Page 1

WESDOME Wesdome Announces 2021 Second Quarter Financial Results Kiena Mill Successfully Restarted TORONTO , Aug. 11 , 2021 ( GLOBE NEWSWIRE ) -- Wesdome Gold Mines Ltd. ( TSX : WDO ) ( " Wesdome " or the " Company " ) today announces second quarter ( " Q2 2021 " ) financial results . All figures are stated in Canadian dollars unless otherwise noted . Mr. Duncan Middlemiss , President and CEO commented , " Strong gold production in the second quarter of 30,375 ounces drove significant improvement in cost performance . Cash costs of $ 814 per ounce ( US $ 663 ) and AISC of $ 1,240 ( US $ 1,009 ) , a decrease of 24 % and 17 % respectively over Q1 2021. H1 2021 production of 52,939 ounces , and cash costs of US $ 745 per ounce and AISC of US $ 1,085 per ounce has us well positioned to deliver on both our production and cost guidance for the year at Eagle River Mine Complex ( 92,000 - 105,000 ounces at cash costs of US $ 680 - 770 and AISC of US $ 980 - 1,090 ) . Cash margins also improved quarter on quarter with $ 40.1 million earned in Q2 compared to $ 21.8 million in Q1 . Cash position increased to $ 67.8 million compared to $ 63.9 million in the previous quarter . During Q2 , there were some one - time non - cash items which impacted net income . After announcing a restart of operations at Kiena on May 26 , we recorded an impairment reversal charge of $ 58.6 million pre - tax ( $ 36.3 million after - tax ) , as well , we had an after - tax gain on the disposal of the Moss Lake mineral properties of $ 34.5 million . Consequently , net income was $ 87.8 million , or $ 0.63 per share . Net income adjusted for these one - off items was $ 17.0 million , or $ 0.12 per share . As a result of the above items and also due to a higher capital spending rate at Kiena , free cash outflow for the quarter was $ 9.1 million . A total of $ 24.1M was spent at Kiena in Q2 in preparation for the production restart that was approved by the Board of Directors of the Company late in May . This decision was based on the positive outcome of the independent Pre- Feasibility Study published earlier this year . The investment includes $ 13.7 of mine development and restart costs , $ 7.2M on mobile and fixed equipment purchases , including headframe bin repairs and hoist system upgrades . As a result of the preparatory work the mill was restarted on July 12 , and has been successfully processing S50 ore since then . As well , work is underway to prepare the A Zone for its first production stope starting in August , slightly ahead of schedule . In addition , $ 3.2M was spent in surface and underground exploration , which has confirmed the discovery of the new footwall zone in the Kiena Deep . " Key operating and financial highlights of the Q2 2021 results include : • Gold production of 30,375 ounces from the Eagle River Complex , a 21 % increase over the same period in the previous year ( Q2 2020 : 25,142 ounces ) : ° Eagle River Underground 63,057 tonnes at a head grade of 15.1 grams per tonne for 29,836 ounces produced , 24 % increase over the previous year ( Q2 2020 : 24,117 ounces ) . ⚫ Mishi Open Pit 9,347 tonnes at a head grade of 2.4 g / t Au for 539 ounces produced ( Q2 2020 : 1,026 ounces ) . • Revenue of $ 63.9 million , a 17 % increase over the previous year ( Q2 2020 : $ 54.8 million ) . • Ounces sold were 28,500 at an average sales price of $ 2,239 / oz ( Q2 2020 : 23,140 ounces at an average price of $ 2,365 / oz ) . • Cash margin¹ of $ 40.6 million , a 18.0 % increase over Q2 2020 ( Q2 2020 - $ 34.3 million ) . Operating cash flow of $ 26.9 million or $ 0.19 per share as compared to $ 30.3 million or $ 0.22 per share for the same period in 2020 . • Free cash outflow of $ 9.1 million , net of an investment of $ 24.1 million in Kiena , or ( $ 0.07 ) per share¹ ( Q2 2020 : free cash flow of $ 17.8 million or $ 0.13 per share ) . • Net income of $ 87.8 million or $ 0.63 per share ( Q2 2020 : $ 16.1 million or $ 0.12 per share ) and Net income ( adjusted ) 1 of $ 17.0 million or $ 0.12 per share ( Q2 2020 : $ 16.1 million or $ 0.12 per share ) . • Cash position increased to $ 67.8 million compared to $ 63.9 million in the previous quarter . • Cash costs¹ of $ 814 / oz or US $ 663 / oz , an 8 % decrease over the same period in 2020 ( Q2 2020 : $ 882 / oz or US $ 637 / oz ) . 1 • All - in sustaining costs ( " AISC " ) of $ 1,240 / oz or US $ 1,009 / oz , a 2 % increase over the same period in 2020 ( Q2 2020 : $ 1,218 / oz or US $ 879 / oz ) , due to higher sustaining capital , corporate and general expenses and lease payments , which was partially offset by a 23 % increase in ounces sold . 1. Refer to the Company's 2021 Second Quarter Management Discussion and Analysis , section entitled " Non - IFRS Performance Measures " for the reconciliation of these non - IFRS measurements to the financial statements .