Wesdome Gold Mines Q1 Earnings Call Highlights

Key Points

• Wesdome posted a record first quarter with revenue of CAD 300 million, net income of CAD 119 million, and free cash flow of CAD 126 million, while ending the period with more than CAD 430 million in cash and no debt.
• The company reaffirmed full-year production and cost guidance, though first-quarter all-in sustaining costs were US$1,707 per ounce and management expects costs to peak in Q2 before easing later in the year.
• Operations at both mines are improving: Eagle River is targeting higher throughput toward 1,000 tonnes per day, while Kiena is ramping up Presqu’ile and other developments, with stronger production expected in the second half of 2026.

Wesdome Gold Mines TSE: WDO reported what management described as a record first quarter, supported by strong gold production and prices, while reaffirming its full-year production and cost guidance.

On the company’s earnings call for the three months ended March 31, 2026, President and CEO Anthea Bath said the quarter was a “company best” for revenue, net income, EBITDA and operating cash flow. Wesdome generated CAD 126 million in free cash flow and ended the period with more than CAD 430 million in cash, even after repurchasing nearly CAD 50 million of its own shares during the quarter.

Chief Financial Officer Phil Yee said first-quarter revenue totaled CAD 300 million, with net income of CAD 119 million, or CAD 0.79 per share. EBITDA was CAD 212 million, operating cash flow was CAD 162 million and free cash flow was CAD 126 million, or CAD 0.84 per share. Yee said free cash flow represented 42% of revenue, which he described as among the highest levels in the gold sector.

Costs and guidance

Wesdome’s consolidated all-in sustaining costs were US$1,707 per ounce of gold sold in the quarter. AISC was US$1,616 per ounce at Eagle River and US$1,844 per ounce at Kiena. Yee said costs were affected by higher contractor, consultant and maintenance consumable costs, with wages representing the primary cost pressure amid a competitive labor market.

The company said it is maintaining its full-year consolidated production and cost guidance. Yee said Eagle River production is expected to be evenly distributed across the four quarters, while Kiena’s first quarter is expected to be the lightest, with about 60% of annual production weighted to the second half of the year. Consolidated AISC is expected to peak in the second quarter and decline afterward as supply chain initiatives begin to contribute savings.

Wesdome ended March with CAD 431 million in cash. Including its fully undrawn revolving credit facility, total liquidity exceeded CAD 770 million. Yee said the company remains debt-free and plans CAD 205 million of capital spending in 2026, with about 45% directed to growth. Exploration spending is expected to total CAD 55 million, including CAD 30 million expensed for the year, split evenly between Eagle River and Kiena.

Share buybacks remain opportunistic

Wesdome completed the first tranche of its normal course issuer bid in April, repurchasing 3 million shares for CAD 68 million. The company announced it would proceed with a second tranche to repurchase up to an additional 3 million shares.

In response to a question from CIBC analyst Luke Bertozzi, Yee said Wesdome’s buyback strategy remains opportunistic and tied to net asset value per share. “As we continue to grow our cash, I would say that we will continue to look for further opportunities as well,” he said.

Asked by Desjardins analyst Allison Carson whether Wesdome could link future capital returns to a percentage of free cash flow, Yee said the current focus is on the second tranche of the NCIB, but that the company is considering a range of options as part of its broader capital allocation strategy.

Eagle River targets higher throughput

Chief Operating Officer Tyler Mitchelson said Eagle River produced 28,000 ounces in the first quarter, representing roughly 25% of the midpoint of full-year guidance. The average grade was 12.5 grams per tonne, reflecting planned mine sequencing and the processing of 11,000 tonnes from a lower-grade stockpile.

Mitchelson said the company is beginning to see results from its global model work, with incremental lower-grade areas adding more tonnes to the mine plan and reducing cost per tonne, excluding one-time costs. Mill throughput averaged about 800 tonnes per day in the quarter, compared with an average of 600 tonnes per day in 2024 and 700 tonnes per day in 2025. Stope productivity improved by more than 20% quarter over quarter.

Management said the path to 1,000 tonnes per day at Eagle River is clear, with underground flexibility a top priority. Wesdome is investing in a full camp replacement intended to improve employee attraction and retention while consolidating 13 separate structures into one building. The company is also spending on power and tailings improvements to support higher throughput over time.

Kiena improvements continue

Kiena produced 17,500 ounces in the first quarter, which management expects to be the mine’s softest quarter of 2026. The company received an operating permit for the Presqu’ile zone in January and began processing development ore and stockpiles, contributing more than 2,000 ounces during the quarter. Overall processed grades averaged 10 grams per tonne, in line with reserve grade.

Mitchelson said the ramp connection to Kiena Deep is imminent and will provide a second means of access to the mine, reducing reliance on the shaft as a single point of entry. Ventilation development is continuing, with fan installation and commissioning targeted around year-end.

The company now has three active mining horizons in Kiena Deep, compared with one a year earlier. Mitchelson said operating delays are down 70% relative to the prior year’s performance since the rollout of the company’s operating model. He said April production exceeded 7,000 ounces, and full production from Presqu’ile is expected by year-end.

In response to Carson’s question on Presqu’ile’s expected contribution, Mitchelson said stoping is expected to begin at the end of June, with a 60-40 split between Kiena Deep and Presqu’ile expected toward year-end. Development ore from Presqu’ile is expected to continue contributing in the second quarter.

Exploration program expands

Senior Vice President of Exploration and Resources Jono Lawrence said 2026 is a “landmark year” for exploration, with more than 270,000 meters of drilling planned, up from 200,000 meters in 2025. The program is designed to balance reserve replacement with growth opportunities across both Eagle River and Kiena.

At Eagle River, Lawrence said drilling at the 6 Central zone confirmed a further 100-meter extension, bringing the total extension to 700 meters since discovery in late 2024. At the 800 Zone, 11 holes focused on infill and conversion, supporting continuity at depth. Both zones remain open at depth.

Lawrence also highlighted the 711 Zone as an example of the company’s global model work, noting that 17 holes confirmed continuity and high-grade mineralization in a previously untested part of the zone with established underground access.

At Kiena, Lawrence said completion of an exploration platform on level 134 has improved drilling angles and reduced drill hole distances into Kiena Deep and the B Zones. Wesdome announced six new lenses at Kiena in the first quarter, including three in Kiena Deep and three at the B Zone. Lawrence said the company expects to provide additional exploration updates later this year, including from drilling near the Norbenite Fault, the VC Zone, Shawkey and several surface targets.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.