WDO Q2 2026 - Post-Call Earnings Update
Verdict
- Revenue of C$266.8m remains unscoreable against consensus: API Ninjas carries Wesdome only under its US-dollar OTCQX listing while the company reports in Canadian dollars.
- EPS of C$0.64 (adjusted C$0.65) is unscoreable for the same reason.
- Production and cost guidance reaffirmed, but capital drifted further: consolidated capital could run up to 10% above C$205m, and the CFO separately said Kiena growth capital may trend higher again on equipment timing. The Eagle River grade cut to 11.5–12.5 g/t and the C$100m depreciation guide were both confirmed.
- The one thing that matters: the full-year is now a second-half bet with no cushion left. Eagle River delivered 9.7 g/t in Q2 against a full-year range that was itself just cut, and management says the H2 sequence is "pretty much locked in" — so grade is fixed and throughput is the only lever, on top of a mill already running 50% higher year-over-year. Meanwhile only C$27m of Eagle River's C$105m capital budget was spent in the first half.
- Tone flag: the prepared remarks were about the eight-year reserve plan and district-scale ambition, not about the quarter. Management is asking to be judged on the platform, not the print.
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 | — | — |
Guidance & KPIs
| Item | New on the call | Prior guide | Prior-year actual |
|---|---|---|---|
| 2026 gold production | 180,000–205,000 oz reaffirmed | 180,000–205,000 oz | — |
| Eagle River head grade | 11.5–12.5 g/t | 13.0–14.0 g/t | 9.7 g/t delivered in Q2 |
| Consolidated capital | Up to 10% above C$205m; Kiena growth capital may trend higher again | C$205m | C$81m spent in H1 |
| Depreciation and depletion | C$100m | C$130m | — |
| Quarterly dividend | Initiated at ~C$0.12/share annualized, first payment end-September | None | None |
| Buyback authorization | Up to 6% of shares outstanding | Up to 10% of public float | ~8m shares for ~C$190m at ~C$24 since November |
Management commentary
- Eagle River milled roughly 800 tonnes per day in Q2, nearly 50% above last year, with another 10% increase targeted in H2 against the eight-year plan's 988 tpd average; the mill is expected to be full in 2027.
- The grade cut was framed as sequencing, not disappointment: "the grade will go up purely because of the sequence, not because we've done anything special." July averaged close to 12.5 g/t and the next 300 Zone stope is drilled off with about 25,000 tonnes at grades up to 25 g/t.
- Kiena blasted its first Presqu'île production stope in July with commercial production expected in Q4, exiting the year at 300–400 tpd from Presqu'île plus 600–700 tpd from Kiena Deep; the fourth mining horizon arrives in 2027.
- The buyback is mechanical rather than discretionary — the CFO said it runs off trailing price-to-NAV and that volumes rise into gold-price dips, which is what drove the heavy July repurchases.
- Three margin programs were introduced without a quantified total: supply chain (several million already identified, several million more expected by year-end, flowing over 12 months), moving contractor roles onto the permanent payroll, and maintenance practices.
Quality of earnings
- Eagle River's flat unit cost is better than it looks and its AISC is worse. Cost per tonne was C$631 against C$626, but the quarter carried about C$45 per tonne of identified one-off items; site AISC of just over US$2,000/oz still sits above the US$1,525–1,675 full-year site range.
- Corporate G&A of nearly C$11m is not a run rate. It carries unplanned corporate development costs and the technical reports filed last week, both of which roll off.
- The C$30m depreciation and depletion guidance cut lifts reported earnings without adding a dollar of cash. It follows June's reserve increase, so H2 EPS gets a non-cash tailwind that free cash flow will not share.
Gotchas & watch items
- Capital guidance moved twice on one call — up to 10% above C$205m, then a further caveat on Kiena growth capital — leaving roughly C$140m or more to spend in H2 against C$81m in H1.
- Eagle River's capital is the most back-loaded piece: C$27m of a C$105m budget spent in H1, so about C$78m lands in the same six months as the production ramp.
- The H2 mine sequence is fixed, so the only remaining lever on ounces is throughput; a mill already up 50% year-over-year must add another 10%.
- Presqu'île only reaches commercial production in Q4 and the fourth Kiena horizon comes in 2027, so the ~1,000 tpd figure is an exit rate, not a delivered one.
Event: https://web.quartr.com/companies/15130/events/668062/overview Retrieved: 2026-08-14T20:52:00Z Comparison mode: maximal · Scorecard contract: v1 Consensus exists only under the OTCQX ticker in US dollars against Canadian-dollar reporting, so no beat or miss is scored; the transcript ends mid-Q&A.