Wesdome Gold Mines (WDO) Q2 2024 earnings summary

Executive summary

• Achieved record-setting quarterly gold production of 44,035 ounces and free cash flow, with zero lost time incidents and improved safety metrics year-to-date.

• Both Kiena and Eagle River mines performed strongly, with Kiena Deep 129 level now in production and Eagle River maintaining high-grade output.

• Fully repaid all debt, resulting in a debt-free balance sheet and available liquidity of $200.7 million.

• Net income rose to $29.1 million ($0.19/share), up significantly year-over-year.

• Cash margin more than doubled year-over-year, driven by higher ounces sold, increased gold prices, and lower cash costs.

Financial highlights

• Q2 2024 revenue was $127.8 million, up from $84.6 million in Q2 2023, with H1 2024 revenue totaling $228.7 million.

• Net income for Q2 2024 was $29.1 million (EPS $0.19) versus a net loss of $5.0 million in Q2 2023.

• EBITDA reached $67.9 million, up from $22.0 million in Q2 2023.

• Operating cash flow in Q2 2024 was $57.1 million ($0.38/share), up from $14.0 million in Q2 2023.

• Free cash flow in Q2 2024 was $28.4 million, compared to negative $5.3 million in Q2 2023.

Outlook and guidance

• On track to meet full-year 2024 consolidated gold production guidance of 160,000–180,000 ounces, with 55–60% of annual production expected in the second half.

• Eagle River and Kiena each expected to produce 80,000–90,000 ounces at feed grades of 12.0–13.5 g/t.

• Consolidated AISC guidance is $1,750–$1,950/oz ($1,325–$1,475/oz in USD).

• If gold prices remain at current record levels, further balance sheet improvement and potential acceleration of exploration and development are anticipated.

• Kiena to mine from 129, 136, and Presqu'ile levels in 2025, providing greater operational flexibility.