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Highlights

  • Wesdome Gold's Q1 2024 revenue increased 31.6% from the previous year
  • Q1 2024 net income stood at CAD 10.7 million compared to a loss of CAD 0.3 million in pcp
  • The company forecasts 160,000-180,000 ounces production for 2024

Wesdome Gold Mines Ltd. (TSX: WDO) is actively involved in gold production through mining operations encompassing exploration, processing, and reclamation. It has a market capitalisation of CAD 1.64 billion.

In Q1 2024, Wesdome Gold recorded increased revenue compared to the previous corresponding period (pcp). The 31.6% rise in revenue was primarily driven by higher realized gold prices and increased ounces sold. The company achieved healthy income from operations amounting to CAD 15.7 million, up from CAD 7.4 million in the pcp, largely due to higher revenue and reduced stock-based compensation expenses.

Income before taxes for Q1 2024 was CAD 15.2 million, a significant improvement from CAD 0.8 million in the pcp. However, the company reported CAD 1.0 million in interest expenses during the same period. Consequently, despite higher income taxes, Wesdome Gold posted a net income of CAD 10.7 million in the quarter, compared to a net loss of CAD 0.3 million in pcp.

Recent business update

In a press release dated May 8, 2024, Wesdome Gold Mines Ltd. provided an update on its cash margin and liquidity. The company reported a significant improvement in its cash margin for Q1 2024, which was 36% higher compared to the same period last year. This increase was primarily attributed to an 11% rise in the Canadian dollar realized gold price and a 19% increase in the number of ounces sold. Additionally, the company disclosed a liquidity position totaling CAD 169.5 million, comprising CAD 48.3 million in cash and CAD 121.2 million available under its revolving credit facility.

Company outlook

Wesdome has set its full-year 2024 combined production guidance at 160,000 to 180,000 ounces. Management anticipates production growth in the second half of the year and remains confident about achieving these targets, which will enhance free cash flow generation in future years.

Top 10 shareholders

The top 10 shareholders of Wesdome collectively own approximately 35.05% of the total shares. T. Rowe Price Associates, Inc. holds the largest stake in the company at around 9.81%, followed by Van Eck Associates Corporation with approximately 9.71%.

Stock performance

Over the past week, Wesdome's stock price has shown an increase of approximately 1.48%, while over the last month, it has experienced a decrease of about 0.45%. Additionally, the stock is currently trading above the average of its 52-week high price of CAD 11.96 and 52-week low price of CAD 6.33.

 

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 21, 2024. The reference data in this report has been partly sourced from EODHD/Others.