Wesdome Reports Strong Second Quarter 2026 Results and Reaffirms Full-Year Production and Cost Guidance
Wesdome Gold Mines Ltd
TSX: WDO OTCQX: WDOFF www.wesdome.com
WESDOME REPORTS STRONG SECOND QUARTER 2026 RESULTS AND REAFFIRMS FULL-YEAR PRODUCTION AND COST GUIDANCE
Toronto, Ontario – August 13, 2026 – Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX: WDOFF) (“Wesdome” or the “Company”) today announced its financial results for the three and six months ended June 30, 2026 (“Q2 2026” and “H1 2026”). Preliminary operating results for Q2 2026 were disclosed in the Company’s press release dated July 13, 2026. Management will host a webcast tomorrow morning, August 14, 2026 at 10:00 a.m. ET to discuss its results. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q2 2026 Highlights
- Strong safety performance: High Potential Incident Frequency Rate declined 69% year-over-year to 0.67, reflecting the strong commitment to safety across the organization. Total Recordable Incident Frequency Rate of 1.67 in Q2 2026.
- Production and costs: Consolidated gold production for the second quarter was 43,824 ounces, a 2% increase compared to Q2 2025. Q2 2026 cash costs per ounce of gold sold1 increased by 45% to US$1,342 and all-in sustaining costs (“AISC”) per ounce of gold sold1 increased by 15% to US$1,763 compared to Q2 2025.
- Revenue growth: Consolidated Q2 2026 revenue increased by 28% to $267 million compared to Q2 2025. The average realized price of gold sold was US$4,365 per ounce in Q2 2026.
- Expanding margins: Gross profit increased by 22% year-over-year in Q2 2026 to $161 million and operating cash margin1 grew by 23% to $184 million.
- Net income: Q2 2026 net income of $94 million, or $0.64 earnings per share, an increase of $11.3 million compared to Q2 2025.
- EBITDA1: EBITDA1 was $170 million in Q2 2026, a 23% increase relative to Q2 2025.
| • Cash flow1: Q2 2026 net cash from operating activities was $88 million, or $0.59 per share3, with free cash | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| flow1 of $42 million, or $0.28 per share. | Free cash flow1 | decreased | to | $42 million | , or | $0.28 | per share, from | ||||
| $53 million | , or | $0.35 | per share, in | Q2 2025 driven by higher net income offset by a combined increase in | |||||||
| tax payments, receivables, supplies inventories, mine exploration and development and capital equipment | |||||||||||
| purchases. |
- Strong liquidity position: As at June 30, 2026, the Company had liquidity of $746 million, including $391 million in cash and US$250 million of undrawn full capacity available under its revolving credit facility.
- Expanded capital returns: The Company is delivering capital returns to shareholders while preserving flexibility to act opportunistically, within a framework that continues to prioritize fully funded organic growth:
- Dividend declaration: On June 24, the Company declared a quarterly cash dividend of $0.0306 per common share or $0.1224 per common share on an annualized basis.
- Share buyback expansion: Through Q2 2026, the Company purchased and cancelled 3.2 million common shares for approximately $82 million at an average price of $25.66 per share. On June 24, 2026, the Company announced it was expanding its normal course issuer bid, authorizing the purchase of an incremental 3.0 million shares, bringing the total aggregate number of shares the Company intends to repurchase up to approximately 9.0 million shares or 6% of its public float. In July 2026, the Company repurchased an additional 1.8 million shares for approximately $46 million. The total number of shares purchased at the end of July was 7.8 million shares.
•
Updated technical reports confirm extended mine lives and growth potential at Eagle River and Kiena: Filed independent NI 43-101 technical reports for Eagle River and Kiena, confirming 1.4 million ounces of consolidated proven and probable reserves and 8-year reserve-based mine plans through 2033 at both operations, with significant organic growth potential from resource conversion and exploration targets.
- Kiena ramp breakthrough achieved, enhancing operational flexibility: Kiena’s new ramp reached surface in Q2 2026, establishing continuous ramp access that boosts underground materials and equipment flexibility and enables the ongoing ventilation expansion project, expected to double mine ventilation capacity to support production growth at Kiena.
- Discovery in Kiena Deep, Norbenite Footwall: As reported in the Company’s press release dated June 22, 2026, drilling in Kiena Deep discovered a new parallel zone beyond the Norbenite Fault, previously interpreted as barren footwall, highlighted by 6.9 g/t over 42.1 metres, confirming an entirely new mineralized corridor, called the Norbenite Footwall, spanning at least 150 vertical metres. This discovery represents a significant new exploration opportunity for future resource growth at Kiena.
Anthea Bath, President and Chief Executive Officer, commented: "Q2 2026 demonstrated the operational momentum we have been building across both assets, giving us the confidence to reaffirm our full year production and cost guidance.
"At Eagle River, the integration of global model ore into our fill-the-mill strategy is now a structural part of how we run the mine. This approach is driving higher mill throughput and, as we move through the second half of the year, we expect grade improvement, keeping Eagle River firmly on track to deliver its full year production and cost targets.
"Kiena's performance this quarter was a genuine inflection point. Production increased 28% year over year with unit costs in line with plan. In July we brought the first Presqu'île stope online, successfully adding another mining front beyond Kiena Deep. Operating across multiple areas of the mine provides greater flexibility and reduces grade variability, while ongoing operational improvements and optimization initiatives support a steady ramp-up in production over time.
“Overall, it was a strong quarter with higher margins and robust EBITDA. Free cash flow was negatively impacted by several items, most notably the timing of a $21 million prepaid tax installment. Based on our current forecasts, we expect quarterly free cash flow to increase significantly over the balance of the year.
"Perhaps most importantly for investors, there is greater visibility into Wesdome's long-term value proposition. Our June technical report update established eight-year reserve mine lives at both mines, providing a foundation for production and cash flow while preserving significant upside from operational optimization, resource conversion and exploration. Together with our strong balance sheet, we have the flexibility to invest in organic growth while also returning capital through our quarterly dividend and expanded share buyback program. We have two long-life assets, a clear pathway to grow production, and emerging district-scale opportunities around both operations. Our focus now is on converting that potential into sustainable growth and increasing value per share."
Consolidated Financial and Operating Highlights
| In 000s, except per units and per share amounts Q2 2026 Q2 2025 | H1 2026 H1 2025 |
| Financial results Revenues² 266,764 208,548 Cost of sales 82,332 59,181 Gross profit 161,213 132,172 Operating cash margin¹ 184,432 149,367 EBITDA¹ 169,675 138,399 Net income 93,955 82,696 Earnings per share 0.64 0.55 Adjusted net income¹ 96,271 78,856 Adjusted net income per share¹ 0.65 0.52 Net cash from operating activities 87,538 100,920 Operating cash flow per share³ 0.59 0.67 Net cash (used in) from financing activities (81,766) (1,303) Net cash used in investing activities (45,475) (79,987) Free cash flow¹ 41,772 52,924 Free cash flow per share¹ 0.28 0.35 Average USD/CAD exchange rates 1.3838 1.3841 Operating results Gold produced (ounces) 43,824 42,781 Gold sold (ounces) 44,100 45,900 Per ounce of gold sold¹ Cost of sales⁴ ($/oz) 1,867 1,289 Cost of sales⁴ (US$/oz) 1,349 932 Cash costs¹ ($/oz) 1,857 1,285 Cash costs¹ (US$/oz) 1,342 929 AISC¹ ($/oz) 2,439 2,115 AISC¹ (US$/oz) 1,763 1,528 Average realized price¹ ($/oz) 6,040 4,539 Average realized price¹ (US$/oz) 4,365 3,279 Financial position Cash 390,927 187,564 Working capital⁵ 402,149 199,273 Total assets 1,245,097 932,996 Current liabilities 68,190 71,166 Total liabilities 219,789 197,577 | 566,557 396,166 160,232 119,205 356,027 235,546 406,325 276,961 381,908 257,758 212,837 145,169 1.43 0.97 215,608 141,329 1.45 0.94 249,359 181,076 1.67 1.21 (130,152) 43 (82,145) (116,652) 167,634 100,428 1.13 0.67 1.3777 1.4095 89,127 88,473 89,700 91,200 1,786 1,307 1,297 927 1,775 1,302 1,288 924 2,382 2,038 1,729 1,446 6,305 4,339 4,576 3,078 390,927 187,564 402,149 199,273 1,245,097 932,996 68,190 71,166 219,789 197,577 |
1. Refer to “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
2. Revenue includes $0.4 million for Q2 2026, $0.2 million for Q2 2025, $1.0 million for H1 2026 and $0.4 million for H1 2025, from the sale of by-product silver.
3. Operating cash flow per share is calculated by dividing net cash from operating activities by basic weighted average number of common shares.
4. Cost of sales per ounce sold is calculated by dividing the cost of sales by the number of ounces sold.
5. Working capital is the sum of current assets less current liabilities on the statements of financial position.
REVIEW OF OPERATING MINES
Eagle River (Ontario, Canada)
Operating and Financial Results
| Q2 2026 Q2 2025 | H1 2026 H1 2025 |
| Eagle River operating results Ore milled (tonnes) 72,439 48,623 Head grade (g/t) 9.7 16.9 Average mill recoveries (%) 96.2 96.7 Gold production (oz) 21,798 25,612 Gold sold (ounces) 22,300 27,000 Production costs per tonne milled¹ ($) 631 626 Costs per oz of gold sold ($/oz) Operating cash margin¹ 3,770 3,332 Cost of sales 2,225 1,211 Cash costs¹ 2,218 1,207 All-in sustaining costs¹ 2,800 1,929 Costs per oz of gold sold (US$/oz) Operating cash margin¹ 2,724 2,407 Cost of sales 1,608 875 Cash costs¹ 1,603 872 All-in sustaining costs¹ 2,023 1,394 | 144,170 108,633 11.1 16.2 96.5 96.5 49,644 54,611 49,650 54,700 609 597 4,377 3,083 1,920 1,272 1,911 1,268 2,471 1,924 3,177 2,188 1,395 903 1,386 899 1,794 1,365 |
1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
| In $000s, except per unit and per share amounts Q2 2026 Q2 2025 | H1 2026 H1 2025 |
| Gold revenue from mining operation 133,537 122,551 Cost of sales Mining 20,741 16,439 Processing 7,943 6,535 Site administration and camp costs 16,769 12,087 Change in inventories 247 (4,626) Royalties 3,912 2,265 49,612 32,700 Silver revenue (148) (114) Total cash costs 49,464 32,586 Cost of sales per ounce of gold sold 2,225 1,211 Cash cost per ounce of gold sold1 2,218 1,207 Operating cash margin1 84,073 89,965 All-in sustaining costs1 Sustaining mine exploration and development 6,098 8,850 Sustaining mine capital equipment 4,948 6,676 Sustaining tailings management facility 80 499 Corporate and general allocation 1,712 3,240 Payment of sustaining lease liabilities 128 233 62,430 52,084 All-in sustaining costs per ounce of gold1 2,800 1,929 Cost of sales per tonne milled1 685 673 Production costs per tonne milled1 631 626 Total capital expenditures 15,530 16,386 | 312,172 238,001 38,069 33,091 15,059 12,930 30,972 24,121 3,628 (5,140) 7,600 4,595 |
| 95,328 69,597 (471) (255) | |
| 94,857 69,342 | |
| 1,920 1,272 1,911 1,268 | |
| 217,315 168,659 14,720 16,417 6,788 11,710 149 624 5,921 6,563 253 569 | |
| 122,688 105,225 | |
| 2,471 1,924 | |
| 661 641 609 598 | |
| 27,011 29,114 |
1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements
Operating Highlights
Eagle River gold production decreased by 15% to 21,798 ounces in Q2 2026 from 25,612 ounces in Q2 2025. The decrease was in line with the Company’s plan in Q2 2026 and reflects the blending of Global Model ore as part of Eagle River’s fill-the-mill strategy, which increased tonnes processed by 49%, partly offset by a 43% decrease in average grade. The lower average grade reflects the addition of economic ounces and tonnes from the Global Model and mine plan sequence in the quarter, which are additive to ounces from Eagle River’s high-grade ore.
Eagle River produced 49,644 ounces in the first half of 2026, a decrease of 9% compared to 54,611 ounces in the first half of 2025. In the beginning of the first half of 2026, Eagle River commenced processing Global Model ore as part of its fill-the-mill strategy, which drove a 33% increase in tonnes processed while reducing average grade by 43% in H1 2026 compared to H1 2025. In the second half of 2026, Eagle River will continue to incorporate Global Model ore into the mine plan sequence, resulting in increased mill throughput, expecting average grades to improve relative to Q2 2026. Eagle River is on track to achieve its full-year production guidance for 2026.
Mill throughput of 72,439 tonnes in Q2 2026 was 49% higher than the second quarter of 2025 reflecting higher ore and mill availability. Mill throughput of 144,170 tonnes during the first half of 2026 was 33% higher when compared to the same period in 2025 as the initiatives to continue to improve mine and mill productivity are yielding more consistent tonnage delivery to leverage the capacity of the mill complex.
Driven by a 49% increase in tonnes processed in Q2 2026, production costs increased slightly to $631 per tonne from $626 per tonne in Q2 2025, despite inflationary pressure on wages, supplies, fuel and insurance that have been broadly felt across the industry. Q2 2026 costs also included one-time costs which impacted cost per tonne by $45, whereas Q2 2025 benefited from higher inventory levels, reducing the cost per tonne by $95. Production costs per tonne in the first six months of 2026 increased by 2% to $609 per tonne compared to $598 per tonne in the first six months of 2025, reflecting similar factors. Production costs are expected to start declining in the second half of the year as several cost items incurred in Q2 2026 are not expected to recur and the cost benefits of the fillthe-mill strategy become more apparent as mill throughput continues to increase and existing fixed costs are better leveraged.
Financial Highlights
In Q2 2026, Eagle River’s gold revenue increased by 9% to $133.5 million from $122.6 million in Q2 2025 due to the higher average realized price of gold sold, offset by a 17% decrease in ounces sold. During the first half of 2026, Eagle River’s gold revenue increased by 31% to $312.2 million from $238.0 million in the same period in 2025 due to the 49% increase in the average realized price of gold sold, partly offset by a 9% decrease in ounces sold.
Cost of sales in Q2 2026 was $49.6 million, an increase of 52% relative to the comparative period in 2025 primarily due to a $5.7 million increase in mine and mill operating costs due to one-time costs, inflationary impacts, contractors and maintenance costs, costs associated with increased royalties mainly due to higher average gold price, and a change in inventory levels of $4.9 million.
Cost of sales for the first half of 2026 totaled $95.3 million, a 37% increase compared to the same period in 2025. This was principally driven by a $7.1 million increase in mine and mill operating costs due to similar factors described above and increased royalties from higher gold prices, further elevated by a $8.8 million change in inventory levels.
Cash costs per ounce of gold sold increased by 84% to $2,218 (US$1,603) per ounce sold in Q2 2026 from $1,207 (US$872) per ounce sold in Q2 2025 due to a 17% decrease in ounces sold and a 6% increase in throughput costs due to one-time costs, inflationary impacts, contractors and maintenance costs. Similarly, cash costs per ounce of gold sold increased by 51% to $1,911 (US$1,386) per ounce sold in the first half of 2026 from $1,268 (US$899) per ounce sold in the comparative period in 2025 due to increased cost of sales and a 9% decrease in ounces sold.
In Q2 2026, AISC per ounce of gold sold increased by 45% to $2,800 (US$2,023) from $1,929 (US$1,394) in Q2 2025, due to the increase in cash costs per ounce sold partially offset by a 31% reduction in sustaining capital expenditures due to timing and a 17% decrease in ounces sold.
During the first half of 2026, AISC per ounce of gold sold increased by 28% to $2,471 (US$1,794) per ounce sold from $1,924 (US$1,365) per ounce sold in the same period in 2025, due to higher cash cost per ounce sold partially offset by a 25% reduction in sustaining capital expenditures due to timing and a 9% decrease in ounces sold. In H2 2026, the rate of capital expenditures is expected to increase as Eagle River accelerates deferred development and capital projects including the installation of a new camp and tailings management area construction. Higher ounce production is expected to offset higher sustaining capex and result in lower AISC per ounce sold in the second half of the year. Based on the current forecast for the balance of the year, Eagle River’s AISC per ounce sold is expected to fall within its full-year guidance range of $1,525 – $1,675 per ounce sold.
Exploration Update
Expanding the 6 Central Zone
The 6 Central Zone is considered a priority exploration area given its intermediate depth, proximity to existing mine infrastructure and geological similarities to the 300 Zone at comparable elevations. The zone remains underdrilled and open down plunge and laterally. The 2026 program is designed to further define the geometry and continuity of the high-grade mineralization and test its down-plunge extension, with approximately 9,600 metres planned for the year. Recent results continue to support the interpretation that the high-grade trend extends at depth, and drilling will continue in the second half of the year. Continued success could support future resource growth and provide an additional source of high-grade ore at depths shallower than those currently being mined in the 300 Zone.
Growing the 800 Zone
Growth drilling continued during the quarter. Shears with quartz veining were logged in holes in-filling a gap in drilling that coincided with potential up-plunge continuation of mineralization. The logging observations support the structural and geologic continuation of the zone, with assays pending. Holes designed to test the down-plunge continuation were deferred until later in the year. The 2026 exploration program is targeting to drill approximately 10,000 metres in the 800 Zone.
Growth Drilling in 700 Zone
Growth drilling evaluating the continuation of mineralization in the shallow parts of the mine, 350 Level, returned assays with thickness and grades confirming continuation of the mineralization. Infill drilling as part of conversion continues into the next quarter. Assays from drilling program are pending.
Global Model
The Global Model is a dynamic exploration framework that is continuously updated as new geological, drilling and other technical information becomes available. New prospective areas are added for both conversion and growth as the geological understanding of the Eagle River system evolves, while areas that have been sufficiently drilltested, or are no longer considered priorities based on technical or geology considerations, are reprioritized.
The contribution of Global Model areas to the 2025 Mineral Reserve additions demonstrates how this systematic process can progressively convert previously unrecognized or underutilized areas of the Eagle River mineralized system into mineable inventory.
Global Model targets are integrated into Eagle River’s ongoing underground drilling programs, with typically two to three of the mine’s four underground exploration drill rigs testing these areas. During the quarter, drilling continued across several Global Model targets, including conversion drilling of Global Model Target 19 in the deeper portions of the 300 Zone. Results continue to refine the geological interpretation and identify opportunities for resource growth and conversion.
Surface Exploration
Surface holes tested an area of mineralization to the east of No Name Lake (NNL), where historic widely spaced drill holes intersected mineralization. The surface holes were designed to infill and confirm continuation of NNL mineralization. Results will be reported in the last quarter.
At North Diorite, a gradient array IP geophysical survey was completed, aimed at mapping out continuation of quartz veins and sulphide rich horizons highlighted by previous work. Survey results are expected in the third quarter.
At Dorset Main, Dorset West, and Cameron Iron Formation, drilling for geometallurgical sampling for leach and recovery test work, and deportment studies, continued as part of overall deposit resource evaluation.
Helicopter-supported scout drilling was completed at Magnacon East, evaluating the sub-surface potential of quartz veins that returned high-grade assays from rock chip samples collected during semi-regional structural mapping program executed in 2025. The area is located approximately 3 km east of the historic Magnacon mine.
Helicopter-supported scout drilling was also completed at Feather River, located approximately 8km east of Magnacon mine. The holes were designed to evaluate the continuation of quartz veins and sulphide rich horizons highlighted by previous work which included geologic mapping, local IP surveys, and scout drilling which returned anomalous intercepts.
Surface drilling continued at Mishi open pit, evaluating the down-plunge potential of mineralization, and expanding the continuation of near surface mineralization as part of overall resource evaluation. Results are expected to be reported in Q4.
Final products of AI prospectivity mapping were also received during the quarter. ALS Canada Ltd. leveraged data analytics, machine learning and numeric modelling to reprocess and level Eagle River’s geophysical, geologic and geochemical data and incorporate the information into their AI related workflow. The prospectivity work has highlighted five new areas that have not been previously considered by the team, further expanding the pipeline of regional exploration opportunities (see Figure 1 below).
Existing high priority work areas represent a combination of high grade (Entirety of Eagle River Deformation Zone, Eagle River Splay/North Diorite) and bulk tonnage lower grade opportunities (Mishibishu – East and West of mines, Dorset East and West, and Central block of Cameron Lake Iron Formation). The prospectivity mapping has flagged an observation that the far east Eagle River Deformation Zone is of similar size to the Eagle River Mine area, and as such warrants priority focus.
The five new prospectivity areas of interest include Feather River South – hosting two areas with minimal surface work and understanding; Mishi West – at the convergence of Iron Lake Deformation Zone; North of Mishi – in a strain shadow of intrusion and possible second thrust zone similar to the Mishibishu Deformation Zone; Rook Lake West – in strain shadow west of Mishibishu Lake Intrusion, where Dorset Deformation Zone may be trending; Southeast portion of Cameron Lake Iron Formation – a complex area with favorable host lithologies and structure. Follow-up field programs to advance the existing high priority work areas, and the five new prospectivity areas of interest will be designed, ranked and scheduled during workshops planned for the third quarter, with the results incorporated into the Company's broader exploration targeting and prioritization process.
Figure 1: Final output from ALS Canada Ltd. AI prospectivity mapping
Kiena (Quebec, Canada)
Operating and Financial Results
| Q2 2026 Q2 2025 | H1 2026 H1 2025 |
| Kiena operating results Ore milled (tonnes) 62,215 50,299 Head grade (g/t) 11.1 10.8 Average mill recoveries (%) 98.8 98.8 Gold production (oz) 22,026 17,169 Gold sold (oz) 21,800 18,900 Production costs per tonne milled1 ($) 526 526 Costs per oz of gold sold ($/oz) Operating cash margin1 4,604 3,143 Cost of sales 1,501 1,401 Cash costs1 1,489 1,397 All-in sustaining costs1 2,071 2,380 Costs per oz of gold sold (US$/oz) Operating cash margin1 3,327 2,271 Cost of sales 1,085 1,012 Cash costs1 1,076 1,009 All-in sustaining costs1 1,497 1,720 | 117,165 98,989 10.6 10.8 98.8 98.8 39,483 33,862 40,050 36,500 554 501 4,719 2,967 1,621 1,359 1,607 1,354 2,271 2,209 3,426 2,105 1,176 964 1,166 961 1,649 1,567 |
1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements.
| In $000s, except per unit and per share amounts Q2 2026 Q2 2025 | H1 2026 H1 2025 |
| Gold revenue from mining operation 132,809 85,804 Cost of sales Mining 20,108 15,628 Processing 4,878 3,815 Site administration 6,789 5,426 Change in inventories 945 1,612 32,720 26,481 Silver revenue (270) (79) Total cash costs 32,450 26,402 Cost of sales per ounce of gold sold 1,501 1,401 Cash cost per ounce of gold sold1 1,489 1,397 Operating cash margin1 100,359 59,402 All-in sustaining costs1 Sustaining mine exploration and development 6,186 6,191 Sustaining mine capital equipment 2,292 8,896 Sustaining tailings management facility (15) 253 Corporate and general allocation 4,191 3,240 Payment of lease liabilities 45 – 45,149 44,982 All-in sustaining costs per ounce of gold1 2,071 2,380 Cost of sales per tonne milled 526 526 Production costs per tonne milled1 526 526 Capital expenditures 29,867 31,520 | 253,354 157,729 41,506 30,793 8,646 7,351 14,745 10,673 6 791 |
| 64,903 49,608 (560) (181) | |
| 64,343 49,427 1,621 1,359 1,607 1,354 | |
| 189,011 108,302 13,589 13,548 4,094 10,266 456 828 8,400 6,563 84 — | |
| 90,966 80,632 | |
| 2,271 2,209 | |
| 554 501 554 501 | |
| 54,451 51,108 |
1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
Operating Highlights
In Q2 2026, Kiena produced 22,026 ounces, a 28% increase from 17,169 ounces in Q2 2025. Production levels reflect a 24% increase in throughput reflecting additional tonnage production from Presqu’île and a 3% increase in average grade from higher grades at Kiena Deep. The ramp-up remains on track through the second half of 2026, with the first stope on the 136 Level completed in Q2 and the first Presqu’île stope initiated in July 2026 providing access to three simultaneous mining horizons in H2 2026.
Production in the first half of 2026 totaled 39,483 ounces compared to 33,862 ounces in the first half of 2025 reflecting the addition of Presqu’île ounces and beginning to see improvements to stability from the operating model implementation and the addition of a new mining horizon providing additional mine sequence flexibility at Kiena Deep.
Average grade for the quarter was 11.14 g/t, up from 10.8 g/t in Q2 2025, driven by planned higher grades in Kiena Deep. With the operational flexibility provided by mining two zones in Kiena Deep and the addition of the near surface Presqu’île Zone, as well as the completion of ramp access, full-year 2026 production and grade guidance remain on track.
Production costs per tonne were $526 in Q2 2026, the same as in Q2 2025, despite higher maintenance and contractor costs, offset by higher tonnage throughput. Production costs per tonne increased to $554 in the first half of 2026 from $501 in the comparative prior year period, primarily driven by higher maintenance and contractor costs, partially offset by higher tonnage throughput.
Financial Highlights
In Q2 2026, Kiena’s gold revenue increased by 55% to $132.8 million from $85.8 million in Q2 2025, primarily due to a higher average realized price per ounce of gold sold and a 15% increase in ounces of gold sold. In the first half of 2026, Kiena’s gold revenue increased by 61% to $253.4 million from $157.7 million in the comparative period in 2025, due to the higher average realized price of gold and a 10% increase in ounces sold.
Cost of sales in Q2 2026 was $32.7 million, an increase of 24% over the comparative period in 2025 primarily due to a $5.5 million increase in mine operating costs including higher maintenance and contractor costs, and inflationary pressures. Cost of sales in the first half of 2026 was $64.9 million, an increase of 31% over the comparative period in 2025 primarily due to a $12 million increase resulting from similar factors.
Cash costs per ounce of gold sold in Q2 2026 were $1,489 (US$1,076), an increase of 7% compared to $1,397 (US$1,009) in Q2 2025 primarily due to similar factors noted in cost of sales. Cash costs per ounce of gold sold in the first half of 2026 were $1,607 (US$1,166), an increase of 19% compared to $1,354 (US$961) in the comparative period in 2025 primarily due to higher mine unit operating costs impacted by higher maintenance and contractor costs.
AISC per ounce of gold sold decreased by 13% in Q2 2026 to $2,071 (US$1,497) from $2,380 (US$1,720) in Q2 2025 due to a 45% decrease in sustaining capital expenditures due to timing and higher ounces sold. AISC per ounce of gold sold increased by 3% in the first half of 2026 to $2,271 (US$1,649) from $2,209 (US$1,567) in the first half of 2025 due to an increase in aggregate mine operating costs primarily due to contractor and maintenance costs, partially offset by a 10% increase in ounces sold and a decrease in sustaining capital expenditures due to timing. While sustaining capital is anticipated to increase in H2 with additional development and key projects executed and planned production ramp up in the second half of 2026, guidance for 2026 is on track for the year.
Progress at Presqu’île Zone
Development at the Presqu’île Zone progressed as anticipated, and the first stope was blasted mid-July. Stoping and production ramp-up will continue to ramp up through the second half of 2026.
Ramp Breakthrough
Kiena achieved a major milestone in Q2 2026 with the breakthrough of the new ramp to surface, establishing continuous ramp access and significantly increasing flexibility for underground material and equipment movement. Completion of the ramp also enables the ongoing ventilation expansion project, which is expected to double mine ventilation capacity and support increased mining activity and future productivity improvements.