West Red Lake Gold Mines Ltd. (WRLG) reported a 98% quarterly increase in adjusted net income to CAD 13 million in Q2 2026, alongside a 50% beat on adjusted earnings per share (EPS) of CAD 0.03 against the consensus forecast of CAD 0.02. Revenue rose 17% to CAD 49 million, while income from mine operations increased 31% to CAD 20 million.
The Toronto-based gold producer attributed the performance to a 51% surge in gold production to 8,576 ounces and a 34% rise in gold sales to 8,260 ounces. Material mined jumped 46% to 75,000 tons, and mill throughput averaged 842 tons per day, exceeding permitted capacity by 47%. Head grade improved to 4.3 grams per ton from 2.9 grams in Q1, while mill recovery remained stable at 95%.
Cost discipline contributed to a 30% reduction in all-in sustaining costs (AISC) to US$3,284 per ounce sold, falling within the full-year guidance range of US$2,800 to US$3,600. Cash costs declined 23% to US$2,000 per ounce. Adjusted EBITDA rose 54% to CAD 22 million, and the company generated CAD 9.7 million in free cash flow. Cash and equivalents totaled CAD 31 million at quarter-end.
Operational improvements included progress on the Fork access drift, now 50% complete, and continued refurbishment of the Madsen shaft to boost hoisting capacity to 700 tons per day. The company also highlighted a 70% increase in indicated resources at the Rowan deposit, maintaining a high grade of 13 grams per ton. An updated pre-feasibility study combining Madsen and Rowan is scheduled for mid-to-late September.
Shane Williams, CEO, noted the mill's throughput exceeded permitted capacity while maintaining design recovery rates. Harpreet Dhaliwal, CFO, emphasized the 30% AISC reduction and ongoing efforts to optimize capital structure, including principal repayments on the Nebari loan. The company reaffirmed its 2026 production guidance and maintained its AISC target range.
Shares of WRLG traded 4.44% higher at CAD 0.94, extending gains from the prior session's close of CAD 0.90. The stock has ranged between CAD 0.59 and CAD 1.49 over the past 52 weeks, with a current P/E ratio of 62 according to InvestingPro data.
