10:29 AM EST, 11/18/2024 (MT Newswires) -- (Adds National Bank commentary in fourth paragraph)

Wesdome Gold Mines ( WDOFF ) was at last look up more than 5% early on Monday after saying exploration programs at its Kiena Mine in Val-d'Or, Quebec has expanded high-grade mineralization and also supports the potential for a two-mine structure.

Highlights include 218.9 g/t gold over 22.1m core length at Kiena Deep, Footwall Zone, and 84.3 g/t gold uncapped over 5.0m core length at Kiena Deep Extension.

This year's exploration budget for Kiena of over $20 million covered surface and underground expansion, infill and delineation drilling totaling more than 70,000 metres.

National Bank is maintaining an Outperform rating, and C$16.75 target. National said its thesis is supported by an all-Canadian portfolio, executing on a back-end weighted year as Kiena continues to ramp up. It noted Kiena production is expected to trend higher in 2025 with both 129 and 136 levels in operation and Presqu'ile catalyst in 2026. Moreover, it also noted, a potential dividend catalyst with balance sheet delevered. According to the bank, elevated FCF (free cash flow) means more opportunities to fund, expand exploration and find ounces at Kiena and Eagle River and spare mill capacity at both mills meaning exploration can deliver immediate returns, production growth, tempered by operational challenges.

Price: 11.69, Change: +0.61, Percent Change: +5.51