Wesdome Gold Mines (WDO) AI Stock Analysis

• Market Cap: C$2.24B
• Dividend Yield: N/A
• Average Volume (3M): 436.45K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.66
• Revenue Growth: 56.15%
• EPS Growth: N/A
• Country: CA
• Employees: 546
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): 0.54
• Shares Outstanding: 149,891,110
• 10 Day Avg. Volume: 458,471
• 30 Day Avg. Volume: 436,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.52
• Price to Cash Flow (P/CF): 8.90
• P/FCF Ratio: 17.00
• 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$17.21
• Price Target Upside: 19.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Wesdome Gold Mines receives a robust score due to strong financial performance, positive earnings call sentiment, and beneficial corporate events. However, moderate valuation and technical indicators suggest cautious optimism. The company's focus on growth and efficiency sets a positive outlook, though historical volatility and capital management remain areas to watch.

Positive Factors

Exploration Investment

A budget of $38 million is dedicated to drilling high-grade targets, including Kiena Deep and 300 Zone at Eagle River.

Production Growth

Wesdome has set a 2025 consolidated guidance of 190-210,000 ounces, marking a 16% production increase compared to 2024.

Negative Factors

Capital Expenditure

Consolidated capital expenditure for 2025 is projected at $160 million, which may affect cash flow due to the significant investment required for development and infrastructure upgrades.

Wesdome Gold Mines Business Overview & Revenue Model

Company Description

Wesdome Gold Mines (WDO) is a Canadian-based mining company that focuses on the exploration, extraction, and production of gold. The company primarily operates within the mining sector, with its core activities centered around the development and operation of high-quality gold mining properties located in Canada. Wesdome is committed to responsible mining practices and aims to enhance shareholder value through efficient production and strategic growth initiatives.

How the Company Makes Money

Wesdome Gold Mines generates its revenue primarily through the sale of gold produced from its mining operations. The company operates key mining assets such as the Eagle River Complex located in Ontario, which includes the Eagle River Mine and the Mishi Open Pit, as well as the Kiena Complex in Quebec. Revenue is driven by the quantity of gold produced and sold, along with market gold prices, which can fluctuate based on global economic conditions and demand. Additionally, Wesdome focuses on optimizing its production processes to increase efficiency and reduce costs, thereby improving profitability. The company may also engage in partnerships or joint ventures to further explore and develop its mining properties, though specific significant partnerships are not disclosed in the available data.

Wesdome Gold Mines Financial Statement Overview

Summary

Wesdome Gold Mines shows strong financial performance with significant revenue growth and improved profitability. The income statement reflects robust margins and impressive revenue growth. Balance sheet stability is underscored by low leverage, though there is variability in capital structure management. Cash flow indicates strong generation with positive free cash flow growth, despite historical challenges.

Income Statement

Wesdome Gold Mines shows strong performance in the TTM period with significant revenue growth and improved profitability. The gross profit margin is robust at approximately 34.75%, and the net profit margin is healthy at 17.01%. Revenue growth from the previous year is impressive at 43.44%, indicating strong demand or improved operational efficiency. EBIT and EBITDA margins are also strong at 27.95% and 48.43% respectively, highlighting efficient cost management and operational leverage. However, the net income was negative in the previous annual period, showing some historical volatility.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.003, indicating minimal leverage. The return on equity is a robust 15.82%, reflecting efficient use of shareholder funds. The equity ratio stands at 74.98%, underscoring financial stability and strong asset backing. However, the company has experienced fluctuations in net debt levels and equity growth over the years, pointing to some variability in capital structure management.

Cash Flow

Wesdome Gold Mines demonstrates strong cash flow generation with a significant increase in free cash flow in the TTM period. The free cash flow growth rate is substantial from the previous year, and the operating cash flow to net income ratio is robust at 2.46, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio is also healthy at 1.08, demonstrating effective conversion of earnings into cash. However, historically, the company has faced periods of negative free cash flow, indicating potential challenges in cash management in certain years.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
477.79M	333.17M	265.48M	262.91M	215.47M	163.97M
	Gross Profit
166.06M	37.75M	51.11M	117.29M	90.08M	69.17M
	EBIT
133.56M	6.10M	21.31M	102.28M	77.45M	59.27M
	EBITDA
231.41M	93.63M	46.58M	218.37M	102.95M	84.39M
	Net Income Common Stockholders
81.26M	-6.19M	-14.71M	131.29M	50.72M	40.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.38M	41.37M	33.19M	56.76M	63.48M	35.66M
	Total Assets
209.64M	618.96M	619.13M	553.72M	358.58M	285.72M
	Total Debt
9.80M	42.46M	63.98M	14.57M	11.51M	13.31M
	Net Debt
-17.58M	1.09M	30.80M	-42.19M	-51.98M	-22.35M
	Total Liabilities
52.43M	191.66M	220.61M	158.54M	95.73M	79.22M
	Stockholders Equity
157.21M	427.30M	398.52M	395.18M	262.85M	206.50M
Cash Flow		Free Cash Flow
87.72M	319.00K	-80.76M	-12.51M	33.86M	12.31M
	Operating Cash Flow
199.88M	101.35M	65.21M	130.96M	102.29M	71.08M
	Investing Cash Flow
-109.81M	-98.59M	-146.22M	-132.51M	-67.53M	-61.15M
	Financing Cash Flow
-39.14M	5.42M	57.44M	-5.16M	-6.94M	-1.65M

Wesdome Gold Mines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 14.4 is below the 20-day moving average (MA) of 14.54, above the 50-day MA of 14.05, and above the 200-day MA of 12.89, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WDO.

Wesdome Gold Mines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEM	80 Outperform	$72.92B	26.99	9.42%	1.65%	26.99%	-6.63%
WDO	79 Outperform	C$2.24B	27.55	17.33%	―	56.15%	―
K	75 Outperform	C$19.78B	14.42	14.66%	1.14%	16.53%	206.89%
ELD	74 Outperform	C$4.26B	10.69	8.12%	―	27.29%	―
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
SEA	38 Underperform	$1.59B	―	-1.59%	―	―	63.45%

Wesdome Gold Mines Corporate Events

Wesdome Gold Mines Announces Edward Dowling’s Board Nomination and Expected Chair Appointment

Wesdome Gold Mines Ltd announced that Edward C. Dowling, Jr. will stand for election to its board of directors and is expected to become the Chair upon election. With over 30 years of experience in the mining sector, his leadership is anticipated to guide Wesdome through a significant growth phase, aligning the company’s strategic direction with shareholder interests and focusing on operational excellence and responsible growth.

Wesdome Gold Mines Expands Eagle River Exploration with Promising 2024 Results

Wesdome Gold Mines Ltd. announced significant progress in its exploration activities at the Eagle River Mine for 2024. The company has completed over 105,000 meters of drilling, resulting in the extension of key zones and the identification of new targets. Notably, the 6 Central Zone has been expanded by 70%, and the 300 Zone continues to show high-grade mineralization. These developments enhance the company’s resource base and potential mining fronts. Additionally, an induced polarization survey has revealed further mineralization prospects, supporting the mine’s long-term potential. Wesdome is committed to continuing its exploration efforts in 2025, with a planned $13 million program aimed at further increasing resource conversion potential and exploring new areas.

Wesdome Gold Mines Achieves Record Gold Production in 2024, Projects Continued Growth

Wesdome Gold Mines Ltd has announced a record annual gold production of 172,034 ounces for 2024, marking a 39% increase from the previous year. The company expects to continue its growth trajectory with projections for 2025 production between 190,000 and 210,000 ounces. This increase is attributed to enhanced operations at the high-grade Kiena Deep Zone and the addition of new ore sources. The company’s focus on operational efficiency and safety is expected to sustain its low-cost production advantage, reinforcing its market positioning as a leading Canadian gold producer.

Wesdome Gold Mines Expands High-Grade Mineralization

Wesdome Gold Mines Ltd. has successfully expanded high-grade mineralization at its Kiena Mine in Québec, enhancing its potential for a two-mine structure. The exploration efforts, funded by a $20 million budget, have yielded promising results in various zones, with significant high-grade findings that may boost operational flexibility and reduce costs.

Wesdome Gold Mines Shows Strong Q3 2024 Performance

Wesdome Gold Mines reported a strong third quarter of 2024, with gold production increasing by 62% over the previous year and net income rising to $39 million. The company has improved its financial position significantly, doubling its cash reserves and eliminating bank debt, while also enhancing liquidity by nearly $80 million. Wesdome plans to leverage this financial strength to boost mine development, exploration, and infrastructure investment.