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Wesdome Gold Mines ups revenue 31% from gold sales

Kitco News

Wesdome Gold Mines (TSX:WDO) released its full-year 2020 production results and 2021 guidance today.

Revenue from gold sales of $215.3 million, a 31% increase over 2019 at an average realized sale price of $2,360 per ounce (2019: $1,853).

Eagle River gold production of 196,441 tonnes at a head grade of 14.2 grams per tonne and a recovery rate of 97.7% producing 87,560 ounces, 1% lower than 2019,

Mishi gold production of 39,856 tonnes at a head grade of 2.7 grams per tonne and a recovery rate of 77.8%, producing 2,718 ounces of gold, Mishi mining operations finished in Q4. The Mishi stockpile now contains over 40,000 tonnes of ore and is planned to be milled in 2021.

The company said it was challenged by equipment issues, which prevented it from achieving the mid-point of guidance. Six days of milling in December were lost due to mechanical downtime associated with a cone crusher in the mill and underground geotechnical challenges.

CEO Duncan Middlemiss said Wesdome's Kiena is nearly ready for production.

"The Kiena Mine is advancing closer to a potential restart with our PFS, which is ongoing and slated to be completed in Q2 of 2021. The pre-production timeframe is minimal and we could potentially have Kiena in commercial production within 4 – 6 months of a restart decision. The advent of a second producing asset represents an inflection point for the company as it increases scale and diversifies its cash flow sources, both key steps towards becoming a mid-tier Canadian producer."

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