Wesdome Gold Mines: Strong Q1 Performance and Strategic Growth Drive Buy Rating

Analyst Andrew Mikitchook of BMO Capital maintained a Buy rating on Wesdome Gold Mines (WDO – Research Report), boosting the price target to C$21.00.

Andrew Mikitchook has given his Buy rating due to a combination of factors that highlight Wesdome Gold Mines’ strong operational performance and strategic growth initiatives. The company’s Q1 production exceeded expectations, with a notable output of 45,692 ounces, surpassing the anticipated 39,000 ounces. This was largely driven by higher-than-expected grades at the Eagle River mine, which compensated for slightly lower grades and tonnage at the Kiena mine.
Furthermore, Wesdome’s acquisition of Angus Gold significantly expands its land holdings at Eagle River, aligning with its strategy for organic growth and optimizing mill capacity. The company’s consistent achievement of double-digit head grades at both mines for four consecutive quarters underscores its operational efficiency and supports its valuation. These factors, combined with the company’s focus on mine optimization and a clear path to achieving an annual production capacity of approximately 200,000 ounces, contribute to the positive outlook and Buy rating.

In another report released on March 26, National Bank also maintained a Buy rating on the stock with a C$22.00 price target.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WDO in relation to earlier this year.