BMO Capital maintained a positive outlook on Wesdome Gold Mines Ltd. (WDO:CN) (OTC: WDOFF), reiterating an Outperform rating alongside a consistent price target of Cdn$18.00. The firm highlighted Wesdome's third-quarter gold production, which reached 45,109 ounces, aligning with BMO Capital's projection of 46,000 ounces. The production was notably fueled by high-grade ore extraction at both of the company's mining sites.
The analyst from BMO Capital emphasized that this quarter marked the second successive period of high-grade output from both mines. According to the firm, Wesdome's recent performance demonstrates a developing pattern of robust production, which is expected to be increasingly recognized by the market.
Year-to-date figures show that Wesdome has produced a total of 122,467 ounces of gold. With these numbers, the company is on track to meet its projected annual production goal, which ranges between 160,000 to 180,000 ounces of gold. The firm's outlook suggests confidence in Wesdome's capacity to hit its yearly targets.
Wesdome's consistent performance and ability to maintain high-grade production levels are seen as key drivers for the company's positive valuation. BMO Capital's reiterated price target and rating reflect an anticipation of continued market appreciation for Wesdome's operational achievements.
The company's adherence to its annual production guidance and the repeated high-grade yield from its mines are likely to keep investor interest piqued. Wesdome's ongoing efforts to deliver on its production promises appear to be forming a solid foundation for its valuation in the eyes of BMO Capital.
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