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Wesdome Gold Mines Ltd.
3/13/2024
I will turn the call over to Lindsay Dunlop, VP Investor Relations, to begin today.
Great. Thanks, operator, and good morning, everyone. Welcome to Westone Goldmine's fourth quarter and full year 2023 results conference call. Before we begin today, we'd like to take this opportunity to remind everyone that during this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could cause outcomes to differ materially due to a number of risks and uncertainties, including those mentioned in the detailed cautionary notes contained in yesterday's press release and in the company's MD&A dated March 12, 2024. Yesterday's release should be read in conjunction with the MD&A and financial statements, all of which can be found on CDAR Plus and on our website. Following the prepared remarks, we will open the call for questions. All figures discussed on this call are in Canadian dollars and less otherwise noted. Now over to Andy Abbas, President and CEO, to begin today.
Thanks, Lindsay, and good morning, everyone. Before I begin, I'd like to say a big thank you to Lindsay. We'll be leaving at the end of March. Lindsay has been a part of the fabric of Westo for 10 years now. We're certainly going to miss you and wish you well. Speaking on the call with me today will be Ross Gill, SVP Corporate Development and RR, Fred Langevin, our CRO, and Mike Misho, SVP Exploration Resources. Also in the room, we have Fernando Rigoni, our recently appointed CFO, who took the reins from Jonathan Singh earlier this week. We welcome Fernando to the executive leadership team and thank Jonathan for agreeing to stay on in a leadership position in the business. Before I pass him over to Fred, I'd like to begin with a brief overview and outline why we're excited about what lies ahead for Westdome. Overall, despite significant changes in 2023, Westdome delivered only three strategic imperatives. We achieved the midpoint of guidance on production and ASIC, We advanced development to the 129 level on Kena ahead of schedule, and we ended the year with positive net cash and a strengthened balance sheet. Last night, we also updated our year-end mineral reserve resources, reporting a 12% net increase in corporate reserves after depletion, while keeping overall portfolio grade essentially unchanged. These achievements are a testament to the capacity and the commitment of our operating and corporate teams, and I want to say a special thanks to all those who are listening today. With almost a third of annual production of 123,000 ounces coming in the fourth quarter, we are setting a new pace and are well positioned to deliver higher production and lower costs in 2024 and 2025. As we previously announced in January, Kina is poised to deliver a step change increase in production on the back of higher grade Kina D4 being processed in Q2 this year. The site mining crews are optimizing their approach And so far, development remains on track. At Eagle River, we are seeing more consistent performance on development rates and grade reconciliation. Our focus at Eagle River near term will be on re-optimizing the asset with a view to value and improve margin, which gives us optionality on cut-off grade and subsequently the potential to increase reserve conversion from a resource base. In terms of exploration, it remains the cornerstone of our strategy, and we see a number of ground for exploration and development opportunities that we are confident will drive resource growth and reserve conversion, and eventually utilize the spare mill capacity at both operations. More on that from Mike in a moment. Financially, we're in a far better position, exiting 2023 than we have been before. Our liquidity ending the year was 153 million, and our net cash, That is, our cash minus our borrowing has climbed about $24 million. With robust free cash flow expected this year and next, we're on track to close out the remaining $39 million on our revolver by the third quarter. And with that, I'll pass over to Fred to walk through the operational details.
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