Hemlo Mining (TSX: HMMC) earned US$3.5 million, or US$0.01 per share, in the third quarter of 2026. Net Income was down sharply from US$31.0 million, or US$0.10 per share, in the second quarter, as non-cash items turned against the gold producer.
Revenue slipped to US$135.5 million from US$142.5 million as the average realized gold price fell to US$4,234 per ounce from US$4,467. Most of the drop in earnings came from a US$6.5 million loss on contingent consideration and a US$3.6 million loss on gold derivatives. In the prior quarter, those same lines produced gains of US$20.7 million and US$7.4 million.
Adjusted net income was US$15.6 million, or US$0.05 per share, compared with US$27.3 million, or US$0.09 per share. This quarter the company stopped adding back accretion on its Wheaton Precious Metals stream when calculating adjusted earnings, so the two figures aren’t directly comparable. EBITDA meanwhile fell to US$51.6 million from US$77.2 million.
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Operating cash flow rose to US$54.6 million from US$35.6 million, and cash grew to US$144.8 million. With US$142.5 million drawn on its term facility, Hemlo now has a small net cash position of US$2.3 million. It had net debt of US$19.8 million at the end of June and US$93.0 million at the start of the year.
Attributable gold production rose to 25,652 ounces from 25,188 ounces. On a 100% basis, output climbed to 29,617 ounces. Throughput was flat at 342,000 tonnes, but head grade rose to 3.00 g/t from 2.62 g/t.
“Higher-grade ore from Interlake supported stable production during the quarter, despite the underground substation outage primarily affecting the pace of our planned production ramp-up,” said President and CEO Jason Kosec.
Attributable cash costs fell to US$1,799 per ounce sold from US$1,880. All-in sustaining costs went the other way, rising to US$2,660 per ounce from US$2,561 as sustaining capital increased to US$25.1 million from US$17.5 million. That still leaves a margin of about US$1,570 per ounce against the realized price, but AISC is now far above the US$1,805 the company reported in the first quarter.
Hemlo Mining last traded at $5.30 on the TSX.
