Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 8 Aug, 25 | WDO | Buy | CAD 17.94 | CAD 18.9 | CAD 19.1 | 7 days | Closed |
6.80%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Wesdome Gold Mines Ltd. mines, develops, and explores for gold and silver deposits in Canada. The company operates through Eagle River and Kiena segments. It holds 100% interest in the Eagle River Mine consisting of 3 contiguous mining leases and 426 contiguous active mining claims covering an area of approximately 7,958 hectares located in Wawa, Ontario; and the Kiena Mine in Val d'or, Québec. The company was formerly known as River Gold Mines Ltd. and changed its name to Wesdome Gold Mines Ltd. in February 2006. Wesdome Gold Mines Ltd. was founded in 1945 and is based in Toronto, Canada.
Higher Net Margin: 33.3% in Q1 2025 vs 9.3% of Industry Median
Higher EBITDA Margin: 62.9% in Q1 2025 vs 33.9% of Industry Median
Higher Average A/R days: 13.0 Days in Q1 2025 vs 9.8 Days in Q1 2024
Higher Cash Cycle Days: 50.1 Days in Q1 2025 vs 46.1 Days of Industry Median
Volatility in the commodity price , Interest and foreign exchange rates, Trade tariffs, Government policy, etc
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 17.94 | 16.8 | 18.9 | 19.1 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Healthy Production: The company recently reported healthy production numbers and lower cost. Its consolidated gold production totaled 45,692 ounces in Q1 2025, representing a 37% increase from Q1 2024. Cost of sales per ounce sold fell 18% to USD 923, while all-in sustaining costs (“AISC”) per ounce sold dropped 17% to USD 1,366. The average realized gold price during the quarter was USD 2,882 per ounce, much higher compared to pcp.
Uplifted Financials: In Q1 2025, the company reported significant growth under revenue due to decent production and sales volumes, as well as better realized prices. Its revenue was CAD 187.6 million against CAD 100.9 million in pcp. The company also posted higher net income of CAD 62.4 million in Q1 2025 compared to CAD 10.7 million in pcp, assisted by controlled cost of sales.
Elevated Cash Flows: Net cash generated by operations for the quarter was CAD 80.1 million, a significant increase compared to CAD 46.5 million in Q1 2024. This growth was primarily driven by higher gold prices and increased sales volumes. Additionally, free cash flow in Q1 2025 totaled CAD 47.5 million, up from CAD 19.4 million in Q1 2024.
Considering the expected valuation upside, decent production, expanding capacity, higher financials, positive guidance, focused on curbing cost, current trading levels and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of CAD 17.94, as on August 7, 2025
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| WDO Wesdome Gold Mines Ltd. |
0.48 2.10% | 23.36 | 12.97 | 9.04 | 4.32 | 4.53 | 4.33 | 6.79 |
| AEM Agnico Eagle Mines Limited |
3.27 1.42% | 234.25 | 26.56 | 19.53 | 11.38 | 3.78 | 8.71 | 13.87 |
| ABX Barrick Gold Corp |
0.83 1.38% | 60.83 | 20.14 | 13.57 | 5.52 | 2.33 | 4.18 | 7.55 |
| WPM Wheaton Precious Metals Corp |
1.84 1.16% | 160.33 | 54.73 | 36.90 | 36.32 | 6.45 | 29.32 | 39.95 |
| FNV Franco-Nevada Corporation |
1.87 0.65% | 289.09 | 45.70 | 35.84 | 37.93 | 6.43 | 31.66 | 33.82 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 7, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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