West Red Lake Gold Mines (TSXV: WRLG) posted its first set of results as a commercial producer on Tuesday, reporting Q1 2026 revenue of $41.8 million on the sale of 6,165 ounces of gold at an average realized price of US$4,938 per ounce.
Income from mine operations came in at $15.3 million for an operating margin of 37%, while adjusted net earnings totalled $6.4 million, or $0.02 per basic share. EBITDA was $3.3 million and adjusted EBITDA reached $14.4 million. The company exited the quarter with roughly $35.9 million in cash and began making debt repayments during the period.
Madsen, the company’s flagship and currently its only operating mine, declared commercial production as of January 1, 2026, making this the first quarter of reported full scale operations.
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On the operating side, Madsen produced 5,667 ounces of gold during Q1, with the gap between production and sales reflecting drawdown of inventory. Cash costs landed at US$2,594 per ounce sold and all-in sustaining costs were US$4,678 per ounce sold. That AISC figure reflects heavy sustaining capital spend of $15.4 million as underground development and infrastructure work continues through the ramp-up phase.
Mining activity during the quarter was concentrated on sill development in the South Austin area and the 4447 mining complex. Access to the 4447 complex was pushed from mid Q1 into Q2 as part of a re-sequencing aimed at prioritizing longer term mine flexibility, a shift the company had previously flagged in its April guidance release.
That guidance calls for full year 2026 production of 35,000 to 45,000 ounces, with cash costs of US$2,400 to US$3,100 per ounce sold and AISC of US$2,800 to US$3,600 per ounce sold. Roughly 60% of the year’s output is weighted to the second half as additional mining areas are brought online.
CEO Shane Williams said April and May saw continued progress on underground development, ore movement and mill throughput, with daily development rates and surface stockpiles building ahead of the H2 step up. Work to advance the 904 mining complex, the Fork deposit and Phase 1 of the shaft refurbishment program remains on track for the back half of the year.
West Red Lake Gold last traded at $0.70 on the TSX Venture.
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