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Wesdome Gold Mines (TSE:WDO)
TSX:WDO

Wesdome Gold Mines (WDO) AI Stock Analysis

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Wesdome Gold Mines

(TSX:WDO)

Rating:78Outperform
Price Target:
C$21.00
▲(15.32%Upside)
Wesdome Gold Mines scores strongly due to its robust financial performance and positive earnings call, highlighting significant production and financial achievements. Technical analysis and valuation suggest moderate short-term challenges and growth potential. The company's strategic initiatives further enhance its long-term outlook.
Positive Factors
Operational Excellence
Wesdome continues to build an operational track record with the fourth consecutive quarter of double-digit head grades at both mines.
Production Performance
Q1 production of 45,692oz was stronger than expectations driven by higher-than-expected grades at Eagle River.
Strategic Acquisition
The acquisition of Angus Gold significantly increases its land package at Eagle River, aligning with the company's commitment to organic growth.
Negative Factors
Capital Expenditure
Consolidated capex investment in 2025 is expected to be $160M, which includes capital required to complete the Presqu'île exploration ramp as well as development and infrastructure upgrades.
Kiena Mine Performance
Q1 numbers at Kiena were slightly lower than expected, with throughput below the 20% of 2025 guidance.

Wesdome Gold Mines (WDO) vs. iShares MSCI Canada ETF (EWC)

Wesdome Gold Mines Business Overview & Revenue Model

Company DescriptionWesdome Gold Mines Ltd. (WDO) is a Canadian-based mining company engaged in the exploration, extraction, and operation of gold properties in Canada. The company primarily operates through its wholly owned mining sites, including the Eagle River Complex and the Kiena Complex, which are situated in Ontario and Quebec, respectively. Wesdome focuses on the development, acquisition, and operation of high-quality precious metals projects to maximize shareholder value.
How the Company Makes MoneyWesdome Gold Mines generates revenue primarily through the sale of gold extracted from its mining operations. The company processes ore extracted from its mines to produce gold doré bars, which are then sold to precious metal refiners or directly into the market. Wesdome's revenue model is heavily dependent on the volume of gold produced, the cost of production, and the prevailing market price of gold. Strategic cost management and operational efficiency are crucial to maximizing profitability. Additionally, the company may engage in exploration activities to discover new mineral resources, which can enhance future revenue potential. Partnerships with equipment suppliers and contractors can also play a role in optimizing mining operations and cost structures.

Wesdome Gold Mines Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 8.52%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to the fiscal year with record-breaking production and financial performance. Strategic efforts in safety, exploration, and financial management were emphasized. However, operational challenges, particularly equipment availability and transition issues, were noted as areas for improvement.
Q1-2025 Updates
Positive Updates
Record Production and Financial Performance
The company achieved a strong gold production of nearly 46,000 ounces, a 37% increase over the same quarter in 2024. Revenue increased 86% year-over-year to C$198 million, driven by significantly higher production and a 38% increase in the average realized gold price per ounce sold. Net income increased almost five times over the prior year to over C$62 million.
Improvements in Health and Safety
The total recordable incident frequency rate reached its lowest level in more than four years, demonstrating successful efforts in building a safety culture.
Strategic Acquisition to Enhance Exploration
The acquisition of Angus Gold is expected to close by the end of June, quadrupling the prospective land positions around Eagle River to roughly 400 square kilometers.
Strong Financial Position
The company increased its liquidity to C$318 million, with C$168 million in cash and C$150 million of undrawn capacity on its revolver. The balance sheet is clean with zero debt.
Negative Updates
Equipment Availability Issues
There was a delay in the sequencing of some key high-grade stoping and development areas at Kiena due to lower than planned equipment availability, impacting the quarter's production.
Transition and Maintenance Challenges
Challenges in transitioning from contractor to owner-operated activities and the need for maintenance and warehouse improvements were highlighted as areas needing attention.
Company Guidance
During the first quarter of 2025, Wesdome Gold Mines reported strong financial and operational results, with key metrics showing significant improvements. The company produced nearly 46,000 ounces of gold, marking a 37% increase over the same period in 2024. Financially, revenue grew by 86% year-over-year to C$198 million, bolstered by a 38% rise in the average realized gold price per ounce. The company's net income soared to over C$62 million, or C$0.42 per share, and EBITDA almost tripled to C$120 million. Additionally, free cash flow increased to C$48 million, contributing to a robust liquidity position of C$318 million, which includes C$168 million in cash and a fully undrawn C$150 million revolver. The company emphasized strategic priorities, including a fill-the-mill strategy and the acquisition of Angus Gold, which aims to enhance its regional exploration pipeline and consolidate land positions around Eagle River. The company maintained its guidance for 2025, projecting a back-end loaded production year as new mining fronts and the Presqu’île ramp at Kiena advance.

Wesdome Gold Mines Financial Statement Overview

Summary
Wesdome Gold Mines exhibits a strong financial position characterized by robust revenue and profit growth, healthy margins, and effective cash flow management. The company's low leverage and high equity ratios provide stability in the cyclical gold industry.
Income Statement
82
Very Positive
Wesdome Gold Mines has shown a strong trajectory in revenue growth, with a significant increase in Total Revenue from previous years. The Gross Profit Margin for TTM is approximately 49.8%, and the Net Profit Margin is about 29.0%, indicating robust profitability. The EBIT and EBITDA margins are also healthy at 43.9% and 60.0%, respectively, showcasing efficient operations. The overall positive trends in margin metrics suggest a stable and profitable income structure, despite past fluctuations in net income due to the cyclical nature of the gold industry.
Balance Sheet
75
Positive
The company's balance sheet is solid with a low Debt-to-Equity Ratio of approximately 0.001, indicating minimal leverage. The Return on Equity is quite strong at approximately 29.4%, reflecting effective use of equity capital. The Equity Ratio stands at 77.9%, which suggests a conservative capital structure with a substantial equity buffer. While the balance sheet is healthy, close monitoring of asset management and liabilities is advisable, particularly in light of the gold industry's volatility.
Cash Flow
78
Positive
Wesdome Gold Mines demonstrates strong cash flow management with a robust Free Cash Flow in the latest TTM period. The Operating Cash Flow to Net Income Ratio is around 1.46, indicating strong cash conversion from earnings. The Free Cash Flow to Net Income Ratio is approximately 0.79, reflecting efficient capital expenditure management. There is also notable growth in Free Cash Flow, showcasing the company's ability to generate surplus liquidity for reinvestment or debt reduction. Continued attention to maintaining this positive cash flow trajectory is essential for future growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue644.88M558.18M333.17M265.48M262.91M215.47M
Gross Profit321.09M241.86M37.75M51.11M117.29M90.08M
EBITDA386.75M307.74M93.63M46.58M218.37M102.95M
Net Income187.24M135.47M-6.19M-14.71M131.29M50.72M
Balance Sheet
Total Assets816.59M746.65M618.96M619.13M553.72M358.58M
Cash, Cash Equivalents and Short-Term Investments167.93M123.10M41.37M33.19M56.76M63.48M
Total Debt544.00K881.00K42.46M63.98M14.57M11.51M
Total Liabilities179.99M175.84M191.66M220.61M158.54M95.73M
Stockholders Equity636.60M570.82M427.30M398.52M395.18M262.85M
Cash Flow
Free Cash Flow148.16M121.50M319.00K-80.76M-12.51M33.86M
Operating Cash Flow273.81M240.97M101.35M65.21M130.96M102.29M
Investing Cash Flow-126.53M-119.31M-98.59M-146.22M-132.51M-67.53M
Financing Cash Flow-28.42M-39.93M5.42M57.44M-5.16M-6.94M

Wesdome Gold Mines Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.21
Price Trends
50DMA
18.37
Negative
100DMA
17.11
Positive
200DMA
15.04
Positive
Market Momentum
MACD
-0.07
Positive
RSI
43.26
Neutral
STOCH
33.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WDO, the sentiment is Neutral. The current price of 18.21 is below the 20-day moving average (MA) of 19.08, below the 50-day MA of 18.37, and above the 200-day MA of 15.04, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WDO.

Wesdome Gold Mines Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSWDO
78
Outperform
C$2.83B14.5734.73%80.44%3757.72%
TSKNT
77
Outperform
C$3.66B14.0339.28%105.06%481.75%
TSCG
74
Outperform
$2.08B34.862.63%3.82%1.58%-21.40%
70
Neutral
¥174.11B11.046.29%3.52%3.95%5.88%
TSORA
67
Neutral
C$2.67B-43.50%6.15%42.46%-2626.56%
57
Neutral
C$2.21B-28.89%38.21%50.26%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WDO
Wesdome Gold Mines
18.19
5.07
38.64%
TSE:CG
Centerra Gold
9.77
0.87
9.73%
TSE:KNT
K92 Mining
14.95
6.56
78.19%
TSE:ORA
Aura Minerals
37.38
24.67
194.10%
TSE:AAUC
Allied Gold Corporation
18.01
8.29
85.29%

Wesdome Gold Mines Corporate Events

M&A TransactionsBusiness Operations and Strategy
Wesdome Gold Mines Completes Acquisition of Angus Gold
Positive
Jun 27, 2025

Wesdome Gold Mines Ltd has successfully acquired all outstanding shares of Angus Gold Inc., making it a wholly owned subsidiary. This acquisition, particularly of the Angus property adjacent to Wesdome’s Eagle River Mine, is expected to enhance the company’s long-term growth potential and support its disciplined growth strategy by consolidating regional land packages.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

Business Operations and Strategy
Wesdome Gold Mines Reports Promising Exploration Results at Kiena Mine
Positive
Jun 25, 2025

Wesdome Gold Mines Ltd has announced significant progress in its exploration activities at the Kiena mine, with high-grade mineralization results from its drilling program. The company’s exploration efforts have been bolstered by new underground drill platforms, allowing for expanded reach and improved precision. The results from the Kiena Deep and Footwall Zones, as well as the B Zone and Wish Area, indicate potential for resource growth and efficient development, reinforcing Wesdome’s strategy to increase production levels. The ongoing exploration program, including upcoming surface and underground drilling, aims to further unlock the potential of the Kiena mine.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Wesdome Gold Mines Expands Credit Facility to US$300 Million
Positive
Jun 19, 2025

Wesdome Gold Mines Ltd. has successfully amended and restated its credit agreement to upsize its revolving credit facility to US$300 million and extend its maturity to June 2028. This expansion, supported by a syndicate of lenders, reflects confidence in Wesdome’s asset quality and growth strategy, allowing the company to focus on acquisitions, investments, and mine development, thereby enhancing its position as a disciplined gold producer.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

Executive/Board Changes
Wesdome Announces Interim CFO Amid Leadership Transition
Neutral
Jun 3, 2025

Wesdome Gold Mines Ltd. announced a change in its senior management team, with Fernando Ragone departing and Raj Gill stepping in as interim Chief Financial Officer. This transition is part of the company’s ongoing efforts to strengthen its leadership team, with an executive search firm engaged to find a permanent CFO. Raj Gill, who joined Wesdome in 2020 and has extensive experience in the mining industry, is expected to lead the finance function effectively during this interim period.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Wesdome Gold Mines Announces Successful Shareholder Meeting Outcomes
Positive
May 27, 2025

Wesdome Gold Mines Ltd announced the results of its 2025 annual general meeting, where all proposed matters were approved by shareholders. This includes the election of directors, appointment of Ernst & Young LLP as auditors, and an advisory vote on executive compensation. The approvals reflect shareholder confidence in the company’s strategic direction and governance.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$17.50 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Wesdome Gold Mines Reports Strong Q1 2025 Results and Strategic Acquisition
Positive
May 13, 2025

Wesdome Gold Mines Ltd reported a strong financial performance in the first quarter of 2025, with a significant increase in gold production and reduced costs. The company achieved record net income and EBITDA, driven by higher gold prices and increased sales volumes. The strategic acquisition of Angus Gold is expected to enhance Wesdome’s operational capabilities and expand its land package, positioning the company for future growth and value creation.

The most recent analyst rating on (TSE:WDO) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Wesdome Gold Mines stock, see the TSE:WDO Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Wesdome Gold Mines Exceeds Q1 2025 Production Expectations
Positive
Apr 10, 2025

Wesdome Gold Mines Ltd. reported a strong first quarter of 2025, with total gold production exceeding expectations. The company produced 45,692 ounces of gold, a 37% increase from the previous year, driven by higher production at both the Eagle River and Kiena mines. The company remains on track to meet its full-year production guidance, with a second-half weighted production profile anticipated. The transition to a hybrid mining approach at Kiena is already yielding positive results, positioning Wesdome well to achieve its operational targets for the year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025