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Wesdome increases guidance as gold production jumps

Wesdome Gold Mines has reported a 46% increase in September quarter gold production to 28,910 ounces from its Eagle River complex in Ontario, Canada, compared with 19,795oz in the same period of 2018. The Eagle River underground mine produced 39,453 tonnes at a head grade of 23.4 grams per tonne.
Wesdome increases guidance as gold production jumps Wesdome increases guidance as gold production jumps Wesdome increases guidance as gold production jumps Wesdome increases guidance as gold production jumps Wesdome increases guidance as gold production jumps

Production jumps at Eagle River in Ontario, Canada

Staff Reporter

The company booked revenue of C$45.9 million, up 59% over the $28.9 million in the previous year due to higher production and higher gold prices, while cash costs remained about the same at US$618/oz compared with US$624/oz in the 2018 period. All-in sustaining costs (AISC) increased 16% to US$1,018/oz from US$888/oz due to the investment in the tailings management facility at Eagle River, which will provide an additional four years' capacity at current mill feed.

Wesdome posted net income of $12.4 million compared with $3.6 million in the prior year period, which saw the company end the third quarter with $38.6 million in cash compared with $27.4 million in the previous quarter.

"Due to continued superb performance of the 303 Lens, we have increased 2019 guidance from 72,000-80,000oz to 88,000-93,000oz, with 70,356oz produced in the third quarter. Recent exploration results have extended the 303 Lens 300m down plunge where it remains open," said president and CEO Duncan Middlemiss.

Wesdome expects to complete a preliminary economic assessment in early 2020, looking at a possible restart of its Kiena mine in Quebec, Canada. "We are half-way completed on the 790m level drift to further test the up plunge of the A Zone. Once completed, we will have one drill stationed there and expect to release results in the first half of 2020," he said.

Shares in Wesdome Gold Mines are trading at C$8.33, valuing the company at $1.1 billion.