Briefing
Given the Hemlo Mine's processing plant spare capacity relative to nameplate throughput, unit milling costs are expected to decline as underground production increases, reflecting the ability to spread the plant's largely fixed cost base over a greater number of processed tonnes. **_Capital Expenditures_** During the second quarter of 2026, sustaining capital expenditures10 totalled $17.5 million, mainly comprised of Key points: Given the Hemlo Mine's processing plant spare capacity relative to nameplate throughput, unit milling costs are expected to decline as underground production increases, reflecting the ability to spread the plant's largel; Attributable gold8 sold for the three months ended June 30, 2026 was 27,858 ounces, resulting in cash costs per ounce sold9 of $1,880 and attributable AISC per ounce sold9 of $2,561 compared with $1,385 and $1,805, respe; Cash used in investing activities for the three months ended June 30, 2026 was $24.4 million, mainly related to sustaining capital expenditures6 of $17.5 million driven by spending on underground mine development and inf; Mineralization proximal to historic workings represents an additional conversion opportunity, with successful conversion expected to extend mine life, increase operational flexibility, and improve mine economics. **High-; 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; Cash cost per ounce sold is calculated by dividing total cash costs, less the NPI royalty and 50% of operating costs for the Interlake zone, by attributable gold ounces sold. This brief is based on the cited source artifact and is intended as a research entry point, not a replacement for the original source or EGM canonical data tables.
Source Notes
Given the Hemlo Mine's processing plant spare capacity relative to nameplate throughput, unit milling costs are expected to decline as underground production...
Extractive summary evidence · source
Attributable gold8 sold for the three months ended June 30, 2026 was 27,858 ounces, resulting in cash costs per ounce sold9 of...
Extractive summary evidence 2 · source
Cash used in investing activities for the three months ended June 30, 2026 was $24.4 million, mainly related to sustaining capital expenditures6...
Extractive summary evidence 3 · source
Mineralization proximal to historic workings represents an additional conversion opportunity, with successful conversion expected to extend mine life, increase operational flexibility, and...
Extractive summary evidence 4 · source
Extracted Document Text
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# Hemlo Mining - News
Source: https://www.hemlomining.com/news/hemlo-mining-corp-reports-second-quarter-2026-financial-and-operating-results
Fetched: 2026-09-12T08:05:00.336+00:00
Source artifact: d504e5fb-e1df-43a4-9d8e-f1780fedb29e
Normalizer input: html_text
## Content
# Hemlo Mining - News
Source: https://www.hemlomining.com/news/hemlo-mining-corp-reports-second-quarter-2026-financial-and-operating-results
TSX-V: HMMC 8.38 \| Gold: $4348.94
>
[](https://www.hemlomining.com/ "Hemlo Mining Corp.")
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## News
## Hemlo Mining Corp. Reports Second Quarter 2026 Financial and Operating Results
[Download PDF](https://www.hemlomining.com/_resources/news/nr-20260811.pdf)
August 11, 2026
**Toronto, Ontario, Canada** **– August 11, 2026** – Hemlo Mining Corp. (TSX: HMMC) (OTCQX: HMMCF) ("Hemlo" or the "Company") is pleased to announce its financial and operating results for the second quarter ended June 30, 2026 ("Q2" or "Q2 2026"). The Company will host a conference call to discuss second quarter 2026 results on Wednesday, August 12, 2026 at 11:00 AM Eastern Time.
_(All amounts expressed in U.S. dollars unless otherwise stated)_
**Jason Kosec, President, CEO & Director of Hemlo Mining, commented:**"Q2 demonstrated continued execution against our strategic priorities as we advanced our owner-operator transition and strengthened the operational foundations required to support higher long-term production rates. We delivered attributable gold production of 25,188 ounces, generating revenue of $142.5 million and net income of $31.0 million, or $0.10 per share. During the quarter, production was in line with our expectations while operational fundamentals strengthened meaningfully, positioning the business for improved performance as newly developed mining areas enter the production sequence. We also achieved several important strategic milestones, including a 34% increase in Measured & Indicated Mineral Resources, graduation to the Toronto Stock Exchange, completion of an Impact Benefit Agreement with Biigtigong Nishnaabeg, and three consecutive years without a lost-time injury. The progress we have made during the first half of 2026 reinforces our confidence in the significant long-term value creation opportunity at Hemlo."
**Second** **Quarter Highlights:**
**Financial Highlights**
- Revenue for the three months ended June 30, 2026 was $142.5 million, mainly from 32,425 gold ounces sold at an average realized price1 of $4,467 per ounce. Revenue for the six months ended June 30, 2026 was $328.8 million mainly from 71,110 gold ounces sold at an average realized price1 of $4,710 per ounce.
- Net income for the three months ended June 30, 2026 was $31.0 million, or $0.10 per share, and adjusted net income1 was $27.3 million, or $0.09 per share1. Net income for the six months ended June 30, 2026 was $53.1 million, or $0.18 per share, and adjusted net income1 was $76.0 million, or $0.26 per share1.
- Earnings before interest, taxes, depreciation and amortization ("EBITDA")1 for the three months ended June 30, 2026 was $77.2 million. EBITDA1 for the six months ended June 30, 2026 was $163.8 million.
- Cash generated from operating activities for the three and six months ended June 30, 2026 was $35.6 million and $123.5 million, respectively.
- As at June 30, 2026, the Company held cash of $130.2 million.
**Operating Highlights**
- Attributable gold2 production for the three and six months ended June 30, 2026 totalled 25,188 and 54,887 ounces of gold, respectively, at average recoveries of 94.3% and 95.0%, respectively.
- Attributable gold2 sold for the three and six months ended June 30, 2026 totalled 27,858 and 59,910 ounces of gold, respectively, supplemented by finished goods at the beginning of each period.
- Cost of sales for the three and six months ended June 30, 2026 were $96.8 million and $210.0 million, respectively. Site attributable cash cost per ounce sold3 for the three and six months ended June 30, 2026 was $1,880 and $1,615, respectively, and all-in sustaining cost ("AISC") per ounce sold3 for the three and six months ended June 30, 2026 was $2,561 and $2,157, respectively.
- Continued strong safety and environmental performance in the second quarter, recording no environmental non-compliance and no lost-time injuries ("LTI") while achieving three consecutive years without a LTI.
- Strengthened operational metrics during the quarter, including development metres increased 42%, longhole production drilling rose 65%, total tonnes moved improved 5%, and ore milled increased 7% compared with the first quarter of 2026.
- Established several new daily operating records in the second quarter of 2026, including 1,051 metres of longhole drilling, 46 metres of lateral development, 4,800 tonnes of paste backfill placed, 7,118 tonnes of ore hoisted, and 5,035 tonnes of ore processed.
- Received seven additional mobile equipment units during the quarter, bringing total deliveries to 10 of 21 planned units.
- Announced an updated Mineral Resource Estimate ("MRE") demonstrating a 34% increase from the 2025 National Instrument 43-101, _Standards of Disclosure for Mineral Projects_ ("NI 43-101") Technical Report (the "2025 Report"), adding 1.2 million ounces of gold, in Measured and Indicated ("M&I") Mineral Resources (100% basis).
- Continued to advance the 130,000 metre exploration drilling program with initial results from the South-Rim Zone that support the definition of a newly recognized, high-grade mineralized domain.
**Corporate Highlights**
- Common shares commenced trading on the OTCQX® Best Market ("OTCQX") in the United States under the symbol "HMMCF" and became eligible for electronic clearing and settlement in the United States through the Depository Trust Company ("DTC").
- Completed an Impact Benefit Agreement ("IBA") with Biigtigong Nishnaabeg ("BN") in relation to the Hemlo Mine.
- Graduated to the Toronto Stock Exchange ("TSX") from the TSX Venture Exchange ("TSXV").
- Appointed Eva Koci as an independent director on the Company's Board of Directors ("Board"), increasing the Board to seven directors, a majority of whom are independent.
**Operating and Financial Highlights**
| | | | | |
| --- | --- | --- | --- | --- |
| **Hemlo Mine** | **Unit** | **Three months ended** **June 30, 2026** | **Three months ended** **March 31, 2026** | **Six months ended** **June 30, 2026** |
| **_Williams_** | | | | |
| Ore mined | 000t | 266 | 229 | 495 |
| Waste mined | 000t | 68 | 45 | 113 |
| Total mined | 000t | 334 | 274 | 608 |
| Ore processed | 000t | 283 | 230 | 513 |
| Average grade | g/t Au | 2.53 | 3.37 | 2.90 |
| Gold produced | oz. | 22,516 | 24,635 | 47,151 |
| Sustaining capital expenditures1 | $'000s | 17,048 | 11,018 | 28,066 |
| Growth capital expenditures1 | $'000s | 6,857 | 7,688 | 14,545 |
| | | | | |
| **_Interlake2_** | | | | |
| Ore mined2 | 000t | 59 | 91 | 150 |
| Waste mined2 | 000t | 3 | 11 | 14 |
| Total mined2 | 000t | 62 | 102 | 164 |
| Ore processed2 | 000t | 61 | 92 | 153 |
| Average grade2 | g/t Au | 3.05 | 3.51 | 3.33 |
| Gold produced2 | oz. | 5,342 | 10,129 | 15,471 |
| Sustaining capital expenditures1,2 | $'000s | 370 | 1,367 | 1,737 |
| | | | | |
| Total ore processed | 000t | 344 | 322 | 666 |
| Recovery | % | 94.3 | 95.6 | 95.0 |
| Total gold produced | oz. | 27,858 | 34,764 | 62,622 |
| Total gold sold | oz. | 32,425 | 38,685 | 71,110 |
| | | | | |
| **Attributable gold produced3** | **oz.** | **25,188** | **29,699** | **54,887** |
| **Attributable gold sold3** | **oz.** | **27,858** | **32,052** | **59,910** |
| | | | | |
| **_Unit Cost Analysis_** | | | | |
| Average realized price1 | $/oz. sold | 4,467 | 4,923 | 4,710 |
| Mining | $/t mined | 105.60 | 113.15 | 109.28 |
| Milling | $/t milled | 25.50 | 32.81 | 29.03 |
| Minesite G&A | $/t milled | 26.84 | 20.75 | 23.90 |
| | | | | |
| **Cost of sales (100%)** | **$/oz. sold** | **2,987** | **2,924** | **2,953** |
| **Total site cash cost (Attributable)1** | **$/oz. sold** | **1,880** | **1,385** | **1,615** |
| **Total site AISC (Attributable)1** | **$/oz. sold** | **2,561** | **1,805** | **2,157** |
1. This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
2. Operating statistics are presented on a 100% basis. The Interlake claims are subject to a 50% net profits interest ("NPI") royalty with Franco-Nevada Corporation.
3. Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
| | | | | | |
| --- | --- | --- | --- | --- | --- |
| | | **Three months ended June 30,** | **Six months ended June 30,** |
| **Summary of financial information** | **Unit** | **2026** | **2025** **(restated)3** | **2026** | **2025** **(restated)3** |
| Gold produced (100%) | oz. | 27,858 | — | 62,622 | — |
| Gold produced (attributable)1 | oz. | 25,188 | — | 54,887 | — |
| | | | | | |
| Gold sold (100%) | oz. | 32,425 | — | 71,110 | — |
| Gold sold (attributable)1 | oz. | 27,858 | — | 59,910 | — |
| Average realized price2 | $/oz. sold | 4,467 | — | 4,710 | — |
| | | | | | |
| Revenue | $'000s | 142,499 | — | 328,764 | — |
| Cost of sales | $'000s | 96,842 | — | 209,971 | — |
| General and administrative expenses | $'000s | 6,972 | 36 | 14,879 | 49 |
| Exploration and evaluation expenditures | $'000s | 204 | — | 275 | — |
| Foreign exchange losses (gains) | $'000s | 226 | (1) | (551) | (1) |
| Other (income) expenses | $'000s | (12,066) | 32 | (4,320) | 32 |
| **Income (loss) from operations** | **$'000s** | **50,321** | **(67)** | **108,510** | **(80)** |
| Finance costs, net | $'000s | 7,207 | — | 19,637 | — |
| **Income (loss) before income taxes** | **$'000s** | **43,114** | **(67)** | **88,873** | **(80)** |
| Income tax expense | $'000s | 12,112 | — | 35,745 | — |
| **Net income (loss)** | **$'000s** | **31,002** | **(67)** | **53,128** | **(80)** |
| **Basic earnings (loss) per share** | **$/share** | **0.10** | **(0.02)** | **0.18** | **(0.02)** |
| **Adjusted net income (loss)2** | **$'000s** | **27,292** | **(67)** | **76,040** | **(80)** |
| **Adjusted basic earnings (loss) per share2** | **$/share** | **0.09** | **(0.02)** | **0.26** | **(0.02)** |
| | | | | | |
| Cash generated from (used in) operating activities | $'000s | 35,648 | (61) | 123,547 | (86) |
| Cash flow generated from (used in) operating activities before working capital changes2 | $'000s | 34,308 | (67) | 88,735 | (80) |
| Cash used in investing activities | $'000s | 24,359 | — | 40,766 | — |
1. Attributable gold is calculated as 100% of gold from Williams and 50% of gold from Interlake.
2. This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
3. As at December 31, 2025, the Company changed its presentation currency from Canadian dollars to U.S. dollars. The change in presentation currency is an accounting policy change and has been applied retrospectively with comparative figures restated for all periods presented.
| | | | |
| --- | --- | --- | --- |
| **Financial position** | **Unit** | **As at June 30,** **2026** | **As at December 31,** **2025** |
| Cash | $'000s | 130,152 | 131,956 |
| Net debt1 | $'000s | 19,848 | 93,044 |
| Working capital | $'000s | 51,075 | 110,688 |
1. This is a non-IFRS measure. For further information, refer to the "Non-IFRS Measures" section of this news release.
**Financi
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