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Top Picks 2019: Wesdome Gold Mines Ltd. (Toronto: WDO)
01/10/2019 5:00 am EST
Right now, Wesdome Gold Mines (Toronto: WDO) is probably, in my opinion, the most likely company to get taken out in the gold space in 2019, suggests Ralph Aldis, a resource sector specialist and a portfolio manager for U.S. Global Investors.
They have two operating mines at the Eagle River Complex in Ontario that share a central mill. It also has the Kiena Complex in Quebec that is basically being redeveloped.
There have been some great drill holes at the mines there, and in some cases, multi-ounce per ton. The mine is starting to shape up to be a real gem and if it restarts it will be a big catalyst.
The gentleman running Wesdome, CEO Duncan Middlemiss, is doing a great job. People I know were throwing term sheets at him all this past year to see if he wanted to raise some money.
But Duncan recognized that he didn’t need to raise any money. Instead, he’s been putting money in the bank by producing gold at a profit and has continued to execute and put out good drill results.
I think this is one of these companies similar to where Alamos Gold went and bought Richmont Mines Inc. or when you had SSR Mining buy Claude Resources. Wesdome is geographically situated in a very safe jurisdiction and has a lot of prospectivity.
Investors probably could do well to buy and hold onto it for a while. The management team there and the board of directors, led by Charles Page, are very much involved in trying to make Wesdome a success story.
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