Wesdome Gold Mines (TSX: WDO) reported on Tuesday a 76% increase in first quarter revenues compared to last year owing to strong production and a favourable gold price during the period.
In Q1 2020, the Eagle River underground mine produced 24,457 ounces of gold, a 36% increase over the same period last year. The Mishi open pit — also part of the Eagle River mining complex — produced 665 ounces of gold, bringing total production at Eagle River to 25,122 ounces of gold, a 32% improvement over the previous year.
With the increase in production, the company managed to generate revenues of $57.3 million and net income of $11.5 million. In comparison, Wesdome’s revenue and net income for Q1 2019 were $32.5 million and $8.1 million, respectively.
However, the company expects slightly lower production for the following quarter as the Eagle River mine is currently in reduced operations mode due to management of covid-19.
At the Kiena complex in Quebec, a definitive restart date has not been provided by the provincial government, though the company says May 11 could be a possibility.
Wesdome is still maintaining its annual production guidance of 90,000-100,000 ounces as well as its cost guidance, but says it is unlikely to drill its planned 237,000 metres this year.
Shares of Wesdome Gold Mines closed 1.8% higher on the TSX on Tuesday. The company’s market capitalization is C$1.56 billion.