Wesdome Gold Mines : Fourth Quarter 2024 2024 Q4 MD&A

Published: 2025-03-19 19:49:04 ET WDO.TO

WESDOME GOLD MINES LTD.

2024 Annual

MANAGEMENT'S DISCUSSION AND ANALYSIS

TABLE OF CONTENTS

MANAGEMENT'S DISCUSSION AND ANALYSIS

NON-IFRS PERFORMANCE MEASURES

BUSINESS OVERVIEW

Q4 2024 HIGHLIGHTS

OPERATING AND FINANCIAL HIGHLIGHTS

UPDATED MINERAL RESERVE AND RESOURCES FOR YEAR-END 2024

GOLD MARKET OVERVIEW AND FOREIGN CURRENCY EXCHANGE RATE OVERVIEW

OUTLOOK

QUARTERLY FINANCIAL AND OPERATIONAL RESULTS

REVIEW OF OPERATING MINES

LIQUIDITY AND CAPITAL RESOURCES

OUTSTANDING SHARE DATA

CONTRACTUAL OBLIGATIONS

NON-IFRS PERFORMANCE MEASURES

ACCOUNTING MATTERS

BASIS OF PRESENTATION

OFF-BALANCE SHEET TRANSACTIONS

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

ACCOUNTING PRONOUNCEMENTS

RELATED PARTY TRANSACTIONS

RISKS AND UNCERTAINTIES

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

RESPONSIBILITY FOR TECHNICAL INFORMATION

INFORMATION CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED

RESOURCES

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

RISK FACTORS

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MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with Wesdome Gold Mines Ltd.'s ("Wesdome" or the "Company") audited financial statements for the years ended December 31, 2024 and 2023, and their related notes ("financial statements") which have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

All dollar amounts stated in this MD&A are denominated in thousands of Canadian dollars, except per share data and unless otherwise indicated. The discussion and analysis within this MD&A are effective as of March 19, 2025.

This document contains forward-looking statements and forward-looking information. Refer to the cautionary language under the section entitled "Cautionary Statement on Forward-lookingStatements" in this MD&A.

The following abbreviations are used to describe the periods under review throughout this MD&A:

Abbreviation

Period

Abbreviation

Period

Q4 2024

October 1, 2024

- December 31, 2024

Q4 2023

October 1, 2023

- December 31, 2023

Q3 2024

July 1, 2024 - September 30, 2024

Q3 2023

July 1, 2023 - September 30, 2023

Q2 2024

April 1, 2024 - June 30, 2024

Q2 2023

April 1, 2023 - June 30, 2023

Q1 2024

January 1, 2024

- March 31, 2024

Q1 2023

January 1, 2023

- March 31, 2023

FY 2024

January 1, 2024

- December 31, 2024

FY 2023

January 1, 2023

- December 31, 2023

NON-IFRS PERFORMANCE MEASURES

Wesdome uses non-IFRS performance measures throughout this MD&A as it believes that these generally accepted industry performance measures provide a useful indication of the Company's operational performance. These non-IFRS performance measures do not have standardized meanings defined by IFRS and may not be comparable to information in other gold producers' reports and filings. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The non-IFRS performance measures include:

For further information and detailed reconciliations, refer to the section entitled "Non-IFRSPerformance Measures" in this MD&A.

BUSINESS OVERVIEW

Wesdome is a public company existing under the laws of Ontario. The common shares of the Company are listed on the Toronto Stock Exchange ("TSX") under the symbol "WDO" with a secondary listing on the OTCQX under the symbol "WDOFF". The registered and principal office of the Company is located at 220 Bay Street, Suite 1200, Toronto, Ontario, M5J 2W4.

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Our focus is on safe and responsible mining. This is demonstrated by the care we take for our people, communities and the environment which is integral to our success. We seek to continually understand and, where possible, avoid or minimize, the potential negative impacts of our activities while we look to generate new and positive opportunities through stakeholder, community and Indigenous partnerships and investments. We also believe in setting goals and objectives as a way to drive our sustainability performance forward and hold ourselves accountable.

Wesdome is a Canadian focused gold producer with two high-grade underground mine and milling assets, the Eagle River mine, situated 50 km west of Wawa, Ontario, and the Kiena mine, located in Val d'or, Quebec. 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. In 2024, Eagle River and Kiena produced 94,561 and 77,472 ounces of gold, respectively. Wesdome is strategically exploring the 100 km2 land package at Eagle River and the 75 km2 land package at Kiena. Additional financial information relating to Wesdome, including the Company's Annual Information Form, can be found on the Company's website: www.wesdome.comor under the Company's profile on the SEDAR+ website: www.sedarplus.ca

Q4 2024 HIGHLIGHTS

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OPERATING AND FINANCIAL HIGHLIGHTS

Gold Production

and Gold Sold (koz)

50 49

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Gold Produced

Gold Sold

Cost of Sales and

Production Costs ($/t)

524

560

523

488

489

474

468

478

472

449

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Cost of sales/tonne milled

Production costs/tonne milled

Net Income and

Adjusted Net Income ($M)

56.6 56.6

39.0 39.2

29.1 29.1

10.7 10.7

2.4

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Net Income (Loss)

Adjusted Net Income (Loss)

Cost of Sales,

All-in-Sustaining

and Cash Cost ($/oz)

1,758

1,453

1,521

1,289

1,190

2,711

2,082

2,226

1,977

1,920

1,755

1,451

1,517

1,286

1,187

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Cash Costs

AISC

Cost of Sales

Revenue and Cost of Sales ($M) Average

Realized Price of Gold Sold ($/oz)

3,746

3,192

3,420

183

2,715

2,823

147

128

102

101

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Revenue

Cost of Sales

Average Realized Price

Net Cash from Operating Activities and

Free Cash Flow ($M)

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Operating cash flow

Free Cash Flow

Adjusted net income, free cash flow, cash costs, all-in-sustaining costs, average realized price of gold sold and production costs per tonne milled are non-IFRS performance measures. Refer to the section entitled "Non-IFRS Performance Measures" for the reconciliation of these non-IFRS measurements to the financial statements.

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The following table summarizes the Company's selected operating and financial highlights for the quarters and years ended December 31, 2024 and 2023:

In 000s, except per units and per share amounts

Q4 2024

Q4 2023

Change

FY 2024

FY 2023

Change

Financial results

Revenues

182,611

102,221

80,390

79%

558,184

333,173

225,011

68%

Cost of sales

57,974

54,645

3,329

216,049

200,234

15,815

Gross profit

95,589

23,715

71,874

303%

241,861

37,751

204,110

541%

Cash margin

124,637

47,576

77,061

162%

342,135

132,939

209,196

157%

114,868

38,256

76,612

200%

308,006

99,333

208,673

210%

EBITDA

Net income (loss)

56,629

2,420

54,209

2240%

135,471

(6,187)

141,658

2290%

Earnings (loss) per share

0.38

0.02

0.36

2226%

0.91

(0.04)

0.95

2365%

Adjusted net income (loss)

56,629

2,420

54,209

2240%

135,668

(1,910)

137,578

7203%

Adjusted net income (loss) per share

0.38

0.02

0.36

2226%

0.91

(0.01)

0.92

9171%

Net cash from operating activities

76,411

37,176

39,235

106%

240,972

101,351

139,621

138%

Operating cash flow per share

0.51

0.25

0.26

104%

1.61

0.69

0.92

134%

Net cash (used in) from financing activities

(884)

(1,946)

1,062

55%

(39,934)

5,421

(45,355)

(837)%

Net cash used in investing activities

(34,945)

(25,441)

(9,504)

(37)%

(119,312)

(98,586)

(20,726)

(21)%

39,874

7,799

32,075

411%

118,597

(6,405)

125,002

1952%

Free cash flow

Free cash flow per share

0.27

0.05

0.21

408%

0.79

(0.04)

0.83

2082%

Average 1 USD → CAD exchange rates

1.3990

1.3619

0.04

1.3700

1.3495

0.02

Operating results

Gold produced (ounces)

49,567

36,216

13,351

37%

172,033

123,336

48,697

39%

Gold sold (ounces)

48,700

37,620

11,080

29%

167,300

126,620

40,680

32%

Per ounce of gold sold

Cost of sales

($/oz)

1,190

1,453

(262)

(18)%

1,291

1,581

(290)

(18)%

Cost of sales

(US$/oz)

851

1,067

(216)

(20)%

943

1,172

(229)

(20)%

Cash costs

($/oz)

1,187

1,451

(264)

(18)%

1,288

1,579

(291)

(18)%

Cash costs

(US$/oz)

848

1,065

(217)

(20)%

940

1,170

(230)

(20)%

AISC

($/oz)

1,920

2,082

(162)

(8)%

1,999

2,231

(232)

(10)%

AISC

(US$/oz)

1,373

1,529

(156)

(10)%

1,459

1,653

(194)

(12)%

Average realized price

($/oz)

3,746

2,715

1,031

38%

3,333

2,629

704

27%

Average realized price

(US$/oz)

2,678

1,994

684

34%

2,433

1,948

485

25%

Financial Position

Cash

123,097

41,371

81,726

198%

123,097

41,371

81,726

198%

131,261

(6,894)

138,155

2004%

131,261

(6,894)

138,155

2004%

Working capital

Total assets

746,654

618,956

127,698

21%

746,654

618,956

127,698

21%

Current liabilities

53,883

89,115

(35,232)

(40)%

53,883

89,115

(35,232)

(40)%

Total liabilities

175,836

191,656

(15,820)

(8)%

175,836

191,656

(15,820)

(8)%

Operating Highlights

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AISC for FY 2024 of $1,999 (US$1,459) per ounce decreased by 10% from FY 2023 mainly due to a 32% increase in ounces sold offset by increased capital spending of $34.1 million mainly due to the ramp-up of commercial production at Kiena, an 8% increase in aggregate mine operating costs and an increase of $4.5 million in corporate and general administration costs.

Financial Highlights

Development, Exploration and Other Highlights

Eagle River

Kiena

UPDATED MINERAL RESERVE AND RESOURCES FOR YEAR-END 2024

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Mineral Reserve Estimates

The Company's gold mineral reserves effective December 31, 2024 are set out in the table below and are compared with the gold mineral reserves for the prior corresponding period.

2024 Mineral Reserves

2023 Mineral Reserves

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

(000s)

(g/t Au)

(000s)

(g/t Au)

(000s)

Eagle River

Proven

433

15.6

217

247

20.4

162

Probable

794

10.4

265

452

15.9

232

Stockpile & Inventory

17.8

11.3

6.0

Total

1,235

12.3

487

716

17.4

400

Kiena

Proven

305

11.0

107

9.6

Probable

2,076

8.9

592

1,995

11.1

711

Stockpile & Inventory

5.6

2.0

4.0

6.9

1.0

Total

2,391

9.1

701

2,061

11.0

731

Wesdome

Proven

738

13.7

324

309

18.3

182

Probable

2,870

9.3

857

2,447

12.0

943

Stockpile & Inventory

10.9

10.4

Total

3,626

10.2

1,188

2,778

12.7

1,131

Notes

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Disclaimer

Wesdome Gold Mines Ltd. published this content on March 19, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 19, 2025 at 23:48:04.385.