Wesdome Gold Mines (WDO) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered net income of CAD 94 million, free cash flow of CAD 42 million, and ended with over CAD 390 million in cash after returning more than CAD 80 million to shareholders via buybacks.

• Consolidated gold production rose 2% year-over-year to 43,824 ounces, with revenue up 28% to $267 million.

• Both Eagle River and Kiena mines now have reserve-based mine plans extending approximately eight years, supported by new technical reports confirming 1.4 million ounces of consolidated reserves.

• Major operational milestones included the Kiena ramp breakthrough and a new discovery at Kiena Deep's Norbenite Footwall.

• Expanded capital returns included a quarterly dividend and a significant share buyback program, with 7.8 million shares repurchased by July 2026.

Financial highlights

• Q2 2026 revenue was CAD 267 million (+28% YoY); net income was CAD 94 million (CAD 0.64/share); adjusted EPS was CAD 0.65/share.

• EBITDA reached CAD 170 million (+23% YoY); net cash flow from operations was CAD 88 million; free cash flow was CAD 42 million, down year-over-year due to higher tax payments and capital investments.

• Ended Q2 with CAD 391 million in cash and total liquidity of CAD 746 million, remaining debt-free.

• Gross profit was CAD 161 million (+22% YoY); operating cash margin was CAD 184 million (+23% YoY).

• Cash costs per ounce sold: US$1,342 (+45% YoY); AISC per ounce sold: US$1,763 (+15% YoY).

Outlook and guidance

• Full-year 2026 gold production guidance reaffirmed at 180,000–205,000 ounces; H1 production represents 46% of midpoint.

• Eagle River expected to achieve 105,000–115,000 ounces at 11.5–12.5 g/t; Kiena on track for 75,000–90,000 ounces at 8.0–9.5 g/t.

• Consolidated cash costs guidance: US$1,050–1,150/oz; AISC: US$1,525–1,700/oz; total capital investment guidance: $205 million, with potential for up to 10% overrun due to growth spending.

• Depreciation and depletion guidance reduced to CAD 100 million due to increased mineral reserves.

• Free cash flow expected to increase significantly in H2 2026.