Wesdome Reports Third Quarter 2026 Financial Results
Wesdome’s third quarter gold output fell 18% as rising costs reduced free cash flow, despite the company producing a record amount of gold.
Wesdome Gold Mines Ltd. (WDO) reported its third-quarter 2026 financial results after market close on 4 November 2026. The company had previously released preliminary operating data on 13 October 2026, with this latest update providing full financials, segment costs, and revised guidance.
Wesdome reported revenue of C$250.6 million, an increase of 9% year-over-year. Net income rose 3% to C$89.7 million, or C$0.62 per share, while EBITDA increased 5% to C$157.5 million. Free cash flow declined 35% year-over-year to C$51.5 million. Gold production fell 18% to 41,287 ounces, with 41,800 ounces sold, a 12% decrease. The realized gold price climbed 21% to US$4,279 per ounce. Cash costs rose 36% to US$1,287 per ounce, and all-in sustaining costs (AISC) increased 26% to US$1,789 per ounce.
Production at the Eagle River mine dropped 28% to 24,758 ounces, driven by a 34% decline in head grade to 10.1 g/t. Despite the grade reduction, throughput reached a quarterly record of 79,820 tonnes, a 12% increase. At the Kiena mine, production was relatively flat, up 2% to 16,529 ounces, though head grade fell 20% to 8.2 g/t. Throughput at Kiena rose 27% to 63,797 tonnes.
Wesdome maintained its 2026 production guidance at 180,000–205,000 ounces, though the company noted that results are now expected to fall below the midpoint. Cash cost guidance has shifted, with costs potentially tracking up to 10% above the initial range of US$1,050–1,150 per ounce; AISC is expected near the top end of the US$1,525–1,700 per ounce range. Depreciation and depletion guidance was cut to C$100 million from C$130 million, while corporate general and administrative expenses could be up to 10% above the initial C$30 million estimate. Capital investment remains at C$205 million. The company reported liquidity of C$735 million, comprising C$380 million in cash and a fully undrawn US$250 million revolving credit facility.
Management indicated that the fourth quarter is expected to be the strongest, supported by high-grade stopes at Eagle River being drilled off, deferred higher-grade stopes at Kiena, and the ramp-up at Presqu’île. The company highlighted its liquidity position, free cash flow generation, and capital returns, while acknowledging the operating miss and cost increases.
Wesdome Gold Mines Ltd. (WDO) reported a deterioration in its operating and cost trajectory against the original 2026 plan, with the release’s own Q4 bridge requiring a sharp step-up in ounces and a sharp step-down in unit costs. While the production shortfall was pre-released on 13 October, the incremental negative is the confirmation of cost and cash-flow impacts: cash costs rose 36% year-over-year, AISC increased by 26%, and free cash flow fell 35% despite a realized gold price of US$4,279/oz.
Full-year cash cost guidance now allows for up to 10% above the initial US$1,050–1,150/oz range, while year-to-date cash costs stand at US$1,288/oz. AISC is guided near the US$1,700/oz top end, with year-to-date AISC already at US$1,748/oz. To land inside those full-year markers, Q4 performance must be materially better than Q3.
Eagle River presents a primary credibility issue. Year-to-date AISC is US$1,810/oz against a full-year guidance range of US$1,525–1,675/oz. To finish at even the top end, Q4 AISC would need to fall to roughly US$1,350–1,430/oz depending on ounces sold, compared to US$1,843/oz in Q3.
The D&D cut to C$100 million from C$130 million is non-cash and flatters EPS; it does not fix cash costs or free cash flow. Management highlighted net income, EBITDA and liquidity, but the cash conversion weakened.
The strong balance sheet, liquidity and capital returns are real offsets. They do not neutralize a quarter where production fell 18%, unit costs rose faster than the gold price on a total-cost basis, and free cash flow fell by a third.
Wesdome Gold Mines Ltd. (WDO) is a Canadian-focused gold producer operating two 100%-owned underground mines.
The company’s Eagle River mine is located approximately 50 km west of Wawa in the Mishibishu Greenstone Belt, encompassing about 400 km² of land. The site’s mill is permitted for roughly 1,200 tpd. Eagle River has produced more than 2 million ounces since 1995 and holds an 8-year reserve mine life.
Wesdome’s Kiena mine is situated in Val-d’Or in the Abitibi Greenstone Belt, covering about 75 km² of land. The facility features a 930 m shaft and an ore and waste handling capacity of 1,250 tpd, with a mill permitted for roughly 2,040 tpd. Kiena has an 8-year reserve mine life and is adding Presqu’île as a third mining horizon.