Q: Hi 5i Team,
Wesdome Gold SP tanked after reporting 2022 full year production guidance.
What do you think of this company going forward in 2023?
Would you expect recovery and improvement in production and earnings? Or should I avoid this stock?
Thank you.
5i Research Answer:
We have certainly expected better things from this one. The balance sheet is OK, revenues have been ramping up but profitability growth has been slow to follow. The CEO has retired which adds more uncertainty. Forecasted growth looks very good, if we are to believe analysts and the company. We think it is cheap enough to still be a HOLD, to see perhaps how new leadership takes shape.