West Red Lake Gold Mines (TSXV: WRLG) nearly doubled its adjusted earnings in the second quarter as the Madsen mine settled into its first full year of commercial production.
Revenue for the three months ended June 30 was $49 million, up 17% from $41.8 million in the first quarter. Adjusted net earnings rose 98% to $12.6 million, or $0.03 per share, from $6.4 million and $0.02 per share three months earlier. Adjusted EBITDA climbed 54% to $22.1 million.
Income from mining operations reached $20.1 million, a 31% gain that lifted the operating margin to 41% from 37%.
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Madsen generated $9.7 million in free cash flow during the quarter, reversing a $6.1 million outflow in the first. The company still ended June with $31.2 million in cash and equivalents, down 13% from $35.9 million, with spending outside the mine gate absorbing more than the operation produced. Sustaining capital totalled $12.3 million, alongside $6.3 million in growth capital directed at the Fork deposit access drift and refurbishment of the Madsen shaft.
Gold production rose 51% to 8,576 ounces and gold sales increased 34% to 8,260 ounces. West Red Lake mined 75,524 tonnes at 4.3 g/t gold, up from roughly 3.6 g/t, and mill throughput averaged about 842 tonnes per day compared with 572 in the first quarter. Recoveries held near 95%.
Cash costs fell 23% to US$2,000 per ounce sold, and all-in sustaining costs dropped 30% to US$3,284, inside the 2026 guidance range of US$2,800 to US$3,600. Both improved despite a 13% decline in the average realized gold price to US$4,288 per ounce.
Full-year production guidance of 35,000 to 45,000 ounces is unchanged. The company had always weighted roughly 60% of annual output to the back half, and first half production of 14,243 ounces sits in line with the low end of that plan. Clearing even 35,000 ounces requires about 20,750 ounces over the remaining two quarters, which hinges on throughput reaching the roughly 1,000 tonnes per day management expects.
“Our focus for the balance of 2026 is on consistent execution while continuing to invest in underground development and infrastructure to build production inventory and greater operating flexibility,” chief executive Shane Williams said.
The company held about 10,768 tonnes of ore on surface stockpiles at quarter end.
West Red Lake Gold last traded at $0.90 on the TSX Venture.
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