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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on WDO

Wesdome Gold Mines' recent performance was driven by strong Q2 2025 earnings, with sales of CA$208.55 million and net income of CA$82.7 million, significantly up from the prior year. The company's updated annual production guidance of 185,000-205,000 ounces and notable operational improvements, including a year-over-year earnings per share increase of over 100%, contributed to positive momentum. Additionally, exploration updates from the Eagle River mine revealed new high-grade gold trends and mineralized lenses, indicating potential resource expansion. A leadership shift with the appointment of Philip C. Yee as CFO may also signal strategic changes.

1.c. Company Highlights

2. Wesdome Gold Mines' Q3 2025 Earnings: A Record-Breaking Quarter

Wesdome Gold Mines reported a stellar third quarter, with revenues surging 57% to $230 million, driven by exceptional production performance and rising gold prices. Net income more than doubled to $87 million, while EBITDA grew 77% to $150 million. Free cash flow expanded 2.5x to $79 million. The company's earnings per share (EPS) came in at $0.572, slightly below estimates of $0.688. Philip Yee, the new Chief Financial Officer, highlighted the company's commitment to disciplined capital allocation and its plan to return capital to shareholders through share repurchases, as the company launched a normal course issuer bid.

Publication Date: Nov -30

📋 Highlights
  • Record Production:: Eagle River produced 34,000 ounces in Q3, a 10% increase over previous records.
  • Revenue & Profit Surge:: Q3 revenue rose 57% to $230M; net income doubled to $87M, with EBITDA up 77% to $150M.
  • Kiena’s Recovery:: October 2025 saw Kiena’s best month with 9,500 ounces mined, supported by operational improvements.
  • Strong Cash Position:: Cash balance grew $143M to $266M YoY, with total liquidity exceeding $600M.

Operational Highlights

Eagle River produced a record 34,000 ounces in Q3, beating its previous record by 10%, and is on track to achieve its production guidance. Kiena, on the other hand, has made progress in resolving its challenges, with production in October being its best month yet, at over 9,500 ounces. Guy Belleau, COO, noted that Kiena has now reached three mining horizons ahead of schedule, giving it more operational flexibility.

Exploration Efforts

Jono Lawrence, SVP, Exploration and Resources, highlighted the potential for significant mineralization at the Mishibishu deformation zone and the emergence of the Mishi/Magnacon area as a prime target for further exploration. Drilling at Kiena Deep continues to define the Footwall zone, extending known lenses and increasing confidence in its high-grade nature. The company is also reviewing its 2026 guidance and expects to provide an update soon.

Valuation and Outlook

With a P/E Ratio of 7.73 and an EV/EBITDA of 6.93, the company's valuation appears reasonable. The Free Cash Flow Yield stands at 4.2%, indicating a decent return for shareholders. Analysts estimate next year's revenue growth at 27.6%. The company's strong financial position, with a cash balance of $266 million and total liquidity exceeding $600 million, positions it well for future growth initiatives and returning capital to shareholders.

Challenges Ahead

Labor challenges are a concern, with high turnover rates affecting the operation's cost structure. The company is working on addressing this issue through its people strategy and site redundancy. Additionally, there is a risk that the mining permit at Presqu'ile may not be received in time for Q1, which could impact production.

3. NewsRoom

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Wesdome Gold Mines Ltd.'s (TSE:WDO) Stock's On An Uptrend: Are Strong Financials Guiding The Market?

Dec -01

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Wesdome Gold Mines Ltd (WDOFF) Q3 2025 Earnings Call Highlights: Record Revenues Amid ...

Nov -05

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Wesdome Gold Mines Maintained at Buy at Stifel Canada Following Q3 Results; Price Target Kept at C$28.00

Nov -05

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Wesdome Reports Strong Third Quarter 2025 Financial Results

Nov -04

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Wesdome Gold Mines (TSX:WDO): A Fresh Look at Valuation After Striking Investor Returns

Oct -28

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Wesdome Intersects New Zone at Kiena’s Dubuisson Deposit

Oct -27

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MT Newswires Canada Stock To Watch: Wesdome Gold Mines

Oct -22

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Wesdome Announces Third Quarter 2025 Operating Results and Record Quarterly Production

Oct -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.56%)

6. Segments

Eagle River Complex

Expected Growth: 8%

Eagle River Complex's 8% growth is driven by increasing gold production, improved ore grades, and enhanced mining efficiency. Additionally, Wesdome's focus on exploration and development of nearby deposits, such as the Mishi mine, contributes to the complex's growth. Furthermore, the company's cost-saving initiatives and strong gold prices also support the growth momentum.

Kiena Complex

Expected Growth: 10%

Kiena Complex's 10% growth driven by increased gold production, improved ore grades, and enhanced mining efficiency. Strong exploration results, expanded mine life, and robust gold prices also contribute to growth. Additionally, Wesdome's focus on cost control, operational optimization, and strategic investments in infrastructure and technology further support the complex's growth momentum.

7. Detailed Products

Gold

Wesdome Gold Mines Ltd. is a Canadian gold mining company that produces gold from its Eagle River Complex in Wawa, Ontario, and its Kiena Complex in Val-d'Or, Quebec.

Silver

As a by-product of gold mining, Wesdome Gold Mines Ltd. also produces silver, which is often used in industrial applications.

8. Wesdome Gold Mines Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Wesdome Gold Mines Ltd. is medium due to the availability of alternative metals and minerals in the market.

Bargaining Power Of Customers

The bargaining power of customers for Wesdome Gold Mines Ltd. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Wesdome Gold Mines Ltd. is medium due to the company's dependence on a few key suppliers for equipment and services.

Threat Of New Entrants

The threat of new entrants for Wesdome Gold Mines Ltd. is low due to the high barriers to entry in the gold mining industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Wesdome Gold Mines Ltd. is high due to the competitive nature of the gold mining industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.04%
Debt Cost 7.67%
Equity Weight 90.96%
Equity Cost 7.67%
WACC 7.67%
Leverage 9.94%

11. Quality Control: Wesdome Gold Mines Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wesdome Gold Mines

A-Score: 6.1/10

Value: 5.2

Growth: 8.4

Quality: 8.4

Yield: 0.0

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Orezone Gold

A-Score: 5.9/10

Value: 5.7

Growth: 9.2

Quality: 7.6

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Orla Mining

A-Score: 5.1/10

Value: 3.4

Growth: 9.9

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Victoria Gold

A-Score: 4.8/10

Value: 9.7

Growth: 8.6

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
New Gold

A-Score: 4.6/10

Value: 4.1

Growth: 4.3

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Equinox Gold

A-Score: 4.5/10

Value: 2.5

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.46$

Current Price

21.46$

Potential

-0.00%

Expected Cash-Flows