532 $ 2,240 $ 2,341
Cash costs   987   1,052   966   1,022
Cash margin $ 1,267 $ 1,480 $ 1,274 $ 1,319
All-in Sustaining Costs 1 $ 1,451 $ 1,395 $ 1,413 $ 1,348
                 
Mine operating costs/tonne milled 1 $ 388 $ 389 $ 347 $ 385
                 
Average 1 USD → CAD exchange rate   1.2600   1.3321   1.2513   1.3541
                 
Cash costs per ounce of gold sold (US$) 1 $ 783 $ 790 $ 772 $ 755
All-in Sustaining Costs (US$) 1 $ 1,152 $ 1,047 $ 1,129 $ 995
                 
Kiena Mine (per ounce of gold sold) 1                
Average realized price $ 2,210 $ 0 $ 2,210 $ 0
Cash costs 3   1,844   0   1,243   0
Cash margin $ 366 $ 0 $ 967 $ 0
All-in Sustaining Costs 1, 3 $ 1,891 $ 0 $ 1,288 $ 0
                 
Mine operating costs/tonne milled 1 $ 335 $ 0 $ 335 $ 0
                 
Average 1 USD → CAD exchange rate   1.2600   1.3321   1.2513   1.3541
                 
Cash costs per ounce of gold sold (US$) 1 $ 1,463 $ 0 $ 993 $ 0
All-in Sustaining Costs (US$) 1 $ 1,501 $ 0 $ 1,029 $ 0
                 
Financial Data                
Cash margin 1 $ 35,306 $ 32,116 $ 97,672 $ 94,039
Net income $ 15,344 $ 14,614 $ 110,254 $ 42,224
Net income adjusted 1 $ 18,266 $ 14,614 $ 44,467 $ 42,224
Earnings before interest, taxes, depreciation and amortization 1 $ 32,828 $ 28,564 $ 84,302 $ 84,325
Operating cash flow $ 33,890 $ 25,560 $ 82,798 $ 89,399
Free cash flow $ (9,087) $ 3,295 $ (18,119) $ 37,822
Per share data                
Net income $ 0.11 $ 0.10 $ 0.79 $ 0.30
Adjusted net income 1 $ 0.13 $ 0.10 $ 0.32 $ 0.30
Operating cash flow 1 $ 0.24 $ 0.18 $ 0.59 $ 0.64
Free cash flow 1 $ (0.06) $ 0.02 $ (0.13) $ 0.27

 

1 Refer to the Company’s 2021 Third Quarter Management Discussion and Analysis, section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
2 Totals for tonnage and gold ounces information 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.
   


Wesdome Gold Mines Ltd.

Consolidated Statements of Financial Position
(Unaudited, expressed in thousands of Canadian dollars)

         
     As at September
30, 2021
  As at December
31, 2020
Assets        
Current        
Cash and cash equivalents   $                69,473   $              63,480
Receivables and prepaids   12,690   8,974
Share consideration receivable   4,930  
Inventories   17,780   12,451
Total current assets   104,873   84,905
         
Restricted cash   657   657
Deferred financing costs   840   827
Mining properties, plant and equipment   203,053   128,670
Mines under development   179,029  
Exploration properties   10,826   143,524
Share consideration receivable   13,585  
Investment in associate   19,451  
Total assets   $              532,314   $            358,583
         
Liabilities         
Current        
Payables and accruals   $                38,823   $              21,123
Income and mining tax payable   3,961   3,481
Current portion of lease liabilities   6,466   5,901
Total current liabilities   49,250   30,505
         
Lease liabilities   7,753   5,604
Deferred income and mining tax liabilities   75,259   37,354
Decommissioning provisions   21,832   22,270
Total liabilities   154,094   95,733
         
Equity        
Equity attributable to owners of the Company        
Capital stock   184,849   179,540
Contributed surplus   6,279   6,472
Retained earnings   187,092   76,838
Total equity attributable to owners of the Company   378,220   262,850
    $              532,314   $            358,583
             

 

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

                 
    Three Months Ended    Nine Months Ended 
    September 30,    September 30, 
    2021   2020   2021   2020
                 
Revenues   $         67,548   $        55,000   $        177,402   $       167,104
Cost of sales   (39,636)   (30,487)   (99,674)   (94,903)
Gross profit   27,912   24,513   77,728   72,201
                 
Other expenses                
Corporate and general   2,565   1,371   7,797   5,147
Stock-based compensation   558   518   2,071   2,262
Reversal of impairment charges    –      (58,563)  
Gain on disposal of mining equipment   (3)     (3)  
Impairment charge on exploration properties   4,394     7,507  
    7,514   1,889   (41,191)   7,409
                 
Operating income    20,398   22,624   118,919   64,792
                 
Gain on sale of Moss Lake exploration properties    –      39,143  
Interest expense   (325)   (263)   (855)   (802)
Accretion of decommissioning provisions   (176)   (88)   (410)   (265)
Share of loss of associate   (15)     (104)  
Fair value adjustment on share consideration
  receivable
  368     360  
Other income (expenses)   464   (294)   (239)   (203)
Income before income and mining taxes   20,714   21,979   156,814   63,522
                 
Income and mining tax expense                
Current   3,309   2,195   8,655   6,234
Deferred   2,061   5,170   37,905   15,064
    5,370   7,365   46,560   21,298
                 
Net income and total                
  comprehensive income   $         15,344   $        14,614   $        110,254   $        42,224
                 
Earnings per share                
Basic   $             0.11   $            0.10   $             0.79     $            0.30
Diluted   $             0.11   $            0.10   $             0.77     $            0.30
                 
Weighted average number of common                
  shares (000s)                
Basic   140,432   139,308   139,872   138,898
Diluted   143,069   142,969   142,653   142,478
                 

 

Wesdome Gold Mines Ltd.
Consolidated Statements of Total Equity
(Unaudited, expressed in thousands of Canadian dollars)

                 
    Capital   Contributed   Retained   Total
    Stock   Surplus   Earnings   Equity
                 
Balance, December 31, 2019   $        174,789   $           5,590   $          26,123   $            206,502
Net income for the period ended                
September 30, 2020       42,224   42,224
Exercise of options   2,405       2,405
Value attributed to options exercised   1,103   (1,103)    
Value attributed to RSUs exercised   577   (577)    
Stock-based compensation     2,262     2,262
Balance, September 30, 2020   $        178,874   $           6,172   $          68,347   $            253,393
                 
                 
Balance, December 31, 2020   $         179,540   $            6,472   $           76,838   $             262,850
Net income for the period ended                
September 30, 2021    –     –    110,254   110,254
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   $         187,092   $             378,220
                         

 

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

    Three months ended
September 30,
  Nine months ended
September 30,
    2021   2020   2021   2020
                 
Operating Activities                
Net income   $            15,344   $           14,614   $          110,254   $           42,224
Depreciation and depletion   7,395   6,322   19,945   20,001
Stock-based compensation   558   518   2,071   2,262
Accretion of decommissioning provisions   176   88   410   265
Deferred income and mining tax expense   2,061   5,170   37,905   15,064
Amortization of deferred financing cost   104   98   328   269
Interest expense   325   263   855   802
Reversal of impairment charges    –      (58,563)  
Gain on sale of Moss Lake exploration properties    –      (39,143)  
Impairment charge on exploration properties   4,394     7,507  
Gain on disposal of mining equipment   (3)     (3)  
Share of loss of associate   15     104  
Fair value adjustment on share consideration   (368)     (360)  
receivable                
Foreign exchange loss (gain) on lease financing   64   (83)   (15)   94
    30,065   26,990   81,295   80,981
Net changes in non-cash working capital   6,638   2,139   9,677   13,307
Mining and income tax paid   (2,813)   (3,569)   (8,174)   (4,889)
Net cash from operating activities   33,890   25,560   82,798   89,399
                 
Financing Activities                
Exercise of options   1,814   623   3,045   2,405
Deferred financing costs   (5)     (339)   (198)
Repayment of borrowings    –       –    (3,636)
Repayment of lease liabilities   (1,877)   (1,322)   (5,277)   (3,531)
Interest paid   (325)   (263)   (855)   (802)
Net cash used in financing activities   (393)   (962)   (3,426)   (5,762)
                 
Investing Activities                
Additions to mining properties   (12,620)   (6,981)   (30,492)   (18,972)
Additions to mines under development   (27,481)     (40,882)  
Additions to exploration properties    –    (13,962)   (23,267)   (29,074)
Purchase of exploration property   (1,000)     (1,000)  
Cash proceeds on sale of Moss Lake, net    –      11,762  
of transaction costs                
Proceeds on disposal of mining assets   73     73  
Net changes in non-cash working capital   9,205   3,125   10,427   2,265
Net cash used in investing activities   (31,823)   (17,818)   (73,379)   (45,781)
                 
Increase in cash and cash equivalents   1,674   6,780   5,993   37,856
Cash and cash equivalents – beginning of the period   67,799   66,733   63,480   35,657
Cash and cash equivalents – end of the period   $            69,473   $           73,513   $            69,473   $           73,513
                 
Cash and cash equivalents consist of:                
Cash   $            69,473   $           73,513   $            69,473   $           73,513
    $            69,473   $           73,513   $            69,473   $           73,513
                 

PDF available: http://ml.globenewswire.com/Resource/Download/e37cd418-08dc-4a5d-8365-7f0c39932948












Author: Author

Today’s News

Awalé Resources Limited Share Consolidation

Awalé Resources Limited Share Consolidation
PR Newswire
VANCOUVER, BC, Dec. 1, 2021

VANCOUVER, BC, Dec. 1, 2021 /PRNewswire/ – Awalé Resources Limited (“Awalé” or the “Company”) (TSXV: ARIC) announces that further to its November 4, 2021 news relea…

Awalé Resources Limited Share Consolidation

PR Newswire

VANCOUVER, BC, Dec. 1, 2021 /PRNewswire/ – Awalé Resources Limited (“Awalé” or the “Company“) (TSXV: ARIC) announces that further to its November 4, 2021 news release, its share consolidation on a 8:1 basis has been accepted and will be effective on December 6, 2021.

All registered shareholders will be sent new certificates representing their share positions directly from the Company’s transfer agent Computershare without any action on their part.    Post consolidation the Company will have approximately 23,348,137 common shares issued and outstanding prior to rounding for fractional shares.

ON BEHALF OF THE BOARD

AWALE RESOURCES LIMITED.

“Glen Parsons”

Glen Parsons, President and CEO

Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward-looking information except as required by applicable law.

Cautionary Statement

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

View original content:https://www.prnewswire.com/news-releases/awale-resources-limited-share-consolidation-301435790.html

SOURCE Awale Resources




awale resources limited

Author: Author

Continue Reading

Today’s News

Brompton Split Banc Corp. Announces Details of Class A Share Split and Concurrent Preferred Share Private Placement

Not for distribution to U.S. newswire services or for dissemination in the United States. TORONTO, Dec. 01, 2021 (GLOBE NEWSWIRE) — (TSX: SBC, SBC.PR.A)…

Not for distribution to U.S. newswire services or for dissemination in the United States.

TORONTO, Dec. 01, 2021 (GLOBE NEWSWIRE) — (TSX: SBC, SBC.PR.A) Brompton Split Banc Corp. (the “Company”) is pleased to announce the details of the previously announced split of its class A shares (the “Share Split”) and provide an update on the concurrent private placement of preferred shares (the “Private Placement”). The Share Split and the Private Placement remain subject to the approval of the Toronto Stock Exchange (the “TSX”).

The Company is pleased to announce that class A shareholders of record at the close of business on December 14, 2021 will receive 25 additional class A shares for every 100 class A shares held, pursuant to the Share Split. Following the Share Split, class A shareholders will continue to receive the currently targeted monthly distribution of $0.10 per class A share. As a result, the Share Split will result in an overall increase in the dollar amount of distributions to be paid to class A shareholders by approximately 25%. The Company provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.

Pursuant to the Private Placement, 3,164,203 preferred shares were offered to investors at a price of $10.10 per preferred share such that following the Share Split there will be an equal number of class A shares and preferred shares outstanding. The Private Placement is scheduled to close on December 14, 2021. Following the completion of the Share Split and the Private Placement, the preferred shares are expected to have downside protection from a decline in the value of the Company’s portfolio of approximately 57%.(1)

Over the last 10 years, the class A shares have delivered a 17.8% per annum total return based on NAV, outperforming the S&P/TSX Capped Financials Index by 5.1% per annum and the S&P/TSX Composite Index by 9.0% per annum.(2) Since inception, class A shareholders have received cash distributions of $18.75 per class A share.

The preferred shares have delivered a 4.9% per annum total return over the last 10 years based on NAV, outperforming the S&P/TSX Preferred Share Index by 1.5% per annum with lower volatility.(2)   

The Company invests, on an approximately equal weighted basis, in a portfolio (the “Portfolio”) consisting of common shares of the six largest Canadian banks (currently, Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of Montreal). In addition, the Company may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purposes of enhanced diversification and return potential.

About Brompton Funds

Founded in 2000, Brompton Funds Limited (“Brompton”) is an experienced investment fund manager with income focused investment solutions including TSX listed closed-end funds and exchange-traded funds. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email us at [email protected] or visit our website at www.bromptongroup.com

(1)   Based on the November 25, 2021 NAV of the class A shares, as used to determine the Share Split ratio.
(2)   See Standard Performance Data table below.

Brompton Split Banc Corp.
Compound Annual NAV returns to October 31, 2021
1 Yr   3 Yr   5 Yr   10 Yr   S.I.  
Class A Shares (TSX:SBC) 123.3 % 21.6 % 17.9 % 17.8 % 12.7 %
S&P/TSX Capped Financials Index 55.7 % 15.3 % 12.6 % 12.7 % 9.2 %
S&P/TSX Composite Index 38.8 % 15.3 % 10.6 % 8.8 % 7.4 %
           
Preferred Shares (TSX:SBC.PR.A) 5.1 % 5.1 % 5.0 % 4.9 % 5.1 %
S&P/TSX Preferred Share Index 28.8 % 6.7 % 7.2 % 3.4 % 3.1 %

Returns are for the periods ended October 31, 2021 and are unaudited. Inception date November 15, 2005. The table shows the Company’s compound return on a class A share and preferred share for each period indicated, compared with the S&P/TSX Capped Financials Index (“Financials Index”), the S&P/TSX Composite Index (“Composite Index”), and the S&P/TSX Preferred Share Index (“Preferred Share Index”) (together the “Indices”). The Financials Index is derived from the Composite Index based on the financials sector of the Global Industry Classification Standard. The Composite Index tracks the performance, on a market weight basis, of a broad index of large-capitalization issuers listed on the TSX. The Preferred Share Index tracks the performance, on a market weight basis, of preferred shares listed on the TSX that meet criteria relating to minimum size, liquidity, issuer rating, and exchange listing. The class A shares and preferred shares are not expected to mirror the performance of the Indices which have more diversified portfolios. The Indices are calculated without the deduction of management fees, fund expenses and trading commissions, whereas the performance of the Company is calculated after deducting such fees and expenses. Further, the performance of the Company’s class A shares is impacted by the leverage provided by the Company’s preferred shares.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the TSX or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the fund, to the future outlook of the fund and anticipated events or results and may include statements regarding the future financial performance of the fund. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.





Author: Author

Continue Reading

Today’s News

MGX Minerals Granted Management Cease Trade Order to Allow for Completion of Financials

 

VANCOUVER – TheNewswire – December 1, 2021 – MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (CNSX:XMG.CN) (FKT:1MG) (OTC:MGXMF) is…

[nxtlink id=

 

VANCOUVER – TheNewswire – December 1, 2021 – MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (CNSX:XMG.CN) (FKT:1MG) (OTC:MGXMF) is pleased to announce that in connection with the anticipated late filing of the Company’s audited annual financial statements (the “Financial Statements“) and management’s discussion and analysis for the financial year ended July 31, 2020, the Company has applied for, and has been granted, a temporary management cease trade order (the “MCTO“) by the British Columbia Securities Commission (the “BCSC“).

The Company applied for the MCTO in order to secure additional time to finalize the Financial Statements. As a result of recent changes to the Company’s board of directors, the Company anticipates a longer than anticipated timeframe for the audit of the Financial Statements. However, it is the Company’s reasonable expectation that the audit of the Financial Statements will be completed by December 27th, 2021.

By way of background and as required by the BCSC, please note the following:

1. The Company is required to file its July 31, 2020 audited annual financial statements, management’s discussion and analysis and the applicable CEO and CFO certifications in respect of such filings (collectively, the “Annual Filings“) all in accordance with IFRS, by November 29, 2020 (the “Filing Deadline“), as required pursuant to National Instrument 51-102 Continuous Disclosure Obligations. The Company does not anticipate that it will be able to complete its Annual Filings on or before the Filing Deadline.

2. The Company and its auditors are working diligently to prepare and file the Annual Filings on or before December 27th, 2021.

3. The Company confirms that it intends to issue a status report on a bi-weekly basis, for as long as it remains in default of the Filing Deadline in respect of the Annual Filings.

 

4. There is no other material information concerning the affairs of the Company that has not been generally disclosed.

During the MCTO, the general investing public will continue to be able to trade in the Company’s listed common shares. However, for the duration of the MCTO, the Company’s Chief Executive Officer and Chief Financial Officer will not be able to trade the Company’s common shares.

The Company has imposed an insider trading blackout pending the filing of the Annual Filings. If the MCTO is granted, the Company will comply with the alternative information guidelines described in National Policy 12-203 Management Cease Trade Orders for so long as it remains in default due to the late filing of the Annual Filings.

Corporate Update

The Board of Directors has removed Lyndon Patrick effective November 30, 2021 for non performance having missed three or more consecutive Director Meetings and reduced the number of Directors to three, in accordance with Company By-laws. A search has begun for a new Director.  The current Directors of the Company are Andris Kikuaka and Jared Lazerson.

About MGX Minerals

MGX Minerals is a diversified Canadian resource and technology company with interests in advanced metals, industrial minerals, nuclear energy and rocketry.

 

Contact Information:

Sandey Wang

Interim Chief Financial Officer

[email protected]

604 681 7735

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forwardlooking information. Forward-looking information in this press release include, but are not limited to, statements with respect to holding the postponed Meeting, and the filing of an amended notice of meeting and record date for the postponed Meeting. Forward-looking information is generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “in the event”, “if”, “believes”, “asserts”, “position”, “intends”, “envisages”, “assumes”, “recommends”, “estimates”, “approximate”, “projects”, “potential”, “indicate” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur.

The Company’s forward-looking information are based on the applicable assumptions and factors the Company considers reasonable as of the date hereof, based on the information available to the Company at such time, including without limitation, the ability to host the postponed Meeting at a later date, and the ability to find a suitable location which can accommodate an in-person shareholders’ meeting. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various risk factors. These factors include, among others, uncertainties arising from the COVID-19 pandemic, and general economic conditions or conditions in the financial markets. The reader is referred to the Company’s public filings for a more complete discussion of such risk factors, and their potential effects, which may be accessed through the Company’s profile on SEDAR at www.sedar.com. Except as required by securities law, the Company does not intend, and does not assume any obligation, to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

 

Copyright (c) 2021 TheNewswire – All rights reserved.



Author: Author

Continue Reading

Trending