TORONTO, May 08, 2024 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX:WDO, OTCQX:WDOFF) ("Wesdome" or the "Company") today announced its results for the three months ended March 31, 2024 ("Q1 2024"). Preliminary operating results for Q1 2024 were disclosed on April 15, 2024. Management will host a conference call tomorrow, Thursday, May 9 at 10:00 a.m. Eastern Time to discuss this quarter's results. All amounts are expressed in Canadian dollars unless otherwise indicated. Q1 2024 Highlights Consolidated gold production was 33,322 ounces at cash costs per ounce1 of $1,517 per ounce (US$1,125) and all-in sustaining costs ("AISC") per ounce1 of $2,226 (US$1,650). Net income increased to $10.7 million, or $0.07 per share, an increase of $11.1 million from the corresponding period in 2023. Cash margin1 was $46.6 million, representing a 36% increase relative to the prior year quarter mainly due to a higher Canadian dollar realized gold price and increase in ounces sold. Operating cash flow was $46.5 million, or $0.31 per share1, $41.4 million higher than the corresponding period in 2023 mainly due to the higher cash margin and an increase in cash from working capital changes. Free cash flow1 of $19.5 million was $39.0 million higher than the corresponding period in 2023 mainly due to higher operating cash flow partially offset by an increase in capital expenditures. Available liquidity of $169.5 million, including $48.3 million in cash and $121.2 million of undrawn availability under the Company's revolving credit facility. Anthea Bath, President and CEO, commented: "We delivered a solid first quarter on the back of higher-grade material at Eagle River, as a result of short-term positive grade reconciliation and mine sequencing relative to plan. As anticipated, in the second quarter we began processing higher grade material from Kiena Deep, which is expected to trend upwards over the balance of the year and thereby drive margin expansion. Exploration underpins our success, and we continue to identify new opportunities across both mine sites to unlock value. This year's extensive exploration program is already yielding exciting results, including the intercept of high grades near mine infrastructure at Kiena Deep and continued growth in the recently discovered Falcon 311 and 300 zones. Our balance sheet continues to strengthen with meaningful improvements in both cash and total liquidity in the first quarter. We took advantage of increased cash flow in the quarter, reducing the amount outstanding on our revolving credit facility by $10 million and putting us on track to repay the remaining balance by Q3. Results to date are aligned with our expectations and the team is focused on execution and delivering on full-year guidance and strategic objectives. We are well positioned to achieve higher production at declining unit costs with increased free cash flow in 2024," added Ms. Bath. Consolidated Financial and Operating Highlights   Q1 2024 Q1 2023 Financial Results           Revenue2 100,922   76,701   Cost of sales 78,679   61,418   Cash margin1 46,624   34,408   EBITDA1 40,675   26,124   Net income (loss) 10,708   (345)   Net income (loss) per share 0.07   (0.00)   Adjusted net income1 10,708   3,257   Adjusted net income per share1 0.07   0.02   Operating cash flow 46,502   5,120   Operating cash flow per share1 0.31   0.04   Net cash (used in) from financing activities (10,169)   9,688   Net cash used in investing activities (29,452)   (22,933)   Free cash flow1 19,448   (19,597)   Free cash flow per share1 0.13   (0.14)         Operating Results     Gold produced (oz) 33,322   28,368   Gold sold (oz) 35,700   30,000         Average realized gold price1 ($/oz) 2,823   2,554   Average realized gold price1 (US$/oz) 2,093   1,888         Per ounce of gold sold:     Cost of sales ($/oz) 2,204   2,047   Cost of sales (US$/oz) 1,634   1,514   Cash costs1 ($/oz) 1,517   1,407   Cash costs1 (US$/oz) 1,125   1,040   All-in sustaining costs1 ($/oz) 2,226   1,977   All-in sustaining costs1 (US$/oz) 1,650   1,462         Financial Position     Cash 48,252   25,060   Working capital (1,033)   (14,712)   Total assets 636,190   618,724   Current liabilities 86,209   93,878   Total liabilities 194,546   198,370         Notes:1   Refer to the section in this press release entitled "Non-IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the financial statements.2   Revenues include insignificant amounts from the sale of by-product silver. Eagle River – Ontario Eagle River Operating Results Q1 2024 Q1 2023       Ore milled (tonnes)     Eagle River 51,632 48,133 Mishi - 6,150 Total ore milled 51,632 54,283       Head grade (grams per tonne, "g/t")     Eagle River 15.5 13.5 Mishi - 2.3 Total head grade 15.5 12.2       Average mill recoveries (%)     Eagle River 97.0 96.9 Mishi - 72.5 Total gold recovery 97.0 96.3       Gold production (ounces)     Eagle River 24,899 20,159 Mishi - 332 Total gold production 24,899 20,491       Gold sold (ounces)     Eagle River 27,360 23,659 Mishi - 341 Total gold sold 27,360 24,000       Production costs per tonne milled1 573 475       Costs per oz sold     Cash margin1 ($/oz) 1,605 1,353 Cost of sales ($/oz) 1,722 1,622 Cash costs1 ($/oz) 1,227 1,192 All-in sustaining costs1 ($/oz) 1,662 1,709       During Q1 2024, Eagle River produced 24,899 ounces of gold as compared to 20,491 ounces in Q1 2023 primarily due to a 27% increase in head grade. Eagle River head grade in Q1 2024 was 15.5 g/t compared to 12.2 g/t in Q1 2023 as processing of higher-grade material drove outperformance compared to plan. Eagle River remains on track to achieve its 2024 guidance for feed grade of 12.2 to 13.4 g/t. The overall recovery increased to 97.0% from 96.3%. In Q1 2024, the mill processed 51,632 tonnes throughput from the underground mine as a standalone source of ore from Eagle River mill, as compared to 54,283 tonnes including Mishi in Q1 2023. Cost of sales in Q1 2024 was 21% higher than the corresponding period in 2023 primarily due to an increase in non-cash depletion and depreciation resulting from a larger depreciable asset base, a change in inventories, an increase in the aggregate operating costs due to increased ore development metres, waste movement, improvements made to strengthen the technical and site management teams, and an increase in total maintenance expenses due to contract renewals. Q1 2024 cash costs of $1,227 (US$910) per ounce of gold sold increased by 3%, or $35 per ounce of gold sold, as compared to $1,192 (US$881) in Q1 2023 primarily due to higher operating costs partially offset by an increase in ounces sold. Q1 2024 AISC of $1,662 (US$1,232) per ounce of gold sold decreased by 3%, or $47 per ounce, as compared to $1,709 (US$1,264) in Q1 2023 primarily due to higher ounces sold offset by higher operating costs and sustaining capital expenditures. Kiena Mine - Quebec Kiena Operating Results Q1 2024 Q1 2023       Ore milled (tonnes) 45,344 42,324       Head grade (g/t) 5.9 5.9       Average mill recoveries (%) 98.2 97.9       Gold production (ounces) 8,423 7,877       Gold sold (ounces) 8,340 6,000       Production costs per tonne milled1 466 426       Costs per oz sold     Cash margin1 ($/oz) 323 321 Cost of sales ($/oz) 3,774 3,736 Cash costs1 ($/oz)