Hemlo Mining Corp. Reports Second Quarter 2026 Financial and Operating Results
Hemlo’s Q2 AISC surges 42% quarter-over-quarter to $2,561 per ounce, with transition costs eroding cash flow despite high gold prices.
Hemlo Mining Corp. reported second-quarter 2026 earnings, marking its first full quarter as an owner-operator. The company produced 25,188 attributable ounces of gold, or 27,858 ounces total, generating $142.5 million in revenue. Net income stood at $31.0 million, or $0.10 per share, while EBITDA reached $77.2 million.
The realized gold price declined to $4,467 per ounce from $4,923 in the first quarter. Consequently, cash from operations fell sharply to $35.6 million, down from $87.9 million in Q1. Attributable all-in sustaining costs (AISC) rose to $2,561 per ounce sold compared to $1,805 in the prior quarter. This increase was driven by lower grades at the Williams mine, which averaged 2.53 grams per tonne versus 3.37 grams per tonne in Q1, alongside higher development metres and increased sustaining capital expenditures.
The company highlighted its recent TSX graduation, OTCQX listing, an impact benefit agreement, and exploration drilling at the South-Rim Zone. Hemlo Mining Corp. ended the quarter with $130.2 million in cash and $19.8 million in net debt.
Hemlo Mining Corp. (HMMC) pre-released its Q2 production numbers on July 20, with the primary market focus shifting to the financials and All-In Sustaining Costs (AISC). The company reported an attributable AISC of $2,561 per ounce of sold gold, a figure 42% higher than Q1 and significantly above the life-of-mine Pre-Feasibility Study (PFS) AISC of approximately $1,364 per ounce.
Management characterized the quarter positively, attributing the cost increase to a temporary bottom-up mining sequence that lowered grades and heavy development investment consistent with the company’s transition narrative. Despite the positive characterization, the cost blowout materially weakened near-term cash flow, with operating cash flow dropping to $35.6 million compared to $87.9 million in Q1.
The market had largely anticipated the weak cost environment, as evidenced by the stock’s 22% rise from late-July lows into the earnings print and its minimal movement upon release, moving from $6.76 to $6.85. No full-year guidance was issued, meaning there was no formal miss against expectations.
Hemlo Mining Corp. (TSX: HMMC; OTCQX: HMMCF) is a Canadian mid-tier gold producer focused on the Hemlo Gold Mine in Ontario. The company acquired the mine from Barrick in November 2025 for approximately US$1 billion. Historically, the mine has produced approximately 25 million ounces of gold since 1985. Operations include underground mines at Williams and Interlake, with potential for open-pit extraction. The company is currently executing an owner-operator transition, fleet renewal, and a large-scale exploration program.