Blackout at Hemlo gold mine to slow ramp-up

AI desk brief

A temporary blackout at Hemlo Mining’s Ontario gold mine is slowing the ramp-up to 4,800 tpd and curtailing underground development in the Alimak zone, with the company saying processing and other mine areas are still operating. Scotia now expects about 59,600 oz of gold from Hemlo in H2, roughly 20% lower, while TD and National Bank flagged risks to grades, mine sequencing and throughput until full power is restored.

The incident is likely to delay rather than permanently remove ounces, but it adds near-term execution risk to Hemlo’s transition year and could keep the mine closer to 3,800 tpd for now. Hemlo Mining shares fell 8.9% to C$7.55, with the stock trading between C$3.63 and C$8.47 over the past year.