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TSX: MPVD

TORONTO, Nov. 6, 2024 /PRNewswire/ – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) MPVD today announces financial results for the third quarter ended September 30, 2024 (“the Quarter” or “Q3 2024”) from the Gahcho Kué Diamond Mine (“GK Mine”). All figures are expressed in Canadian Dollars unless otherwise noted.

Q3 2024 Key Takeaways

• 679,599 carats were sold for total proceeds of $69.4 million (US$50.8 million) at an average price of $102 per carat (US$75).
• Adjusted EBITDA¹ of $17.3 million.
• Loss from mine operations of $11.0 million.
• Net loss of $19.0 million or $0.09 basic and diluted loss per share.

Mark Wall, the Company’s President, and Chief Executive Officer, commented: 

“The first nine months of 2024 has produced positive operational results in a period of challenging diamond prices, resulting in an adjusted EBITDA for the period of some $91 million.

Year to date in 2024 we have processed approximately 14% more tonnes than during the same period in 2023, while at the same time the ore grade went down by around 17%, which was driven by planned lower grade in Q3 and unplanned lower grade in March and early Q2 of 2024 as previously reported.  The processed grade is currently performing in line with, or better than plan which when coupled with improved throughput has led to carat production trending to the upper end of our 2024 production guidance.

On costs we are well advanced in more expensive pit-bottom mining in both the Hearne and 5034 open pits.  The focus on operational efficiency and costs remains front of mind, with the cost per tonne treated, including capitalized stripping, down 21% for the first nine months of 2024 when compared to the same period in 2023. 

While the diamond market has been disappointing during the period I am optimistic that the price environment will recover during 2025, which is a period of planned production similar to 2024, followed by a very strong 2026 production year, as reported in our recent NI 43-101 Technical Report update.  2025 will be a period of continued cost and operational efficiency focus as well as an assessment of the company’s financing requirements in different diamond price environments.”

Reid Mackie, VP Sales & Marketing, commented:

 “The Company continues to successfully navigate a challenging market. In Q3 2024 our sales achieved 100% sell-through with no unsold stock held at the end of September and a higher average selling price than the three preceding quarters. This positions the Company well to benefit from any improvements to rough diamond demand following the solid results anticipated from the all-important US holiday season retail sales.” 

Financial Highlights for Q3 2024

• Revenue from 679,599 carats sold at $69.4 million (US$50.8 million) at an average realised value of $102 per carat (US$75) compared to $60.3 million from 478,653 carats sold in Q3 2023 (US$45.3 million) at an average realized value of $126 per carat (US$95).
• Adjusted EBITDA¹ of $17.3 million compared to $25.1 million in Q3 2023.
• Loss from mine operations of $11.0 million compared to income from mine operations of $2.7 million in Q3 2023.
• Cash costs of production, including capitalized stripping costs¹ of $125 per tonne treated (2023: $118 per tonne) and $101 per carat recovered (2023: $78 per carat).
• Net loss of $19.0 million or $0.09 loss per share (2023: Net loss of $13.4 million or $0.06 loss per share). Included in the determination of net loss are foreign exchange gains of $3.0 million, the majority of which is an unrealized income arising on the translation of the Company’s US Dollar denominated long term debt, because of the strengthening of the Canadian Dollar versus US Dollar.

Operational Highlights for Q3 2024
(all figures reported on a 100% basis unless otherwise stated)

• 961,371 ore tonnes treated, 10% higher than Q3 2023 (877,617 tonnes treated)
• 1,187,912 carats recovered, 10% lower than Q3 2023 (1,326,610 carats recovered)
• Average grade of 1.24 carats per tonne treated, 18% lower than Q3 2023 (1.51 carats per tonne)
• 923,814 ore tonnes mined, 4% higher than Q3 2023 (887,617 ore tonnes mined)

Sales Highlights for Q3 2024

As previously released, during the third quarter, 679,599 carats were sold for total proceeds of $69.4 million (US$50.8 million), resulting in an average price of $102 per carat (US$75 per carat). These results compare to Q3 2023 where 478,653 carats were sold for total proceeds of $60.3 million (US$45.3 million) at an average price per carat of $126 per carat (US$95 per carat).

Financial Highlights for the nine months ended September 30, 2024

• Total sales revenue of $215.7 million (US$158.4 million) at an average realised value of $99 per carat (US$73) compared to $248.9 million in 2023 (US$184.9 million) at an average realized value of $138 per carat (US$103).
• Adjusted EBITDA² of $91.3 million (2023: $123.3 million).
• Earnings from mine operations of $31.4 million for the nine months ended September 30, 2024, compared to $76.8 million for the nine months ended September 30, 2023
• Cash costs of production, including capitalized stripping costs², of $112 per tonne treated (2023: $142 per tonne) and $81 per carat recovered (2023: $85 per carat).
• Net loss of $18.6 million or $0.09 basic and diluted loss per share (for the nine months ended September 30, 2023: net income $32.1 million or $0.15 basic and diluted earnings per share). Included in the determination of the net loss for the nine months ended September 30, 2024, are foreign exchange losses of $6.2 million, the majority of which is an unrealized loss on the translation of the Company’s US Dollar denominated long term debt arising because of the weakening of the Canadian Dollar versus US Dollar.
• Capital expenditures $54.9 million, $47.7 million of which were deferred stripping costs, with the remaining $7.2 million for sustaining capital expenditures related to mine operations.

Operational Highlights for the nine months ended September 30, 2024
(all figures reported on a 100% basis unless otherwise stated)

• 24,400,000 total tonnes mined in the nine months ended September 30, 2024, 11% lower than 27,316,000 total tonnes mined for the nine months ended September 30, 2023.
• 2,733,000 tonnes of ore treated in the nine months ended September 30, 2024, 14% higher than 2,395,000 tonnes treated for the nine months ended September 30, 2023.
• 3,771,000 carats recovered at an average grade of 1.38 carats per tonne in the nine months ended September 30, 2024, 5% lower than 3,985,000 carats, (1.66 carats per tonne) recovered for the nine months ended September 30, 2023.

Gahcho Kué Mine Operations

The following table summarizes key operating statistics for the Gahcho Kué Mine in the three and nine months ended September 30, 2024, and 2023.

Financial Performance

Conference Call

The Company will host its quarterly conference call on Thursday, November 7^th, 2024, at 11:00AM Eastern Time.

Title: Mountain Province Diamonds Inc. Q2 2024 Earnings Conference Call
Date of call: 11/07/2024
Time of call: 11:00AM Eastern Time
Expected Duration: 60 minutes

Webcast Link:
https://app.webinar.net/LX9ZQJL6ARV
North American Toll-Free Number: (+1) 888-510-2154
Participant Local/International Number: (+1) 437-900-0527

A replay of the webcast and audio call will be available on the Company’s website.

Reconciliation of Non-IFRS measures

This news release refers to the terms “Cash costs of production per tonne of ore processed” and “Cash costs of production per carat recovered,” both including and net of capitalized stripping costs and “Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)” and “Adjusted EBITDA Margin.” Each of these is a non-IFRS performance measure and is referenced to provide investors with information about the measures used by management to monitor performance. These measures are 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. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories.

Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company.

The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net (loss) income on the consolidated statements of comprehensive (loss) income:

The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the consolidated statements of comprehensive (loss) income:

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About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off.

Qualified Person

The disclosure in this news release of scientific and technical information regarding Mountain Province’s mineral properties has been reviewed and approved by Dan Johnson, P.Eng., a director of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Caution Regarding Forward Looking Information

This news release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian and United States securities laws concerning the business, operations and financial performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to operational hazards, including possible disruption due to pandemic such as COVID-19, its impact on travel, self-isolation protocols and business and operations, estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate fluctuations.  Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be”, “potential” and other similar words, or statements that certain events or conditions “may”, “should” or “will” occur.  Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are based on several assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the development of operation hazards which could arise in relation to COVID-19, including, but not limited to protocols which may be adopted to reduce the spread of COVID-19 and any impact of such protocols on Mountain Province’s business and operations, variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labor disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.

These factors are discussed in greater detail in Mountain Province’s most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Mountain Province cautions that the foregoing list of crucial factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Although Mountain Province has attempted to identify crucial factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, or results not to be anticipated, estimated, or intended.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed.

Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of dividends is at the discretion of Mountain Province’s Board of Directors, subject to the limitations under the Company’s debt facilities, and will depend on Mountain Province’s financial results, cash requirements, prospects, and other factors deemed relevant by the Board

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SOURCE Mountain Province Diamonds Inc.

TORONTO, Nov. 06, 2024 (GLOBE NEWSWIRE) — In a release issued under the same headline earlier today by Wesdome Gold Mines WDOWDOFF please note that the 2025 Production Guidance table has been updated with new gold production ranges in the Eagle River, Kiena, and Consolidated data columns. The corrected release follows:

Wesdome Gold Mines Ltd. WDOWDOFF (“Wesdome” or the “Company”) today announced its results for the three and nine months ended September 30, 2024 (“Q3 2024” and “YTD 2024”). Preliminary operating results for Q3 2024 and YTD 2024 were disclosed in the Company’s press release dated October 17, 2024. Management will host a conference call tomorrow, November 7, 2024 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q3 2024 Highlights

• Consolidated gold production was 45,109 ounces, a 62% increase over the prior year quarter, at cost of sales per ounce sold of $1,783^1,4 (US$1,308), cash costs per ounce sold¹ of $1,214 (US$890) and all-in sustaining costs (“AISC”) per ounce sold¹ of $1,920 (US$1,408). The average realized price of gold sold was $3,420 (US$2,508) per ounce.
• Net income increased to $39.0 million, or $0.26 earnings per share, an increase of $42.2 million from the corresponding quarter in 2023 and $9.9 million, or $0.07 earnings per share, from Q2 2024.
• Earnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ increased to $84.6 million or by more than 6.5 times relative to the prior year quarter mainly due to an increase in ounces sold, a higher average realized price of gold sold and lower cash costs.
• Net cash flow from operating activities increased to $61.0 million, or $0.41 operating cash flow per share^1,3, $15.9 million higher than the prior year quarter mainly due to a higher average realized price of gold sold.
• Cash of $82.5 million has nearly doubled since year end, resulting in available liquidity at the end of the third quarter of $232.5 million including cash and $150.0 million of undrawn full capacity available under the Company’s revolving credit facility.
• Free cash flow¹ increased to $30.8 million, or $0.21 per share, compared to $10.7 million, or $0.07 per share, in the corresponding period in 2023 mainly due to higher average realized price of gold sold, partially offset by an increase in capital expenditures.
• Consolidated 2024 production guidance range has been narrowed to between 166,000 and 176,000 ounces of gold, while increasing cash costs per ounce sold to $1,225 to $1,300 and AISC per ounce sold¹ to $1,975 to $2,100 (US$1,445 to US$1,525).
• During the quarter, the Company announced the appointments of Guy Belleau as Chief Operating Officer and Ronald “Jono” Lawrence as Senior Vice President, Exploration and Resources. Subsequent to quarter end, Philip C. Yee was appointed Independent Director and Chair of the Audit Committee.

Anthea Bath, President and Chief Executive Officer, commented: “Wesdome delivered a strong third quarter with sequential improvement over the first two quarters of the year. Higher production at lower costs have led to strong operating cash flow and another free cash flow¹ record, with notable improvements seen across most performance metrics compared to the prior year quarter. Our dedicated teams at Eagle River and Kiena have been instrumental in this success, while upholding our commitment to health, safety, and environmental stewardship.

“Wesdome’s financial position has strengthened considerably. Compared to year end, our cash position has doubled, we have eliminated our bank debt and increased our available liquidity by nearly $80 million. We will continue to use our financial strength to de-risk future mine plans by accelerating the rate of capital spend on mine development and exploration and making additional infrastructure investments to support our fill the mill strategy.

“Looking ahead, preliminary plans for 2025 continue to de-risk our medium-term outlook and point to growing production levels at lower costs relative to this year.”

Consolidated Financial and Operating Highlights

1. Refer to the section in this press release entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
2. Revenue includes insignificant amounts from the sale of by-product silver.
3. Operating cash flow per share is calcated by dividing net cash from activities by the weighted average number of shares.
4. Costs of sales per ounce of gold sold is calculated by dividing the cost of sales by the number of ounces sold.

Eagle River – Ontario

During Q3 2024, Eagle River produced 23,688 ounces of gold as compared to 20,391 ounces in Q3 2023 primarily due to a 10% increase in head grade and 5% increase in throughput. For the first nine months of 2024, Eagle River produced 67,859 ounces of gold driven by an 11% increase in head grade, as compared to 63,727 ounces in the first nine months of 2023, which included the Mishi deposit. Eagle River head grade in the first nine months of 2024 was 13.4 g/t compared to 12.1 g/t in the first nine months of 2023.

In Q3 2024, Eagle River generated $73.6 million in revenue from the sale of 21,340 ounces of gold compared to $50.5 million from the sale of 19,600 ounces in Q3 2023. Revenue increased by 46% compared to Q3 2023 primarily due to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine months of 2024 Eagle River generated $207.0 million in revenue from the sale of 66,200 ounces of gold as compared to $170.6 million from the sale of 66,100 ounces in the first nine months of 2023. Revenue increased by 21% compared the first nine months of 2023 due to the higher average realized Canadian dollar gold price and an increase in ounces sold.

Cost of sales in Q3 2024 was $43.6 million, an increase of 9% compared to the corresponding period in 2023 primarily due to a $1.9 million increase in mine operating costs and a $0.8 million increase in depreciation and depletion expense driven by a 16% increase in ounces produced and a 5% increase in throughput. Cost of sales in the first nine months of 2024 was higher by 3% compared to the first nine months of 2023 primarily due to a 6% increase in ounces produced, driven by an 11% increase in head grade offset by slightly lower throughput.

In Q3 2024, cash costs per ounce of gold sold were $1,449 (US$1,062) compared to $1,442 (US$1,075) in Q3 2023 primarily due to an increase in mine operating costs driven by higher ounces produced and higher throughput. Cash costs per ounce of gold sold in the first nine months of 2024 were $1,422 (US$1,046), an increase of 3% compared to $1,380 (US$1,025) in the first nine months of 2023, primarily due to an increase in ounces produced.

In Q3 2024, AISC per ounce of gold sold were $2,318 (US$1,700), a 6% decrease compared to $2,467 (US$1,839) in Q3 2023, primarily due to an increase in ounces sold and lower sustaining capital expenditures. AISC per ounce of gold sold in the first nine months of 2024 were $2,107 (US$1,549), an increase of 3% compared to $2,039 (US$1,516) in the first nine months of 2023, primarily due to higher operating costs and sustaining capital expenditures.

Kiena Mine – Quebec

During Q3 2024, the Kiena mine produced 21,421 ounces of gold as compared to 7,369 ounces in Q3 2023 primarily due to a 167% increase in head grade due to the ramp-up in mining of high-grade Kiena Deep ore from the 129-level horizon in mid-April and an 8% increase in throughput. Kiena’s head grade increased to 13.1 g/t in Q3 2024 from 4.9 g/t in Q3 2023. Gold recovery increased to 99.0% compared to 98.4% in the corresponding period in 2023. In Q3 2024, the mill processed 51,321 tonnes throughput as compared to 47,351 tonnes in Q3 2023.

In the first nine months of 2024, Kiena produced 54,607 ounces of gold as compared to 23,393 ounces of gold in the first nine months of 2023 primarily due to a 113% increase in head grade and a 9% increase in throughput. Head grade at Kiena increased to 11.1 g/t in the first nine months of 2024 from 5.2 g/t in the first nine months of 2023. The rate of gold recovery increased to 98.9% from 98.0% in the corresponding period in 2023. In the first nine months of 2024, the mill processed throughput of 154,334 tonnes compared to 141,499 tonnes in the first nine months of 2023. In the second quarter Kiena began processing higher grade material from the new 129-level horizon of Kiena Deep, which is expected to continue over the balance of 2024.

In Q3 2024, Kiena generated $73.1 million in revenue from the sale of 21,560 ounces of gold as compared to $19.1 million from the sale of 7,400 ounces in Q3 2023. Revenue increased by 282% compared to Q3 2023 due to higher ounces sold and a higher average realized Canadian dollar gold price. In the first nine months of 2024, Kiena increased revenue to $168.2 million from the sale of 52,400 ounces of gold, an increase of 180% compared to $60.1 million in revenue from the sale of 22,900 ounces in the first nine months of 2023. Revenue in the first nine months of 2024 increased due to higher ounces sold and a higher average realized Canadian dollar gold price.

Cost of sales in Q3 2024 was $32.9 million, an increase of 5% over the corresponding period in 2023 primarily due to a $2.7 million increase in mine operating costs, which was due to 8% higher throughput partially offset by a change in inventory levels of $0.6 million and a $0.5 million decrease in non-cash depletion and depreciation resulting from an increase in inventories. Cost of sales in the first nine months of 2024 was $98.5 million, 9% higher than the corresponding period in 2023 primarily due to an increase in the aggregate mine operating costs as a result of a 9% increase in throughput.

Cash costs per ounce of gold sold in Q3 2024 were $981 (US$719), a decrease of 62% compared to $2,585 (US$1,927) in Q3 2023 primarily due to a 191% increase in ounces sold. Cash costs per ounce of gold sold in the first nine months of 2024 decreased by 49% to $1,212 (US$891) compared to $2,365 (US$1,758) in the first nine months of 2023 primarily due to a 129% increase in ounces sold partially offset by higher aggregate mine operating expenses due to increased throughput.

AISC per ounce of gold sold decreased by 55% in Q3 2024 to $1,526 (US$1,119) from $3,359 (US$2,504) in Q3 2023 primarily due to an increase in ounces sold partially offset by an increase in aggregate mine operating costs and sustaining capital expenditures. AISC per ounce of gold sold decreased by 36% in the first nine months of 2024 to $1,937 (US$1,424) from $3,027 (US$2,249) in the first nine months of 2023 primarily due to a 129% increase in ounces sold partially offset by an increase in aggregate mine operating costs and sustaining capital expenditures.

Outlook

The Company is tightening its 2024 guidance and reaffirming its previously disclosed 2025 consolidated production outlook. Guidance for 2024 costs, depreciation and capital expenditures, now reflects updated full-year expectations based on the Company’s operational and financial performance to date.

Consolidated 2024 gold production has been narrowed to 166,000 to 176,000 ounces from the Company’s original guidance of 160,000 to 180,000 ounces. Preliminary plans for 2025 continue to support previously disclosed consolidated production guidance of 175,000 to 210,000 ounces.

Total consolidated cash costs per ounce of gold sold is expected to be $1,225 to $1,300 per ounce sold an increase from the Company’s original guidance of $1,075 to $1,200 per ounce sold, primarily due to lower production and increased cash costs at Kiena.

Consolidated AISC per ounce of gold sold is expected to be $1,975 to $2,100 (US$1,445 to US$1,525) from $1,750 to $1,950 (US$1,325 to US$1,475), primarily due to higher total cash costs, partially offset by lower sustaining capital expenditures.

Based on strong operating performance in the first nine months of the year, 2024 production from Eagle River is now expected to be 89,000 to 93,000 ounces, compared to the original guidance range of 80,000 to 90,000 ounces at cash costs per ounce of gold sold of $1,370 to $1,425 and AISC per ounce of gold sold of $2,175 to $2,275 (US$1,595 to US$1,675).

Kiena’s 2024 production is now expected to be 77,000 to 83,000, at cash costs per ounce of gold sold of $1,065 to $1,150 and AISC per ounce of gold sold of $1,745 to $1,875 (US$1,280 to US$1,375). Execution is improving and continuing to support increased production rates, optimization of stope design parameters and the enhancement of maintenance practices. Benefits from these initiatives will continue to be realized in 2025.

2024 Guidance

Notes

1. Corporate and general costs do not include an estimated $3 million in stock-based compensation. Corporate G&A allocated to each site is included in site all-in sustaining cost calculation.
2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses.
3. This is a financial measure or ratio that is a non-IFRS financial measure or ratio. Certain additional disclosures for non-IFRS financial measures and ratios have been incorporated by reference and additional detail can be found at the end of this press release in the Non-IFRS Performance Measures section.
4. Initial 2024 capital Investment guidance was previously net of an estimated $5 million in capital leasing activities. Total capital expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the condensed interim statements of cash flows.

2025 Production Guidance

Exploration Update

Eagle River

Development and Drilling

The exploration and infill drilling program, which has been successful, targeted the 300 Zone at depth, Falcon 311, and the 6 Central Zone for growth and resource conversion from established underground platforms. Additional infill drilling towards the Falcon 7, 311 Zone, 5 Zone, and 711 Zone focused on resource conversion with delineation drilling continued to support the production areas for the current year and in preparation for 2025 planned production.

High-grade mineralization is continuously being intercepted in the 6 Central Zone, a zone that holds immense potential for our mining operations. The zone discovered in 2023 continues to trend down and plunge in an easterly direction. Located at an intermediate depth and close to underground infrastructure, targeting the zone remains a priority for resource growth and potential reserve conversion. The zone is anticipated to be continuous and will become a promising mining zone in the future.

The drilling program continued targeting the up-plunge potential of the Falcon 311 zone. Infill drilling continued to upgrade the resource classification, further solidifying our understanding of the zone. The successful delineation of the zone in the volcanics west of the Diorite showcases the potential growth for more zones outside the diorite-hosted mineralization. Drilling results indicated higher-grade mineralization for the zone at depth.

Infill drilling confirms the quality and continuity of the high-grade mineralization in the 300 Zone below the 1,400 metre elevation, creating opportunities for conversion of mineral resources. Recent results yielded significant values highlighting the continuity and quality of the 300 Zone. Exploring the depth potential of the 300 Zone continues to be a top priority to enhance our understanding of the structure.

Surface Exploration

Data processing of the IP survey completed west of the Diorite remained the focus. The structural study assesses targets with surface mapping and sampling potential.

Kiena

Development and Drilling

Kiena Deep remains a promising target for growth and conversion, with drilling focusing on growing the South Limb of the Kiena Deep and infill drilling targeting the Footwall Zones discovered in 2022, with follow-up drilling continuing to improve the understanding of the zones. Drilling has returned results of 31.7 g/t Au / over 5.3m, showcasing the potential for high-grade mineralization at reasonable widths, highlighting the opportunity for increased ounces per vertical metre, and providing operational flexibility and increased production near the Footwall elevations. Several opportunities for growth ounces remain in the South Limb area at depth in Kiena Deep and hanging wall basalt zones.

Follow-up drilling in the underexplored Wish Zone area continued in the quarter to provide an initial assessment of the size and potential continuity of the mineralization. Rehabilitation of the 33-level development to the east is making good progress to ensure the establishment of more optimal drilling platforms.

Surface Exploration Drilling

An excess of 10,000 metres of drilling was planned for the Dubuisson Zone from the barges, targeting existing resources for conversion and down-extension of the zones. Several areas within the zones were targeted with infill drilling to confirm the re-interpreted model, improve drill hole density for resource classification upgrade and test down plunge extension. Drilling results have confirmed the continuity of the zone, and above-average results not only validate our efforts but also highlight the exciting potential for the existence of higher-grade areas. The proximity of the Dubuisson Zone to the 33-level development and the relatively large resources available for conversion make it an excellent opportunity to provide flexibility for future mining.

The Northwest Zone, located approximately 400 metres north of the planned Presqu’île ramp, was targeted during the 2024 barge drilling season. Follow-up drilling is scheduled to confirm mineralization and assess the extent of the zone. High-grade mineralization was intercepted to the north of the zone, potentially indicating a new mineralization trend towards the north. The relative proximity of the zone to the planned Presqu’île ramp increases its potential as a mineable zone at intermediate depth.

East of the Kiena mine, historic drilling confirmed mineralization within the Duchesne Zone, which was modelled based on the original drilling. Follow-up drilling was scheduled in 2024 to test the original interpretation and confirm additional mineralization. Although mineralization was confirmed, drilling has driven a reinterpretation of the geological model and controls.

Presqu’île Project

The Presqu’île deposit is located 1.3 kilometres west of the Kiena mine and has been identified as five gold-rich zones cross-cutting mafic rocks (Zones PR-1, 2 and 2A) and ultramafic rocks (Zones PR-3 and 4). Presqu’île is just one of several underexplored near-surface deposits on the Kiena land package that could leverage spare capacity at the Company’s 2,040 tonne per day Kiena mill and extend mine life.

The results of a recent internal Presqu’île project study scoped 250 to 400 tonnes per day of feed starting in late 2025, supporting production of 15,000 to 20,000 ounces per year at all-in sustaining costs consistent with the Kiena operation. A mining permit application for Presqu’île is expected to be filed in the first quarter of 2025.

Work on the ramp portal was started in December 2023 with substantial completion achieved in early April 2024. Lateral development of the exploration ramp commenced mid-April following portal construction. The ramp is currently expected to advance 1,150 metres by year end 2024 with the remaining 1,250 metres to be completed in 2025. Approximately $25 million is forecasted to be spent on the portal, ramp and surface infrastructure in 2024.

Presqu’île drilling commenced in September 2024. Initial drilling testing an area near a lower-grade intercept intersected mineralization with visible gold. The drilling program was increased to complete more drillholes in the inferred classified area for potential resource conversion, and in addition to down-plunge extension potential, it underscores the significant value of the zone and the importance of the zone.

Preliminary Short Form Base Shelf Prospectus Renewal

Today, the Company renewed its short form base shelf prospectus with the securities regulators in each of the provinces and territories of Canada under the applicable Well-Known Seasoned Issuer (WKSI) procedures. The base shelf prospectus will allow the Company to offer and issue common shares, debt securities, warrants, subscription receipts, units or any combination thereof during the 25-month period over which the base shelf prospectus is effective. The Company has refreshed its base shelf prospectus in order to maintain its financial flexibility as it continues to advance its business plans but has no immediate plans to issue any securities under it at this time and may never proceed with any such issuance. Should the Company decide to offer securities during the 25-month effective period, the specific terms, including the use of proceeds, will be set forth in a prospectus supplement to the short form base shelf prospectus, which will be filed with the applicable Canadian securities regulatory authorities. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction. A copy of the short form base shelf prospectus can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Conference Call and Webcast

Management will host a conference call and webcast to discuss the Company’s Q3 and YTD 2024 financial and operating results. A question-and-answer session will follow management’s prepared remarks. Details of the webcast are as follows:

The financial statements and management’s discussion and analysis will be available on the Company’s website at www.wesdome.com and on SEDAR+ www.sedarplus.ca the evening of November 6, 2024.

About Wesdome

Wesdome is a Canadian-focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the Kiena mine in 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.

For further information, please contact:

Raj Gill, SVP, Corporate Development & Investor Relations
Trish Moran, VP, Investor Relations
Phone: +1 (416) 360-3743
E-Mail: invest@wesdome.com

Responsibility for Technical Information

The technical and scientific information relating to exploration activities disclosed in this document was prepared under the supervision of and verified and reviewed by Guy Belleau, P.Eng, Chief Operating Officer of the Company and Niel de Bruin, P. Geo, Director of Geology for Wesdome, each a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Data verification involves data input and review by senior project geologists at site, scheduled weekly and monthly reporting to senior exploration management and the completion of project site visits by senior exploration management to review the status of ongoing project activities and data underlying reported results. All drilling results for exploration projects or supporting resource and reserve estimates referenced in this document have been previously reported in news release disclosures by the Company and have been prepared in accordance with NI 43-101 – Standards of Disclosure for Mineral Projects. The sampling and assay data from drilling programs are monitored through the implementation of a quality assurance – quality control (“QA-QC”) program designed to follow industry best practice.

Forward Looking Statements

This news release contains “forward-looking information” which involve a number of risks and uncertainties. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Forward-looking statements or information contained in this press release include, but are not limited to, statements or information with respect to the Company’s expectations around: the level of and uses of the Company’s anticipated rate of capital spend; the Company’s future production, costs and expenses; the Company’s future production rates, design parameters, maintenance practices and other continuous improvement initiatives; the success, potential, objectives, schedule, targets, opportunities and priorities of the Company’s exploration programs; the Company’s anticipated filing of mining permits; and the anticipated cost and development rate of the Presqu’île ramp. Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

We have made certain assumptions about the forward-looking statements and information, including assumptions around economic parameters relating to our mineral reserves and mineral resource estimates described herein. Even though management believes that the assumptions made, and the expectations represented by such statements or information, are reasonable in the circumstances, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond the Company’s control.

Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors including those risk factors discussed in the sections titled “Cautionary Note Regarding Forward Looking Information” and “Risks and Uncertainties” in the Company’s most recent Annual Information Form. Readers are urged to carefully review the detailed risk discussion in our most recent Annual Information Form which is available on SEDAR+ and on the Company’s website.

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management’s estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Non-IFRS Performance Measures

Wesdome uses non-IFRS performance measures throughout this news release 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:

• Average realized price per ounce of gold sold
• Cash costs per ounce of gold sold
• Production costs per tonne milled
• Cash margin
• All-in sustaining costs per ounce of gold sold
• Free cash flow and free cash flow per share
• Adjusted net income (loss) and adjusted net income (loss) per share
• EBITDA

Average realized price per ounce of gold sold

Average realized price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. Average realized price per ounce of gold sold is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. It may not be comparable to information in other gold producers’ reports and filings.

Cash costs per ounce of gold sold

Cash cost per ounce of gold sold is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. The Company has included this non-IFRS performance measure throughout this document as Wesdome believes that this generally accepted industry performance measure provides a useful indication of the Company’s operational performance. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. 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 following table provides a reconciliation of total cash costs per ounce of gold sold to cost of sales per the financial statements for each of the last eight quarters:

Production costs per tonne milled

Mine-site cost per tonne milled is a non-IFRS performance measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. As illustrated in the table below, this measure is calculated by adjusting cost of sales, as shown in the statements of income for non-cash depletion and depreciation, royalties and inventory level changes and then dividing by tonnes processed through the mill. Management believes that mine-site cost per tonne milled provides additional information regarding the performance of mining operations and allows Management to monitor operating costs on a more consistent basis as the per tonne milled measure reduces the cost variability associated with varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, the estimated revenue on a per tonne basis must be in excess of the production cost per tonne milled in order to be economically viable. Management is aware that this per tonne milled measure is impacted by fluctuations in throughput and thus uses this evaluation tool in conjunction with production costs prepared in accordance with IFRS. This measure supplements production cost information prepared in accordance with IFRS and allows investors to distinguish between changes in production costs resulting from changes in production versus changes in operating performance.

Cash margin

Cash margin is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS, as well it may not be comparable to information in other gold producers’ reports and filings. It is calculated as the difference between gold sales revenue from mining operations and cash mine site operating costs (see Cash cost per ounce of gold sold under this Section above) per the Company’s Financial Statements. The Company believes it illustrates the performance of the Company’s operating mines and enables investors to better understand the Company’s performance in comparison to other gold producers who present results on a similar basis.

All-in sustaining costs per ounce of gold sold

All-in sustaining costs (“AISC”) include mine site operating costs incurred at Wesdome mining operations, sustaining mine capital and development expenditures, mine site exploration expenditures and equipment lease payments related to the mine operations and corporate administration expenses. The Company believes that this measure represents the total costs of producing gold from current operations and provides Wesdome and other stakeholders with additional information that illustrates the Company’s operational performance and ability to generate cash flow. This cost measure seeks to reflect the full cost of gold production from current operations on a per-ounce of gold sold basis. New project and growth capital are not included.

Free cash flow and operating and free cash flow per share

Free cash flow is calculated by taking net cash flow from operating activities less cash used in capital expenditures and lease payments as reported in the Company’s financial statements. Free cash flow per share is calculated by dividing free cash flow by the weighted average number of shares outstanding for the period.

Operating cash flow per share is calculated by dividing net cash flow from operating activities in the Company’s Financial Statements by the weighted average number of shares outstanding for each year. It may not be comparable to information in other gold producers’ reports and filings.

Adjusted net income (loss) and adjusted net income (loss) per share

Adjusted net income (loss) and adjusted net income (loss) per share are non-IFRS performance measures and do not constitute a measure recognized by IFRS and do not have standardized meanings defined by IFRS, as well both measures may not be comparable to information in other gold producers’ reports and filings. Adjusted net income (loss) is calculated by removing the one-time gains and losses resulting from the disposition of non-core assets, non-recurring expenses and significant tax adjustments (mining tax recognition and exploration credit refunds) not related to current period’s income, as detailed in the table below. Wesdome discloses this measure, which is based on its financial statements, to assist in the understanding of the Company’s operating results and financial position.

EBITDA

Earnings before interest, taxes and depreciation and amortization (“EBITDA“) is a non-IFRS financial measure which excludes the following items from net income (loss): interest expense; mining and income taxes and depletion and depreciation expenses. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use EBITDA as an indicator of Wesdome’s ability to generate liquidity by producing net cash from operating activities to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA excludes the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other producers may calculate EBITDA differently. The following table provides a reconciliation of net income in the Company’s financial statements to EBITDA: