Wesdome Gold Mines (WDO) AI Stock Analysis

• Market Cap: C$2.83B
• Dividend Yield: N/A
• Average Volume (3M): 664.75K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.46
• Revenue Growth: 80.44%
• EPS Growth: 3757.72%
• Country: CA
• Employees: 301
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Gold
• EPS (TTM): 0.42
• Shares Outstanding: 150,778,210
• 10 Day Avg. Volume: 731,389
• 30 Day Avg. Volume: 664,745
• PEG Ratio: 0.65
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.19
• 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$21.60
• Price Target Upside: 18.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• 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 Business Overview & Revenue Model

Company Description

Wesdome 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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	644.88M	558.18M	333.17M	265.48M	262.91M	215.47M
Gross Profit	321.09M	241.86M	37.75M	51.11M	117.29M	90.08M
EBITDA	386.75M	307.74M	93.63M	46.58M	218.37M	102.95M
Net Income	187.24M	135.47M	-6.19M	-14.71M	131.29M	50.72M
Balance Sheet
Total Assets	816.59M	746.65M	618.96M	619.13M	553.72M	358.58M
Cash, Cash Equivalents and Short-Term Investments	167.93M	123.10M	41.37M	33.19M	56.76M	63.48M
Total Debt	544.00K	881.00K	42.46M	63.98M	14.57M	11.51M
Total Liabilities	179.99M	175.84M	191.66M	220.61M	158.54M	95.73M
Stockholders Equity	636.60M	570.82M	427.30M	398.52M	395.18M	262.85M
Cash Flow
Free Cash Flow	148.16M	121.50M	319.00K	-80.76M	-12.51M	33.86M
Operating Cash Flow	273.81M	240.97M	101.35M	65.21M	130.96M	102.29M
Investing Cash Flow	-126.53M	-119.31M	-98.59M	-146.22M	-132.51M	-67.53M
Financing Cash Flow	-28.42M	-39.93M	5.42M	57.44M	-5.16M	-6.94M

Wesdome Gold Mines Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.21
• 50DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	78 Outperform	C$2.83B	14.57	34.73%	―	80.44%	3757.72%
KNT	77 Outperform	C$3.66B	14.03	39.28%	―	105.06%	481.75%
CG	74 Outperform	$2.08B	34.86	2.63%	3.82%	1.58%	-21.40%
Sector *	70 Neutral	¥174.11B	11.04	6.29%	3.52%	3.95%	5.88%
ORA	67 Neutral	C$2.67B	―	-43.50%	6.15%	42.46%	-2626.56%
AAUC	57 Neutral	C$2.21B	―	-28.89%	―	38.21%	50.26%

Wesdome Gold Mines Corporate Events

Wesdome Gold Mines Completes Acquisition of Angus Gold

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.

Wesdome Gold Mines Reports Promising Exploration Results at Kiena Mine

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.

Wesdome Gold Mines Expands Credit Facility to US$300 Million

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.

Wesdome Announces Interim CFO Amid Leadership Transition

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.

Wesdome Gold Mines Announces Successful Shareholder Meeting Outcomes

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.

Wesdome Gold Mines Reports Strong Q1 2025 Results and Strategic Acquisition

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.

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.