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Mackie Research has Initiated Coverage on Wesdome Gold Mines (TSX: WDO)

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Analyst Stuart McDougall gives the company a buy rating and a 12-month target price of $5.00, a premium of 102% to the $2.48 price on July 20th, the day the report was issued.

Additional Information:

Company: Wesdome Gold Mines
Website: http:// www.wesdome.com
Stock Symbol: TSX: WDO
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch media

Today’s buy recommendation comes from Mackie Research who has initiated coverage on Wesdome Gold Mines (TSX:WDO).

Analyst Stuart McDougall gives the company a buy rating and a 12-month target price of $5.00, a premium of 102% to the $2.48 price on July 20th, the day the report was issued.

Wesdome has three key assets, Eagle River Complex in Wawa, Ontario, the Kiena Complex in Val d’Or, Quebec, and Moss Lake, 100 kilometres west of Thunder Bay, Ontario.

Wesdome’s flagship mine is Eagle River, has operated continuously since 1996, producing more than 1.1 million ounces gold.

The last four years have seen consecutive increases in reserves, reflecting the discovery of the parallel No. 7 and 300 structures north of the No. 8 structure, which has provided the bulk of historic production.

The company is also exploring the historic Kiena Mine, where two new discoveries beneath the old workings have returned outstanding grades over considerable widths.

The so-called Kiena Deep system is thought to reflect an extension of the S-50 Zone, which was the principal feeder to the mill in past operations.

Kiena is a fully permitted former mine with a 930-metre shaft and 2,000 tonne per day mill.

McDougall expects initial production from existing resources in 2020, with Kiena Deep added in 2021.

Longer-term upside resides in Moss Lake, a bulk-tonnage, open-pit deposit in Thunder Bay, where a 2011 Preliminary Economic Assessment demonstrated the deposit’s potential to support annual production rates of 244,000 ounces over 10 years.

Analyst Stuart McDougall stated: “Short-term, Q1/17 production of 15,162 oz at a cash cost of US$798/oz is well on tract with full-year guidance, supporting our own expectations for 55,062 oz at US$792/oz. Another 12,529 oz was recently reported for Q2/17, though costs are pending. Longer-term, the Kiena discovery and potential of Moss Lake place the Company on a path to mid-tier producer status. In short, we think the outlook has never looked better.”

The company currently trades at $2.42, well below the $5.00 target price, and with 134.5 million shares outstanding, the company is capitalized at $325 million.

For more information, please visit the company’s website www.wesdome.com, contact Duncan Middlemiss, President & CEO, at 416-360-3743 ext. 29 or email dmiddlemiss@wesdome.com.

For investor relations, please contact Lindsay Carpenter Dunlop, VP Investor Relations, at 416-360-3743 ext. 25, or email ldunlop@wesdome.com.

For more information about Mackie Research or to obtain a copy of this extensive research report contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
I’m Samantha Deutscher for Investmentpitch media