WDO Q2 2026 - Preliminary Earnings Alert
Verdict
- Revenue C$266.8m, up 28%, with no scoreable consensus: API Ninjas carries Wesdome estimates only under the OTCQX listing in US dollars while the company reports in Canadian dollars, so no beat or miss can be scored.
- EPS C$0.64 against C$0.55 a year ago, adjusted EPS C$0.65 against C$0.52 — the same currency mismatch leaves the EPS line unscoreable.
- Full-year production guidance of 180,000–205,000 oz reaffirmed, but Eagle River's head-grade guidance was cut to 11.5–12.5 g/t from 13.0–14.0 and depreciation and depletion guidance to C$100m from C$130m.
- The one thing that matters: this is a gold-price quarter, not an operating one. The realized price rose 33% to US$4,365/oz while ounces sold fell 4% to 44,100 and unit cash costs rose 45% to US$1,342 — and free cash flow still fell 21%. The ounce guidance is being held by pushing 49% more tonnes through the Eagle River mill, not by mining better rock.
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue (consolidated revenue) | C$266.8m | Not comparable — USD consensus, CAD reporting | — | — |
| EPS (basic, IFRS) | C$0.64 | Not comparable — USD consensus, CAD reporting | — | — |
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Revenue | C$266.8m | C$208.5m | +28% |
| EBITDA | C$169.7m | C$138.4m | +23% |
| Net income | C$94.0m | C$82.7m | +14% |
| Earnings per share | C$0.64 | C$0.55 | +16% |
| Free cash flow | C$41.8m | C$52.9m | -21% |
| AISC per ounce sold | US$1,763 | US$1,528 | +15% |
Gold production rose 2% to 43,824 oz, Kiena's 28% gain offsetting a 15% decline at Eagle River.
Guidance changes
| Metric | New guidance | Prior guidance | Change |
|---|---|---|---|
| 2026 gold production | 180,000–205,000 oz | 180,000–205,000 oz | Unchanged |
| Eagle River head grade | 11.5–12.5 g/t | 13.0–14.0 g/t | Lowered |
| Consolidated head grade | 10.0–11.0 g/t | 10.0–12.0 g/t | Top end lowered |
| Depreciation and depletion | C$100m | C$130m | Lowered C$30m |
| Cash costs / AISC per oz | US$1,050–1,150 / US$1,525–1,700 | US$1,050–1,150 / US$1,525–1,700 | Unchanged |
| Total capital investment | C$205m | C$205m | Unchanged, but flagged up to 10% higher |
Quality of earnings
- The growth is price, not production. Revenue rose 28% on a 33% higher realized price of US$4,365/oz against US$3,279, while ounces sold fell 4% to 44,100 from 45,900. Operating cash margin per ounce widened to C$4,183 from C$3,254 entirely on that spread.
- Adjusted EPS growth flatters the comparison. Adjusted net income of C$96.3m adds back C$3.5m of non-recurring and executive departure costs, C$2.3m after tax. A year ago the adjustment ran the other way — a C$6.6m Goldshore royalty consideration cut adjusted income to C$78.9m from C$82.7m reported — so adjusted EPS growth of 25% overstates the improvement that reported EPS growth of 16% shows.
- Net income grew slower than EBITDA on non-operating lines. EBITDA rose 23% and revenue 28%, but net income only 14%, on depletion and depreciation of C$23.2m from C$17.2m and tax of C$48.5m from C$44.1m. The C$30m depreciation guidance cut follows the June reserve revision and is a reporting change, not a cash one.
Gotchas & watch items
- Eagle River's Q2 AISC of US$2,023/oz sits above its own full-year range of US$1,525–1,675, and its cash costs per ounce rose 84% to C$2,218. The full-year cost guidance depends on H2 grades improving from a base the company just guided lower.
- Free cash flow fell to C$41.8m from C$52.9m despite net income rising C$11.3m. Management blames a C$21m prepaid tax installment and expects quarterly free cash flow to rise significantly over the balance of the year.
- Total capital guidance is nominally unchanged at C$205m while the commentary says spend could track up to 10% higher on growth-expenditure timing; growth capital already rose to C$25.8m from C$16.5m.
- Kiena's cash costs are guided to the upper end of its US$1,025–1,175 range on labour and contractor costs, with nearly 60% of full-year output weighted to H2 and Presqu'île reaching its first stope only in July.
Event: https://web.quartr.com/companies/15130/events/668062/overview Retrieved: 2026-08-13T22:47:00Z Comparison mode: maximal · Scorecard contract: v1 Consensus exists only under the OTCQX ticker in US dollars against Canadian-dollar reporting, so no beat/miss is scored. The call is tomorrow at 14:00Z.