Gold Production Jumps 51% as AISC Falls 30% - Streetwise Reports

AI desk brief

West Red Lake Gold reported a sharp operational rebound at Madsen in Q2 2026, with gold production up 51% QoQ to 8,576 oz and gold sales up 34% to 8,260 oz. Cash costs fell 23% to US$2,000/oz sold and AISC dropped 30% to US$3,284/oz sold, bringing costs back inside the company’s full-year guidance of US$2,800-3,600/oz. The mine generated US$9.7m of positive free cash flow and ended the quarter with roughly US$31.2m in cash.

Management said higher mining rates, improved grades and better mill throughput drove the improvement, while the company also built a surface stockpile of about 10,768 tonnes of ore. Q2 improvements were supported by ongoing development across the 4447, 960 and 904 complexes, plus the Fork satellite deposit and the eastward drive toward Derlak. West Red Lake reiterated 2026 production guidance of 35,000-45,000 oz, with about 60% weighted to H2.

For the broader gold market, this is more a company-specific supply update than a sector-wide pricing signal, but it does show a junior producer moving closer to sustained free cash flow as it ramps output. The main near-term catalysts are whether H2 grades and throughput remain strong enough to keep AISC inside guidance and support the planned 2027 production additions from Fork and the 904 complex.