Hemlo Mining Corp (HMMCF) (Q3 2026) Earnings Call Highlights: Record Cash Position, Strong Gold ... GuruFocus News Fri, November 13, 2026 at 8:02 PM EST 8 min read GC=F +0.03% HMMC.TO -2.17% HMMCF -2.52% This article first appeared on GuruFocus.
Revenue: $135.5 million in Q3 2026.
Average Realized Gold Price: $4,234 per ounce sold.
Attributable Production: 25,652 gold ounces, modestly above 25,188 ounces in Q2.
Adjusted Net Income: $15.6 million, or $0.05 per share.
Operating Cash Flow: $54.6 million.
Capital Investment: $29 million of sustaining and growth capital.
Cash Balance: $144.8 million at quarter-end; net cash of $2.3 million.
Debt Repayment: $7.5 million repaid on the term facility.
All-In Sustaining Costs: $2,660 per ounce sold (mine site); total site cost of $1,799 per ounce sold.
Unit Costs: Mining $116.33 per tonne mined; milling $24.38 per tonne milled; mine site G&A $23.33 per tonne milled.
Mill Throughput: 342,000 tonnes processed; ~3,720 tons per day; year-to-date average ~3,700 tons per day.
Processed Grade & Recovery: Average grade of 3 g/t (up from 2.6 g/t in Q2); recovery of 95%.
Interlake Zone: 45,000 tonnes processed at 6.15 g/t, versus 61,000 tonnes at 3.05 g/t in Q2.
Mineral Resources: Measured and indicated resources increased 34% to 4.8 million ounces.
Workforce: 555 full-time employees and 373 contractors at quarter-end (~75% from local communities).
Equipment Deliveries: 7 mobile units delivered in Q3, bringing total to 17 of 21 planned units.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Hemlo Mining Corp (HMMCF) achieved over 5 million hours without a lost-time injury, demonstrating strong safety performance.
The company maintained stable production despite an underground electrical substation outage, with attributable production of 25,652 gold ounces.
Revenue was $135.5 million with an average realized gold price of $4,234 per ounce, leading to adjusted net income of $15.6 million.
Hemlo Mining Corp (HMMCF) ended the quarter with a cash balance of $144.8 million and net cash of $2.3 million, the strongest financial position to date.
Exploration at South Rim yielded high-grade results, including 16.1 g/t gold over 8.1 meters and 89.9 g/t gold over 3 meters, with potential for low-capital resource growth.
An underground electrical substation outage constrained mining rates and delayed the planned production ramp-up during the quarter.
Labor inflationary pressures persist, with wage increases adding about $5 per ton to labor costs, and the mining sector's low unemployment rate (0.9%) suggests these pressures will continue.
The offtake agreement requires Hemlo Mining Corp (HMMCF) to deliver 50% of Interlake production, costing $117 per ounce year to date, which reduces margins.
The decision between open pit and underground mining methods is still pending, creating uncertainty about future throughput and capital allocation.
The bulk mining test stope is experimental, with only one of three stopes expected to be on the floor by year-end, and the impact on 2027 production remains uncertain.
Q: Can you provide an indication of the current mining rates after the restoration of power and whether you expect the mining rates in Q4 to be comparable to Q3? A: Jason Kosec, President, CEO and Director, said the company should be fully powered up by the end of the month, with the substation arriving December 4th. He noted that mining rates will slightly increase into Q4, but it is still early days.
Q: On the bulk mining test stope, in an upside case, how much ore can we expect to extract from that area? And when you think about the trade-off study, is it simply going to come down to a break-even gold price? A: Jason Kosec, President, CEO and Director, stated that the bulk mining test stope will be around 10,000 ounces. The team is still going through trade-off work, and the first test stope should be on the floor in the next couple of weeks.
Q: Just want to follow up: there was a comment in your disclosures here about added labor to support the ramp-up. Any comments in terms of which areas you're supplementing here and maybe quantum of the costs and how long you think that might continue? A: Eric Tremblay, Chief Operating Officer, explained that added labor is throughout the mine, from truck operators to jumbo operators. The bulk stope is fully subcontracted to Manroc, which brought in another crew to increase Almac mining. He noted that labor is the biggest inflationary pressure, with wages increasing by about $5 a ton on labor costs, and this pressure is here to stay given the low global unemployment rate for the mining sector.
Q: So it's good to see, I guess, you're working on the offtake--some changes there--and I guess should we assume and model here that you'll continue to proceed with paying out the rest of the offtake here? A: Jon Case, Chief Financial Officer, explained that subsequent to quarter-end, the company amended its offtake, giving it the ability, at its discretion, to progressively reduce and fully eliminate it. He noted that the company is buying back its own production at around $40 an ounce, which is in line with recent market transactions. Year to date, it has cost about $117 an ounce with elevated volume. He emphasized that it is an option, not an obligation, to reduce it, and decisions will be made over the next four quarters.
Q: You've outlined a progressive throughput increase up to 10,000 tons per day, and you're looking at trade-off studies between open pit and underground for those resources under the pit. Could you provide any color on what the thinking is there with this study? End of next year, could we see throughput rates beyond the 10,000 tons per day you've looked at now? A: Jason Kosec, President, CEO and Director, noted that 13.5 is the permitted capacity of the mill, and with liner changes and one line running at 7,000, there is potential to do more, which would favor the open pit. Eric Tremblay, Chief Operating Officer, added that testing has started, and the grinding system can reach 7,000 tons on a separate line, but they need to understand if the pumping system and rest of the mill can fill the capacity. Early testing looks promising.
Q: In terms of which way you're leaning for open pit versus underground, are you able to provide any indication at this time, or is it too early? A: Jason Kosec, President, CEO and Director, said it is a little too early. The company needs to see how the bulk stope behaves from a geotechnical perspective and gather data that will drive the decision between open pit, underground, or a hybrid approach.
Q: Just want to confirm that that's ramp haulage out of the portal in the open pit. And I guess just want to contextualize -- I heard the number 10,000 ounces. Is there an opportunity for supplemental tonnes to come out of this in 2027, and if so, if this is successful, just wondering how you could frame potential impact next year on upside? A: Jason Kosec, President, CEO and Director, confirmed that the ramp through the pit will be used for bulk material. For next year's guidance, the company will separate main mine versus bulk, as only one of the three test stopes will be on the floor by the end of the year, with the remaining two falling into next year's numbers. He did not provide a specific number for incremental ounces in 2027. Eric Tremblay, Chief Operating Officer, added that about half of a stope will be done this year and two and a half next year, testing geotechnical limits.
Q: Just confirming, that can be crushed on surface. That doesn't need to -- A: Eric Tremblay, Chief Operating Officer, confirmed that the material will be crushed on surface, not underground. The company will use a stockpile and its own cone crusher, the tertiary crusher, to process it.
Q: With this substation fix -- last update I heard this was still targeted for December -- but are you guys expecting maybe to have a grade rebound from the Williams zone once this is back online, like into first quarter next year? A: Jason Kosec, President, CEO and Director, noted that year to date, block model reconciliation is around plus/minus 3%, which is as expected. The company is processing more development ore to switch the mining method from top down to bottom up, so the amount of development ore is higher than stoping ore. He said to expect the grade to be between 3 and 3.5 consistently.
Q: Just again trying to understand this offtake amendment economics, seeing you guys already executed the first tranche there. So I heard $40 an ounce incremental cost -- I might just want to make sure I'm understanding that right: $40 an ounce incremental production, or off of every amended offtake. Is that the right way to understand it? A: Jon Case, Chief Financial Officer, clarified that the $40 an ounce reference relates to a 3.2 million ounce cap in the MD&A. The math works at 1.25 million ounces left to be delivered under the offtake, so roughly $50 million divided by 1.25 million gets to $40 an ounce. That is the
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
