When markets wobble and uncertainty creeps in, gold stocks often become the go-to option for long-term protection. Gold has been seen as a safe haven for centuries. It holds value through inflation, geopolitical tension, and currency shifts. For Canadian investors thinking about the long term, adding a resilient gold stock could provide both security and meaningful upside. One of the most compelling options right now is Wesdome Gold Mines (TSX:WDO). It’s down from recent highs, but this small-cap gold miner has all the makings of a stock to buy and hold forever.
The stock
Wesdome isn’t a speculative explorer or a high-risk development-stage company. It’s a full-fledged producer with two high-grade underground gold mines: Eagle River in Ontario and Kiena in Quebec. Both are located in politically stable, mining-friendly provinces, which is a big plus.
The company has been in production for over 30 years. But in recent years, it’s started to scale up meaningfully. It posted outstanding results in the first quarter (Q1) of 2025. Revenue came in at $187.6 million, up 86% year over year. Net income jumped to $62.5 million, or $0.42 per share, from $13.1 million, or $0.09 per share, in the same quarter last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $119.4 million, more than tripling year over year.
What’s behind the growth? Production volumes tell the story. Wesdome produced 45,692 ounces of gold in Q1 2025, a 37% increase from 33,400 ounces in Q1 2024. This boost came from both Eagle River and Kiena performing well. Gold prices helped, too. The company sold gold at an average realized price of US$2,882 per ounce!
More growth on the way
Cost control was another highlight. All-in-sustaining costs dropped 17% year over year to US$1,366 per ounce sold. That’s well below the average gold price, giving the company strong operating leverage. Lower costs and higher volumes are the sweet spot in gold mining. That combination leads to growing free cash flow, which Wesdome is now using to fund expansion and exploration.
In fact, Wesdome is preparing to grow beyond its current mines. It recently announced the acquisition of Angus Gold, a junior explorer with properties near Eagle River. This deal increases Wesdome’s land package around Eagle River fourfold and adds exploration upside. Wesdome is aiming to extend the mine life at both of its existing operations, and this acquisition supports that goal. It’s a smart, low-risk move that builds on Wesdome’s strengths.
Financially, Wesdome is in a solid position. The company ended Q1 2025 with $167.9 million in cash and no long-term debt. That gives it the flexibility to make acquisitions, invest in new projects, and weather potential downturns. Not every gold company can say that; many are carrying high debt loads, especially after years of inflation-driven cost pressure. Wesdome’s conservative balance sheet is a key reason it stands out.
Foolish takeaway
So, if you’re wondering where to put your money for the long haul, Wesdome Gold Mines offers a compelling option. It isn’t flashy, and it doesn’t dominate headlines. But sometimes, the quiet, consistent performers are the ones that build real wealth over time. Gold may not always be in favour, but when inflation rises, or currencies wobble, it tends to come roaring back. Wesdome is well-positioned to thrive in those conditions. With solid assets, great leadership, and a clear plan to grow, it looks like a magnificent gold stock worth holding forever.
