(All amounts expressed in U.S. dollars unless otherwise stated)
Jason Kosec, President, CEO & Director of Hemlo Mining, commented: "Q1 was transformational for the Company, delivering our first full quarter as owner-operator of the Hemlo Gold Mine and establishing the operational platform for the year ahead. We delivered attributable gold1 production of 29,699 ounces, generating $186.3 million in revenue and net income of $22.1 million, or $0.07 per share. During the quarter, we completed the transition to an owner-operated model ahead of schedule, strengthened our executive and site teams, launched our 130,000-metre exploration drilling program, deployed $20.1 million across sustaining and growth capital2, executed a strategic royalty buyback, and fully repaid our Revolving Credit Facility. The scope and momentum of execution across the Company reinforce our conviction in the long-term value we are building at Hemlo."
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1 Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
First Quarter Highlights:
Financial Highlights
Revenue for the three months ended March 31, 2026 was $186.3 million mainly from 38,685 gold ounces sold at an average realized price2 of $4,923 per ounce.
Net income for the three months ended March 31, 2026 was $22.1 million, or $0.07 per share, primarily due to gross profit of $73.2 million (calculated as revenue of $186.3 million less cost of sales of $113.1 million), partially offset by income tax expense of $23.6 million, net finance costs of $12.4 million, loss on revaluation of contingent consideration of $8.4 million and general and administrative expenses of $7.9 million.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")2 for the three months ended March 31, 2026 was $86.6 million mainly due to revenues of $186.3 million, partially offset by mine operation expenses of $54.0 million, royalties expense of $30.5 million, loss on revaluation of contingent consideration of $8.4 million and general and administrative expenses of $7.9 million.
Cash generated from operating activities for the three months ended March 31, 2026 was $87.9 million.
Repaid $75.0 million outstanding under the revolving portion ("Revolving Credit Facility") of the secured credit agreement ("Credit Agreement"), reducing the balance of the Revolving Credit Facility to nil in March 2026. The Revolving Credit Facility remains available to the Company for general corporate purposes and working capital needs.
As at March 31, 2026, the Company held cash of $123.6 million.
Operating Highlights
Attributable gold3 production for the three months ended March 31, 2026 totalled 29,699 ounces of gold at average recoveries of 95.6%.
Attributable gold3 sold for the three months ended March 31, 2026 totalled 32,052 ounces of gold supplemented by finished goods at December 31, 2025.
Cost of sales for the three months ended March 31, 2026 were $113.1 million. Site attributable cash cost per ounce sold4 and all-in sustaining cost per ounce sold4 for the three months ended March 31, 2026 were $1,385 per ounce and $1,805 per ounce, respectively.
Continued strong safety performance, with no environmental non-compliances and no Lost Time Injury ("LTI"). Subsequent to the end of first quarter 2026, the Hemlo Mine received the prestigious John T. Ryan Trophy which is presented annually by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") in recognition of excellence in safety performance. At the end of first quarter 2026, LTI-free hours totalled 4,048,587 (1,033 total days).
Successfully transitioned from an underground mining contractor workforce to an owner-operated workforce with 97% of the contractor workforce accepting positions with the Company as part of the transition.
Commissioned two of the 21 planned pieces of new equipment during the quarter and filled an additional 42 positions to support operational optimization efforts in development and production for progressive increase in mine performance.
90% of 2026 production stopes have been developed and are part of the planned mining sequence.
Rebuilt one of three primary crushers as part of the preventative maintenance program and additional investments will be made to support and de-risk future production growth.
Initiated a 130,000 metre exploration drilling program with initial results from the South-Rim Zone that support the definition of a newly recognized, high-grade mineralized domain.
Exploration drilling, trade-off studies, and ongoing optimization efforts will support an updated technical report planned for the second half of 2027.
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2 This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
3 Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
4 This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
Investment and Growth Highlights
Continued to strengthen the management team with the appointment of several key executives across operations, corporate development and investor relations, and sustainability functions.
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.
Received conditional approval to list its common shares on the Toronto Stock Exchange ("TSX") and graduate from the TSX Venture Exchange ("TSXV"). Final approval of the listing is subject to the Company fulfilling all of the requirements of the TSX, including receipt of all required documentation on or before July 14, 2026.
Common shares commenced trading on the OTCQX® Best Market ("OTCQX") in the United States under the symbol "HMMCF".
Operating and Financial Highlights
Three months ended March 31,
Hemlo Mine
Unit
2026
Williams
Ore mined
000t
229
Waste mined
000t
45
Total mined
000t
274
Ore processed
000t
230
Average grade
g/t
3.37
Gold produced
oz.
24,635
Sustaining capital expenditures1
$'000s
11,018
Growth capital expenditures1
$'000s
7,688
Interlake2
Ore mined2
000t
91
Waste mined2
000t
11
Total mined2
000t
102
Ore processed2
000t
92
Average grade2
g/t
3.51
Gold produced2
oz.
10,129
Sustaining capital expenditures1,2
$'000s
1,367
Recovery
%
95.6 %
Total gold produced
oz.
34,764
Total gold sold
oz.
38,685
Attributable gold produced3
oz.
29,699
Attributable gold sold3
oz.
32,052
Unit Cost Analysis
Average realized price1
$/oz. sold
4,923
Mining
$/t mined
113.15
Milling
$/t milled
32.81
Minesite G&A
$/t milled
20.75
Cost of sales (100%)
$/oz. sold
2,924
Total site cash cost (Attributable)1
$/oz. sold
1,385
Total site AISC (Attributable)1
$/oz. sold
1,805
1.
This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
2.
Operating statistics are presented on a 100% basis. The Interlake claims are subject to a 50% net profits interest ("NPI") royalty with Franco-Nevada Corporation.
3.
Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
Three months ended March 31,
2025
Financial highlights
Unit
2026
(restated)3
Gold produced (100%)
oz.
34,764
—
Gold produced (attributable)1
oz.
29,699
—
Gold sold (100%)
oz.
38,685
—
Gold sold (attributable)1
oz.
32,052
—
Average realized price2
$/oz. sold
4,923
—
Revenues
$'000s
186,265
—
Net income (loss)
$'000s
22,126
(13)
Basic earnings (loss) per share
$/share
0.07
(0.00)
Cash generated from (used in) operating activities
$'000s
87,899
(25)
Cash flow generated from (used in) operating activities before working capital changes2
$'000s
54,427
(13)
Cash used in investing activities
