Wesdome Gold Mines (TSX: WDO) is counting on a strong fourth quarter to stay inside its 2026 production guidance. Third quarter output dropped at Kiena, and year to date costs are running above the guided range.
Revenue for the quarter was C$250.6 million, down from C$266.8 million in the second quarter. Wesdome sold fewer ounces and received a slightly lower gold price. Net income was C$89.7 million, or C$0.62 per share, compared to C$0.64 in the prior quarter. Adjusted earnings per share also came in at C$0.62, down from C$0.65.
EBITDA fell to C$157.5 million from C$169.7 million. Free cash flow went the other way, rising to C$51.5 million from C$41.8 million.
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Wesdome ended September with C$379.9 million in cash and had not drawn on its US$250 million revolving credit facility, giving it about C$735 million in total liquidity.
Gold production was 41,287 ounces, down from 43,824 ounces in the second quarter. Eagle River rose to 24,758 ounces as mill throughput climbed to 79,820 tonnes. Its head grade of 10.1 g/t is still well below the 11.5 to 12.5 g/t range the company guided to after lowering its grade outlook in August. Kiena fell to 16,529 ounces from 22,026 ounces. Management blamed seasonal workforce gaps that cut equipment use, and two higher-grade stopes were pushed into the fourth quarter.
Cash costs were US$1,287 per ounce sold, better than US$1,342 in the second quarter. All-in sustaining costs rose slightly to US$1,789 per ounce. With a realized gold price of US$4,279 per ounce, that still leaves a margin of about US$2,490 per ounce.
Over the first nine months, though, both cost measures are above guidance. Year to date cash costs of US$1,288 per ounce compare with a range of US$1,050 to US$1,150. Wesdome says cash costs could finish up to 10% above guidance, and the year to date figure is already past that level. AISC of US$1,748 per ounce is above the US$1,525 to US$1,700 range, and the company expects to finish near the top end.
Production is the bigger issue. Wesdome has produced 130,414 ounces so far this year. To reach the low end of its 180,000 to 205,000 ounce guidance, it needs about 49,600 ounces in the fourth quarter, which is more than it has produced in any quarter this year. Eagle River alone needs about 30,600 ounces to reach the bottom of its own range. Its best quarter so far was about 27,800 ounces.
Chief Executive Anthea Bath said the company expects “a strong fourth quarter,” with both mines finishing within guidance but below the midpoint.
Wesdome Gold Mines last traded at $27.76 on the TSX.
