West Red Lake Gold Mines reported adjusted net income of approximately CAD 13 million for the second quarter of 2026, a 98% increase from CAD 6.4 million in the prior quarter, as revenue climbed 17% to CAD 49 million. Earnings per share reached CAD 0.03, exceeding analyst expectations of CAD 0.02 by 50%, up from CAD 0.02 in Q1 2026.
Gold production totaled 8,576 ounces, a 51% increase from the previous quarter, while gold sales rose 34% to 8,260 ounces. Material mined increased 46% to 75,000 tons, and mill throughput averaged 842 tons per day, up 47% quarter-on-quarter and above permitted capacity. The head grade improved to 4.3 grams per ton from 2.9 grams in Q1, while the recovery rate remained stable at approximately 95%.
Cost efficiency improved significantly, with all-in sustaining costs (AISC) falling 30% to US$3,284 per ounce sold, down from roughly US$4,700 in Q1. Cash costs declined 23% quarter-on-quarter to US$2,000 per ounce. Operating margin expanded to 41% from 37% in the prior quarter, supported by higher throughput and lower costs.
Free cash flow for the quarter was positive CAD 9.7 million, with cash and cash equivalents totaling approximately CAD 31 million at quarter-end. Income from mine operations rose 31% to about CAD 20 million.
Chief Executive Officer Shane Williams highlighted the operational ramp-up, noting that the mill is performing at design recovery levels while processing tonnage above permitted capacity. The company is targeting mill throughput of about 1,000 tons per day in the second half of 2026, with potential to reach near 1,300 tons per day pending upgrades such as the addition of a secondary crusher.
Capital expenditures totaled CAD 6.3 million, primarily allocated to the Fork access drift and Madsen shaft refurbishment, which aims to lift hoisting capacity to around 700 tons per day. The Fork access drift is approximately 50% complete and is expected to support 2027 production.
Full-year 2026 production guidance remains unchanged, with a focus on the second half of the year. An updated pre-feasibility study combining the Madsen and Rowan deposits is scheduled for mid to late September, following a 70% increase in indicated resources at a grade of approximately 13 grams per ton. Ongoing drilling continues at the 904 Complex and Starratt-Olsen satellite deposit.
Shares of West Red Lake Gold traded at CAD 0.94, up 4.44% from the prior close, with a 52-week range of CAD 0.59 to CAD 1.49.
