West Red Lake Gold Mines Reports First-Quarter 2026 Production of 5,667 Ounces & $41.8 Million in Revenue

• West Red Lake Gold Mines produced 5,667 ounces and sold 6,165 ounces of gold in the first quarter of 2026, generating $41.8 million in revenue at an average realised gold price of US$4,938 per ounce.
• Cash cost of US$2,594 per ounce sold and all-in sustaining cost (AISC) of US$4,678 per ounce sold reflect fixed-cost absorption across a lower ounce base during the early ramp-up phase, with $15.4 million in sustaining capital and $3.6 million in growth capital deployed during the quarter.
• The company exited the first quarter with $35.9 million in cash, reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $14.4 million, and commenced debt repayments during the period.
• Mining activity was concentrated in the South Austin area and the 4447 mining complex; access to the 4447 complex was resequenced into the second quarter of 2026 to support long-term mine flexibility and development.
• Approximately 60% of the 2026 annual production is weighted toward the second half of the year, with development advancing toward the 904 mining complex, Fork deposit, and the eastern connection drift toward the Derlak complex.

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West Red Lake Gold Mines (TSXV: WRLG | OTCQB: WRLGF) has published its financial and operating results for the first quarter ended March 2026. The quarter marks the company's first full reporting period since the Madsen Mine achieved commercial production, establishing it as the central hub of a growing multi-asset platform.

Company Overview

West Red Lake Gold Mines is a Canadian gold producer operating the Madsen Mine in the Red Lake district of Ontario. The Madsen Mine achieved commercial production and serves as the central hub of a growing multi-asset platform, with underground development advancing toward multiple mining complexes and deposits within the broader mine plan. The company is currently in the post-commercial production ramp-up phase, with Phase 1 of a shaft refurbishment programme planned for the second half of 2026.

First-Quarter 2026 Financial & Operating Results

The company produced 5,667 ounces of gold and sold 6,165 ounces during the first quarter of 2026, generating gold revenue of $41.8 million. The average realised gold price for the period was US$4,938 per ounce. Income from mining operations was $15.3 million, resulting in an operating margin of 37%, and adjusted net earnings were $6.4 million, equivalent to $0.02 per basic share.

Fixed operating costs were allocated across the ounces produced during the period, consistent with the early-stage nature of the post-commercial production ramp-up.

President and Chief Executive Officer of West Red Lake Gold Mines, Shane Williams, is direct about the significance of the quarter's operational context:

"This first quarter represents the initial phase of our post-commercial production ramp-up at Madsen, and I am proud of the focus, operational discipline, and strong safety culture demonstrated by our teams during this important transition period."

Cost Structure & Capital Deployment

Cash costs for the first quarter were US$2,594 per ounce sold, with all-in sustaining cost (AISC) of US$4,678 per ounce sold. Both metrics reflect the fixed-cost absorption dynamics of an early ramp-up phase, in which operating costs are distributed across a lower-ounce base as the operation builds toward its planned production rate.

The company deployed $15.4 million in sustaining capital and $3.6 million in growth capital during the quarter as part of the post-commercial production ramp-up programme.

Liquidity & Debt Position

West Red Lake Gold Mines closed the first quarter with $35.9 million in cash and cash equivalents. The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.3 million and adjusted EBITDA of $14.4 million for the period. All financial figures are stated in Canadian dollars, with a foreign exchange rate of CAD/USD 1.3717 applied.

Williams is precise on the company's balance sheet position at quarter-end:

"The company also generated positive EBITDA and began debt repayments during the quarter while exiting Q1 2026 with approximately $35.9 million in cash."

The commencement of debt repayments during the quarter reflects active balance sheet management, and the company maintains financial flexibility as ramp-up activities continue to advance.

Underground Development & Operational Sequencing

Mining activity during the first quarter was concentrated in sill development within the South Austin area and the 4447 mining complex. Development and infrastructure activities advanced across the operation throughout the period.

Access to the 4447 mining complex was re-sequenced from the mid-point of the first quarter into the second quarter of 2026 as part of a broader operational prioritisation focused on long-term mine flexibility and development advancement. This resequencing had previously been disclosed in the company's 2026 guidance news release, published in April 2026.

Development Advance & Second-Half Production Outlook

Production is expected to continue building through 2026, with approximately 60% of annual output weighted toward the second half of the year as additional mining areas are brought into the production profile. The company continues to advance development toward the 904 mining complex, the Fork deposit, and the eastern connection drift toward the Derlak complex.

Williams frames the development priorities for the remainder of the year:

"Looking ahead to the balance of 2026, I remain confident in our team's ability to continue delivering strong execution across development work, mining activities, and operational readiness as we advance through ramp-up. This includes ongoing work to advance access into both the 904 mining complex and Fork deposit, which represent important non-remanent mining areas within the broader mine plan."

Next Steps

Phase 1 of the shaft refurbishment programme remains on track for the second half of 2026. Progress through April and May continued across underground development, ore movement, and mill throughput, consistent with the planned ramp-up strategy.

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