Stockwatch. - 2009-01-30 09:16 ET - In the News

" ..... There are exceptions, like Wesdome Gold Mines. It operates 17 per cent of the underground gold mines in Canada. That is two of 12. Wesdome's production is running at about 80,000 ounces annually.

The market capitalization is a mere $104-million. It is making real money, plus it is nice that Wesdome's share count has not ballooned over the years.

What Mr. Taylor likes most about Wesdome has nothing to do with numbers or ratios, rather he likes the firm's high hopes for a new zone at its Kiena mine in Quebec.

If it all works out, Kiena could substantially increase the mine life and the value of the business.

Wesdome is a tiny player. It deserves to trade at a discount to its bigger rivals. However, for Mr. Taylor, that discount looks too high. "

Hg