(All amounts expressed in U.S. dollars unless otherwise stated)
Fourth Quarter and Full Year 2025 Highlights:
Financial Highlights
Completed the acquisition of the Hemlo Gold Mine ("Hemlo Mine") from certain wholly-owned subsidiaries of Barrick Mining Corporation ("Barrick") on November 26, 2025 for total consideration with a fair value of $1.0 billion (the "Hemlo Acquisition"), as well as the associated acquisition financing package.
As at December 31, 2025, the Company held cash of $132.0 million.
Net loss for the three and twelve months ended December 31, 2025 were $36.2 million or $0.30 per share and $36.9 million or $1.01 per share, respectively, primarily due to transaction costs incurred for the Hemlo Acquisition.
Net cash used in operating activities for the three and twelve months ended December 31, 2025 were $23.8 million and $24.6 million, respectively. Operating cash outflows were mainly due to payment of transaction costs incurred for the Hemlo Acquisition as well as build-up of inventory at December 31, 2025 due to timing of sales.
Repaid $75.0 million outstanding under its Revolving Credit Facility in March 2026, reducing the balance of the Revolving Credit Facility to nil. The Revolving Credit Facility remains available to the Company for general corporate purposes and working capital needs.
Operating Highlights
Attributable gold1 production from November 26, 2025 to December 31, 2025 totalled 16,503 ounces of gold at an average grade of 4.71 g/t with average recoveries of 93.2%. Strong gold production during the period was supported by above average head grades and higher milled tonnes. There were no gold sales recorded by the Company in 2025 as gold production for the period was sold in early 2026.
Attributable gold1 production for the Hemlo Mine for the three and twelve months ended December 31, 2025, inclusive of the period prior to closing of the Hemlo Acquisition, totalled 38,012 ounces and 120,841 ounces, respectively. Full year 2025 production from the Hemlo Mine met the previously stated guidance from Barrick (refer to Barrick's news release dated February 12, 2025).
Company expects to provide 2026 operating and cost guidance in the second half of 2026.
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1 Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
Investment and Growth Highlights
Initiated phased production ramp-up efforts at the Hemlo Mine through key operational initiatives including a transition to an owner-operator model, significant investment in new mobile equipment, and changes to mining sequencing to improve flexibility and throughput.
Operational improvements are being advanced in parallel with a significant exploration program, ongoing mine planning optimization, and trade-off studies, all in support of an updated mineral reserve estimate and life-of-mine plan in the second half of 2027.
In 2026, the Company initiated a 130,000 metre exploration drilling program aimed at extending mine life, de-risking the near-term mine plan and identifying near-mine growth opportunities. The 2026 exploration drilling program is expected to serve as the foundation for the updated technical report in 2027.
In 2026, the Company repurchased a 1.5% net smelter return royalty interest associated with the past-producing David Bell property, consolidating the Company's interest over the Hemlo land package and improving economic leverage to potential exploration success and future production growth.
Jason Kosec, President, CEO & Director of Hemlo Mining, commented: "The fourth quarter of 2025 marked a transformational milestone for Hemlo Mining with the completion of our acquisition of the Hemlo Mine from Barrick on November 26th. In the weeks following closing, the mine delivered consistent production at strong grades and recoveries, in line with our expectations and meeting Barrick's guidance for the year. Since closing the acquisition, we have also made significant progress on building our leadership team, appointing several key executives to support the Company's objectives. The Hemlo Mine is a world-class Canadian gold asset with a 40-year production history, and we are focused on optimizing and growing the operation to deliver long-term value for our shareholders."
Operating and Financial Highlights
Unit
Period from November 26, 2025 to December 31,2025
Three months and year ended December 31,20251
Year ended December 31,20251
Hemlo Mine
Williams
Ore processed
000t
103,429
269,868
924,777
Average grade
g/t
4.13
3.66
3.52
Contained gold
oz.
13,747
31,727
104,537
Recovery
%
93.2 %
94.5 %
94.0 %
Gold produced
oz.
12,814
29,971
98,223
Interlake2
Ore processed2
000t
37,020
94,258
364,036
Average grade2
g/t
6.65
5.62
4.11
Contained gold2
oz.
7,915
17,024
48,143
Recovery2
%
93.2 %
94.5 %
94.0 %
Gold produced2
oz.
7,378
16,082
45,235
Total gold produced
oz.
20,192
46,053
143,458
