Wesdome Gold Mines (WDO) AI Stock Analysis

• Market Cap: C$2.54B
• Dividend Yield: N/A
• Average Volume (3M): 592.12K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.68
• Revenue Growth: 67.54%
• EPS Growth: N/A
• Country: CA
• Employees: 301
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): 0.90
• Shares Outstanding: 149,891,000
• 10 Day Avg. Volume: 526,182
• 30 Day Avg. Volume: 592,120
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.67
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Wesdome Gold Mines is positioned well within the gold industry due to its strong financial performance, significant production growth, and strategic initiatives. The stock exhibits bullish momentum and is fairly valued, although the absence of a dividend may concern some investors. The positive outlook is reinforced by strong earnings call guidance and strategic corporate moves.

Positive Factors

Expansion and Growth

The acquisition of Angus Gold significantly increases its land package at Eagle River, aligning with the company's commitment to organic growth.

Operational Track Record

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.

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.

Production Challenges

Q1 numbers at Kiena were slightly lower than expected, with throughput below the 20% of 2025 guidance.

Wesdome Gold Mines Business Overview & Revenue Model

Company Description

Wesdome Gold Mines Ltd. engages in the exploration, extraction, processing, and reclamation of gold in Canada. It principally produces gold in the form of doré bars, as well as silver as a by-product. The company's properties include the Eagle River Complex that consists of the Eagle River Mine, the Mishi Mine, and the Eagle River Mill located in Wawa, Ontario; and the Kiena Mine Complex, which includes the Kiena Mine concession and Kiena Mill situated in Val-d'Or, Québec. Wesdome Gold Mines Ltd. is based in Toronto, Canada.

How the Company Makes Money

Wesdome 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 Financial Statement Overview

Summary

Wesdome Gold Mines shows strong financial performance with significant revenue growth and improved profitability. The income statement reflects robust margins and impressive revenue growth. Balance sheet stability is underscored by low leverage, though there is variability in capital structure management. Cash flow indicates strong generation with positive free cash flow growth, despite historical challenges.

Income Statement

Wesdome Gold Mines shows strong performance in the TTM period with significant revenue growth and improved profitability. The gross profit margin is robust at approximately 34.75%, and the net profit margin is healthy at 17.01%. Revenue growth from the previous year is impressive at 43.44%, indicating strong demand or improved operational efficiency. EBIT and EBITDA margins are also strong at 27.95% and 48.43% respectively, highlighting efficient cost management and operational leverage. However, the net income was negative in the previous annual period, showing some historical volatility.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.003, indicating minimal leverage. The return on equity is a robust 15.82%, reflecting efficient use of shareholder funds. The equity ratio stands at 74.98%, underscoring financial stability and strong asset backing. However, the company has experienced fluctuations in net debt levels and equity growth over the years, pointing to some variability in capital structure management.

Cash Flow

Wesdome Gold Mines demonstrates strong cash flow generation with a significant increase in free cash flow in the TTM period. The free cash flow growth rate is substantial from the previous year, and the operating cash flow to net income ratio is robust at 2.46, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio is also healthy at 1.08, demonstrating effective conversion of earnings into cash. However, historically, the company has faced periods of negative free cash flow, indicating potential challenges in cash management in certain years.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
333.17M	265.48M	262.91M	215.47M	163.97M
	Gross Profit
37.75M	51.11M	117.29M	90.08M	69.17M
	EBIT
6.10M	21.31M	102.28M	77.45M	59.27M
	EBITDA
93.63M	46.58M	218.37M	102.95M	84.39M
	Net Income Common Stockholders
-6.19M	-14.71M	131.29M	50.72M	40.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.37M	33.19M	56.76M	63.48M	35.66M
	Total Assets
618.96M	619.13M	553.72M	358.58M	285.72M
	Total Debt
42.46M	63.98M	14.57M	11.51M	13.31M
	Net Debt
1.09M	30.80M	-42.19M	-51.98M	-22.35M
	Total Liabilities
191.66M	220.61M	158.54M	95.73M	79.22M
	Stockholders Equity
427.30M	398.52M	395.18M	262.85M	206.50M
Cash Flow		Free Cash Flow
319.00K	-80.76M	-12.51M	33.86M	12.31M
	Operating Cash Flow
101.35M	65.21M	130.96M	102.29M	71.08M
	Investing Cash Flow
-98.59M	-146.22M	-132.51M	-67.53M	-61.15M
	Financing Cash Flow
5.42M	57.44M	-5.16M	-6.94M	-1.65M

Wesdome Gold Mines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WDO, the sentiment is Positive. The current price of 16.67 is below the 20-day moving average (MA) of 16.96, above the 50-day MA of 15.95, and above the 200-day MA of 13.78, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 49.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WDO.

Wesdome Gold Mines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	78 Outperform	C$2.54B	18.75	27.15%	―	67.54%	―
Sector *	49 Neutral	$1.96B	-1.58	-21.87%	3.77%	0.55%	-26.91%

Wesdome Gold Mines Corporate Events

Wesdome Gold Mines Exceeds Q1 2025 Production Expectations

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.

Spark’s Take on TSE:WDO Stock

According to Spark, TipRanks’ AI Analyst, TSE:WDO is a Outperform.

Wesdome Gold Mines demonstrates strong financial performance and operational efficiency, supported by positive earnings calls and strategic corporate developments. Technical indicators signal bullish momentum, while valuation suggests fair pricing. The company’s strategic acquisitions and exploration success position it well for future growth.

To see Spark’s full report on TSE:WDO stock, click here.

Wesdome Gold Mines Expands Eagle River Holdings with Angus Gold Acquisition

Wesdome Gold Mines Ltd. has announced its acquisition of Angus Gold Inc., significantly expanding its Eagle River land package. This strategic move quadruples Wesdome’s land position, consolidating adjacent properties into a large contiguous land package on a prospective greenstone belt. The acquisition underscores Wesdome’s commitment to long-term growth and exploration, leveraging its existing infrastructure and relationships to accelerate development. For Angus shareholders, the offer represents a substantial premium and provides exposure to a growing Canadian gold producer. This transaction is expected to enhance Wesdome’s exploration potential and value creation in the region.

Spark’s Take on TSE:WDO Stock

According to Spark, TipRanks’ AI Analyst, (TSE:WDO) is a Outperform.

Wesdome Gold Mines demonstrates strong financial health and operational efficiency, bolstered by positive earnings calls and strategic corporate developments. While technical indicators show bullish momentum, valuation metrics suggest fair pricing, and the absence of a dividend yield might deter some investors. Overall, the company is well-positioned for future growth, making it an attractive prospect within the mining industry.

To see Spark’s full report on (TSE:WDO) stock, click here.

Wesdome Gold Mines Achieves Record Financial Results in 2024

Wesdome Gold Mines Ltd reported record financial results for the fourth quarter and full year of 2024, with a 37% increase in gold production and a 68% rise in revenue compared to the previous year. The company achieved a debt-free balance sheet, significant liquidity growth, and continued its organic growth initiatives, including exploration and resource development, which strengthened its industry positioning and operational capabilities.