Opinions
The Panic-Proof Portfolio (Stockchase Research)
Wesdome Gold Mines Ltd.
WDO-T
PAST TOP PICK
Aug 19, 2025
Stock price when the opinion was issued
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EPS of -2c slightly missed estimates. Revenue of $75M missed estimates by 10%.
EBITDA of $21.3M missed by 8%.
Gold sales fell 16% yet all-in costs rose 18%. 2023 forecast is for 120,000 ounces, up from 111,000. Its problems are not unique as costs continue to rise.
But we need to see better production growth to offset it. If production grows 10% and costs rise 18%, it is going backwards.
We think it is OK generally, and the balance sheet is fine.
But it is hard to make a strong case for keeping it this year.
It is a bit expensive (because earnings have declined).
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WDO has a 'bouncy' history but certainly momentum is quite strong right now. The balance sheet is solid and it is growing nicely. For mid-cap sector exposure, we would be OK buying today.
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Premium contentWDO is a high-grade gold miner operating facilities in Ontario and Quebec. Production in Quebec is ramping up as deep zone work is exploited -- creating a near doubling of production there. Strong cash flow is allowing the company to aggressively retire debt while still seeing cash reserves grow. It trades at 19x earnings and supports a ROE of 27%. We recommend setting a stop-loss at $13.50, looking to achieve $20.00 -- upside potential of 18%. Yield 0%
(Analysts’ price target is $19.89)Premium contentPremium contentPremium contentWe reiterate this Canadian based producer of gold and silver. Management just reported a 20% increase in ounces produced over the year, ahead of next month's earnings release. Recently reported earnings showed cash reserves growing, while debt was aggressively retired. We continue to recommend a stop at $16, looking to achieve $22 -- upside potential of 27%. Yield 0%
(Analysts’ price target is $22.50)
Our PAST TOP PICK with WDO has triggered its stop at $16. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 6%, when combined with our previous guidance.