Wesdome Gold Mines (WDO-T) Industrial Alliance Securities analyst George Topping, citing continued exploration success at its Kiena mill complex in Val d'Or, PQ Canada., raised his share target for Wesdome Gold Mines ($9.29) to $10 from $9.75. Mr. Topping reiterated his "buy" call. Analysts on average target the shares at $9.11.
Mr. Topping says in a note: "Kiena drilling continues to return highly economic widths and grades and remains open. We have comfort in increasing the modelled throughput from our 1,500 tons per day (tpd) prior to 1,800 tpd, resulting in a small increase in our target.
Between Kiena and Eagle, Wesdome will be a 200-270,000 ounce producer at sub-$1,000 (U.S.) AISC, possibly as soon as three years. The Eagle mine covers exploration costs and management is advancing Kiena to one of the cheapest, quickest restarts available in the industry.
Exploration should outline our estimated 1.2-1.5 million ounces at 10-12 grams pet ton prior to restart, enough to support an annual production rate of 150,000 ounces growing to 200,000 ounces per annum as exploration progresses." |
