Episode Details

Shane Williams, President and CEO Of West Red Lake Gold Mines (TSX.V:WRLG – OTCQB:WRLGF), joins me to review the key metrics from Q2 production and financials which demonstrated substantially higher mined ounces and gold produced, higher revenues, and lower costs at their flagship Madsen Gold Project, in the Red Lake district of Ontario, Canada.   We also look ahead to development and exploration work on tap for H2, and the bigger picture vision for future growth.

Q2 2026 Highlights

• Gold production increased 51% to 8,576 ounces, compared with 5,667 ounces in Q1.
• Gold sales increased 34% to 8,260 ounces, compared with 6,165 ounces in Q1.
• Revenue increased 17% to $49.0 million, generating $20.1 million of income from mine operations, a 31% increase from Q1.
• Adjusted net earnings increased 98% to $12.6 million, compared with $6.4 million in Q1. 
• Adjusted EBITDA increased 54% to $22.1 million, compared with $14.4 million in Q1.
• Cash costs decreased 23% to US$2,000 per ounce sold, compared with US$2,594 per ounce in Q1.
• All-in sustaining cost (“AISC”)  decreased 30% to US$3,284”  per ounce sold, compared with US$4,678 per ounce in Q1, bringing Q2 AISC within the Company’s 2026 guidance range of US$2,800 to US$3,600 per ounce.
• The Company generated $9.7 million of positive free cash flow during Q2.
• The Company ended Q2 with approximately $31.2 million in cash and cash equivalents.

  Shane reviewed that the development-focused strategy implemented during the first half of 2026 is now translating into measurable operating improvements as mine sequencing advanced to unlock multiple stoping fronts and operational flexibility continued to improve.  Additionally, all the exploration success had at the 4447 Zone is now factoring into mining and production here in H2, and he points to all the recent success at the 904 Zone having a similar trajectory with first mining anticipated in H2 of 2027.

Next we discussed the higher All-In Sustaining Costs (AISC) in Q4 and Q1 and how the ongoing ramp-up in production will steadily lower the costs over the next few quarters.  Shane highlighted that in the second half of this year that the shaft will be rehabilitated and begin hoisting ore, and this will further drive down costs over the next few quarters. The steady nameplate run-of-mine production and costs will likely be achieved in 2027 and beyond.  We also discussed that the higher oil and diesel prices were not a major cost input and have very muted effect on their underground mining operations where the site mostly runs on cheap hydroelectric power.

We then discussed the next phase of growth which will see satellite deposits like Fork, Starratt-Olsen, and eventually Rowan augment the production at Lower Austin and Austin South at Madsen.   The Company will be putting out a Pre-Feasibility Study in September wrapping updated economics around Madsen and factoring in how future production from Rowan would increase production growth and take the company to the next level of producer.

Wrapping up we discussed the many areas of focus for exploration and resource expansion, including greenfield surface targets, past producing brownfield areas like Starratt-Olsen and Mt Jamie, and underground targets as the company continues to dewater areas of Madsen that haven’t been touched by modern exploration or mining; with last mining occurring back in the 1960s and 1970s.

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If you have any follow up questions for Shane or the team over at West Red Lake Gold please email me at  Shad@kereport.com.

• In full disclosure, Shad is a shareholder of West Red