WESDOME GOLD MINES LTD

WESDOME GOLD MINES LTD
Corporate
p
Presentation
December 2012
Cautionaryy Statements
Cautionary Language regarding Forward-Looking Information
This presentation contains and refers to forward-looking information based on current expectations. All other
statements other than statements of historical fact included in this release including,
including without limitation
limitation, statements
regarding processing and development plans and future plans and objectives of Wesdome Gold Mines Ltd. (the
“Company”) are forward-looking statements (or forward-looking information) that involve various risks and
uncertainties. These forward-looking statements are made as of the date hereof and there can be no assurance that
such statements will prove to be accurate
accurate, such statements are subject to significant risks and uncertainties,
uncertainties and
actual results and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements that are included herein.
Important factors could cause actual results to differ materially from the Company’s
Company s expectations. Such factors
include, among others: the actual results of additional exploration and development activities at the Company’s
projects; the timing and amount of estimated future production and the costs thereof; capital expenditures; the
availability of any additional capital required to bring future projects into production; future prices of commodities; the
failure of plant
plant, equipment or processes to operate as anticipated; accidents; labour disputes; Please refer to the
“Risk Factors” in materials filed with securities regulatory authorities in Canada.
Technical Disclosure
All technical disclosure contained in this presentation respects National Instrument 43-101 standards and is
disclosed fully on SEDAR filings (www.sedar.com). The “Qualified Person” who has reviewed the technical
content of this presentation is George N. Mannard, P. Geo. and Vice President, Exploration of Wesdome
2
Canadian Underground
g
Gold Miners
3
Established
ƒ 25 years of unhedged gold production since 1987
ƒ No forward sales or options to sell
Experienced
ƒ 5 producing mines since 1987
ƒ 3 current producers: Kiena Mine,
Mine Eagle River Mine,
Mine Mishi Mine
Proven
ƒ 1.3 million ounces of production since 1987
ƒ We continue to replace reserves
Trusted
ƒ Emphasis on safety
ƒ Results-oriented
R lt i t d
Focused
ƒ Canada only – low geopolitical risk
ƒ Gold only – no other metals
3
Canadian Underground
g
Gold Miners
Eagle River Mine – 100% owned and operated by Wesdome
ƒ
ƒ
ƒ
ƒ
Located near Wawa, Ontario
2010 Production 37,000
37 000 ounces
2011 Production 28,200 ounces
2012 Forecast 30,000 ounces
Kiena Mine – 100% o
owned
ned and operated by
b Wesdome
ƒ
ƒ
ƒ
ƒ
Located in Val d’Or, Quebec
2010 Production 32,000 ounces
2011 Production 19,500
19 500 ounces
2012 Forecast 20,000 ounces
Mishi Mine – 100% owned and operated by Wesdome
ƒ Located near Wawa, Ontario
ƒ 2012 Forecast 10,000 ounces
Overall
ƒ 400 Employees
ƒ 60,000 ounces forecast in 2012
ƒ Production growth profile 2012 onwards
4
Gold Production Profile
Production
Revenue
35.0 30,000 30.0 25,000 25.0 20.0 15,000 15.0 Total Ounces Produced
Revenue $
$CAD Millions
20,000 10,000 10.0 5,000 5.0 ‐
‐
'07 '07 '08 '08 '08 '08 '09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
5
Corporate
Highlights
p
g g
ƒ
ƒ
ƒ
ƒ
ƒ
2009 Earnings of $32.2 million
2010 Earnings of $3.7 million
2011 Earnings of $0.2 million
2012 YTD Earnings of $1.2 million
Strong
g Operating
p
g Cash Flow
2009 Cash Flow from Operations of $41.3M (C-GAAP)
2010 Cash Flow from Operations of $21.5M (IFRS)
2011 Cash Flow from Operations of $10.5M (IFRS)
2012 YTD Cash Flow from Operations of $10.5M (IFRS)
ƒ Safety
Excellent Record (5 years without a lost time accident at Kiena)
ƒ Exploration Î Development Î Production Growth
Developing S-50, South, Martin and Dubuisson Zones at Kiena
Developing deeper levels of 811 and 808 Zones at Eagle River
Mishi open pit mine now producing
6
Cash Flow from Operations
p
Cash Flow before Working Capital Adjustments
Production
30,000 12.00 25,000 10 00
10.00 20,000 8.00 15 000
15,000 6.00 Total Ounces Produced
Cash Flow be
efore Working Capittal Adjustments $C
CAD Millions
14.00 10,000 4.00 5,000 2.00 ‐
‐
'08 Q3 '08 Q4 '09 Q1 '09 Q2 '09 Q3 '09 Q4 '10 Q1 '10 Q2 '10 Q3 '10 Q4 '11 Q1 '11 Q2 '11 Q3 '11 Q4 '12 Q1 '12 Q2 '12 Q3
7
Capital
p Structure
Stock Exchange Listing
WDO – TSX
Shares Outstanding (December 2012)
Basic
Fully Diluted
F ll Diluted
Fully
Dil t d (D
(Debenture
b t FFully
ll C
Converted)
t d)
Current Share Price (December 2012)
Market Capitalization
Fully Diluted
Fully Diluted (Debenture Fully Converted)
Cash & Bullion1,2
Debt (New Debenture Issue)1
Gold & Foreign Exchange Hedging
1. As at September 30, 2012
2. Bullion valued at market
101.9 million
104.0 million
106 8 million
106.8
illi
$0.90
$91 million
$94 million
$96 million
$18.8 million
$7.0 million
nil
8
Gold Production – Underground
g
Clockwise from L-R: A two-boom Jumbo at the Kiena Mine.
Ore zone: quartz veins at Eagle River.
A 30 tonne truck hauling ore at Eagle River.
9
5 Years of Replacing
p
g Reserves*
Kiena Mine – Val d’Or, Quebec
2P RESERVE ESTIMATE
DATE
TONNES
ACTUAL PRODUCTION
GRADE
OUNCES
DATE
TONNES
GRADE
OUNCES
Dec 31, 2006
795,000
4.4
113,000
2007
284,757
3.9
35,404
Dec 31, 2007
534,700
4.5
76,900
2008
241,641
5.2
40,344
Dec 31, 2008
733,000
4.3
102,000
2009
302,034
3.6
35,398
Dec 31, 2009
600,000
4.1
78,000
2010
285,500
3.5
32,000
Dec 31, 2010
1,097,000
2.8
99,000
2011
255,311
2.4
19,516
Dec 31, 2011
1,235,000
2.9
116,000
1,369,243
3.7
162,662
CUMULATIVE PRODUCTION:
E l River
Eagle
Ri Mine
Mi – Wawa,
W
Ontario
O t i
2P RESERVE ESTIMATE
DATE
TONNES
ACTUAL PRODUCTION
GRADE
OUNCES
DATE
TONNES
GRADE
OUNCES
Dec 31, 2006
253,000
12.9
105,000
2007
76,676
13.1
32,299
D 31,
Dec
31 2007
265 000
265,000
10 8
10.8
92 000
92,000
2008
118 916
118,916
13 0
13.0
49 660
49,660
Dec 31, 2008
231,000
9.8
73,000
2009
132,004
14.3
60,754
Dec 31, 2009
400,000
8.6
110,000
2010
155,500
7.4
37,000
Dec 31, 2010
345,000
15.0
167,000
2011
183,984
4.8
28,233
Dec 31, 2011
504,000
10.9
176,000
667,080
9.7
207,946
CUMULATIVE PRODUCTION:
* Mineral Reserve and Mineral Resource estimates are compliant with National Instrument 43-101 which regulates
disclosure of technical information
10
5 Years of Growingg Reserves
Proven + Probable Reserve Growth
400,000
350,000
319,000
350,000
300,000
Ounces G
Gold
250,000
200,000
188,000
168,900
5,000
175,000
150,000
100,000
50,000
2007
2008
2009
2010
2011
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Kiena Complex
p – Val d’Or, Québec
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Kiena Complex
p
ƒ Current reserves of 116,000 oz. gold
Further resources of 145,000 oz.
In commercial production since 2006
Significant exploration potential
ƒ Past producer between 1981 and 20021
2000 tpd infrastructure
1.56 mm ounces of gold produced
ƒ Current production forecast2
20,000
20
000 oz in 2012
1,00 tpd – 5 days a week
250,000 tonnes per year
Mill capacity to double production with
favourable exploration results
1. Source: Company reports, Placer Dome, McWatters.
2. Estimated
13
New Discoveryy in a 20 Million Oz. District
14
Kiena 2012 Exploration
p
S-50 Deep Longitudinal, 3D view looking N
15
Martin Zone, Dubuisson Zone
16
Eagle
g River Mine – Wawa, Ontario
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Eagle
g River
ƒ Current reserves of 176,000 oz gold
In production since 1995
10 year history of replacing reserves
ƒ Current production forecast1
2012 – 30,000 oz
2009 recovered grades averaged 14.3
14 3 g/t
ƒ Numerous exploration targets
Excitingg high
g ggrade results in mine’s west end
Zones 808 and 811
Open at depth
1. Estimate
18
Eagle
g River 2012 Exploration
p
Targets
g
19
Mishi Mine
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Mishi Mine
ƒ Mishi Mine is a gold deposit containing
Measured and Indicated Resources of 5.7
million
o to
tonnes
es at 2.4 ggAu/t
u/t oor 438,000
38,000 ooz
ƒ Current reserves of 58,000 oz
ƒ Historical production of 135,495 tonnes at
3.57 gAu/t for 15,562 ounces
ƒ 2012 Production Forecast: 10,000 oz
ƒ 2012 YTD Recovered Grade: 2.5g/t
ƒ Located 2 km from Eagle River Mill
ƒ Commercial production January 1,
1 2012
ƒ 5 year mine plan – considerable expansion
potential
ƒ Open
O
to
t the
th East,
E t West
W t andd att ddepth
th
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Mishi Mine
22
Mishi Mine– Addingg to NAV
From InnovExplo Pre-Feasibility Study – See full press release November 29, 2010 on SEDAR.com
Current Gold Price – $1,700 US
23
Moss Lake Gold Mines (MOK-V:
57%))
(
ƒ Moss Lake is a gold deposit containing a 1.63 Moz global inferred resource
1.11 Moz Indicated [40.3M tons at 0.027 opt in-situ]
0.52 Moz Inferred [20.7M tons at 0.025 opt in
in-situ]
situ]
ƒ Located 100km due West of Thunder Bay, Ontario
ƒ Mineral resource geometry favours open pit mining techniques
ƒ PEA and metallurgical tests initiated in 2012
QES ZONE
MAIN ZONE
EXPLORATION
TARGET
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Invest in Wesdome
ƒ Canadian mining company with 3 producing mines
Eagle River Mine – underground mine in commercial production since 1995
Kiena Mine – underground mine in commercial production since 2006
Mishi – 5 year mine plan
ƒ Strategic land package in prolific Val d’Or and Wawa regions in Canada
One of Canada’s highest concentrations of historic gold producers
Low geopolitical risk – 2 of the best mining jurisdictions in the world
ƒ Solid production base and growth potential
Production estimate for 2012 is 60,000 oz, increasing 2013 onwards
Capacity in place to double production
ƒ Significant
Si ifi t exploration
l ti potential
t ti l
12,735 wholly-owned hectares in 2 Archean greenstone belts
New Dubuisson gold discovery in Val d’Or
ƒ Excellent gold price leverage
leverage-Room
Room to Grow
Gold sales as high as $CAD 1,730/oz (November 2012)
Every $CAD 10/oz increase in the gold price increases bottom line by $600,000*
ƒ 3rd Gold Mine – Mishi Mine Now Producing
*Based on 60,000 ounces gold production in 2012
25
Goingg Forward
ƒ Further Pursuit of Organic Growth
Developing our recent discoveries
Reassessing our known,
known 100%
100%-owned
owned deposits @ $CDN 1,700/oz
1 700/oz gold
Strategic acquisitions vs. M&A
Infrastructure investment to incrementally increase production rates and lower unit
costs
ƒ Solid production base and growth potential
60,000 ounces forecast this year-growth profile 2012 onwards
Kiena Complex infrastructure still only at half capacity
Develop new reserves
ƒ Resource Growth Per Share
Wesdome Indicated and Inferred resources increased over 3x
Drilling programs at Eagle River, Kiena, Dubuisson in progress
Mishi potential expanding
26
Appendix A – 2011 Reserves*
Mineral Reserves
Tonnes
Grade (gAu/t)
Contained Gold (oz)
Kiena – Proven
584,000
3.0
56,000
Kiena – Probable
651,000
2.9
60,000
1 235 000
1,235,000
29
2.9
116 000
116,000
75,000
12.0
29,000
Eagle River – Probable
429,600
10.6
147,000
Eagle River – 2P
504,000
10.9
176,000
Mishi – Proven
174,000
2.7
15,000
Mi hi – Probable
Mishi
P b bl
535 000
535,000
25
2.5
43 000
43,000
Mishi – 2P
709,000
2.6
58,000
Ki
Kiena
– 2P
Eagle River – Proven
Total Reserves (2P)
350 000
350,000
27
*Mineral Reserve and Mineral Resource estimates are compliant with National Instrument 43-101 which regulates disclosure of technical information
Appendix A – 2011 Resources*
Mineral Resources
Tonnes
Grade (gAu/t)
Kiena – Measured
Kiena – Indicated
Kiena - M+I
197,000
197
000
1,264,000
1,461,000
Mishi – Measured
Mishi – Indicated
*Mishi – M+I
281,000
2.5
22,000
5,455,000
2.4
416,000
5,736,000
2.4
438,000
Mishi Resources include mineral reserves *380,000
Wesdome – Indicated
276 000
276,000
33.77
3.0
3.0
Contained Gold (oz)
77
7.7
23,000
23
000
122,000
145,000
68 000
68,000
Total M+I Resources
593,000
Total 2P + M+I
943,000
Inferred Resources
204,000
7.1
46,000
Mishi
1,202,000
3.6
140,000
W d
Wesdome
1 563 000
1,563,000
79
7.9
400 000
400,000
Eagle River
Total Inferred
586,000
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*Mineral Reserve and Mineral Resource estimates are compliant with National Instrument 43-101 which regulates disclosure of technical information
Appendix B – Management Team
ƒ Donovan Pollitt, P.Eng., CFA – President & CEO
Professional Engineer, with Wesdome since 2004
Played key role in the merger of Wesdome and River Gold Mines in 2006,
2006 and Wesdome
with Western Quebec Mines in 2007
ƒ Brian Ma, CA, MAcc – Chief Financial Officer
Charteredd A
Ch
Accountant fformerly
l with
ihD
Deloitte
l i
Experience in providing assurance services and IFRS consulting for public companies,
including many in the mining industry
ƒ George Mannard, P.Geo., MSc.A. – Vice President, Exploration
Professional Geologist with 27 years experience in the Val d’Or camp
Career highlights include being Senior Geologist responsible for the Louvicourt discovery
Development of 8 gold mines
ƒ Andre Roy, P.Eng., MSc.A. – Vice President, Operations
Professional Engineer with 30 years of experience in the mining industry
Experience in management and consulting for many companies, including Aurizon Mines,
Cambior Incorporated, and Genivar
29
Appendix C – Institutional Shareholders
Summary of Institutional Shareholders of Wesdome*:
ƒ AGF Funds
ƒ Gabelli & Co Inc
ƒ Mackenzie Financial
*Source: ThompsonReuters
ƒ
ƒ
ƒ
ƒ
Resolute Funds
Sprott Asset Management
g
TD Asset Management
Tocqueville Asset Management
30