Wesdome Gold Mines (TSE:WDO) used its fourth-quarter earnings call to highlight what management described as a record year for financial performance and gold production in 2025, while outlining a deliberately conservative outlook for Kiena in 2026 and a stepped-up multi-year exploration plan aimed at extending mine life and improving the company’s cost profile.
Record 2025 results and balance sheet strength
President and CEO Anthea Bath said 2025 “caps off the best year” in the company’s history, pointing to record production and financial metrics, along with “zero LTIs” for the year. Bath said the company generated CAD 278 million in free cash flow in 2025 and ended the year with “more than CAD 250 million” in cash.
On liquidity, Yee said cash totaled CAD 354 million as of Dec. 31, 2025, “nearly triple” the prior year-end level. He described Wesdome as having a “strong debt-free balance sheet,” and said total liquidity, including an undrawn revolving credit facility, was “nearly CAD 700 million.”
Looking ahead, Yee said the company’s 2026 budget implies approximately CAD 350 million in free cash flow, noting the budget was based on a gold price “below $4,000 US per ounce.” He added that at $5,000 US gold, free cash flow “should exceed CAD 500 million.”
Costs, capital plans, and shareholder returns
Yee said consolidated cash costs and all-in sustaining costs (AISC) per ounce of gold sold rose 4% year-over-year to $976 and $1,518, respectively, both within revised guidance. He added that free cash flow margin expanded to 31% in 2025, which he said remains among the highest in the gold sector.
For 2026, Yee said Wesdome will spend CAD 205 million in capital expenditures, with about 45% allocated to growth initiatives. He also said the company is committing CAD 55 million to drill roughly 270,000 meters in 2026. Yee added that the company plans to “fully execute” its share repurchase program objectives in 2026.
Asked about dividends, Yee said “dividends are a consideration” and will be evaluated as the company progresses through the year.
Operations: Eagle River performance and 2026 guidance
Interim COO Tyler Mitchelson, who joined roughly eight weeks prior to the call, said his focus is integrating operations into a “clear operating framework” with more stable, predictable performance. On safety, Mitchelson said Wesdome recorded no lost time incidents in 2025 and improved its total recordable incident frequency rate by 60% year-over-year.
At Eagle River, Mitchelson said 2025 production totaled a record 113,000 ounces at 14 grams per ton. Fourth-quarter output was nearly 24,000 ounces, with the “highest amount of underground tonnage ever mined and milled in a single quarter.” He said the Q4 grade of 10 grams per ton was planned and reflected mining and processing of lower-grade material tied to an effort to extend the 300 Zone and draw down stockpiles while keeping the mill at optimal capacity.
Mitchelson said the mill ran at over 1,000 tons per day in November, supporting management’s view that processing capacity can handle higher throughput as underground tonnage ramps up. He also highlighted progress in maintenance, saying proactive maintenance improved 30% in 2025, with a target of 80% planned maintenance by the end of 2026. Wesdome also continued reducing reliance on contractors; Mitchelson said company crews completed 55% of total development meters last year, a 40% increase year-over-year, and that “all crews are Wesdome managed” today.
For 2026, Mitchelson guided to Eagle River production of 105,000 to 115,000 ounces at 13 to 14 grams per ton, with AISC expected to rise to $1,525 to $1,675 per ounce sold, primarily due to higher royalties and new payments related to First Nations. He said Eagle River capital spending is expected to total about CAD 105 million, including CAD 60 million sustaining and CAD 45 million growth capital for equipment upgrades, camp expansion, infrastructure, and support for exploration, tailings, and power.
Kiena: improving flexibility, conservative 2026 phasing
At Kiena, Mitchelson said 2025 production totaled 73,000 ounces, within revised guidance, and Q4 production was 23,000 ounces, the strongest quarter of the year. He said the Presqu’ile Zone contributed 2,500 ounces and the mill averaged over 1,100 tons per day in December, with extended periods above 1,300 tons per day.
Mitchelson said development increased 12% year-over-year, allowing the mine to operate in three zones—two in Kiena Deep and one at Presqu’ile—“triple” the number of mining areas compared with much of the prior year. He said the ramp connection to surface is nearing completion and a ventilation upgrade, expected within the next year, is intended to support higher production rates. He also said the company has filled 50% of employee vacancies and is working to reduce contractor reliance, while implementing an operating model and developing a three-year infrastructure plan following an independent review of critical infrastructure.
For 2026, Mitchelson said production guidance for Kiena is conservative, with 60% of output expected in the second half due to plant sequencing, a maintenance and execution focus early in the year, and a ramp-up at Presqu’ile later in 2026. He said unit costs are projected to decline year-over-year as throughput rises and efficiencies improve, and that growth capital at Kiena will decline substantially as the ramp is completed and ventilation work advances.
Exploration: expanded drilling and upcoming technical reports
Bath and Senior Vice President of Exploration and Resources Jono Lawrence emphasized exploration as a central part of the company’s long-term strategy, with a goal of extending mine life while improving the cost structure by leveraging underutilized infrastructure. Bath said 2026 drilling is planned to reach up to 270 kilometers, with roughly half of the budget dedicated to discovery drilling at near-mine and surface targets. She said Wesdome expects to provide at least two or three exploration updates leading to an updated technical report, and that a June release will be “framed like a conceptual study” to present a long-term roadmap for Eagle River and Kiena.
Lawrence said 2025 involved establishing a structured exploration program with defined short-, medium-, and long-term priorities, supported by technology and improved geophysical data processing. He said the technical reports are predominantly based on a database cutoff at the end of December, with some deposits extended to mid-January, and are supported by about 207,000 meters of drilling completed in 2025, along with validation and integration of historic data.
On exploration highlights, Lawrence said Eagle River work confirmed extensions in several known zones, including doubling the 6 Central zone to 600 meters and confirming interpretations related to the 300 fault zone and Falcon zone extensions. Regionally, he said the company made a structural reinterpretation along the Mishi-Magnacon corridor and advanced work following the Angus Gold acquisition, including reprioritizing the Dorset deposit, which has an historic resource that Wesdome expects to update later in 2026.
At Kiena, Lawrence said drilling returned a “standout intercept” of 2,350 grams over 2.9 meters and identified new high-grade lenses and extensions, including work around the Football zone and B zone. He also described a discovery beneath the Dubuisson North and South zones and a reinterpretation suggesting Dubuisson could represent a potential bulk-tonnage target. For 2026, Lawrence said planned drilling includes 145,000 meters at Eagle River and 125,000 meters at Kiena, with more than 60% of Kiena meters dedicated to resource growth and new discoveries.
During Q&A, management said it is making progress on First Nations agreements that are reflected in 2026 cost guidance, but Mitchelson said he could not provide exact numbers because agreements are still being finalized. Bath said the labor situation in Val-d’Or remains challenging, with turnover “far higher” than desired and contractors filling gaps, and said the company is working on a longer-term labor strategy tied to compensation, culture, and demonstrating a long mine life.
About Wesdome Gold Mines (TSE:WDO)
Wesdome is a Canadian-focused gold producer with two high-grade underground assets, Eagle River in Northern Ontario and Kiena in Val-d’Or, Québec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a value-driven mid-tier gold producer.
