West Red Lake Gold Reports 2025 Results and Provides 2026 Production Guidance

• Event: West Red Lake Gold reported its full-year 2025 results and issued production guidance for 2026 on April 23, 2026.
• 2025 Performance: The company produced 20,000 ounces of gold during the ramp-up year (ended Dec 31, 2025), generating C$103 million in revenues based on an average realized price of C$5,170/oz.
• Commercial Production Status: Commercial production was officially declared effective January 1, 2026, following the achievement of sustained operational metrics in late 2025.
• 2026 Guidance: Targets production of 35,000 to 45,000 ounces of gold. Cash costs are projected at US$2,400 to $3,100 per ounce sold, with All-In Sustaining Costs (AISC) between US$2,800 and $3,600 per ounce sold.
• Financial Position: Reported a cash balance of C$48 million (including gold receivables) as of year-end 2025.
• Operational Focus: Plans to complete the Madsen production ramp-up in 2026 and advance development at the 904, Fork, and Derlak complexes. Mill throughput averaged 685 tonnes per day (tpd) in early Q2 2026.

• Validation of Thesis: This release confirms the operational milestones announced in January 2026 regarding commercial production. It validates that the mine is generating revenue and cash flow, moving from a development story to a producing asset.
• Cost Concerns: The AISC guidance (US$2,800-$3,600/oz) is significantly higher than industry averages for established mines and notably higher than the Rowan PEA estimate of US$1,408/oz disclosed in July 2025. This suggests operational inefficiencies or low-grade feed during the current ramp-up phase that management must address to improve margins.
• Cash Flow: The C$48 million cash balance provides a buffer against near-term capital needs and reduces immediate dilution risk, though it is not sufficient for long-term growth without further financing or strong free cash flow generation.
• Growth Trajectory: Doubling production from 20k oz (2025) to ~40k oz (2026 guidance) demonstrates successful ramp-up execution. However, the long-term goal of 120,000 oz/year remains distant and dependent on satellite deposits like Rowan and Fork coming online.
• Market Reaction: Given that commercial production was already declared in January, this news is largely expected. The high cost structure may temper enthusiasm despite the positive revenue confirmation.

• Company Profile: West Red Lake Gold Mines Ltd. is a Canadian gold producer focused on the Madsen Mine in the Red Lake Mining District, Ontario. The company transitioned from exploration/development to production in early 2026.
• Flagship Project (Madsen Mine):
  • Status: Producing underground mine with commercial production declared Jan 1, 2026.
  • Resources: Indicated resource of 1.65 Moz Au @ 7.4 g/t; Inferred resource of 0.37 Moz Au @ 6.3 g/t (based on NI 43-101 data from late 2025/early 2026 releases).
  • Infrastructure: Fully permitted with two portals, a shaft to 1,275m depth, and an 800 tpd mill.
• Growth Projects: Rowan Project (PEA completed July 2025), Fork Deposit (infill drilling ongoing), and Austin 904 Complex (high-grade underground discovery).