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.
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. Management expects higher mill throughput and modestly improved grades in the second half of the year.
Chief Operating Officer Tyler Mitchelson said Eagle River processed more than 72,000 tonnes in the second quarter, producing 22,000 ounces at an average grade of 9.7 grams per tonne. Throughput averaged nearly 800 tonnes per day, up nearly 50% from a year earlier, and management is targeting another 10% increase in the second half.
July grades averaged nearly 12.5 grams per tonne, according to Mitchelson. He said the next 300 Zone stope is fully drilled, with about 25,000 tonnes available to mine in coming months at grades reaching as high as 25 grams per tonne.
The company is targeting a full mill by 2027. Its eight-year Eagle River reserve plan assumes average daily mill throughput of about 988 tonnes. Mitchelson said maintenance and operating changes have supported higher milling rates, reduced unplanned downtime and improved energy efficiency.
Eagle River’s second-quarter cost per tonne was C$631, compared with C$626 a year earlier. The quarter included approximately C$45 per tonne of identifiable one-time items. Management expects lower all-in sustaining costs in the second half as those costs roll off and grades improve.
Kiena Adds a Third Mining Horizon
Kiena produced more than 22,000 ounces during the second quarter, a 28% increase from a year earlier, supported by a 13% increase in tonnes processed and an average grade slightly above 11 grams per tonne.
Mitchelson said the operation added Presqu’île as an active mining horizon after blasting its first production stope in July. Commercial production is expected in the fourth quarter. The addition brings Kiena to three active mining horizons, with a fourth horizon at level 142 expected to begin operating in 2027.
Management expects Presqu’île to ramp toward 300 to 400 tonnes per day in the fourth quarter, alongside an expected 600 to 700 tonnes per day from Kiena Deep. The company is targeting approximately 1,000 tonnes per day through 2027.
Kiena’s all-in sustaining costs were C$1,497 per ounce sold in the quarter, reflecting higher contractor costs related to Presqu’île development. Cost per tonne was C$526, flat from the prior-year quarter. The company said it expects operational flexibility, higher utilization and fixed-cost leverage to become more evident as Kiena Deep and Presqu’île advance.
The new ramp achieved breakthrough from surface to the bottom of the Kiena mine during the second quarter. Wesdome said the ramp improves movement of people and equipment and enables a ventilation expansion project expected to double ventilation capacity.
Exploration Focuses on District-Scale Growth
Senior Vice President of Exploration and Resources Jono Lawrence said Wesdome’s 2026 exploration program totals 270,000 metres, with approximately 110,000 metres drilled through the first half. The program is weighted toward the second half, with the third quarter expected to be the most active drilling period.
At Eagle River, the company identified 11 priority exploration targets representing conceptual potential of 1.5 million to 3.4 million ounces. At Kiena, the company is advancing exploration around Kiena East, including Zone 134, Dubuisson and Shawkey.
Lawrence highlighted the Norbenite footwall discovery at Kiena, where hole 52W1 returned 6.9 grams per tonne over 42.1 metres, including 8.3 grams per tonne over 29.5 metres. The discovery is located beyond the Norbenite Fault in an area previously interpreted as barren footwall. Further assay results are pending.
The technical reports identify combined conceptual exploration targets of approximately 2.4 million to 6.3 million ounces across Eagle River and Kiena. Wesdome emphasized that these targets are conceptual and are not mineral resources or reserves.
About Wesdome Gold Mines (TSE:WDO)
Wesdome is a Canadian-focused gold producer with two high-grade underground assets, Eagle River in Northern Ontario and Kiena in Val-d’Or, Québec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a value-driven mid-tier gold producer.
