Wesdome Gold (WDO.TO) (OTC: WDOFF) reviewed 12-12-2020
Market Cap: $1.41 Billion (USD) Share Price: $8.00
Shares outstanding: 142,969,000 (FD)
Cash on hand: $73.5 M (CAD) as of 30 Sept 2020.
Long-Term Debt: Nil. Total Liabilities: $99.0 M (CAD).
Current operations: Yes: 3 properties in Tier-1 jurisdictions Ontario and Quebec.
- The Eagle River Complex (2 mines at Wawa Ontario) is the production asset with 2020 guidance at 90,000-100,000 oz Au at AISC of between US$985-1040/oz
- The Kiena Project (Val-d’Or Quebec) is their primary growth asset believed to be able to produce ~86,000 oz Au/per year at low US$512 AISC).
- The Moss Lake Project is a 3.0 million oz indicated and inferred resource at 1.1 g/ton.
Insiders: Low Institutional: 100 own approx. 50% of the float.
CEO: Duncan Middlemiss HQs: Toronto, Canada.
- Wesdome produced 20,008 oz gold in Q3, 70,272 oz year-to-date.
- Earnings of $14.6 Million (CAD) or $0.10 cents per share (GAAP) on Revenue of $55.0 Million.
- Operating cash flow of $25.5 Million (CAD). Free cash flow was $3.2 Million (CAD).
- Production guidance remains 90,000-100,000 oz gold for 2020.
- AISC $1047 (USD) per gold ounce for the quarter.
- A relatively small but profitable Gold producer that has long been viewed as a take-over candidate. Have personally held the stock in recent years (no position presently) while anticipating a buy-out.
- The company offers stable and growing revenues and has a sound balance sheet with no debt. Operations generate ~$60 million in annual free cash flow at $1800 gold.
- Small reserves (550,000 oz Au), but good resources (possibly a total of 5 million oz Au).
Wesdome Gold stock chart for WDO on Toronto at $10.20 CAD (cannot find WDOFF chart at $8.00 USD)