Wesdome Gold Mines Q2 Earnings Call Highlights

Strong second-quarter finances: Wesdome reported C$94 million in net income, C$42 million in free cash flow and C$391 million in cash, while maintaining a debt-free balance sheet.

The company initiated a quarterly dividend and expanded its share-repurchase authorization to 6% of shares outstanding.

Operations are being expanded: Eagle River throughput rose nearly 50% year over year, and the company is targeting a full mill by 2027.

At Kiena, the Presqu’île horizon is expected to begin commercial production in the fourth quarter, supporting a target of approximately 1,000 tonnes per day by 2027.

Long-term growth depends on exploration: Wesdome is pursuing a 270,000-metre 2026 drilling program and has identified conceptual exploration potential of 2.4 million to 6.3 million ounces across Eagle River and Kiena, though these targets are not classified as mineral resources or reserves.

Wesdome Gold Mines TSE: WDO reported second-quarter net income of C$94 million and free cash flow of C$42 million, while outlining longer-term plans to expand production capacity, extend mine lives and pursue exploration opportunities around its Eagle River and Kiena operations.

President and CEO Anthea Bath said the company ended June with more than C$390 million of cash after returning more than C$80 million to shareholders through share repurchases during the quarter.

The company also filed independent technical reports supporting reserve-based mine plans of approximately eight years at both Eagle River and Kiena.

“Eight years is an important milestone, but it is not the destination,” Bath said, describing the reserve plans as a platform for further operational optimization, exploration, resource conversion and technical studies.

Financial Results and Capital Returns

Chief Financial Officer Phil Yee said quarterly revenue totaled C$267 million, generating net income of C$0.64 per share.

Adjusted earnings per share were C$0.65 after accounting for C$2.3 million in non-recurring payments.

EBITDA was C$170 million, while net cash flow from operating activities was C$88 million.

Free cash flow of C$42 million, or C$0.28 per share, declined from C$53 million, or C$0.35 per share, in the second quarter of 2025.

Yee attributed much of the year-over-year reduction to the timing of a C$21 million prepaid tax installment and said the company expects quarterly free cash flow to increase significantly in the second half of 2026.

Wesdome finished the quarter with C$391 million in cash and total liquidity of about C$746 million, including its revolving credit facility.

The company said its balance sheet remains debt-free.

The company initiated a quarterly dividend, with the first payment due at the end of September.

The dividend equates to approximately C$0.12 per share on an annualized basis.

Wesdome also expanded its normal course issuer bid to repurchase up to 6% of shares outstanding.

Since November, the company has repurchased nearly 8 million shares at an average price of roughly C$24 per share, totaling about C$190 million.

Yee said buybacks are used opportunistically, with purchases tied to the company’s trailing price-to-net-asset-value assessment and market movements.

Guidance Maintained as Eagle River Throughput Rises

Wesdome reaffirmed full-year production and cost guidance, though it adjusted certain assumptions.

At Eagle River, the company continues to expect annual production of 105,000 to 150,000 ounces at an average grade of 11.5 to 12.5 grams per tonne, compared with its initial grade guidance of 13 to 14 grams per tonne.

Yee said the lower grade outlook reflects the ongoing integration of global model ore into Eagle River’s mine plan.

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