Artemis Gold Inc (ARGTF) (Q3 2026) Earnings Call Highlights: Record Production, Low Costs and ... GuruFocus News Thu, November 5, 2026 at 2:08 AM EST 7 min read ARTG.V +11.19% GC=F +1.35% ARGTF +11.31% This article first appeared on GuruFocus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Artemis Gold Inc (ARGTF) produced nearly 70,000 ounces of gold in Q3, bringing year-to-date production to over 205,000 ounces, and remains on track to meet full-year guidance.
The company achieved industry-leading low all-in sustaining costs (AISC) of US$1,048 per ounce, resulting in strong margins and robust operating cash flow of $183 million.
Phase 1a expansion is 77% complete and on schedule for tie-in and commissioning by year-end, which will add 33% capacity and significantly boost production in 2027.
The EP2 project is progressing well, on budget, and on track for completion in H2 2028, which will increase throughput to 21 million tonnes per year and gold production to over 500,000 ounces annually.
Artemis Gold Inc (ARGTF) maintains a strong balance sheet with $891 million in available liquidity and has implemented a prudent gold put option strategy to protect against downside price risk while preserving upside exposure.
The company faces broader inflationary pressures, including higher diesel prices, which are expected to push full-year AISC to the top of the guidance range.
Phase 1a commissioning will require a plant shutdown of just over a week in early December, temporarily impacting production and costs in Q4.
There are potential schedule and cost risks for EP2 related to electrical infrastructure lead times and diesel price volatility, which could affect the project timeline and budget.
The mandatory hedge program, with 111,000 ounces remaining at a weighted average price of C$2,834 per ounce, may limit upside from higher gold prices if spot prices remain elevated.
The acquisition of Mount Todd adds execution risk and requires additional capital, which may compete with shareholder returns and other growth projects for funding.
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Q: Can you walk through the puts and takes on the cost structure through year-end and heading into 2027? How meaningful is the throughput uplift from Phase 1a, and is it enough to offset inflationary pressure? A: CEO Dale Andres acknowledged general inflationary pressures but pointed to Phase 1a economies of scale and other efficiency and optimization projects, including the tank upgrades, as offsets. He noted the plant will be shut down for just over a week in early December (scheduled for December 1) to commission the Verde Mill, new cyclone and tanks, which are expected to ramp up fairly quickly. He emphasized the real benefit of Phase 1a will not show in Q4 but comes in 2027, though a solid Q4 is still expected from a cost perspective.
Q: Looking at the Phase 2 (EP2) expansion, can you provide an update on the critical path from here to year-end 2028, and what are the greatest schedule and cost risks and how are they being mitigated? A: President Jeremy Langford said the critical path has been substantially de-risked because procurement was done early the ball and SAG mills have been delivered and all long-lead equipment ordered, with synergies between Phase 1, 1a and EP2 components. He flagged global tightness in electrical infrastructure (switchgears, switchrooms, transformers) as a watch item, but said equipment was ordered early enough to mitigate. On cost, he noted diesel price pressure since the site relies on diesel power, which the team manages through short-term interval control and milestone tracking as it moves through 2026 into 2027.
Q: With Phase 1a, do you expect to be at the 8 million tonne per annum rate sustained at the start of 2027, or should we expect a ramp through Q1? A: CEO Dale Andres said the tie-in is fairly simple, with the biggest commissioning job being the cyclone pack change-out, after which the Verde Mill should ramp up quickly. He expects to be at the 8 million tonne per annum rate starting in Q1, with possibly some minor commissioning in early January that would not be material for 2027. President Jeremy Langford agreed, describing the Vertimill as effectively "a pump in a tank" that is not overly complex to couple into the existing circuit, while noting the usual learning curve of operating a bigger, newer plant and seasonal winter challenges.
Q: You've discussed potential variable dividends or buybacks in the past. What would trigger either, and how would you balance shareholder returns against EP2 and Mount Todd funding? A: CEO Dale Andres said the company intends (subject to Board approval) to raise its base quarterly dividend to $0.08 per share in 2027, or $0.32 annualized. He declined to comment on buybacks while the larger EP2 spend is just beginning, but said that as the company heads into 2028 as a plus 500,000-ounce producer with hedges cleared by Q3 2028 and a strong financial position depending on gold price there should be capacity to consider a variable dividend above the base, potential share buybacks, and advancing not just Mount Todd but further expansion projects at Blackwater.
Q: On silver sales, in Q3 all the sales went into the stream. Is silver being held in inventory or are stream deliveries front-loaded, and what should we expect quarter-over-quarter between spot and stream sales? A: CFO Eric Marchand said the situation largely relates to silver recovery and overall gold production. The company amended the silver stream into a fixed ratio, and the current skew is really just a timing difference that is expected to reverse and normalize toward a more 50% ratio in the future.
Q: What were the key financial results for Q3 2026? A: CFO Eric Marchand reported revenue of $357 million, adjusted net income of $158 million, adjusted EBITDA of $222 million and adjusted EPS of $0.60 per share on a diluted basis. All-in sustaining costs were US$1,048 per ounce, and operating cash flows were $183 million. The company sold just over 67,000 ounces of gold, mostly into the spot market at an average realized price of CAD6,021 per ounce, with the balance delivered under hedge and stream commitments.
Q: What is the status of the hedge book and the gold put option strategy? A: CFO Eric Marchand said the final deliveries under the discretionary hedge program were completed in the quarter, leaving 111,000 ounces under the mandatory hedge program maturing over the next eight quarters at a weighted average price of CAD2,834 per ounce. The put option program was expanded by 49,500 ounces covering the majority of Q3 2027 spot sales at a CAD5,500 strike; as of November 1, puts cover 173,000 ounces with strikes of CAD5,3005,500 and expiries from November 2026 through September 2027, providing a price floor while preserving full upside.
Q: What is the outlook for guidance, capital spending and the balance sheet? A: CFO Eric Marchand said annual production and AISC guidance at Blackwater is maintained, though full-year AISC is expected to come in at the very top of the range due to inflationary pressures including higher diesel prices, partly offset by efficiencies. Growth capital is expected at the low end of guidance given expenditure timing, with spending weighted to the back half of 2026 as EP2 major works ramp up. The company closed the quarter with approximately $891 million of available liquidity, including $191 million of cash and the full $700 million revolver.
Q: What progress was made on Phase 1a and EP2 construction during the quarter? A: President Jeremy Langford said Phase 1a was effectively 80% complete and on schedule for commissioning, with the Verde Mill building nearing completion, new pre-aeration and leach tanks complete, and shear reactors and pump house installed; the new cyclone cluster will be tied in during the Q4 planned shutdown. EP2 early works are complete, including a new 612-bed construction camp, bulk earthworks are well advanced, SAG and ball mill raft foundations are complete, and all long-lead equipment including the SAG and ball mill has been ordered. EP2 remains on budget at an estimated capital cost of $1.44 billion and on track for completion in H2 2028.
Q: What is the strategic rationale for the Vista Gold/Mount
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
