New Found Gold Posts C$18.6 Million Mine Income in Third Quarter 2026 Financial & Operational Results

• Hammerdown reached commercial production on August 19, 2026, and produced 4,863 ounces of gold in the third quarter of 2026 at an average grade of 2.77 grams of gold per tonne and 84.2% recovery.
• Third quarter revenue was C$41.6 million from 6,935 ounces sold at an average realized price of US$4,285 per ounce, and income from mine operations was C$18.6 million.
• The net loss was C$7.1 million (C$0.02 per share) compared with C$12.9 million in the third quarter of 2025, and earnings before interest, taxes, depreciation and amortization were C$13.1 million compared with negative C$12.8 million.
• Cash was C$167.1 million, and working capital was C$167.3 million at September 30, 2026.
• The revised Queensway preliminary economic assessment shows an after-tax internal rate of return of 126% and Phase 1 initial capital of about C$150 million, and the Phase 1 Environmental Preview Report entered a 35-day public review after its November 3, 2026 submission.

Company Overview

New Found Gold (TSX: NFGC | NYSE American: NFGC) is an emerging Canadian gold producer with assets in Newfoundland and Labrador, Canada. The company holds a 100% interest in its flagship Queensway Gold Project, with Phase 1 fully funded, and the Hammerdown Gold Project, which includes the Hammerdown deposit and the Pine Cove milling and tailings facilities. With commercial production now declared at Hammerdown, New Found Gold is advancing Queensway toward Phase 1 production, supported by a district-scale land package at Queensway covering more than 110 kilometers of strike across two fault zones and a shareholder base that includes Eric Sprott.

Hammerdown Reaches Commercial Production

Hammerdown reached commercial production on August 19, 2026. It produced 4,863 ounces of gold in the third quarter of 2026 and 10,670 ounces in the first 9 months, with 97,000 tons mined and 66,000 tons processed at Pine Cove in the quarter. Average grade was 2.77 grams of gold per tonne (g/t) against a year-to-date average of 2.12 g/t, and recovery was 84.2% against 83.1% year-to-date. The operation recorded zero lost-time incidents in 2026 through September 30, 2026, across more than 328,000 person-hours.

Chief Executive Officer Keith Boyle described what the quarter meant for the company:

"Third quarter 2026 represents another important step forward for New Found Gold, becoming Canada's newest gold producer as Hammerdown reached commercial production."

Third Quarter Revenue & Earnings

Revenue was C$41.6 million from 6,935 ounces sold at an average realized price of US$4,285 per ounce (C$5,996), including 900 ounces delivered in July against June 2026 customer prepayments. Income from mine operations was C$18.6 million, or 45% of revenue.

The net loss was C$7.1 million (C$0.02 per share) compared with C$12.9 million (C$0.06 per share) in the third quarter of 2025. Earnings before interest, taxes, depreciation and amortization were C$13.1 million compared with negative C$12.8 million, and operating cash flow before working capital changes was C$11.2 million.

Third Quarter Costs Include Early Rumbullion Mining

Cash costs were US$2,887 per ounce produced (C$4,040), and all-in sustaining costs (AISC) were US$3,279 (C$4,588). Third-quarter AISC varied by US$904 per ounce, or 38% of AISC, compared with the 2026 Hammerdown preliminary economic assessment (PEA).

Mining in the Rumbullion pit began in the third quarter to increase total material movement from 12,000 tons per day to 16,000 tons per day as outlined in the PEA, and the resulting strip ratio of 12.4 versus 9.6 planned added about US$350 per ounce. The company advanced that work from the first quarter of 2027 so that stripping, blasting, and ramp establishment took place in more favorable seasonal conditions. The variance was primarily due to this higher strip ratio and an 11% lower head grade, with the lower head grade versus the PEA adding about US$135 per ounce. Other contributing factors were infill drilling at about US$180 per ounce, fuel surcharges at about US$85, higher mill labor costs at about US$45, and Pine Cove water treatment at about US$30.

Management is assessing the potential impact of elevated fuel prices and water treatment costs on closing the cost variance in future quarters. It expects the permanent crusher and sorter to lower crushing costs and send higher-grade feed to the mill, and anticipates that sorter commissioning and circuit conversion will lower future production costs.

Liquidity & Capital Resources

Cash and cash equivalents were C$167.1 million at September 30, 2026, compared with C$58.8 million at December 31, 2025, and working capital was C$167.3 million compared with C$58.5 million. Financing activity included a C$115 million at-market bought deal financing and a C$70 million drawdown of Tranche 1 of a senior secured credit facility. Queensway Phase 1 is fully funded.

Queensway Revised PEA & Resource Update

New Found Gold released the revised Queensway PEA on October 22, 2026. It shows an after-tax net present value at a 5% discount rate of C$1.728 billion at US$3,600 per ounce of gold and C$2.225 billion at US$4,100 per ounce. The after-tax internal rate of return is 126% in the base case and 164% at US$4,100 per ounce, with payback under 1 year.

The plan covers a 15-year life, producing 1.744 million ounces, averaging about 116,000 ounces per year with a peak of about 190,000 ounces in 2032. Phase 1 initial capital is about C$150 million, cash costs are US$985 per ounce, and AISC is US$1,375 per ounce. Phase 1 head grade averages 13.41 g/t, and cash flow from each phase is expected to fund the next. The updated mineral resource estimate (MRE) lifts Measured and Indicated resources 38% to 27.3 million tons at 2.19 g/t gold, containing 1.92 million ounces, and adds the Dropkick Zone. The PEA is preliminary, and no Mineral Reserves have been defined.

Queensway Drilling & Environmental Review

The company had 4 drill rigs active at Queensway at quarter-end, and drilled 61,557 meters in 439 diamond drill holes under the 2026 program. Work focuses on converting Inferred resources to Indicated in the Phase 2 open pits and underground areas, grade control at Keats, and exploration at Dropkick and regional targets.

The Environmental Preview Report was submitted and registered on November 3, 2026, and is in a 35-day public review. A provincial decision is due within 45 days of submission, with a possible 14-day extension.

Hammerdown Crusher, Sorter & Drilling

Drilling at Hammerdown totaled 27,484 meters in 293 diamond drill holes by quarter-end. Infill, location verification, and condemnation drilling are complete, and grade control drilling is ongoing. The grade-control program covering most of the Phase 1 open pit is complete and has expanded to portions of the Rumbullion pit. The company is targeting a substantially complete crusher and sorter in the fourth quarter of 2026, with commissioning and ramp-up in the first quarter of 2027, while the Pine Cove conversion and expansion advance.

Next Steps

• Fourth quarter of 2026: Hammerdown crusher and sorter substantially complete.
• First quarter of 2027: Hammerdown crusher and sorter commissioning and ramp-up.
• Following release from the Queensway Phase 1 environmental assessment process: provincial and federal permit applications, and a Surface and Mining Lease targeted through mid-2027.
• Once the required permits are received: Queensway contractor mobilization in the first quarter of 2027, early works in the second quarter of 2027, and mining in the third quarter of 2027 to build a stockpile.
• Fourth quarter of 2027: Pine Cove expansion to 1,400 tons per day and first mineralized material delivered to Pine Cove.
• Updated Hammerdown MRE: 2027.

FAQs (AI-Generated)