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 high-grade zones and throughput improvements at Eagle River and Kiena mines.

• Net income rose to $39 million ($0.26/share), with EBITDA up over 6.5 times year-over-year to $84.6 million, reflecting higher sales, prices, and lower costs.

• Free cash flow for Q3 2024 was $30.8 million ($0.21/share), nearly tripling year-over-year.

• Cash position nearly doubled since year-end to $82.5 million, with total liquidity of $232.5 million and no bank debt.

• Strong safety performance, with Kiena maintaining a zero incident frequency rate year-to-date.

Financial highlights

• Q3 2024 revenue was $147 million, up from $69.7 million in Q3 2023; YTD revenue reached $375.6 million.

• Net income for Q3 2024 was $39 million (CAD 0.26/share), a significant increase over prior periods.

• Operating cash flow for Q3 2024 was $61 million ($0.41/share), up 35% year-over-year.

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

• Cash margin per ounce up 168% year-over-year to $2,206.

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.

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

• 2024 AISC guidance updated to $1,975–$2,100/oz (US$1,445–US$1,525/oz), reflecting cost pressures and tactical investments.

• Total capital investment for 2024 guided at $130 million, with $105 million sustaining and $25 million growth capital.