TSX WDO - CORPORATE PRESENTATION February 2022
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TSX WDO
CORPORATE PRESENTATION
February 2022
CAUTIONARY STATEMENTS
This presentation contains statements or information concerning the business, fully discussed in the disclosure material filed with the securities regulatory
operations and financial performance and condition of Wesdome Gold Mines Ltd. authorities in Canada and available on SEDAR under the Company’s profile at
(“Wesdome” or the “Company”) which constitute forward-looking statements or www.sedar.com. Readers are urged to read these materials and should not place
information (collectively, “forward-looking statements”) within the meaning of undue reliance on the forward-looking statements contained in this presentation.
applicable Canadian securities legislation. Forward-looking statements relate to Wesdome assumes no obligation to update the forward-looking information relating
future events or the anticipated performance the Company and reflect to beliefs, opinions, projections, or other factors, should they change, except as
management’s expectations or beliefs regarding such future events and anticipated required by applicable securities laws
performance as of the date of this presentation. Forward-looking statements Estimates of Mineral Resources
include, but are not limited to, statements with respect to the timing and amount
of future production, costs of production, targeted cost reductions, capital This presentation contains information regarding the mineral resource estimate
expenditures, the success of exploration activities, permitting time lines, at the Company’s Kiena Mine Complex, which has been classified in accordance
government regulation of mining operations, the future price of gold and other with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM
minerals, and the timing and issuance of permits. Generally, forward-looking Definition Standards on Mineral Resources and Mineral Reserves” incorporated
information can be identified by the use of words such as “plans”, “expects”, “is by reference into National Instrument 43-101 – Standards of Disclosure for
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,
Mineral Projects (“NI 43-101”). Mineral resources are not economic mineral
“believes” and variations of such words and phrases or statements that certain
actions, events, or results “may”, “could”, “would”, “might”, or “will”, “occur” or “be reserves and the economic viability of resources that are not mineral reserves
achieved” or the negative connotation thereof. By their nature, forward-looking has not been demonstrated. The estimate of mineral resources may be
statements involve numerous assumptions, inherent risks and uncertainties, both materially affected by geology, environmental, permitting, legal, title, socio-
general and specific, that contribute to the possibility that the predicted outcomes political, marketing or other relevant issues. It is uncertain in all cases whether
could differ materially from those contained in such statements. These risks and further exploration will result in upgrading the inferred mineral resources to an
uncertainties include, but are not limited to, fluctuations in prices of commodities, indicated or measured mineral resource category.
fluctuations in currency markets, actual results of additional exploration and
development activities at the Company’s projects, the timing and amount of Qualified Person
estimated future production and the costs thereof, capital expenditures, the The scientific and technical information in this presentation has been reviewed
availability of any additional capital required to bring future projects into production,
and approved by Michael Michaud, P. Geo and Vice President, Exploration of
the failure of plant, equipment or processes to operate as anticipated, accidents,
or labour disputes. Risks and uncertainties about Wesdome’s business are more the Company, who is a “qualified person” within the meaning of NI 43-101.
TSX:WDO 1
Wesdome’s INVESTMENT PROPOSITION
TIER 1 HIGH GRADE Building Canada’s next
JURISDICTIONS GROWTH
Successfully discovering, MID-TIER
100% owned assets in Canada developing and mining high
grade deposits GOLD PRODUCER
Production base in Ontario
Eagle River average reserve
Primary growth asset in Quebec grade of 13.4 g/t; Kiena reserve
grade 11.9 g/t
Relative Share Price Performance
New discoveries continue to WDO: 528%
extend high grade mineralization
LOW RISK PROVEN
PROFILE MANAGEMENT
Kiena represents fully-funded Track record of turning around
low capex re-start challenged assets and creating
significant value for shareholders
Assets located in prolific, multi
million ounce mining districts Majority of management
previously from St Andrews
Debt free entity
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Mar-18
Mar-19
Mar-20
Mar-21
Nov-18
Nov-19
Nov-20
Nov-21
Sep-18
Sep-19
Sep-20
Sep-21
May-18
May-19
May-20
May-21
Goldfields (sold to Kirkland Lake
in 2016)
Gold Peers
TSX:WDO 2
HIGH QUALITY ASSET BASE in Safe, Prolific Mining Districts
Steady production base with
FULLY-FUNDED GROWTH PIPELINE
EAGLE RIVER MINE 1 KIENA PROJECT 1
Wawa, Val-d'Or,
Location Location
Ontario Quebec
PFS; Q3 2021
Stage Producing
production
Canada restarted;
Stage
Type Underground commercial
KIENA Québec production Q2
2022
2021
101,403 ounces
Production
Type Underground
Toronto
EAGLE RIVER Ontario 2P Reserves 581,000oz | 13.4g/t
84,000oz/yr at
LOM Profile
US$675 AISC
M&I Resources 102,000oz | 9.2g/t
2P Reserves 601,800 I 11.9 g/t
Inf. Resources 205,000oz | 12.5g/t
M&I Resources2 156,500oz | 7.5g/t
Notes:
(1) 2019 Mineral resources stated exclusive of reserves
(2) 2021 Mineral resources stated exclusive of reserves
Inf. Resources2 649,200oz | 5.94 g/t TSX:WDO 3
CORPORATE STRUCTURE
CAPITAL MARKETS DATA Analyst Coverage
PEER LEADING
Symbol TSX:WDO
RETURNS BMO Capital
Markets
Industrial Alliance
Laurentian Bank
with minimal record of 52 Week High/Low
$13.52/ Canaccord Genuity
(Average daily volume M Partners
dilution to shareholders 400,000 shares)
$7.78
Desjardins Mackie Research
Echelon Wealth
Street Target Price $14.64 National Bank
INVESTOR RECOGNITION Partners Financial
Eight Capital
Shares Outstanding 140.0M PI Financial
Partners
TD Securities
Fully Diluted Shares 144.5M
Market Capitalization
Major Shareholders
C$1.5B
($10.93 – January 31, 2022)
P / NAVPS Van Eck T Rowe
0.9 x
(Consensus) 1832 Asset Triasima
Cash Position Management Fiera
$69.5M
(September 30, 2021) Sprott
Fidelity
Invesco
LT Debt – Gabelli
Mackenzie Financial CI Investments
Management and Directors 0.6%
TSX:WDO 4
Peer Leading TRACK RECORD Eagle River Mine
Cumulative Production vs. Reserves Consensus NAVPS Growth
2016-2020 DELIVERING
2020 581 464
TANGIBLE RESULTS
2019 561 373 290%
increase Three Year Share Price Performance
2018 415 282
268%
2017 518 210
2016 446 151
2015 431 103
45% 43%
2014 386 53
Eagle 2P Reserves (koz) Cumulative Production (koz) 2016 2017 2018 2019 2020 WDO Gold Peers
TSX:WDO 5
EXPLORATION SUCCESS Across Portfolio Continues
High grade brownfield discoveries at both Eagle and Kiena mines
Eagle Mine Complex Kiena Project
TSX:WDO 6
Focused on OPERATIONAL AND PROJECT DELIVERY
Recent news flow continues to meet or exceed market expectations
Q3 2020 Q2 results highlighted by strong free cash flow despite COVID impacts and resumption of drilling activities at Kiena
Q3 2020 Exploration drilling at Eagle River mine confirms down plunge extension of the Falcon Zone to the Mine 7 zone
Q3 2020 Added to the TSX30 second consecutive year
Q4 2020 Kiena resource update
Q1 2021 2020 production results achieved
Q1 2021 Eagle Reserves increased net of depletion
Q1 2021 Divesture of Moss Lake announced with upside potential retained
Q1 2021 Footwall zone discovery at Kiena announced
Q2 2021 Footwall zone expands
Q2 2021 PFS Completed (98% IRR)
Q2 2021 Kiena mine restart announced, production resumed in Q3 (5,511 ounces)
Q3 2021 Added to the TSX30 for the third consecutive year
Q3 2021 Falcon Zone at Eagle begins stope production
Q4 2021 YE Production Results and 2022 Guidance
Q1 2022 Ongoing Kiena and Eagle Exploration Results
Q2 2022 Kiena in commercial production
TSX:WDO 7
ESG Strength
ENVIRONMENT Committed to
Tailings Management Facilities
upgraded at both sites enhance STRONG
reliability and increased monitoring
capabilities
SUSTAINABILITY
Zero significant environment
PERFORMANCE
incidents YTD at both Eagle River
Mine and Kiena Complex
GOVERNANCE SOCIAL
Community support for Kiena
Among the Top 20 highest-ranked restart with 86% of staff based
companies in the materials locally
industry group – Globe and Mail
2021 Board Games survey Community support in Wawa with
various initiatives
Recently published 2020
Sustainability Report, available on COVID-19 protocols in place at
wesdome.com Eagle River Mine and Kiena
Complex
TSX:WDO 8
Wawa, Ontario EAGLE MINE
EAGLE RIVER Overview
Over 1.3Moz at 9.6g/t produced since 1995
Located on prospective Mishibishu Wawa/Hemlo Area
Greenstone Belt
Two new parallel structures
identified in 2013 (No. 7 and
No. 300)
High grade 303 Lens continuing
to have positive operational impact
Aggressive underground
and surface exploration
programs planned
2021 production: 101,403 ounces
(Guidance: 92,000 – 105,000)
YTD 2021 costs tracking to guidance
(Operating costs, US $785; AISC
US$1,123)
TSX:WDO 10EAGLE RIVER Asset Summary
Over 1.3Moz at 9.6g/t produced since 1995
ASSET SUMMARY Eagle River Complex
50km West of Wawa,
Location
Ontario
Ownership 100%
Land Package 11,013 ha
Underground longhole
Mining method
and open pit
Processing Conventional Merrill-Crowe
Mill Nameplate 850 tpd capacity
Capacity (1,200 tpd permitted)
Access roads
Infrastructure (HWY and gravel),
grid power
TSX:WDO 11Existing MINE PLAN
Eagle River Mine
OPERATIONAL
IMPROVEMENTS
EXPECTED
as additional zones are
delineated
303E zone open at depth
Falcon zone to enhance reserves and
improve operational flexibility
Targeting 700 tpd mining rate in 2022
TSX:WDO 12HIGH GRADE Near Mine Upside
Falcon Zone Connecting 7 Zone Recent Drilling 303 Lens
FALCON 7 ASSAYS
HOLE 622-E-02
51.3 g/t Au over 1.8m core length (38.2 g/t Au cut, 1.5m true width)
HOLE 622-E-11
18.6 g/t Au over 12.5m core length (18.4 g/t Au cut, 8.0m true width)
HOLE 622-E-12
56.8 g/t Au over 1.8m core length (42.9 g/t Au cut, 1.5m true width)
303 LENS
HOLE 925-E-135
41.0 g/t Au over 10.0m core length (34.8 g/t Au cut, 4.2m true width)
HOLE 925-E-166
54.9 g/t Au over 10.1m core length (35.8 g/t Au cut, 5.1m true width)
HOLE 925-E-167
47.3 g/t Au over 5.9m core length (29.4 g/t Au cut, 3.0m true width)
TSX:WDO 13Surface and Regional POTENTIAL
Greenfields Exploration
Brownfields Exploration
Wesdome has only begun
drilling at surface for
PARALLEL
ZONES
TSX:WDO 14Val d’Or, Quebec KIENA RESTART
KIENA RE-START PROJECT Overview
Rapidly advancing low-risk project into production – PFS Q2 2021
Location
Abitibi-Greenstone Belt: Regional Overview
• Near Val d’Or, Quebec
Low Complexity and
High Grade
• Located in highly prospective
Val d'Or gold camp
• Water rights / permitting status
/ proximity to power
Low capital intensity
First quartile cost structure
Robust project economics
Fully permitted
Significant upside to
current resource
• Expansion to existing zones
• First modern surface drill
program to test property has
just commenced
TSX:WDO 16PRE-FEASIBILITY (PFS) Study Highlights
Decision made to proceed with restart of Kiena Complex: 5,511 Ounces Produced in Q3
After-tax NPV5% of $367 million at US$1,600 per ounce gold, increasing to an after-tax NPV5% of
$491 million at US$1,900 per ounce gold
Average annual gold production of 84,000 ounces per year, with over 100,000 per year run rate
expected in 2024
Mine life of 7 years based on October 31 2020 resource update (includes drilling up to September 18,
2020)
LOM average cash costs of $502 (US$380/oz) and all-in sustaining cost of $894 (US$676/oz)
Average annual FCF (2022 – 2027) of $85.5 million at US$1,600/oz of gold or $109.5 million at
US$1,900/oz
Life of mine capital of $230 million fully funded by existing liquidity and operating cash flows
Project scope expanded to include addition of a paste fill plant, water treatment facility, work at the
TMA, and ventilation and power upgrades
All figures in Canadian dollars unless otherwise stated TSX:WDO 17PRE-FEASIBILITY (PFS) Study Details
Strong margins and cash flows with upside from optimization opportunities
Description Unit Value PRODUCTION PROFILE
Total Tonnes Mined Mt 1.6 140,000 400
Average Diluted Gold Grade g/t 11.9 350
Tonnes Milled ('000t)
120,000
Gold Production (oz)
Total Gold Contained oz 601,653 100,000
300
Overall Gold Recovery % 98.4 250
80,000
Total Gold Payable oz 592,113 200
Mine Life years 7 60,000
150
Average Annual Gold Produced Au oz per year 83,574 40,000
100
Long Term Gold Price US$/oz 1,600 20,000 50
Exchange Rate CAD / USD 1.32
0 0
Discount Rate % 5 2021 2022 2023 2024 2025 2026 2027 2028
Total LOM NSR Revenue $M 1,250
Gold Production (oz) Tonnes Milled ('000 t)
Total LOM Operating Costs $M 296
Total LOM Capital Costs $M 230
LOM Operating Cost Detail Unit Value
Total LOM Pre-tax Cash Flow $M 723
Total LOM After-tax Free Cash Flow $M 471 Mining $/t milled $113.79
Pre-tax Summary
Paste $/t milled $5.58
Pre-tax NPV5% $M 569
Pre-tax IRR % 135 Processing $/t milled $28.25
Pre-tax Payback (after start of operations) year 2.2 Water treatment $/t milled $3.55
After-tax Summary
G&A $/t milled $36.53
After-tax NPV5% $M 367
After-tax IRR % 98 Total $/t milled $187.71
After-tax Payback (after start of operations) year 2.7
Cash Cost US$/oz $380
All-in Sustaining Cost (AISC) US$/oz $676
TSX:WDO 18Exploration Continues to EXPAND RESOURCE
Open to Depth – Transition to High Grade
A-zone and VC zone continues to suggest
ROBUST UPSIDE TO
CURRENT RESOURCE
INVENTORY
Parallel Zones
TSX:WDO 19KIENA DEEP A ZONE 3D View and New Footwall Intercepts
TSX:WDO 20UPSIDE FROM SURFACE TARGETS and Mill Expansion
Longer term options to leverage existing excess infrastructure
EXPANSION Surface Programs at Eagle and Kiena
POTENTIAL AT
BOTH EAGLE
AND KIENA
to process additional feed
Excess Mill Capacity
2,000 tpd
1,200 tpd 1,150
350
850 850
Eagle Kiena
Existing Permitted Capacity
TSX:WDO 212022 PRODUCTION AND COST GUIDANCE
Amounts are denominated in Canadian dollars, or otherwise
indicated
Guidance
Gold production
Eagle River 95,000 – 105,000 ounces
Mishi 1,000 – 2,000 ounces
Kiena 64,000 – 73,000 ounces
Consolidated 160,000 – 180,000 ounces
Head grade (g/t)
Eagle River 12.1 – 13.4
Mishi 2.0 – 2.5
Kiena 10.6 – 11.8
Cash cost per ounce sold 1 $875 - $970
US$700-US$775
All-in sustaining cost per ounce sold 1 $1,270 - $1,400
US$1,015 – US$1,125
1 Operating cost per ounce sold and All-in sustaining cost per ounce are non-IFRS measures, please reference the Company’s interim management discussion and analysis for the period ended September 30, 2020 filed on
SEDAR for their calculations.
TSX:WDO 22APPENDIX
MINERAL Reserves
EAGLE RIVER – MINERAL RESERVES KIENA – MINERAL RESERVES
DECEMBER 31, 2020 DECEMBER 31, 2019 April 12, 2021
Tonnes Grade Contained
Tonnes Grade Contained Tonnes Grade Contained
(000s) (g/t Au) ounces
(000s) (g/t Au) ounces (000s) (g/t Au) ounces
Proven - - -
Proven 370 12.6 150,000 331 15.5 165,000
Probable 1,574,400 11.89 601,800
Probable 982 13.7 431,000 855 14.0 385,000
Proven + Probable 1,352 13.4 581,000 1,186 14.4 550,000 Total Reserves 1,574,400 11.89 601,800
EAGLE RIVER PROVEN AND PROBABLE RESERVE MISHI – MINERAL RESERVES
DECEMBER 31, 2020 DECEMBER 31, 2019 DECEMBER 31, 2020 DECEMBER 31, 2019
Structure
Tonnes Grade Containe Tonnes Grade Containe
Percent Percent
(000s) (g/t Au) d ounces (000s) (g/t Au) d ounces Tonnes Grade Contained Tonnes Grade Contained
(000s) (g/t Au) ounces (000s) (g/t Au) ounces
No.300 756 14.9 362,000 62 798 15.5 397,000 72
No.7 394 12.6 160,000 28 267 12.9 110,500 20 Proven 52 2.5 4,200 8 1.9 500
No.8 111 10.7 38,000 7 103 11.6 38,500 7 Probable 50 3.4 5,500 108 2.9 10,000
Other 91 7.2 21,000 3 18 6.9 4,000 1
Proven +
102 3.0 9,700 116 2.8 10,500
TOTAL 1,352 13.4 581,000 100 1,186 14.4 550,000 100 Probable
TSX:WDO 24MINERAL Resources
EAGLE RIVER – MINERAL RESOURCES1 KIENA MINE COMPLEX – MINERAL RESOURCES1
DECEMBER 31, 2020 DECEMBER 31, 2019 April 12, 2021
Tonnes Grade Contained Tonnes Grade Contained
(000s) (g/t Au) ounces (000s) (g/t Au) ounces Tonnes Grade Contained
(000s) (g/t Au) ounces
Measured 23.0 12.1 9,000 25.0 10.1 8,000
Indicated 643,700 7.56 156,500
Indicated 320.0 9.0 93,000 355.0 9.0 103,000
Measured Total Measured + Indicated 643,700 7.56 156,500
343.0 9.2 102,000 380.0 9.0 111,000
+ Indicated
Inferred 3,404,400 5.94 649,200
Inferred 510.2 12.5 205,000 403.0 12.3 159,000
MISHI – MINERAL RESOURCES1
DECEMBER 31, 2020 DECEMBER 31, 2019
Tonnes Grade Contained Tonnes Grade Contained
(000s) (g/t Au) ounces (000s) (g/t Au) ounces
Open pit
2,808.0 1.6 147,000 2,808.0 1.6 147,000
Inferred
Underground
373.0 5.4 65,000 373.0 5.4 65,000
Inferred
Total Inferred 3,182.0 2.1 212,000 3,182.0 2.1 212,000
Notes:
(1) Exclusive to Mineral Reserves
(2) Open Pit and Underground Potential Combined TSX:WDO 25MANAGEMENT and Board
Successful operating, development and exploration track record
MANAGEMENT DIRECTORS
Duncan Middlemiss P.Eng Scott Gilbert CPA, CA Warwick Morely-Jepson Charles Main CPA, CA
CEO, Director CFO Chairman Director
Michael Michaud P.Geo Lindsay Dunlop Nadine Miller P.Eng Brian Skanderbeg P.Geo
VP, Exploration VP, Investor Relations Director Director
Raj Gill CFA Heather Laxton Edie Thome Bill Washington
VP, Corporate Development Corporate Secretary and CGO Director Director
Stacy Kimmett
VP, Human Resources
TSX:WDO 26Wesdome Gold Mines
220 Bay St, Suite 1200
Toronto, ON
M5J 2W4
(416) 360-3743
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