Canada's Wesdome Gold Mines Q4 revenue surges, net income doubles on higher prices

Overview

• Canada gold miner's Q4 revenue rose 58% yr/yr, net income more than doubled

• Q4 gold production fell 6% yr/yr, while costs per ounce increased

• Company repurchased and cancelled 706,100 shares for about C$14 mln in Q4

Outlook

• Wesdome expects 2026 gold production of 180,000-205,000 ounces, up 4% at midpoint

• Company sees 2026 consolidated cash costs of US$1,050-US$1,150/oz and AISC of US$1,525-US$1,700/oz

• Wesdome expects to generate about C$350 mln in free cash flow in 2026

Result Drivers

• HIGHER GOLD PRICES - Co said record revenue and profit were driven by higher average realized gold prices in Q4 and FY 2025

• OPERATIONAL IMPROVEMENTS - Eagle River's annual production rose on higher mill throughput and expanded mining zones, though Q4 output fell due to lower-grade ore processed

• HIGHER COSTS - Cash costs and all-in sustaining costs per ounce rose due to increased royalties, sustaining capital expenditures, and greater contractor use

Company press release: ID:nNFC1CMyg9

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Wesdome Gold Mines Ltd is C$30.00, about 25.2% above its March 11 closing price of C$23.97

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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