The shares had lost C$0.98 or 10.7%, hitting C$8.16 by 2 p.m., regaining slightly from their low.
Wesdome operates the Eagle River mine 50 km west of Wawa, Ont. near Lake Superior and the Kiena mine near Val-d’Or, Quebec. Both mines had planned shutdowns in July for upgrades. Wesdome said it is aiming for around 120,000 oz. production this year, the lower end of its guidance.
The production target could be optimistic when fourth-quarter output needs to hit 45,000 oz. and it hasn’t surpassed 41,600 oz. yet, analyst Echelon Capital Markets said in a note on Friday. Still, Echelon maintained a buy rating on the stock with a C$11.75 per share price target.
“Despite recent operational challenges (exogenous and home grown), we continue to highlight WDO‘s organic production growth profile solely in a Tier 1 Jurisdiction and the potential for continued positive exploration results from aggressive drilling at both Kiena and Eagle…
