Wesdome Gold Mines (WDO) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production reached a record 45,109 ounces, up 62% year-over-year, driven by higher grades and throughput at both Eagle River and Kiena mines.

• Eagle River outperformed with higher grades and throughput, while Kiena tripled production year-over-year and maintained a zero incident frequency rate.

• Net income reached $39 million ($0.26/share), a significant increase over prior periods.

• Free cash flow hit $30.8 million ($0.21/share), nearly tripling year-over-year.

• Strong cash flow and a debt-free balance sheet were highlighted, supported by increased production at lower costs.

Financial highlights

• Q3 2024 revenue was $146.9 million, up from $69.7 million in Q3 2023; YTD revenue reached $375.6 million.

• EBITDA for Q3 2024 was $84.6 million, up more than 6.5x year-over-year.

• Gross profit for Q3 2024 was $70.3 million, compared to a loss of $1.8 million in Q3 2023.

• Operating cash flow per share was $0.41 in Q3 2024, up from $0.30 in Q3 2023.

• Working capital improved to $69.4 million from a deficit at the start of the year.

Outlook and guidance

• 2024 consolidated production guidance narrowed to 166,000–176,000 ounces, midpoint unchanged at 170,000 ounces.

• 2025 production guidance reaffirmed at 175,000–210,000 ounces.

• 2024 AISC guidance raised to $1,975–$2,100/oz (US$1,445–US$1,525/oz); cost guidance reflects tactical investments and higher exploration spending.

• Eagle River 2024 production guidance increased to 89,000–93,000 ounces; Kiena revised to 77,000–83,000 ounces.

• Focus on ramping up Kiena, optimizing Eagle River, and leveraging new near-surface deposits to fill mill capacity.