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Introduction & Market Context
Wallbridge Mining Company Limited (TSX:WM) released its first quarter 2025 results on May 8, highlighting reduced losses and significant progress on its flagship Fenelon gold project in Quebec. The company, which focuses on gold exploration and development along the Detour-Fenelon Gold Trend in Quebec’s Abitibi region, reported a net loss of $763,610 for Q1 2025, substantially lower than the $1,622,068 loss recorded in the same period last year.
The company’s shares have responded positively to recent developments, with the stock price increasing 10.42% to $0.12, reflecting investor optimism about the company’s exploration progress and economic studies. Wallbridge maintains a strong focus on its 830 km² property package that provides 97 kilometers of continuous coverage along the Sunday Lake Deformation Zone.
Quarterly Performance Highlights
Wallbridge’s financial position remains stable with approximately $16 million in cash as of March 31, 2025, with an additional $4.8 million expected to be received in 2025 for Quebec resource tax credits related to qualifying expenditures incurred in 2024. This funding is intended to support the company’s remaining 2025 budgeted expenditures of $19.1 million.
The company reported several significant developments during the quarter, including leadership changes. Tony Makuch stepped down as Director and Chairperson, with Janet Wilkinson appointed as the new Chairperson effective April 9, 2025. Additionally, Wallbridge announced an Option Agreement to sell its N2 Property to Formation Metals Inc., which includes payments totaling $550,000 in cash, the issuance of 4 million common shares, and the completion of $5 million in work expenditures over six years.
The quarterly financial results show improvement compared to the previous year, with reduced general and administrative expenses (down by approximately $151,512) and a lower deferred tax expense of $780,000 compared to $1,251,000 in Q1 2024. The company also recorded an unrealized gain on marketable securities of $291,852 in Q1 2025, partially offset by a loss on disposition of the Beschefer property of $364,676.
As shown in the following quarterly results table, Wallbridge has maintained relatively consistent financial performance over the past two years:
Fenelon PEA Results
The most significant development highlighted in Wallbridge’s Q1 presentation was the updated 2025 Preliminary Economic Assessment (PEA) for its Fenelon gold project. The PEA demonstrates robust economics and long-term production potential, positioning Fenelon as the company’s flagship asset.
Key highlights from the Fenelon PEA include average annual gold production of 107,000 ounces over a 16-year mine life with 96% average gold recovery. Production is expected to be higher in the early years, with an average of 127,000 ounces annually during the first five years. The project is projected to generate average annual free cash flow of $120 million over its lifetime.
The economic analysis shows an after-tax internal rate of return (IRR) of 21% and an after-tax net present value (NPV) of $706 million at a base case gold price of US$2,200 per ounce and a CAD$:US$ exchange rate of 1.35:1.00, using a 5% discount rate. The PEA estimates initial capital expenditures of $579 million and sustaining capital expenditures of $449 million over the life of the mine.
The following breakdown shows the detailed capital expenditure requirements for the Fenelon project:
The PEA also outlines favorable operating costs, with total cash costs of US$851 per ounce and all-in sustaining costs (AISC) of US$1,046 per ounce. These cost metrics position Fenelon competitively within the gold mining industry, as illustrated in the following cost breakdown:
Exploration Strategy
Wallbridge’s exploration strategy focuses on advancing its two primary assets along the Detour-Fenelon Gold Trend: the Fenelon and Martiniere projects. Together, these properties host combined mineral resources estimated to contain 2.10 million ounces of gold in the indicated category and 2.04 million ounces in the inferred category, according to the March 2025 mineral resource estimates.
Exploration drilling at Martiniere commenced on March 12, 2025, and is planned to continue until mid-May, with a second phase scheduled to begin in the latter half of July. As of March 31, 2025, the company had drilled a total of 2,016 meters at Martiniere. For 2025, Wallbridge plans to complete 10,000 to 15,000 meters of drilling at Martiniere and an additional 3,000 to 5,000 meters of regional exploration.
The company’s strategic land position along the Detour-Fenelon Gold Trend is illustrated in the following property map, which shows the proximity to Agnico Eagle’s Detour Lake operation and the continuity of Wallbridge’s claims:
Financial Analysis
Wallbridge’s balance sheet remains focused on exploration and evaluation assets, with significant investments in its key properties. The company’s exploration and evaluation assets totaled $273,454,496 as of March 31, 2025, up from $269,494,809 at the end of 2024. The Fenelon property represents the largest component, with a balance of $205,151,732 as of March 31, 2025, following additional expenditures of $2,157,694 during the quarter.
The following table provides a detailed breakdown of the company’s exploration and evaluation assets:
For the first quarter of 2025, Wallbridge continued to invest in its key properties, with the majority of exploration expenditures directed toward Fenelon and Martiniere. These investments are detailed in the following breakdown of capitalized costs:
The company’s working capital position remains positive, with current assets of $23,259,132 and current liabilities of $5,997,013 as of March 31, 2025, resulting in a working capital position of approximately $17.3 million. This provides Wallbridge with sufficient liquidity to fund its planned 2025 exploration programs.
Outlook and Strategic Initiatives
Looking ahead, Wallbridge’s 2025 exploration program is focused on three key initiatives: completing the updated PEA for the Fenelon project, continuing exploration and step-out drilling at the Martiniere gold project, and conducting generative exploration to identify new targets along the Detour-Fenelon gold trend.
The company has budgeted total expenditures of $23 million for 2025, including $16.8 million for exploration drilling and $6.2 million for technical studies, corporate costs, and capital expenditures. With its current cash position of $16 million and expected tax credits of $4.8 million, Wallbridge appears well-positioned to execute its 2025 exploration plans without immediate financing needs.
Management believes current market conditions remain positive for the long-term gold price outlook, which supports the economic viability of its projects. The company continues to advance technical studies to optimize the potential economics of the Fenelon gold project, building on the positive results from the recent PEA.
Wallbridge’s strategic focus on the Detour-Fenelon Gold Trend, with its proximity to existing infrastructure and the successful Detour Lake operation, positions the company to potentially develop economically viable gold projects in a tier-one mining jurisdiction. The positive PEA results for Fenelon represent a significant milestone in the company’s progression from explorer to potential producer.
Full presentation:
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