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Wesdome reports net income drop in Q1 2021, pushes Kiena restart

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(Kitco News) - Wesdome Gold (TSX: WDO) announced today that its Q1 2021 gold production of 22,564 ounces from the Eagle River complex in Ontario represents a 10% decrease over the same period in the previous year (Q1 2020: 25,122 ounces).

The company’s revenue of $46.0 million was 19.8% lower over the previous year (Q1 2020: $57.3 million). Operating cash flow of $22.0 million or $0.16 per share was 34% lower compared to $33.5 million or $0.24 per share for the same period in 2020. Free cash flow was $0.1 million, a 99% decline compared to free cash flow of $16.7 million or $0.12 per share in Q1 2020.

Wesdome’s net income was $7.1 million or $0.05 per share, a 38% decline compared to Q1 2020 ($11.5 million or $0.08 per share).

The company noted that significant progress was made towards projects that would benefit the Kiena mine re-start, such as development, mill refurbishment, shaft and other construction projects, and work at the tailing management area.

The company said it expects to be within guidance for the year and remains on track to produce 92,000 – 105,000 ounces from the Eagle River complex, plus an additional 15,000 – 25,000 from Kiena pending a restart decision.

Wesdome Gold Mines is a 100% Canadian focused company that has had over 30 years of continuous gold mining operations in Canada. The company’s strategy is to build an intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Quebec.

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