Wesdome Gold Sees Costs Rise Despite 28% Revenue Growth

Wesdome Gold Mines (TSX: WDO) reported a strong second quarter, with revenue increasing by 28% to $266.8 million compared to the same period last year. The higher gold price was the main driver of this growth.

The company's net income rose to $94.0 million, or $0.64 per share, up from $82.7 million and $0.55 in the second quarter last year. Adjusted earnings, excluding non-recurring payments and strategic initiatives, were $0.65 a share, up from $0.52.

However, costs are starting to rise. Cash costs were $1,342 per ounce sold, while all-in sustaining costs came in at $1,763. Both figures exceed the company's full-year ranges of $1,050 to $1,150 and $1,525 to $1,700, respectively.

Despite this, Wesdome Gold maintained its full-year production guidance of 180,000 to 205,000 ounces and cost guidance. CEO Anthea Bath attributed the strong operational momentum at both assets, Kiena and Eagle River, as the reason for reaffirming these targets.