Wesdome Reports Second Quarter 2025 Financial Results

Core Insights - Wesdome Gold Mines Ltd. reported strong financial results for Q2 2025, with significant increases in revenue, net income, and cash flow, despite challenges in production at Kiena due to equipment constraints [1][6][50]. Financial Performance - Consolidated revenue for Q2 2025 was CAD 208.5 million, a 63% increase from CAD 127.8 million in Q2 2024 [8]. - Gross profit rose by 146% year-over-year to CAD 132.2 million, with a cash margin growing by 96% to CAD 149.4 million [6][8]. - Net income for Q2 2025 reached CAD 82.7 million, or CAD 0.55 per share, nearly tripling from CAD 29.1 million in Q2 2024 [6][8]. - EBITDA increased by 104% to CAD 138.4 million compared to Q2 2024 [6][8]. - As of June 30, 2025, liquidity stood at CAD 530 million, including CAD 187.6 million in cash [6][8]. Production Highlights - Consolidated gold production was 42,781 ounces, a 3% decrease compared to Q2 2024 [6][8]. - At Eagle River, gold production increased to 25,612 ounces, up from 19,272 ounces in Q2 2024, driven by a 44% increase in average grade [12][16]. - Kiena's production decreased by 31% to 17,169 ounces due to equipment constraints and lower average grades [33][38]. Cost Metrics - Cost of sales per ounce sold decreased by 1% to USD 932, while all-in sustaining costs (AISC) per ounce sold increased by 6% to USD 1,528 [6][8]. - Cash costs per ounce sold declined to USD 872 in Q2 2025 from USD 1,239 in Q2 2024 [18][40]. - AISC per ounce sold decreased by 24% to USD 1,394 compared to Q2 2024 [20][41]. Operational Developments - Eagle River's mill throughput was impacted by an 18-day maintenance shutdown, but overall throughput for H1 2025 increased by 4% compared to the same period in 2024 [14][15]. - Kiena is focusing on developing additional mining horizons to improve production flexibility and reliability [4][54]. Strategic Initiatives - The acquisition of Angus Gold has expanded Eagle River's land package and is expected to increase exploration spending by approximately CAD 5 million in 2025 [6][7]. - The company is investing in infrastructure and technical studies to enhance operational efficiency and support future growth [5][56]. 2025 Guidance Update - Eagle River's production guidance has been raised to 105,000 to 115,000 ounces, while Kiena's guidance has been updated to 80,000 to 90,000 ounces due to production challenges [52][54]. - AISC expectations for Kiena have been revised to USD 1,400 to USD 1,575, reflecting increased costs associated with maintenance and operational optimization [55].