TSX:WDO

Stock Analysis Report

Wesdome Gold Mines

Executive Summary

Wesdome Gold Mines Ltd. explores for, extracts, processes, produces, reclaims, and sells gold in Canada.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Share Price & News

How has Wesdome Gold Mines's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.3%

WDO

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

58.9%

WDO

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: WDO exceeded the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: WDO exceeded the Canadian Market which returned 1.1% over the past year.


Shareholder returns

WDOIndustryMarket
7 Day11.3%0.1%-0.2%
30 Day10.9%-5.2%-3.3%
90 Day5.4%-4.8%-1.6%
1 Year58.9%58.9%13.2%12.3%4.6%1.1%
3 Year144.8%144.8%-11.5%-13.1%13.1%3.1%
5 Year858.0%858.0%7.5%3.4%24.7%6.7%

Price Volatility Vs. Market

How volatile is Wesdome Gold Mines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wesdome Gold Mines undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WDO (CA$6.61) is trading below our estimate of fair value (CA$23.34)

Significantly Undervalued: WDO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WDO is poor value based on its PE Ratio (39.5x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: WDO is poor value based on its PE Ratio (39.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WDO is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WDO is overvalued based on its PB Ratio (5.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Wesdome Gold Mines forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WDO's forecast earnings growth (39.8% per year) is above the savings rate (1.9%).

Earnings vs Market: WDO's earnings (39.8% per year) are forecast to grow faster than the Canadian market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WDO's revenue (32.5% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: WDO's revenue (32.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if WDO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wesdome Gold Mines performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WDO's earnings have grown significantly by 32% per year over the past 5 years.

Accelerating Growth: WDO's earnings growth over the past year (173%) exceeds its 5-year average (32% per year).

Earnings vs Industry: WDO earnings growth over the past year (173%) exceeded the Metals and Mining industry -13.7%.


Return on Equity

High ROE: WDO's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: WDO has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: WDO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Wesdome Gold Mines's financial position?


Financial Position Analysis

Short Term Liabilities: WDO's short term assets (CA$49.0M) exceeds its short term liabilities (CA$28.4M)

Long Term Liabilities: WDO's short term assets (49.0M) exceeds its long term liabilities (31.7M)


Debt to Equity History and Analysis

Debt Level: WDO is debt free.

Reducing Debt: WDO has no debt compared to 5 years ago when its debt to equity ratio was 6.7%.

Debt Coverage: WDO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WDO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: WDO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if WDO's debt is covered by short term assets.


Next Steps

Dividend

What is Wesdome Gold Mines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate WDO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WDO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if WDO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WDO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WDO is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WDO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Wesdome Gold Mines's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Duncan Middlemiss (57yo)

3.2yrs

Tenure

CA$1,523,337

Compensation

Mr. Duncan Middlemiss, P.Eng., has been the Chief Executive Officer and President of Wesdome Gold Mines Ltd. since August 15, 2016. Mr. Middlemiss is a Senior Mining Executive with more than 25 years of fi ...


CEO Compensation Analysis

Compensation vs. Market: Duncan's total compensation ($USD1.16M) is about average for companies of similar size in the Canadian market ($USD1.55M).

Compensation vs Earnings: Duncan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: WDO's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: WDO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Michael Michaud

    Vice President of Exploration

    • Tenure: 2.1yrs
    • Compensation: CA$728.76k
  • Ben Au

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: CA$795.21k
  • Duncan Middlemiss (57yo)

    President

    • Tenure: 3.2yrs
    • Compensation: CA$1.52m
  • Heather Laxton

    Chief Governance Officer & Corporate Secretary

    • Tenure: 3.5yrs
  • Daniel Lapointe

    Chief Geologist of Eagle River Mine

    • Tenure: 0yrs
  • Lindsay Dunlop

    Vice President of Investor Relations

    • Tenure: 5.2yrs
  • Marc-Andre Pelletier

    Chief Operating Officer

    • Tenure: 2.1yrs
    • Compensation: CA$896.52k
  • Scott Carruthers

    Chief Assayer of Eagle River Mine

    • Tenure: 0yrs
  • Stacy Kimmett

    Vice President of Human Resources

    • Tenure: 2.4yrs
    • Compensation: CA$370.15k
  • Scott Gilbert

    Vice President of Financial Systems & Cost Control

    • Tenure: 1.8yrs

Board Members

  • Chuck Main (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$120.00k
  • Duncan Middlemiss (57yo)

    President

    • Tenure: 3.2yrs
    • Compensation: CA$1.52m
  • Brian Skanderbeg (43yo)

    Independent Director

    • Tenure: 0.4yrs
  • Warwick Morley-Jepson (60yo)

    Independent Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: CA$115.00k
  • Nadine Miller (46yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: CA$115.00k
  • Bill Washington (56yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: CA$122.50k

Company Information

Wesdome Gold Mines Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wesdome Gold Mines Ltd.
  • Ticker: WDO
  • Exchange: TSX
  • Founded: 1976
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$907.024m
  • Shares outstanding: 137.22m
  • Website: https://www.wesdome.com

Number of Employees


Location

  • Wesdome Gold Mines Ltd.
  • 220 Bay Street
  • Suite 1200
  • Toronto
  • Ontario
  • M5J 2W4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDOTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2006
RKVADB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2006
WDOF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2006
0VOALSE (London Stock Exchange)YesCommon SharesGBCADFeb 2006

Biography

Wesdome Gold Mines Ltd. explores for, extracts, processes, produces, reclaims, and sells gold in Canada. It principally produces gold in the form of doré bars; and silver as a by-product. The company’s pri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:53
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.