Precious metals miner Wesdome Gold Mines on Wednesday raised its yearly production forecast for the Eagle River mine in Ontario while cutting its guidance for the Kiena operation in Quebec, after equipment constraints hampered output in the first half of the year.

The Toronto-based miner now expects Eagle River to produce 105 000 oz to 115 000 oz in 2025, up from 100 000 oz to 110 000 oz previously, and narrowed grade guidance to between 14 g/t and 15 g/t. At Kiena, full-year production guidance was lowered to 80 000 oz to 90 000 oz from 90 000 oz to 100 000 oz.

Wesdome posted record quarterly net income of C$82.7-million in the three months ended June 30, or C$0.55 a share, nearly triple the year-earlier period, as higher gold prices and improved grades at Eagle River offset planned maintenance downtime and weaker Kiena output. Gross profit surged 146% year-on-year to C$132.2-million, while cash margin jumped 96% to C$149.4-million.

Eagle River is expected to account for about 55% of its full-year production in the second half, while Kiena’s fourth quarter is projected to deliver about 40% of its yearly output. The company maintained its sustaining capital guidance for Kiena but boosted growth capital to C$65-million from C$40-million to fund ventilation upgrades and accelerate development at the Presqu’île orebody.

“Eagle River delivered a strong second quarter, despite a planned 18-day mill maintenance shutdown. Ongoing improvements in development and dilution control practices are continuing to result in stronger grades, while growing surface stockpiles are contributing to more consistent mill throughput,” president and CEO Anthea Bath said in a statement.

“At Kiena, production slightly exceeded first-quarter levels, reflecting continuing equipment constraints and consequently limited access to stopes, as well as underperformance in one high-grade stope due to limited delineation,” she said. “To improve reliability and production flexibility, efforts remain focused on developing additional mining horizons, with the completion of the second and third mining areas in the Presqu’île zone and level 136 in Kiena Deep targeted before year-end.”

Wesdome’s all-in sustaining costs (AISC) at Eagle River are now seen between $1 375/oz and $1 500/oz, down from prior guidance of $1 400/oz to $1 550/oz. At Kiena, AISC is forecast to rise to $1 400/oz to $1 575/oz, from $1 225/oz to $1 400/oz.

The company ended the quarter with liquidity of C$530-million, including C$187.6-million in cash and $250-million in undrawn credit.

“Wesdome continues to strengthen its financial foundation, underpinned by higher gold prices, robust cash generation, and a debt-free balance sheet,” Bath said. “With liquidity now exceeding $500-million, Wesdome is in its strongest position in company history and is developing a capital framework that will balance growth with a disciplined capital return to shareholders.”