Wesdome boosts free cash flow 333%, meets production target

Gold & Silver

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image(Kitco News) – Wesdome Gold Mines (TSX: WDO) reported Wednesday that the company produced 90,278 ounces of gold from the Eagle River complex in 2020 (2019: 91,688 ounces).

Wesdome said that the company generated revenue of $215.5 million (2019: $164.0 million) from 91,229 ounces of gold sold at an average sales price of $2,360/oz (2019: 88,423 ounces at an average price of $1,853/oz).

Operating cash flow was $102.3 million or $0.74 per share (2019: $71.2 million or $0.52 per share). Free cash flow was $29.0 million or $0.21 per share (2019: $6.7 million or $0.05 per share).

Wesdome generated net income of $50.7 million or $0.36 per share (2019: $40.9 million or $0.30 per share). Adjusted net income was $50.7 million or $0.36 per share (2019: $38.6 million or $0.28 per share).

President and CEO Duncan Middlemiss commented, “2020 was a unique, and at times challenging year as we were faced with the ongoing COVID-19 pandemic. First and foremost, I am very pleased to report that none of our sites or offices had any reported cases of the COVID-19 virus. Despite having to operate both sites at reduced capacities in order to protect our employees, we were able to achieve a number of important milestones this year, such as achieving our production guidance at Eagle River, increasing free cash flow by $22.3 million over 2019, and advancing the Kiena complex through to mining and milling of a bulk sample.”

Wesdome Gold Mines is a 100% Canadian focused gold mining company with a pipeline of projects in various stages of development. The Eagle River complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River underground mine and the Mishi open pit mine, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena complex in Val d’Or, Quebec.

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