en.Wedoany.com Reported - Canadian gold producer Wesdome Gold Mines Ltd. announced its financial results for the first quarter of 2026 on May 12, 2026. Key data shows consolidated gold production for the first quarter was 45,303 ounces, a 1% decrease compared to the same period in 2025. Cash cost per ounce of gold sold increased 34% year-over-year to US$1,236, and all-in sustaining costs (AISC) increased 25% year-over-year to US$1,707.
Revenue grew significantly. Consolidated revenue for the first quarter increased 60% year-over-year to C$300 million, with an average realized gold price of US$4,784 per ounce. Gross profit increased 88% year-over-year to C$195 million, and operating cash margin grew 74% to C$222 million. Net profit increased 90% year-over-year to C$119 million, or C$0.79 per share. Net cash generated from operating activities doubled to C$162 million, and free cash flow grew 165% to C$126 million. As of March 31, the company's liquidity stood at C$773 million, including C$431 million in cash and a US$250 million undrawn credit facility.
The Eagle River Mine produced 27,846 ounces of gold in the first quarter, with mill throughput of 71,731 tonnes, a 20% increase compared to the same period in 2025. Production cost per tonne was C$577, a 3% decrease year-over-year. Gold revenue increased 55% to C$178.6 million. Cash cost per ounce increased to C$1,660, and AISC increased to C$2,216. Drilling at the mine continues to expand the 6 Central Zone and 800 Zone, while conversion and growth drilling at the Falcon 311 Zone is underway. Surface drilling is evaluating the connection between Dorset Main and Dorset West at the Dorset deposit, as well as continuity along the plunge. A gradient array IP geophysical survey covering an 8-kilometer strike length was completed at Abbey Lake, with a drilling program scheduled for the third quarter.
The Kiena Mine produced 17,457 ounces of gold in the first quarter, with mill throughput of 54,950 tonnes, a 13% increase year-over-year. Production cost per tonne was C$591, an increase year-over-year. Gold revenue increased 68% to C$120.5 million. Cash cost per ounce increased to C$1,748, and AISC increased to C$2,530. The mining permit for the Presqu'île Zone was received in January, producing 2,404 ounces in the first quarter, with ramp development progressing on schedule and first production expected in the second quarter. Development of the 109 Level exploration drift extension has been completed, and drilling of the VC Zone commenced in late March. Drilling from the 134 Level exploration drift is focused on the Kiena Deep A and footwall areas, as well as the B Zone lenses. Exploration drilling on the 33 Level is targeting magnetic anomalies at the Dubuisson deposit, with some holes terminated early due to ground conditions. The winter drilling program concluded at the end of March.
President and CEO Anthea Bath stated that the year is off to a solid start, driven by disciplined execution, improved Kiena performance, and the gold price environment. Unit cost pressures are an industry focus, and the company has identified initiatives in procurement and production efficiency expected to moderate costs in the second half of the year. Eagle River operations performed solidly, while Kiena made progress in reducing unplanned downtime and mining from multiple stopes simultaneously. With the Presqu'île permit in hand, high-grade ore has begun to be stockpiled. The company stated its financial strength supports a balanced capital allocation strategy, including reinvestment in operations, maintaining the balance sheet, and shareholder returns. Approximately C$49 million was spent on share repurchases in the first quarter, and the company announced a second share buyback program for up to 3 million shares. The updated technical report is still in progress, with a press release expected by the end of June outlining an updated mine life plan based on proven and probable reserves. The company remains on track to meet its 2026 production and cost guidance.
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