Source: Streetwise Reports 10/18/2019
The production numbers are reviewed in a BMO Capital Markets report.
In an Oct. 15 research note, BMO Capital Markets analyst Andrew Mikitchook reported that Wesdome Gold Mines Ltd.’s (WDO:TSX) Q3/19 production was a beat and management raised full-year production guidance. “Eagle continues to outperform, delivering strong cash flows,” the analyst added, referring to the company’s Ontario mine.
During Q3/19, Wesdome produced 28,910 ounces (28.91 Koz) of gold at Eagle, which exceeded BMO’s forecast of 19 Koz and the company’s Q2/19 production by 29%, indicated Mikitchook. This beat was due to positive grades that averaged 13.3 grams per ton (13.3 g/t). In comparison, reserve grades at Eagle are about 12 g/t. Thus far in 2019, the gold miner produced 70.3 Koz.
Mikitchook relayed that Wesdome’s management increased full-year 2019 production guidance to 88–93 Koz gold from 72–80 Koz but did not change cost guidance, which is a cash cost of US$640 per ounce or an all-in sustaining cost of US$985 per ounce. Costs for the year are expected to come in at the low end of guidance.
The company’s strong cash flows continue to fund Wesdome’s ongoing exploration at its Eagle and Kiena mines, Mikitchook pointed out.
BMO has an Outperform rating and a CA$9 per share target price on Wesdome. The company’s current share price is around CA$6.49.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from BMO Capital Markets, Wesdome Gold Mines, October 15, 2019
IMPORTANT DISCLOSURES
Analyst’s Certification
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
For Important Disclosures on the stocks discussed in this report, please click here.