Wesdome Gold Mines (WDO-T) Mackie Research Maintain Buy
We maintain our BUY rating, but at a reduced target price of $15.10/share (was $15.25/share).
Net income came in at $16.1M ($0.11/share) and operating cash flow of $29.7M ($0.21/share), before changes in non-cash working capital. We were looking for $0.12 and $0.18, respectively, with the difference mainly reflecting non-cash items and taxes, net of higher operating costs.
WDO ended the quarter with record cash of $66.7M, working capital of $55M and total debt of $11.4M, essentially in line with our expectations.
Wesdome maintained 2020 production guidance and AISC, but now expects total cash costs to average $950-$975/oz (US$700-US$720/oz).
Our project NAV is now $9.40/share, to which we continue to apply a 1.3x multiple and then adjust for corporate expenses, cash and equity at par ($2.87/share), providing for our updated target price of $15.10/share (was $15.25/share). |
