WDOFF - Earnings call transcript Q3 2020

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Operator

Good morning, everyone and welcome to the Wesdome Gold Mine’s Third Quarter Financial Results Conference Call. I will now turn the call over to Heather Laxton to begin.

Heather Laxton

Great. Thanks, operator and good morning, everyone. Thanks for joining us today.

statements. would during take discuss this outlook make we remind opportunity our begin, and that everyone call, forward-looking we like this to to business Before we will and These expectations comments on are our as today. based of predictions XXXX. Company’s to dated in Actual to materially and yesterday’s uncertainties, those press a cause detailed November the the and due mentioned risks release, differ in events management of cautionary could analysis or including results X, discussion outcomes and number note in contained are our on documents SEDAR. Both and on available website that all Canadian note figures Please call discussed are dollars on in stated. this unless otherwise used a will website. call this slides The the for presentation recording of Company’s on posted and this be

over Now, Vice Relations. Investor Lindsay to Dunlop, President,

Lindsay Dunlop

Heather. Thanks,

Duncan this with have President we Here Middlemiss, CEO. and us

Duncan Middlemiss

Good morning.

Lindsay Dunlop

Scott Chief Gilbert, Financial Officer.

Scott Gilbert

Good morning, everyone.

Lindsay Dunlop

Marc-Andre Operating Pelletier, Officer. Chief

Marc-Andre Pelletier

Marc. is This Hello.

Lindsay Dunlop

President, Exploration. Vice Michaud, Mike

Michael Michaud

Good morning.

Lindsay Dunlop

Vice Gill, Raj Development. Corporate President, And

Raj Gill

morning. Good

Lindsay Dunlop

begin then an by Duncan update through summary go of and from Marc-Andre, today and outlook. review Scott. from will ahead, guidance take with will will XXXX Please Marc. conclude review with Duncan. Then followed from operational Mike you year-to-date a a financial summary a exploration We an results

Marc-Andre Pelletier

ounces Thanks Eagle XX,XXX reduce third any operations the in expected to the new to were experienced controls. then. underground now new had since be system of shutdown this the outage grades in in compared us are we in to mill year and be social as XXX compare well at Mainly due the stating the the to early allow planned. underground surface expected from second mine the quarter QX the running the the in ore. we Mishi the production a at XXXX trucked pressure and the amendment capacity. will will more hoist grade and give completed increasing stopped financials. quarter Mishi the for will to of was installation ventilation to will not the previous problems people installation The of resumed will the from Production the review In QX, planned ore of to and have hoist west More order around of earlier to Eagle fine eating day in are Lindsay. on now fan which than This upgrades. the per construction high hoist due the work surface tons Mine Production undertake project amount be Scott adequate up increase quarter. QX. camp distancing. to lower delays higher side the

Scott Gilbert

plan assets to Thanks XX.X Mark. development In both increased We QX QX, the in Quebec from do because restarted Kiena deems XX.X we million and in it almost and compared spent fully to Kiena drill at are caught safe in to million up million QX, as measures. work so. the development at spending X.X result primarily government and total a XX.X capital at after exploration million

average cost for per quarter per QX. was of above million to QX started we the Ounces grow share projects and to ounce the were guidance. an QX price Balances a realized of Canadian. And our the of pandemic, our the as than was costs from at and well, with due safety AIFD ounce as $XX.X some flow which $X,XXX and per gold the downtime up QX. to XXX result, less cash was continue COVID-XX higher unscheduled than capital Operating share $X.XX timing per Cash from share, sustaining QX. Eagle per cash increasing also will flow sold As QX XX productivity to with Net continued capital increased X.X cash budgeted and million the Free spent. QX the quarter result of scheduled a per end of pushed lower on for [indiscernible] ventilation XX,XXX income $X.XX ounces million, per were day was production in operating increase capacity. share QX work tons Due in to at were and project, to the the measures.

costs QX. Over and of expect in to remain guidance within We Duncan to guidance review AIFD summary. for year-to-date

Duncan Middlemiss

Scott. Thanks, have a XX,XXX produced ounces XX,XXX of Great. versus we to full-year XXX,XXX ounces. Year-to-date guidance

We the in year this achieving and in in of are confident this the likely guidance midpoint range.

to high this per to expect on COVID-XX into year range, we the Mike guidance costs to guidance situation to this Year-to-date, the review grams the expect have are trend end we within be XX within range. within XX.X sustaining the ton. of We to Operating and to Eagle exploration. than expect to the due of grade pandemic, end costs continuing all-in also And continue Over budgeted. higher been of QX.

Michael Michaud

Thanks Duncan.

the been the is has already future nearby to was drilling mine was Zone, to drilling to to the in The elevation meter XXX the have augmenting elevations. extension Falcon the potential operation. One XXX additional plunge that returned are over XXX term. on production Zone. Zones development rates X exploration gold from X of the meters per the and restrictions, development footwall and production core in meter XXXX and established in the currently of that Since elevation XX completed capacity drilling operating This surface meter established Although included extend extends Falcon Falcon and Zone to out the from ultimately of Eagle to funds in one define length. of better Recent the meter COVID-XX be within mined now drilling on test XXX reduced down with medium is which and completed down drills the meters grams Falcon underground for three surface uncapped ton drill XXX due of elevation. now six continues allow extension that drill time,

Additionally, has drone exploration full Fly capacity for drilling June. with one At Surface development Kiena, drilling test program in targets. regional to commenced and resumed

A drilling program on to drilling to Zone indicated order definition resources The underground resources. in drills. inferred ongoing to focus convert grade now currently continues the are We high the operating seven of

the expect estimate study. of pre-feasibility updated QX meters. in publish extended We has A incorporated XXX excess to now which down be Drilling this in an year, Zone into will resource plunge of the subsequently

addition, extended VC to In meters development plunge One level XX completed. Zone are where down the level being presently drilling drilling XXX XXX from has

are We commence also exploration XX,XXX with a happy to have surface a program. our of start drilling regional meter

rock provide the Zone to the necessary block and opportunity take to HX are sampling will company so In provide position Zone A study quality expected characteristics, access a Back the XXX being end complete will currently the on before to A XXXX. level, and bulk be bulk to completed an sample, the addition geologic of the the ongoing development ongoing is Future drilling, towards as on to to information pre-feasibility Duncan. to in the you XXXX. completed assess model expected results

Duncan Middlemiss

their take evolving to suppliers the Mike. thank contractors, for of would time the to employees, Thanks, I and situation of this our and dedication navigation like COVID-XX pandemic.

achieved advancing with the important $XX.X flow and the we the free has Kiena have surrounding uncertainty year-to-date record year of cash into steps Although challenged some pandemic, towards operation. been million completed

half and basis which resource estimate expected an for the of to first decision XXXX. pre-feasibility will the be QX, restart publish expect updated the in study in We

nine-months increase production projects We expected production. have to more per ahead at short-term to than strides to our initiating expansion also XX-months underground made advancing tons day XXX Eagle of development and

to $XX has which both Kiena with continued position Our work to fund will million, and River ending the the build the projects. over quarter Eagle advance cash

We I are well that floor up With positioned. the to open like would to questions.

Operator

Alliance. Our comes George Instructions] Industrial Topping of from [Operator you. question first Thank

open. is line Your

George Topping

Duncan, hello everyone. operator, interested the hello Thanks Eagle. development in I at was

in due COVID a for development tons to have We have the development [personnel] increase day. fairly to cost look seen for behind going XXX should incurred per other companies we in the restrictions, (Ph) fall underground the substantial preparation for

Duncan Middlemiss

in a to know Good we because significant of morning, which of the development metal, gold body, the we maintain Eagle production. type has amount of vein, mineral, George, ore our as mine, order need

So, in development to - we do that enough at stage order that tons production day, order get to for next we believe have in develop the ahead to year. are we per XXX us sustain

it about I cost, mean, year $XX of $XX I development. for million, So, in dedicated a million believe term just is

as basically it are is. that at So, pace we

George Topping

that year, ounces logical the And for Got it. a XXX,XXX reasonable then targets? production next gold one on still is the

Michael Michaud

I the now, yes, absolutely. level up and to continue just the but budget know, of we mean, George, right tying process go. towards that are Yes, increases in you incremental

tons I want ventilation we this Something in a mill expand Eagle the Well production And point per step just that a project capacity. is expect do out XXX XXX tons got match going really that out. story doing to you about, order just that the to in day. of we to here, whole to is River our day the asked production know, are to facilitate we earlier

we with to you and a Falcon would Zone us shored trying so in that get bring know, certainly can the up And X we things you know, see, goal. as aid production as developing that into and that soon as can

we yes, that. our towards are on So march definitely

George Topping

run, Good, call on around okay. the that you the rovers mine in river have or that question Last the mentioned the in exploration area, Eagle done is the area, on lease briefly regard? you much last

Marc-Andre Pelletier

we we found now actually are it some drill we to Falcon here. is given surface bringing morning. And Zone, significant thought Hey and into at that was in very we we George, Yes, the the the had stage Falcon going volcanics. good be have, that Zone production which

that. to And interesting with it weren't but what seemed the drilled bit was near was lot of We when with spotty. was about so off a that are And better. really we it zone, that surface zone, happy a we depth, get expression sure

have zones meters. that some it we looks extend why other kind within we found that been of of able diorite. to thousand similar down the is this So to a And the

now good really where starting where to it them, to the those had historic the we we drilling. in program drilling hit at with going this is better so next year have those just showings surface. results was assessing of And program So year targets places we that surface much can of back some some other are on surface the looking around some bigger going a of and

really think successful. area of and lot been we next to lot very is that regional some news a is a is up find hasn't more expect surface believe, now explored. is exploration to zones an be that targets, with bigger on we here. will I we the pretty of come So It year ongoing, but program more I follow out well expect drilling there good brownfields start we Right. these a going will to

George Topping

Yes. you. Good. Thank

Operator

have BMO a Thank you. Andrew we next of Mikitchook question And from Capital Markets.

is open. line Your

Andrew Mikitchook

you. Thank

next the Just kind vast this year of is end question have year, of a of tons day. a day. XXX expectations you the that year? for tons up by homework next per XXX your thing ramp on the if of at per quick Or throughout the Is done timing that not essentially majority, all so

Duncan Middlemiss

We QX. morning be expected around Good to range at that Andrew. basically in

So up really it that is be ramp really eventually as gets there not are upgrades there. going We in a year. the competed the early some going be to to we believe

be So to we are believe there. we going

Andrew Mikitchook

Okay. And question. then just other one timing

half. Kiena first going of to this reiterated into in year that the resource for or guys year, year into roll the Does before What You the would next next that? year? end that be goes for PFS for that timing come the is

Marc-Andre Pelletier

Yes, before in I be of year sometime that is half going first to the a December, think probably. end,

to we to timeline put with we can out. want sure We working are we our estimates independent have an hit resource and sure make consultants that make

be coming that then. So should

Andrew Mikitchook

very soon. And so the be assuming I'm drill cutoff to that for got results

Marc-Andre Pelletier

happened. already actually is It

which So sometimes week during the of sort was of third September.

resources that now. we and So the are together data putting we have

Andrew Mikitchook

Okay, for let will I much in. others thank questions. you my taking very jump

Duncan Middlemiss

Good, Andrew. Thanks.

Operator

you. Thank

question Partners. is Ryan with next Walker Echelon from Our

open. is line Your

Ryan Walker

thanks for the call. Hi guys,

quick from Just me. one

up kind million just for So foreseeable the a future to kind COVID costs million over until guess Is up just of X.X stick were a we X.X I QX. can around from of of quarter this to vaccine ultimately? level shy about during the expect the in

Marc-Andre Pelletier

Yes.

XX. delayed I costs. time and in have in the there the not really You And all daily My just of a with supervision know almost hauled now whole are guys the are I with same goes It diamond probably and down crews we instead identifying that at so four Ryan, we know I matter think we on itself. mean, doesn't know, example happen. inefficiencies There of you our drill and it comfortable same is just I accepted maintenance it right what costs. many the think, just cage, impacts mean, a know, think are I you and the or prime thing. need always the have are capturing, staggered you whole it those at bit you was you is development thing Kiena fact, routine.

I we at we I and but for about that certainly X.X. year-to-date example, this think think so So quarter X.X, identified an is just are

are I now. think conservative that where probably of to tracking right compared some peers is our pretty

However, - we people audit look still and costs collections. is strive crew to are identify comfortable where at and also those what comfortable we the we on

Ryan Walker

And great. it is so answered, I That the other have Okay. questions you. along, will been thank pass

Duncan Middlemiss

Okay. Thanks.

Operator

you. Thank And JohnTumuzos have of we John next Tumuzos.

open. is line Your

John Tumuzos

much exploration neighborhood both and very always notable XXX,XXX Is to at conservative Kiena as project caution, or to are somewhere finances It for from either taking potentially making for even spend even Eagle you a balances this else? very Kiena XXX,XXX St. are and financial another having you have to been stronger. you Kiena, ounces very going finances. hundred purely success Thank due avoiding Andrew's question, my increasing, the or Eagle West cash financially thousand is or at Arm debt at prepared with strong that the Duncan with you restart

Duncan Middlemiss

we of within definitely the the is range, a XXXX. into John is especially are capital like level level, of $XX Kiena out our Well, of project are obviously from right there We foresee cash sort million we at $XX in prices generating million expenditure, that Eagle. no on to be gold lot horizon low going I a the indicated Yes. is to PA capabilities, fairly mean doubt. this

So generate probably touching accounts. of take from our even bank Kiena really what Eagle we care without

in does parlay certainly give opportunity there point, into capability. this ourselves the that identified And, yes, but to is then can't for So that I growth financial the at say us level. we yes, so position have you does it order with next the that continue Wesdome. something certainly to give for that

John Tumuzos

or or parts investment Eagle It it million? discovery any in the or $XX that years is that the would might there more infrastructure be road finance out. two down $XX draw before or million really great replacement three the you Are next to than of Kiena, require

Scott Gilbert

At the up area reserves. to growing money to tailings spend are some Eagle, we continue management we are as to going our at more capacity our build

something that to that in So tend we continue spend. is

quite spent this of mill shape. getting at last good year, the and is year, and bit have in a money We mill our

So we year spent going of quite on to I mill think Eagle we so to the spend well mine some Mainly money we are at covered production. At on is the get back equipment. pretty bit that. money have this Kiena, the have mainly equipment, mill a in

key development. So is be I at think that behind to us. There going Kiena a cost is is

deep XX% just zone So that as that development. drive trend. And is extending Kiena be going we we the the keep cost the of to at so cost to going main about is debt, to are

Marc-Andre Pelletier

to Yes, would go in to the that. on one we how I may get sharp thing the It deepening But have just obviously, future do a Eagle? be encouragement with have to speculating great the there.

below at Eagle now. thousand we to the understand, potential meter So would right have resources need we what level

John So million of level might up Really, We shop. just of or would million. rock are in sort CapEx to that be to is the only. don't like that materials men It alluding a of you is be sort $XX transport the bottom in I $XX what the to, think raise of for shop. that that

and shop. do certainly costs So less certainly we systems at different expensive could it

John Tumuzos

congratulations. Thank and you,

Duncan Middlemiss

John. Thanks,

Operator

Ker Phil of have we next And you. Thank PI Financial.

open. is line Your

Phil Ker

Thanks operator.

and a research what good milestones there? other question use the full go see coming being required Kiena. decision Just a Other of make you updated key year, on than to resource next ahead

Duncan Middlemiss

go. for looking And very study Yes, that is pre-feasibility essentially Duncan. a are what easy yes, is Hey, to Phil, this it. our Board it makes that a say is for is really it we comprehensive

on resource readiness production locking end aiming TF it and of balance, to than now, So of nothing the are would we we we facilitate have we order hard by are get in down the rate XXXX. are everybody commercial Kiena into working deck for put the got I more mean, XXXX. into on HX love to there we that,

I So next the really, is for that think us. step

Phil Ker

infrastructure significant requirements. any And

anything I mill, on shaft that have think the the a recorded meantime? may in touched thing but the hoist, previous that, for bit little question like

Duncan Middlemiss

are meantime, In going mill well. repairs the the very though

where shape, that to essentially a test. the which tweaking Eagle, we at upgrade in is do same put good a level almost want really in digital at pretty also. are in drive to we hoist do we we that - essentially to some I at We I power, of that like give the have We is it Kiena think infrastructure. infrastructure did think could than just thing that and terms ventilation at really Other Kiena

Phil Ker

and planning elsewhere? the bulk sample are you it or processing And there

Duncan Middlemiss

in-house. it processing Absolutely

Phil Ker

Perfect. Thanks That guys. is it for me.

Duncan Middlemiss

Thanks. Okay.

Operator

And Eight line is a question have Capital. you. open. Sir, of we next Profiti from Thank Ralph your

Ralph Profiti

everyone. calculations takes the Thanks stage that about there. you TMF, Duncan are to my four added the correct four that to years this Hi XXXX?

Duncan Middlemiss

four No. Ralph that only years. is

So around stage in four of sort will take us to there. XXXX

Ralph Profiti

I see.

Okay. Thanks that. for

Duncan Middlemiss

what we the it more withdrawing we front is So the are reserves as and of resources burner of much the soul next becomes planning, to say. and course

to So good problem it is a have.

Ralph Profiti

a Understood. Totally, good on for thousand are talked you thousand a question - down per ventilation capacity. day? milling the about to my Because XXX at tons meters being tons meters you yes. day the XXX project, And second now a

to $X into line perspective no so be going you ventilation suspect just of the if case, that that So, that. volcanics. technical is to another the And probably straight it from to is is kind as you million should we that issues there or I up move a get

Duncan Middlemiss

Yes.

are to now. we mean rate mine, XXXX a are point. adequate at and the we sort of down s the down flows I bottom ventilation providing really Ralph So about seeing good is what now of which that pushing here that right

is a in Falcon volumes. the more have we is won't it actually X to of actually the further provide same it mine, drive, ventilation be so as up but so for resistance know lateral So will able the you

lessen other battery here is of that electric the thing our exploration vehicles. perhaps our to The is ventilation going

And so that requirements also. would less than our ventilation

is electric two comes Falcon we I I don't going say that have, to parts, ventilate also vehicles wherever it of likely is the the ventilation are next examining and candidate. bottom right And is a difficult think X battery to think expanding it we are the So mine. would around. I the workplace the as out now be we plus as And

Scott Gilbert

Falcon the distance And Zone the shorter haulage is the the of upside shaft. to

we that aspect. So growth on some production see

Ralph Profiti

Thank points, everyone. Got good color. it. Yes, you great

Operator

And no see in can Thank speakers I questions more you. the queue.

gentlemen for and all today’s ladies conference So Thank this you concludes call. participating.

You pleasant may now disconnect, day. have a and

Wesdome Gold Mines (WDOFF) 4 Nov 202020 Q3 Earnings call transcript