Hemlo Mining (HMMC) Q1 2026 earnings summary

Executive summary

• Achieved first full quarter as owner/operator of the Hemlo Gold Mine, producing 29,699 attributable ounces of gold and selling 32,052 ounces, with revenue of $186.3 million and net income of $22.1 million for Q1 2026.

• Transitioned from contractor to owner/operator model ahead of schedule, with 97% workforce retention and 42 new hires, supporting future growth.

• Launched a 130,000-metre drill program, one of the largest in Canada, targeting resource expansion and conversion.

• Awarded the National John T. Ryan Trophy for safety performance, with zero lost time injuries recorded.

• Fully repaid $75 million Revolving Credit Facility, leaving $123.6 million in cash at quarter-end.

Financial highlights

• Revenue reached $186.3 million, driven by 38,685 ounces sold at an average realized gold price of $4,923/oz.

• Net income was $22.1 million ($0.07 per share); EBITDA of $86.6 million and free cash flow of $71.5 million.

• Operating cash flow totaled $87.9 million; capital expenditures were $20.1 million ($12.4M sustaining, $7.7M growth).

• Attributable mine site all-in sustaining costs were $1,805/oz; total site cash costs $1,285–$1,385/oz.

• Net debt reduced to $26.4 million from $93 million at 2025 year-end, with $96.4 million undrawn capacity.

Outlook and guidance

• Formal 2026 production and cost guidance to be issued in the second half of the year.

• Targeting ramp-up to 6,000 tons per day underground by end of 2027, with phased infrastructure upgrades and expanded exploration.

• Updated technical report and mineral reserve estimate planned for H2 2027, reflecting new reserves, resources, and throughput potential.

• Conditional approval received for TSX listing, expected by July 2026.