Canada's Wesdome Q3 revenue rises as gold prices offset lower output

Overview

• Canada gold miner's Q3 revenue rose 9% yr/yr despite 18% drop in gold production

• Q3 net income and EBITDA both increased yr/yr, supported by higher realized gold prices

• Company reaffirmed 2026 production and AISC guidance, expects Q4 to be strongest quarter

Outlook

• Wesdome maintains 2026 gold production guidance at 180,000-205,000 oz, expects results below midpoint

• Company expects 2026 consolidated AISC per ounce sold near top end of US$1,525-US$1,700 range

• Full-year cash costs per ounce could track up to 10% higher than US$1,050-US$1,150 guidance

Result Drivers

• HIGHER GOLD PRICES - Co said increased average realized gold price offset lower production and supported revenue growth

• EAGLE RIVER THROUGHPUT - Co said record quarterly throughput at Eagle River was achieved, though lower grade reduced gold output

• KIENA WORKFORCE GAPS - Co said seasonal workforce gaps at Kiena reduced equipment utilization and delayed mining sequence

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "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 (ontario) is C$35.00, about 26.1% above its November 4 closing price of C$27.76

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

Reuters Recommended Reads

• Nov 5 - Canada's Lundin Gold Q3 revenue rises on record gold production, higher prices

• Nov 4 - Canada's B2Gold lowers annual all-in sustaining cost guidance after strong gold production in Q3

• Nov 4 - Canada's Allied Gold Q3 gold output rises 5%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)