en.Wedoany.com Reported - West Red Lake Gold Mines Ltd. has reported its financial and operational results for the first quarter ended March 31, 2026, with the Madsen Gold Mine still in the ramp-up phase after achieving commercial production. First-quarter gold production totaled 5,667 ounces, with 6,165 ounces sold at an average realized gold price of $4,938 per ounce, generating total revenue of $41.8 million and mining revenue of $15.3 million. The company reported an adjusted net profit of $6.4 million, or $0.02 per share, with EBITDA of $3.3 million and adjusted EBITDA of $14.4 million. Cash cost per ounce of gold sold was $2,594, and all-in sustaining cost was $4,678 per ounce. Cash and cash equivalents at quarter-end were approximately $35.9 million.
President and CEO Shane Williams stated that the first quarter marked the initial phase of ramp-up after Madsen Gold Mine achieved commercial production, with the team demonstrating focus on increasing output and repaying debt. Mining activities during the quarter were primarily concentrated in the South Austin area and the bottom pillar development of the 4447 mining complex. The first phase of the shaft refurbishment project remains on schedule for the second half of 2026. Development work continued to advance toward Austin 904, Fork, and the eastern connection drift leading to the Derlak complex. Infill drilling at the Fork deposit has been completed over 3,200 meters, with results showing 1 meter at 41 g/t gold and 4.5 meters at 5.8 g/t gold, enhancing confidence in resource continuity.
West Red Lake Gold's 2026 production guidance projects full-year output of 35,000 to 45,000 ounces, with all-in sustaining costs of $2,800 to $3,600 per ounce. Analysts noted that the Madsen Gold Mine remains in a firm ramp-up phase, with production concentrated in the second half of the year. The nearby Rowan deposit is considered a core asset, with a resource update and a combined Rowan/Madsen pre-feasibility study scheduled for the third quarter. Drilling results showed 1 meter at 471 g/t gold. Red Cloud Securities has set a target price of C$2.30 for West Red Lake Gold and maintained a Buy rating, while Cantor Fitzgerald maintained a Buy rating and a C$2.20 target price.
Cantor Fitzgerald analyst Matthew O'Keefe stated that progress in underground development, ore haulage, and mill throughput continued during April and May, consistent with the planned ramp-up strategy. Analysts Jeff Clark and Daniel Flynn maintained Buy recommendations in their March and April reports, noting that infill drilling successfully reduced uncertainty at the Fork deposit. West Red Lake Gold's 2026 priorities include increasing development to access multiple mining zones, advancing resource conversion, and improving mine plan visibility. Analysts noted that these results have shifted the timeline, with the first milestone of 60,000 ounces of production deferred to 2027.
According to a Reuters report on May 25, gold prices rose over 1% amid optimism over Middle East peace talks, with falling oil prices and a weaker U.S. dollar supporting the precious metals market. Spot gold gained 1.5% to $4,574.17 per ounce, while U.S. gold futures for June delivery rose 1.2% to $4,576.00 per ounce. UBS analyst Giovanni Staunovo said that falling oil prices boosted gold, with market expectations that this could influence the Federal Reserve's monetary policy. Since late February, gold prices have fallen about 14% due to high energy prices, inflation concerns, and expectations of rising U.S. interest rates. Traders see a 40% probability of a 25-basis-point rate hike by the Fed in December.
According to Kitco News on May 27, Doug Moglia, macro and market strategist at Rockefeller Global Investment Management, said that precious metals have led the overall rally in commodities. Since the start of 2025, gold has risen 92%, while silver has more than doubled (+152%). Moglia noted that between 2022 and 2024, global central banks purchased over 1,000 tonnes of gold annually for three consecutive years, accounting for approximately 20-25% of global annual mine production, and gold price behavior has become significantly less sensitive to its traditional cyclical drivers. Moglia believes gold entered its third long-term bull market in 2022 and remains a long-term anchor for portfolios. He also stated that operating margins for gold and silver miner indices are near 40%, the highest level since 2011, with major miners expected to generate approximately $20 billion in free cash flow in 2025.
Chen Lin wrote on May 13 that the stock "took a heavy hit after the 2026 guidance release" and noted that current mining operations are quite challenging, as many high-grade areas have been depleted. The company needs to build a ramp to access new areas for mining, which could take about a year. Investors need patience for the mine to "turn around."
According to the company's investor presentation, the Madsen Gold Mine achieved commercial production on January 1, 2026. 2026 activities include mining in the 960 zone and the high-grade 4447 zone, with mining at the 904 zone and Fork deposit planned to begin in the first half of 2027. The company also plans to update the pre-feasibility study in the second half of 2026. Other milestones include shaft operations, an updated Rowan resource estimate, Rowan consulting work, potential initiation of Fork development, and submission of the Rowan permit application. Institutional investors hold approximately 30% of West Red Lake Gold shares, with insiders and advisors holding another 10%, and the remaining 60% held by retail investors. The company's current market capitalization is approximately C$300 million, with a 52-week trading range of C$0.54 to C$1.49.
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