Artemis Gold (TSXV: ARTG) reported its first profitable quarter following Blackwater’s transition to production. Revenue for Q2 2025 was $231.1 million versus nil last year as first gold and silver sales commenced.
Production costs were $55.4 million and depreciation and depletion were $7.8 million, producing gross profit of $167.9 million and a gross margin of roughly 72.7%.
General and administrative expense rose to $5.1 million from $4.5 million a year earlier. Finance expense increased to $14.6 million from $0.1 million, partially offset by $0.3 million of finance income. The company recorded a $1.7 million unrealized loss on derivatives, and current tax of $3.1 million and deferred tax of $43.5 million, leading to come in with a net income of $100.2 million, or $0.43 per diluted share, versus a $0.03 loss per share in Q2 2024. This also beat the consensus estimate of $0.25 per share.
EBITDA for the quarter was $168.9 million, implying a margin of about 73.1% on reported revenue, while adjusted EBITDA was $146.4 million, or roughly a 63.4% margin.
Operating cash flow in Q2 improved to $185.1 million from negative $0.9 million a year earlier. Against sustaining capital and lease payments of $4.2 million and growth capital of $81.2 million, yielding free cash flow of approximately $100 million for the quarter. On a per-share basis, cash flow was $0.81, beating consensus of $0.41. The quarter left roughly $99.8 million of residual cash generation.
Unit costs and pricing reflected a constructive environment in the first two months of commercial operations. During May and June 2025, cash costs were US$690 per ounce of gold sold and AISC was US$805 per ounce, supported by a low strip ratio, downhill haul, and hydro-electric power. The average realized price in that period was US$3,326 per ounce. Management characterizes the AISC as “among the lowest in the industry,” while acknowledging that recoveries averaged 84% in May and June and were “lower than originally planned.”
In the post-commercial period (May–June), mill throughput averaged 16,206 tonnes per day, or 98.6% of nameplate, and June averaged 16,738 tonnes per day, or 102% of nameplate. The mine moved 4.82 million tonnes of ore and 2.40 million tonnes of waste for a strip ratio of 0.50, processed 988,588 tonnes at an average grade of 1.34 g/t, and produced 34,824 ounces while selling 34,112 ounces.
For Q2, production was 50,623 ounces (including 15,799 ounces in April’s pre-commercial month), up from 12,720 ounces in Q1 and beating consensus estimate of 42,000 ounces.
Artemis reaffirmed 2025 production guidance of 190,000 to 230,000 ounces, including 160,000 to 200,000 ounces in the post-commercial period, at AISC of US$670 to US$770 per ounce. The company expects AISC to trend lower in the second half as efficiencies are realized and output increases.
Artemis Gold last traded at $27.10 on the TSX Venture.
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