Wesdome Reports Strong Second Quarter 2026 Results and Reaffirms Full-Year Production and Cost Guidance
Wesdome’s Kiena mine inflection point arrives as first-half average implemented costs exceed full-year targets, requiring second-half efficiency gains.
Wesdome Gold Mines Ltd. (WDO) reported its second-quarter 2026 financial and operating results, highlighting a 2% year-over-year increase in consolidated gold production to 43,824 oz. For the first half of the year, production reached 89,127 oz, marking a 1% increase compared to the same period in 2025.
The company posted revenue of $267M, up 28% year-over-year, with net income reaching $94M, or $0.64 per share. This represents an $11.3M increase from Q2 2025. EBITDA rose 23% year-over-year to $170M, while free cash flow decreased to $42M from $53M in the prior year’s second quarter.
Cost metrics saw significant increases, with Q2 cash costs rising 45% year-over-year to US$1,342/oz. All-in sustaining costs (AISC) for the quarter were US$1,763/oz, up 15% from the previous year.
Wesdome reaffirmed its full-year 2026 production guidance of 180,000–205,000 oz, along with its cash cost and AISC guidance. However, depreciation and depletion guidance was lowered to $100M from $130M. Total capital investment guidance remains at $205M, though the company noted it could track up to 10% higher due to growth capital expenditure timing.
Operational updates included a breakthrough at the Kiena ramp and the first Presqu’île stope in July. The company also highlighted updated technical reports, a dividend, and an expanded share buyback program.
Wesdome Gold Mines Ltd. (WDO) released its latest earnings update, though most operational and strategic items had already been disclosed prior to this announcement. Second-quarter production figures were pre-released on July 13, 2026, technical reports were filed on August 6, 2026, and the dividend and buyback expansion was announced on June 24, 2026.
The financial details presented in the release were mixed. Strong net income, revenue, EBITDA, and Kiena performance were offset by unfavorable second-quarter and first-half cost numbers, as well as lower second-quarter free cash flow. Second-quarter and first-half cash costs and all-in sustaining costs (AISC) exceeded the full-year guidance ranges, meaning that achieving the full-year cost guidance now depends on a steep improvement in the second half of the year.
The company did not cut its full-year production or cost guidance; however, it reduced its diamond drilling (D&D) guidance, which is a non-cash positive for reported earnings and book costs. The stock price moved from $26.01 on July 31 to $34.20 on August 7 prior to the print, suggesting the market had already priced in much of the technical-report and gold-driven optimism. The release was largely telegraphed and reaffirming, with the hidden cost overrun serving as the primary cautionary item.
Wesdome Gold Mines Ltd is a Canadian gold producer operating two 100%-owned underground mines. The Eagle River mine is located in Ontario, west of Wawa, and features a 1,200 tpd mill alongside a large regional land package. The Kiena mine complex is situated in Val-d’Or, Québec, and includes a 2,040 tpd mill. Both mines are currently operating and executing a fill-the-mill strategy. Kiena now has continuous ramp access to surface following the Q2 2026 breakthrough.