Hemlo Mining Corp. Reports Third Quarter 2026 Operating Results
Higher processed grades and recovery lifted quarterly gold output while an electrical outage delayed the planned production ramp-up.
Sentiment and the balance of points
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Rhea-AI Summary
Hemlo Mining (HMMCF) reported third-quarter 2026 gold production of 29,617 ounces, up from the previous quarter despite an underground power outage. Production rose from 27,858 ounces in Q2 as processed grade increased to 3.00 grams per tonne from 2.62 and recovery reached 95.0% versus 94.3%. Attributable production was 25,652 ounces, with attributable sales of 29,830 ounces.
The substation outage constrained mining and delayed the planned production ramp-up. A relocated substation was commissioned after quarter-end; the company expects replacement equipment in December 2026. Production drilling increased 35% and paste filling 13% from Q2. Seven equipment units valued at approximately $8.5 million arrived, bringing deliveries to 17 of 21 planned units. Hemlo also initiated bulk-mining tests beneath the historical open pit. Preliminary cash stood at $144.778 million at September 30, versus $131.956 million at December 31, 2025.
How this balance works
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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 gold production rose to 29,617 ounces from 27,858 ounces in Q2 2026.
- Moderate pointAttributable gold sales increased to an estimated 29,830 ounces from 27,858 in Q2, subject to final settlement adjustments.
- Moderate pointPreliminary net cash reached $2.278 million versus net debt of $93.044 million at December 31, 2025.
- Moderate pointRelocated substation was commissioned after quarter-end to address the underground power outage.
- Minor pointProcessed grade increased to 3.00 grams per tonne from 2.62 in Q2.
8 minor points
- Minor pointGold recovery improved to 95.0% from 94.3% in Q2.
- Minor pointPreliminary cash rose to $144.778 million at September 30 from $131.956 million at December 31, 2025.
- Minor pointProduction drilling increased 35% compared with Q2.
- Minor pointPaste filling increased 13% compared with Q2.
- Minor pointEquipment deliveries reached 17 of 21 planned units, including seven valued at approximately $8.5 million during Q3.
- Minor point. Forward-looking: it has not happened yet and may not happen.Bulk-mining test work began beneath the historical open pit; first test-stope production drilling is expected imminently.
- Minor pointWorkforce expansion brought staffing to 555 full-time workers alongside 373 contractors.
- Minor pointQ3 safety and environmental performance included no lost-time injuries and no reportable environmental incidents.
Negative
- Moderate pointSubstation outage delayed the production ramp-up and kept mining, development and exploration below planned rates.
- Minor point. Forward-looking: it has not happened yet and may not happen.Replacement substation delivery remains pending, with the company targeting December 2026.
- Minor pointOre processed declined to 342,000 tonnes in Q3 from 344,000 tonnes in Q2.
- Minor pointSkilled-labour competition remains a hiring headwind.
AI-generated analysis. How Rhea-AI works. Not financial advice.
(All amounts expressed in
Jason Kosec, President, CEO & Director of Hemlo Mining, commented: "Q3 demonstrated the resilience of the operation and the dedication of our workforce. Despite operational challenges during the quarter, we delivered stable gold production with an improved grade profile compared to Q2 while continuing to advance key operational initiatives. We also saw positive trends across several important operating metrics, including a
Third Quarter 2026 Operating Highlights
|
|
|
Three months ended |
Three months ended |
Nine months ended |
|
Hemlo Mine |
Unit |
September 30, 2026 |
June 30, 2026 |
September 30, 2026 |
|
Williams |
|
|
|
|
|
Ore processed |
000t |
297 |
283 |
810 |
|
Average grade |
g/t |
2.53 |
2.53 |
2.77 |
|
Gold produced1 |
oz. |
21,688 |
22,516 |
68,839 |
|
|
|
|
|
|
|
Interlake2 |
|
|
|
|
|
Ore processed2 |
000t |
45 |
61 |
198 |
|
Average grade2 |
g/t |
6.15 |
3.05 |
3.97 |
|
Gold produced1,2 |
oz. |
7,929 |
5,342 |
23,400 |
|
|
|
|
|
|
|
Total ore processed |
000t |
342 |
344 |
1,008 |
|
Average grade processed |
g/t |
3.00 |
2.62 |
3.00 |
|
Recovery |
% |
95.0 |
94.3 |
95.0 |
|
Total gold produced1 |
oz. |
29,617 |
27,858 |
92,239 |
|
Total gold sold |
oz. |
32,424 |
32,425 |
103,534 |
|
|
|
|
|
|
|
Attributable gold produced1,3 |
oz. |
25,652 |
25,188 |
80,539 |
|
Attributable gold sold3 |
oz. |
29,830 |
27,858 |
89,740 |
|
1. |
Gold produced represents gold poured during the period. |
|
2. |
Operating statistics are presented on a |
|
3. |
Attributable gold is calculated as |
The Hemlo Gold Mine ("Hemlo" or the "Mine") continued its strong safety and environmental performance in Q3, recording no reportable environmental incidents and no lost-time injuries.
Gold production for Q3 totalled 29,617 ounces from 342,000 tonnes processed at an average grade of 3.00 grams per tonne gold. Attributable gold production for Q3 totalled 25,652 ounces and attributable gold sold totalled 29,830 ounces. Mine production averaged 3,718 tonnes per day during the quarter. Average gold recovery in the process plant for Q3 was
As previously disclosed, production ramp-up efforts during Q3 were impacted by the outage of an underground electrical substation servicing a portion of the Alimak production area. The outage reduced available power in the affected area, constraining mining rates and delaying the Company's planned production ramp-up. To mitigate the impact, the mine plan was temporarily re-sequenced and production activities were shifted to other areas of the Mine. The Company also reorganized electrical power distribution, which reduced the operational impact of the outage, although mining, development and exploration activities continued at lower rates than originally planned. Subsequent to quarter-end, the Company relocated and commissioned a similar substation from another area of the Mine. A replacement substation remains on track for delivery in December 2026. Despite the impact of the substation outage, the Company continued to make progress on several key operating metrics during the quarter. Production drilling increased by
As part of the Company's strategy to support future production growth, several operational and growth initiatives continued to advance during Q3. Among these initiatives, the Company initiated test mining beneath the historical open pit using a local contractor to evaluate the potential application of bulk mining methods and support studies focused on increasing production and maximizing value at the Mine. Building on this work, production drilling on the first test stope is expected to commence imminently as part of the Company's assessment of bulk mining opportunities.
While competition for skilled labour remains an industry-wide headwind, Hemlo continues to make progress building its workforce through targeted recruiting, training and employee development initiatives. During Q3, Hemlo expanded recruiting and training efforts and now employs 555 full-time workers alongside 373 contractors, approximately
As part of the Company's ongoing investment in the Mine, seven new pieces of mobile mine equipment valued at approximately
Third Quarter 2026 Financial Position
|
|
|
As at September 30, |
As at December 31, |
|
Financial position |
Unit |
2026 |
2025 |
|
Cash |
$'000s |
144,778 |
131,956 |
|
Net cash (debt)1 |
$'000s |
2,278 |
(93,044) |
|
1. |
This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release. |
The financial information presented above is preliminary in nature and subject to completion of the Company's quarter-end financial reporting process. Final unaudited financial results may differ from these amounts and will be reported in the Company's unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2026. Complete financial results for the third quarter 2026 will be reported and filed on Hemlo Mining's profile on SEDAR+ at www.sedarplus.ca on Monday, November 9, 2026.
Conference Call and Webcast
Hemlo Mining will host a conference call and webcast on Tuesday, November 10, 2026 at 11:00 AM Eastern Time to discuss third quarter 2026 results. Details for the conference call and webcast are included below.
Dial-In Numbers / Webcast:
Conference/Meeting ID: 287749816
North America Toll Free: +1 833-461-5787
International Toll: +1 585-542-9983
Canada Local: +1 365-657-4084
Webcast: https://events.q4inc.com/attendee/287749816
About Hemlo Mining Corp.
Hemlo Mining Corp. is a Canadian gold producer focused on operating and enhancing the Hemlo gold camp in northwestern Ontario. The Company's flagship asset, the Hemlo Gold Mine, has produced approximately 25 million ounces of gold since 1985 from both underground and open pit operations. The Company's fit-for-purpose strategy is centered on maximizing the value of the mine through improved operating efficiency, production growth, and mine life extension. Hemlo Mining is led by an experienced team with a track record of value creation in the global mining sector.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Mike Tsafaras, P.Eng., the Company's Vice President, Engineering and Projects. Mr. Tsafaras is a "qualified person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Forward-looking Statements
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of words such as "expects", "anticipates", "plans", "will," "may", "should" and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this news release include statements regarding: the timing for release of the Company's Q3 2026 financial results, conference call and webcast; the Company's operational plans, including expanding the workforce, building out the underground mine fleet, advancing bulk mining test work and other mining initiatives, and the expectation that they will support higher development rates and increased operating flexibility; the timing of delivery of the replacement substation; and the Company's goals, plans, commitments, objectives and strategies.
These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company's beliefs at the time the statements were made, as well as various assumptions made by and information currently available to management. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to: the Company's ability to carry on exploration, development, and mining activities; the timing and results of operational plans; mineral reserve and mineral resource estimates and the assumptions on which they are based; the Company's ability to operate in a safe, efficient, and effective manner; the Company's ability to attract and retain qualified personnel; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change or disruptions affecting the Company or the Hemlo mine. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
We caution readers not to place undue reliance on these forward-looking statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: uncertainty and variations in the estimation of mineral resources and mineral reserves; risks related to the Company's anticipated indebtedness and gold stream obligations; risks related to exploration, development, and operation activities; risks associated with the transition to an owner-operator model; risks related to the recruitment, training and retention of qualified personnel; equipment delivery, commissioning and operational performance risks; political risks, delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; uncertainties related to title to mineral properties; water rights; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; financing risks and access to additional capital; risks related to guidance estimates and uncertainties inherent in the preparation of pre-feasibility studies; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold; unknown liabilities in connection with the acquisition of the Hemlo mine; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; volatility in the market price of the Company's securities; the Company's limited operating history; litigation risks; the Company's ability to successfully integrate the acquisition of the Hemlo mine; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; risks related to the Company's accounting policies and internal controls; shareholder activism; other risks associated with executing the Company's objectives and strategies; and other risks set forth in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2025 filed with applicable Canadian securities regulatory authorities on April 15, 2026.
Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
Non-IFRS Measures
The Company has included certain non-IFRS measures in this news release, as detailed below. In the mining industry, these are common performance measures and ratios; however, they may not be comparable to similar measures or ratios presented by other issuers and the non-IFRS measures and ratios do not have any standardized meaning. Accordingly, these measures and ratios are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. These measures do not have any standardized meaning prescribed under IFRS Accounting Standards, and therefore may not be comparable to other issuers.
Net cash (debt)
Net cash (debt) is a non-IFRS performance measure that is calculated as cash, as presented in the Interim Condensed Consolidated Statements of Financial Position, less the principal amount of borrowings, as presented in the Notes to the Interim Condensed Consolidated Financial Statements. The Company believes that this measure is useful to users in understanding the Company's financial leverage and liquidity.
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SOURCE Hemlo Mining Corp.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much gold did Hemlo Mining produce in Q3 2026?
Hemlo produced 29,617 ounces of gold in Q3 2026, compared with 27,858 ounces in Q2. Attributable production was 25,652 ounces, versus 25,188 ounces in Q2. Higher-grade ore from the Interlake zone contributed to the increase in total production.
Why was Hemlo Mining's production ramp-up delayed in Q3 2026?
An underground electrical substation outage reduced power available to part of the Alimak production area and constrained mining rates. Hemlo temporarily changed its mining sequence and shifted production elsewhere. A relocated substation was commissioned after quarter-end, and the company expects replacement delivery in December 2026.
How does Hemlo Mining calculate attributable gold production?
Attributable gold production includes 100% of Williams gold and 50% of Interlake gold. Operating statistics otherwise present Interlake on a 100% basis. The Interlake claims carry a 50% net profits interest royalty with Franco-Nevada.
When will Hemlo Mining release its full Q3 2026 financial results?
Hemlo plans to release its full Q3 2026 financial results after market close on November 9, 2026. The preliminary financial figures remain subject to completion of quarter-end reporting and may differ from the final unaudited results.