West Red Lake Gold Reports Q2 2026 Results Including 51% Increase in Gold Production and 30% Reduction in AISC

West Red Lake Gold Mines Ltd. (WRLG) reported second-quarter 2026 results from its Madsen Mine for the three and six months ended June 30, 2026. The release serves as the full earnings and operations confirmation following pre-reported operating data in July.

Gold production increased 51% quarter-over-quarter to 8,576 ounces from 5,667 ounces in Q1. Gold sales rose 34% to 8,260 ounces from 6,165 ounces. Revenue increased 17% to C$49.0 million, while income from mine operations grew 31% to C$20.1 million. The operating margin improved to 41% from 37% in Q1. Adjusted EBITDA increased 54% to C$22.1 million, and adjusted net earnings rose 98% to C$12.6 million, or C$0.03 per basic share.

Cash cost per ounce sold fell 23% to US$2,000, and AISC per ounce sold decreased 30% to US$3,284, which falls within the 2026 guidance range of US$2,800 to US$3,600. The company generated positive free cash flow of C$9.7 million in Q2, compared to negative C$6.1 million in Q1. Cash and cash equivalents ended Q2 at approximately C$31.2 million, down from C$35.9 million at the end of Q1. The average realized gold price declined 13% to US$4,288 per ounce from US$4,938 in Q1.

Operationally, the company mined 75,524 tonnes, a 46% increase quarter-over-quarter. The average mined grade rose 18% to 4.3 g/t Au, and mined ounces increased 73% to 10,459 ounces. Mill throughput rose 47% to about 842 tonnes per day, with gold recovery remaining at about 95%. The surface ore stockpile stood at about 10,768 tonnes as of June 30.

The company reiterated that H2 2026 processing rates are expected to increase to about 1,000 tonnes per day. Growth capital of C$6.3 million was spent mainly on the Fork Deposit access drift and Madsen shaft refurbishment, while sustaining capital totaled C$12.3 million.

West Red Lake Gold Mines Ltd. (WRLG) released its second-quarter results, which served as a standard earnings confirmation rather than introducing new operational surprises. Key metrics including headline production increases, mining rates, grade improvements, stockpile levels, and full-year guidance reaffirmation had already been disclosed in operating updates on July 15 and July 20. The incremental information provided in this release was primarily financial, covering revenue, realized price, margins, adjusted earnings, all-in sustaining costs (AISC), free cash flow, and cash balance.

The results showed positive elements in several areas. Q2 AISC moved into the disclosed guidance range, and cash costs came in below guidance. Additionally, the mine generated positive free cash flow for the quarter, reversing a negative position in Q1.

However, several factors offset these gains, preventing the results from constituting a clear material beat. The realized gold price fell 13% quarter-over-quarter, meaning revenue grew only 17% despite a 34% increase in ounces sold. H1 AISC remained above the full-year guidance range. Furthermore, cash declined despite the positive free cash flow, a discrepancy the release did not explain. The company continues to produce at a modest rate and carries materially higher reported debt than at the end of FY2025.

Market reaction had already priced in the improving production story prior to this announcement. The stock price recovered from approximately $0.61 in June to about $0.87 by August 24.

West Red Lake Gold Mines Ltd. is a Canadian gold producer and developer operating in the Red Lake district of Ontario. Its flagship Madsen Mine achieved commercial production effective January 1, 2026. The company controls a 47 square kilometre land package in the Red Lake district and also owns the 31 square kilometre Rowan Property, which includes the past-producing Rowan, Mount Jamie, and Red Summit mines.

The corporate strategy follows a hub-and-spoke model, with Madsen providing the permitted mill and underground infrastructure while satellite deposits such as Rowan, Fork, 904 Complex, and other regional targets provide future feed. Madsen is 100% owned and fully permitted, with current permitted throughput around 800 tpd and a stated nameplate/expansion opportunity toward 1,100 tpd.