Transcript: Wesdome Gold Mines Q1 2026 Earnings Conference Call

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Summary

WDO reported grounds quarterly fiscal results, including $300 cardinal successful gross and $126 cardinal successful escaped currency flow.

The institution is making strategical improvements astatine Eagle River and Kena to heighten operational flexibility and trim costs, aiming for little portion costs and higher production.

WDO is executing a important exploration program, with plans to drill much than 270,000 meters successful 2026, aiming to summation reserves and enactment semipermanent growth.

Management highlighted beardown liquidity with implicit $770 cardinal successful full liquidity, allowing continued stock buybacks and exploration funding.

Future guidance remains affirmative with expectations of accrued accumulation successful the second fractional of the year, peculiarly from the Kena site.

Full Transcript

OPERATOR

Good morning. Welcome to WDO league telephone to sermon the company's fiscal and operating results for the 3 months ended March 31, 2026. As a reminder, this telephone is being recorded. Your big for contiguous is Trish Moran, Vice President of Investor Relations. Ms. Moran, delight spell ahead.

Trish Moran (Vice President of Investor Relations)

Thank you, operator. And bully greeting everyone. Before we get started, I'd similar to constituent retired that during today's telephone we whitethorn marque guardant looking statements, statements arsenic defined nether Canadian securities law. I inquire that you presumption our descent presumption for cautionary connection regarding guardant looking statements and the hazard factors pertaining to these statements. Please enactment that each figures discussed connected this telephone are successful Canadian dollars unless different noted. Our property merchandise MDA and fiscal statements are disposable some connected SEDAR+ and connected our firm website, WDO.com with america connected today's webcast is Anthea Bath CEO Bill Yee, our Chief Financial Officer Tyler Mitchelson, our COO, Jonah Lawrence, SVP Exploration and Resources Raj Gill, SVP Corporate Development and Investor Relations and Kevin Lonergan, SVP Technical Services. Following management's ceremonial remarks, we volition past unfastened the telephone to questions. And present implicit to Anthea.

Anthea Bath (CEO)

Thank you, Trish and bully greeting to everyone. Supported by beardown production, Q1 was a company-best with grounds revenue, nett income, EBITDA and operating currency flow. We generated $126 cardinal successful escaped currency travel and closed the play with implicit $430 cardinal successful cash, adjacent aft repurchasing astir $50 cardinal of our ain shares. Beyond fiscal results, we are making meaningful advancement connected initiatives that volition thrust agelong word worth for this company. Safety remains foundational crossed some Eagle stream and Kena. We are gathering connected a beardown way grounds with continuous betterment programs firmly successful spot astatine each site. At Eagle river, the strategy is working. We're expanding operational flexibility by opening much mining areas. Combined with amended stoked productivity and higher mill utilization, this should construe into little portion costs arsenic fixed costs are dispersed implicit higher output. The results are showing up arsenic dependable accumulation and a beardown operating currency margin. At Kena, the operational improvements implemented implicit the past twelvemonth are starting to construe into tangible results. Increasing operational flexibility, including the breakthrough of the ramp wrong the adjacent week, combined with provender from the caller Presquiel portion marks an important inflection constituent for this mine. With galore much stops disposable astatine immoderate fixed time, Kena is progressing toward a much stable, accordant and predictable operating illustration and unlocking its capableness to grow. Exploration is simply a halfway pillar of the WDO maturation communicative and successful 2026 we are leaning successful drilling much than 270 kilometres. The quality travel has started with a merchandise detailing precocious people maturation astatine Kena and astatine the extremity of March astatine the extremity of March and different update connected the planetary mobile enactment astatine Eagle River. Earlier this week we closed the country with an exploration teaching designed to springiness the marketplace a clearer, deeper enactment of show into the agelong word prospectivity of our ample onshore packages. With implicit 220 targets, galore of which are successful categories with a precocious comparative probability of conversion, 1 happening is precise clear. There's a batch much to observe and I person nary uncertainty we'll beryllium mining for decades to come. As we look up to the updated method reports for some Eagle stream and Kena this summer, I privation to beryllium wide astir what these updates correspond and wherefore they matter. What the marketplace volition spot successful our precocious June merchandise is the archetypal tangible and quantifiable output of a deliberate program to alteration WDO a program that was acceptable successful question astir a fewer years ago. Historically, our operations were managed astir comparatively abbreviated preserved lives. Even though some assets abstracted successful highly prospective mineral systems. The regulation was ne'er geology, it was the standard of exploration and the agelong word concern required to freely unlock these assets. We made a conscious determination to alteration a company's approach, shifting from abbreviated word replacement toward a much maturation oriented and systematic approach. An attack designed to found a disposable integrated maturation pipeline. The updated method reports volition show the archetypal tangible result of that strategy. At Eagle stream our absorption has been twofold. First, to adhd reserves to the precocious sections of the mine, to incrementally summation tons, to widen excavation beingness and to maximize effectual utilisation of an existing processing infrastructure. While adding precocious people volition ever beryllium our priority, our drilling programs are besides targeting areas adjacent to infrastructure wherever we tin adhd further economical tons that tin beryllium brought into the excavation program efficiently and astatine a comparatively debased find cost. These areas, portion little successful people than a precocious people ferment zone, are inactive economic. They amended operational flexibility and astir importantly, they supply a apical up mill provender that tin outgo efficaciously enactment the pursuit of precocious people targets successful the pipeline crossed aggregate areas successful the mine. The 2nd absorption of Eagle stream has been connected deepening our knowing of the precocious people system. We judge Eagle stream has the imaginable to germinate beyond its historical 3 twelvemonth reserve beingness by unlocking further areas wherever shallower precocious people extensions are progressively probable implicit time. This has further imaginable to amended retired density per vertical metre and heighten the wide prime and flexibility of the excavation plan. At Keena, the objectives person been somewhat different. While we proceed to question opportunities to regenerate precocious people depletion. We besides spot accidental crossed a onshore bundle to place caller mining fronts including on level 33 and crossed the bluish corridor of this property. The updated method enactment astatine Kena volition show advancement successful rebuilding the precocious people inventory portion advancing the pipeline of opportunities that tin enactment higher throughput and accumulation maturation implicit the longer term. So portion Eagle stream is presently focused connected adding incremental ounces and operational flexibility, Kena is focused connected strengthening and expanding its pipeline. Two antithetic priorities reflecting 2 antithetic assets astatine antithetic stages, but some successful enactment with gathering longevity, improving consistency and creating a stronger instauration for sustainable worth creation. It's important to retrieve that what we study successful June is simply a snapshot successful clip reflecting drilling lone done the extremity of 2025 and it's truly conscionable the beginning. We're present good into the 2nd twelvemonth of a multi exploration program. As drilling strength increases and our geological knowing deepens, we're systematically gathering the level to bash acold much than widen excavation life. We are laying the instauration to reshape WDO's agelong word maturation illustration and yet to redefine what this institution tin become. And I'm pleased to accidental that we tin prosecute and money exploration unlocking the afloat imaginable of our ample prospective onshore packages, each portion returning continuing to instrumentality superior to to our shareholders. Last evening's announcement they were proceeding to a 2nd tranche and our stock buyback programme is simply a nonstop reflection of that confidence. And with that I'll manus implicit to Phil to locomotion you done the first