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Wesdome Gold Mines Ltd T.WDO

Alternate Symbol(s):  WDOFF

Wesdome Gold Mines Ltd. is a Canada-based gold producer with two high grade underground assets, the Eagle River mine in Ontario and Kiena mine in Quebec. The Company has an exploration program both underground and on the surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Eagle River Underground Mine is located approximately 50 kilometers west of Wawa, Ontario. The Eagle River Underground Mine in Wawa, Ontario is producing gold at a rate of 92,000-105,000 ounces per year. The Kiena Mine is located in the prospective Val d’Or, Quebec gold camp. The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tons-per-day mill. The Company also retains exposure to the Moss Lake gold deposit, located approximately 100 kilometers west of Thunder Bay, Ontario through its equity position in Goldshore Resources Inc.


TSX:WDO - Post by User

Bullboard Posts
Post by carbideon Jan 16, 2019 6:40pm
192 Views
Post# 29242666

Incredible valuation

Incredible valuationYou have half a million ounce of M+I resources at each of Kiena and Eagle River, and almost half a billion in market cap.  That's 500 US dollars per ounce, for what are essentially low-grade ounces.  If you count the inferred at Kiena, 250 per ounce.  Still an outrageous valuation for marginal ounces.  The Eagle River 300E zone is a small jewel box, maybe 70moz, open at depth, should be a while till they get to it.  But the Kiena drilling does not hang together as a mineable ore body.  Moss Lake is just a low-grade project they've been sitting on for 5 years.  I can't recall if that was the Barrick discard they used to hold, as I couldn't find the technical report.  There is always a chance 300E expands, or they find something good at ER or K, but this is priced to perfection, and then some.
Bullboard Posts