Canada's Wesdome Gold Mines Q2 revenue misses estimates

Overview

• Wesdome Q2 revenue of CAD 208.5 mln missed analyst expectations

• Adjusted EPS for Q2 beat estimates, reflecting strong operational performance

• Net income for Q2 rose nearly threefold to CAD 82.7 mln

Outlook

• Company raises upper end of Eagle River production guidance for 2025

• Company lowers cost expectations for Eagle River in 2025

• Kiena production and unit cost targets updated for H2 2025

• Company expects stronger results in H2 2025 across operations

Result Drivers

• PRODUCTION DECREASE - Consolidated gold production fell by 3% to 42,781 ounces in Q2 2025 compared to Q2 2024, attributed to an 18-day planned mill maintenance shutdown, per CEO Anthea Bath

• GOLD PRICE IMPACT - Average realized price of gold sold in Q2 2025 was US$3,279 per ounce, contributing to a 119% increase in gold revenue at Eagle River

• COST INCREASE - All-in sustaining costs per ounce sold rose by 6% to US$1,528, driven by higher sustaining capital expenditures and cash costs, despite a decrease in cost of sales per ounce sold by 1% to US$932

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", 3 "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$24.00, about 25.1% above its August 12 closing price of C$17.97

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX5bG8cF