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Hemlo Mining Corp.
5/21/2026
Good morning. My name is Melissa and I will be your conference operator today. At this time, I would like to welcome everyone to the Hemlo Mining First Quarter 2026 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would like to turn the meeting over to Jason Banducci, Vice President, Corporate Development and Investor Relations. Please go ahead, Mr. Banducci.
Thank you, Operator. I would also like to welcome everyone to HEMO Mining's first quarter 2026 Financial and Operating Results Conference Call. Before we begin, I would like to note that we will be making forward-looking statements during today's call. I will direct you to the second slide of the earnings presentation, which contains important cautionary notes regarding these forward-looking statements. Earnings presentation, including the cautionary notes, can be found on Hemlo Mining's corporate website. All dollar amounts discussed today will refer to US dollars unless otherwise indicated. Our news release, MD&A, and financial statements for the first quarter of 2026 are available on CDAR Plus and on our corporate website at HemadolMining.com. On the call today, I'm joined by our President, CEO, and Director, Jason Kosick, Chief Financial Officer, John Case, Chief Operating Officer, Eric Trombley, Vice President, Operations, and General Manager, Garrett McDonald, and Vice President Exploration, Rafael Dutote. Also joining us today is our Executive Chair, Jonathan Odd. Today, we are pleased to provide an operating and financial update for the first quarter of 2026, followed by a live Q&A session. With that, I would like to hand the call over to Jason Kosick to kick things off.
Thanks a lot, Jason. Good morning, everyone, and thank you for joining us. The first quarter of 2026 marked a defining chapter in Hemlo Mining's history. Our first full quarter as owner and operator of the Hemlo Gold Mine. For those new to the story, Hemlo Mining is a Canadian gold producer focused on operating and enhancing the Hemlo Gold Camp in Northwestern Ontario. Our flagship asset, the Hemlo Gold Mine, has produced approximately 25 million ounces of gold since 1985 from both underground and open pit operations placing it among the most prolific gold mines in canadian history with a long reserve life exceptional existing infrastructure and significant exploration upside along with the proven hemlo greenstone belt we believe we are positioned to unlock the next chapter of growth at one of canada's premier gold districts Our vision is straightforward to build the next generation of a Canadian gold champion, a nimble owner driven company that scales into an intermediate multi asset producer through resiliency, precision and unrelenting focus on performance and zero harm. The first quarter of 2026 was about laying the foundation to deliver on that vision. As we will outline today, we made significant progress on every front from safety, operations, exploration, financial strength, and capital markets positioning. Turning to slide five, we have highlighted the key metrics that underscore what was a transformational quarter for the company. In our first corridor's operator, the Hemlo mine produced approximately 29,000 attributable ounces of gold at average recoveries of 95.6% and sold approximately 32,000 attributable ounces. And Truville Mine Site owns the same costs for the corridor for 1805 per ounce. Revenue was 186 million. supported by an average realized gold price of $4,923 per ounce. Net income was 22 million or 7 cents per share. We ended the quarter with a strong cash balance of 123 million after repaying 75 million balance on a revolving credit facility, bringing the balance under the credit facility to nil. Beyond the financial results, the quarter was defined by execution across our strategic priorities. On the safety side, the Hemel mine recorded zero lost time injuries, and our underground team was awarded the National 2025 John T. Ryan Trophy by the CIM. During the quarter, we also completed the transition from a contract underground mining workforce to an owner-operator model two weeks ahead of schedule, with 97% of the contractor workforce accepting positions with the company. And we added key members across our executive and site teams. On the exploration front, we launched our 130,000-meter drill program, one of the largest single-asset drill programs underway in Canada this year. Rafael will speak to the results of the program shortly. Lastly, we reinvested $20 million across sustaining and growth capital at the mine, executed a strategic royalty buyback over the past producing David Bell property, and grew our sell side coverage from one to six analysts. And subsequent to the quarter end, announced a conditional approval to graduate to the TSX, the scope and the momentum of execution in the first quarter reinforces our confidence in the opportunity ahead at Hemlo. With that, I'll hand the call over to Eric to review the quarter's operating results.
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