8/12/2026

speaker
Ben
Conference Operator

Good morning. My name is Ben and I will be your conference operator today. At this time, I would like to welcome everyone to Hemlo Mining Corp.'s second quarter 2026 financial and operating 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 one on your telephone keypad. If you would like to withdraw your question, press star one 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.

speaker
Jason Banducci
Vice President, Corporate Development and Investor Relations

Thank you, operator. I would also like to welcome everyone to Hemlo Mining's second 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 our earnings presentation, which contains important cautionary notes regarding these forward-looking statements. The earnings presentation, including the cautionary notes, can be found on Hemlo Mining's corporate website. All dollar amounts discussed today will refer to U.S. dollars, unless otherwise indicated. Our news release, MD&A, and financial statements for the second quarter of 2026 are available on CDAR+, and on our corporate website at hemlomining.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 Tremblay, Vice President, Operations and General Manager, Garrett McDonald, and Vice President, Exploration, Raphael Duteau. Also joining the call is our Executive Chair, Jonathan Odd. Today, we are pleased to provide an operating and financial update for the second 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.

speaker
Jason Kosick
President, CEO and Director

Thanks, Jason. Good morning, everyone. Q2 2026 was our first full quarter under our owner-operator model And it was a quarter of real progress, resource growth, changes to the mining sequencing, discipline execution, and several key corporate milestones. For those new to this story, Hemla Mining is a Canadian gold producer operating the Hemla Gold Camp in Northwestern Ontario. The Hemla Gold Mine has produced roughly 25 million ounces since 1985, making it one of the most prolific gold mines in Canadian history. Our vision is to build the next Canadian gold champion, a nimble owner-driven company that's scaled into an intermediate multi-asset producer through an unrelenting focus on performance and zero harm. Turning to slide four, on an attributable basis, the Hemel Mine produced 25,188 gold ounces and sold 27,858 gold ounces during the quarter. All in sustaining costs were $2,561 an ounce sold. Revenue was 142 million on an average realized price of $4,467 an ounce. Net income was 31 million or 10 cents per share. Adjusted net income was 27 million or 9 cents per share. And we ended the quarter with a cash balance of $130 million. As we highlighted in our production results, plan changes to the mining sequencing temporarily weighed on the grade profile to the mill. Arup will provide additional color on this shortly. But the underlying operations strengthened significantly. Importantly, we executed across our strategic priorities. Zero lost time injuries and three straight years without an LTI. An updated mineral resource assessment that grew the measurement in indicated resources by 34%, adding 1.2 million ounces of gold. We also graduated to the TSX and made our debut on the OTC QX in the U.S. We also signed an impact benefit agreement with and appointed Eva Kochi to our board. Together, This quarter's operational resource and corporate progress reinforces the confidence in the long-term value creation opportunity here. I'll now hand the call over to Eric to walk you through the operational results.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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Investor presentation