Wesdome Gold Mines Ltd (WDO:TSX) is pleased to report its financial and operating results from its Canadian operations for the second quarter ended June 30th, 2008 and its year to date (YTD) results. This information should be read in conjunction with the Company's second quarter financial statements, notes to financial statements and Management's Discussion and Analysis.
HIGHLIGHTS
- Quarterly revenue increased 80% from Q2 2007 to Q2 2008
- YTD Revenue increased 52% from 2007 to 2008
- Quarterly Cash Flow from Operations increased 280% from Q2 2007 to Q2 2008
- YTD Cash Flow from Operations increased from -$1.1M in 2007 to $6.5M in 2008
REVENUE AND EARNINGS
Wesdome generated record revenues of $20.7 million for the second quarter, 2008, compared to $11.5 million in the second quarter of 2007. YTD Revenue increased to $37.0 million from $24.4 million in 2007. Quarterly gold sales averaged $913 per ounce compared to $753 per ounce in 2007. YTD realized gold prices averaged $921 per ounce compared to $760 per ounce in 2007.
Cash Flow from Operations was $3.8 million ($0.04 per share) and Net Income for the quarter was $0.76 million ($0.01 per share) compared to a loss of $1.3 million (-$0.01 per share) in the second quarter of 2007. YTD Cash Flow from Operations was $6.5 million ($0.07 per share) compared to negative cash flows of $1.1 million (-$0.01 per share) in 2007 and YTD Net Income increased to $0.92 million ($0.01 per share) compared to a Net Loss of $5.71 million in 2007 (-$0.06 per share).
RESULTS OF OPERATIONS
During the second quarter 2008, combined operations produced 22,791 ounces of gold. Bullion revenue climbed to $20.6 million on sales of 22,600 ounces at an average price of $913Cdn per ounce. In addition to the ounces sold, gold inventory grew to 9,933 ounces from 9,742 ounces at the end of the first quarter, which is carried on the balance sheet at a cost of $7.9 million as of June 30, 2008. Their market value at June 30, 2008, was $9.4 million.
Revenue exceeded operating and development costs resulting in a mine operating profit of $4.3 million for the second quarter and $7.9 million for the first half of 2008. In addition to direct operating costs, other costs, including royalty payments, corporate and general and interest costs, amounted to $0.73 million in the second quarter and $1.49 million for the first half.
Investing in mining and exploration properties (Capex) for the six months totalled $6.3 million which includes $0.94 million funded and spent by subsidiary Moss Lake Gold Mines Ltd. This represents a decrease from the $7.5 million invested during the first half, 2007.
The Eagle River mine continued to exceed expectations with recovered grades rising 25% over those experienced in the first quarter.
At Kiena, recovered grades increased 10% compared to the first quarter and are expected to increase further in the third quarter as higher grade ore becomes available.
Severe spring break-up conditions at Eagle River resulted in flooding of the access road and some mill infrastructure although ongoing production was not impaired. -- www.cnxmarketlink.com
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