Artemis Gold reports record Q2 2026 results
Canada NewsWire
TSXV: ARTG
Record quarterly production
Record adjusted EBITDA of $285 million
Record cash flow from operations of $208 million
(all amounts in Canadian dollars unless otherwise stated)
VANCOUVER, BC, Aug. 6, 2026 /CNW/ -- Artemis Gold Inc. (TSXV: ARTG) ("Artemis Gold" or the "Company") reports financial and operating results for the three- and six-month periods ended June 30, 2026 (Q2 2026 and YTD 2026). The Company will host a conference call and webcast today, August 6, 2026, the details of which are provided below.
Q2 2026 Highlights
Gold production of 74,063 ounces
Gold sales of 78,126 ounces, including 22,828 ounces delivered into the hedge programs; gold sold into the spot market attracted an average realized price 1 of US$4,392 per ounce
Revenue of $433.6 million
Cash costs 1 of US$813 per ounce of gold sold and all-in sustaining costs (AISC) 1 of US$955 per ounce of gold sold
AISC margin 1 of US$2,519 per ounce of gold sold, representing 71% of cash revenue
Cash flow from operating activities of $207.5 million
Adjusted net income 1 of $199.7 million, or $0.83 per share fully diluted
Adjusted EBITDA [1] of $285.2 million
Purchased 172,500 ounces of gold put options at a strike price of CAD$5,300 per ounce with expiry dates between July 2026 and June 2027, providing downside gold price protection during EP2 construction
At June 30, 2026, cash and equivalents totalled $178.9 million; total available liquidity of $878.9 million
At the end of Q2 2026, 8 million hours had been worked without a lost time incident
As announced on August 5, 2026, the Board of Directors declared an inaugural quarterly dividend of $0.05 per share; payable on September 9, 2026 to shareholders of record on August 19, 2026. This declaration is consistent with the Company's dividend policy announced on February 18, 2026.
Artemis Gold CEO Dale Andres commented: "We achieved record results in the quarter with record quarterly grades, recoveries, and gold production together with strong AISC, margins and cash flows. We also announced our first return of capital to shareholders with an inaugural quarterly dividend, demonstrating the confidence we have in our ability to generate strong cash flows while taking a disciplined approach in executing our growth projects.
"We are progressing very well on our Phase 1A and EP2 growth projects, with the first and largest concrete pour on the EP2 project already completed. We are very excited to be starting major works construction activities ahead of schedule as we transform Blackwater into a +500,000 ounce per year gold operation over the next two years. We continue to expect EP2 to be funded out of operating cash flow, and buying put option contracts to put a floor price on more than 80% of our anticipated spot gold sales, while retaining full upside exposure to higher gold prices. We see this as prudent risk management during our peak capital spending period over the next 12 months. "
Financial and Operating Results
The following tables summarize key operating results and unit analysis. For further information, refer to the Company's condensed consolidated interim financial statements and Management's Discussion and Analysis ("MD&A") filed on SEDAR+ at www.sedarplus.com .
Table 1
The Blackwater Mine produced a record 74,063 ounces of gold in Q2 2026. Gold recoveries in the mill improved to a record 92.2% in the quarter, up from 84.0% in Q2 2025 as a result of process optimization of the milling circuit and improved ore characteristics as mining has advanced deeper into the deposit. Plant feed grades averaged 1.86 grams per tonne (g/t) gold during the quarter, up from 1.34 g/t gold in Q2 2025. Debottlenecking and improvement projects are continuing in the crushing, grinding and leach circuits as efforts continue to focus on increasing plant throughput and improving reliability.
The Company reported AISC of US$955 and US$1,013 per ounce of gold sold in Q2 2026 and YTD 2026, respectively, versus US$805 per ounce of gold sold in May and June 2025. Mill contractor and reagent costs were higher as part of the mill circuit optimization program along with higher diesel costs compared to Q2 2025. Higher AISC was also attributable to higher lease payments, with no lease payments made in Q2 2025.
The Company reported an AISC margin of 71% in the period, compared to 80% in Q2 2025; the decrease was attributable to the factors above, partially offset by higher realized sales prices. Notwithstanding these impacts, margins remained strong, supported by the robust gold price environment and the Company's low-cost operating profile.The low AISC reflects, among other factors, the benefit of Blackwater's low strip ratio, the comparatively low diesel consumption associated with Blackwater's hauling activities due to the downhill haul from the pit to the process plant, stockpile areas and the tailings storage facility, as well as the fact that the processing facility is entirely energized by BC's low-cost renewable hydro-electric power. As a result, the Company has relatively low exposure to diesel price volatility, with a US$10 change to the oil price estimated to have a US$5 to US$10 per ounce impact on AISC, depending on the movement of materials.
Table 2
The Company generated record revenue of $433.6 million in Q2 2026 compared to $231.1 million in Q2 2025, and $749.0 million and $272.1 million in YTD 2026 and YTD 2025, respectively, from sales of gold and silver at the Blackwater Mine.
During Q2 2026, the Company sold a record 78,126 ounces of gold, consisting of 49,052 ounces sold into the spot market, 6,246 ounces delivered into the gold stream, 7,000 ounces delivered into the discretionary hedges, and 15,828 ounces delivered into the mandatory hedge program. For the comparative period of Q2 2025, total gold sales were 49,517 ounces, comprised of 37,226 ounces sold into the spot market, 3,291 ounces delivered into the gold stream, and 9,000 ounces delivered into the discretionary hedges. The significant increase in ounces sold was primarily attributable to the Company achieving commercial production in May 2025 in the comparable periods last year.
For the year-to-date period ended June 30, 2026, total gold sales were 138,643 ounces, comprised of 72,482 ounces sold into the spot market, 11,160 ounces delivered into the gold stream, 14,000 ounces delivered into the discretionary hedges and 41,001 ounces delivered into the mandatory hedge program. For the comparative year to date period, total gold sales were 59,053 ounces, comprised of 46,652 ounces sold into the spot market, 3,401 ounces delivered into the gold stream, and 9,000 ounces delivered into the discretionary hedges.
The Company recorded total cost of sales of $109.1 million in Q2 2026 and $63.2 million in Q2 2025. YTD 2026 cost of sales amounted to $204.3 million compared to $72.4 million in YTD 2025. The higher cost of sales in the 2026 periods reflects the achievement of commercial production on May 1, 2025, resulting in higher production and ounces sold in 2026 compared to the prior periods. The higher cost of sales was also attributable to work performed for the continued optimization of the mill, including higher contractor and reagent costs, to support higher recoveries.
The Company recorded total finance expense of $15.4 million and $31.7 million in Q2 2026 and YTD 2026, respectively, primarily comprised of interest expense on debt, accretion of deferred revenue, and interest on lease liabilities. The Company recorded total finance expense of $14.6 million and $14.7 million in Q2 2025 and YTD 2025. The Company capitalized finance expense incurred before commercial production was achieved on May 1, 2025 as borrowing costs to mineral property, plant and equipment. As a result, the Company recorded comparatively higher finance expense in the 2026 periods.
During Q2 2026, the Company reported adjusted EBITDA of $285.2 million and adjusted net income of $199.7 million, or $0.85 basic adjusted earnings per share. Cash flow from operating activities, after changes in working capital, was $207.5 million.
Total capital expenditures in Q2 2026 amounted to $142.3 million compared to $89.5 million in Q2 2025.
Phase 1A capital expenditures related to continued engineering, procurement and construction work, including construction work on the vertical grinding mill building and leach and pre-aeration tanks.
EP2 capital expenditures related to continued engineering and procurement activities, and ongoing work related to bulk earthworks and completing the 612-person construction camp expansion. Expenditures during Q2 2026 include procurement payments for the SAG and ball mills, cone crushers, gyratory crushers spares, and the oxygen plant.
Other expansion capital during the quarter primarily related to the tailings storage facility dam raise, construction of the reverse osmosis plant, and continued foundation work on increasing the ore stockpile capacity. The grade control drilling reconciliation continues to show more low and medium grade ore tonnes than predicted in the Mineral Resource and the stockpile capacity is being expanded to accommodate it.
At June 30, 2026, cash and cash equivalents totalled $178.9 million. Including the undrawn portion of the RCF of $700 million, the Company's total available liquidity at end of Q2 2026 was $878.9 million.
Growth and Development Updates
The Phase 1A expansion was announced in Q3 2025 and represents a capital efficient, step change opportunity to upgrade the current Blackwater processing plant, increasing nameplate capacity by 33% from 6 Mtpa to 8 Mtpa. At the end of Q2 2026, Phase 1A was 57% complete, and is on schedule for commissioning during Q4 2026.
During Q2 2026, the new vertical grinding mill ("Vertimill") building progressed with steel erection and Vertimill components began arriving at site, fabrication of the new cyclone cluster was completed, the erection of the new pre-aeration tank was completed, and the new leach tank wall strake erection advanced.
After finalizing the scope, including adding additional spares, Phase 1A is now expected to be completed at a capital cost of $120 million, representing a low capital intensity of $60 per additional annual tonne of processing capacity, with clear potential for further optimization above 8 Mtpa.
EP2 was announced in Q4 2025 and represents a significant addition to processing plant capacity above Phase 1A. When complete, Phase 1A and EP2 will expand throughput capacity by 250%, from the existing 6 Mtpa to 21 Mtpa by Q4 2028. Major works construction at EP2 has commenced with the first concrete pour of the ball mill foundations completed ahead of schedule.
The early works program for EP2 commenced in January 2026 and is nearing completion, with engineering and procurement advancing well and all long lead equipment ordered. Site clearing and bulk earthworks for the processing plant expansion is advancing ahead of plan and completion of the 612-bed construction camp expansion is expected in early August.
The EP2 project is on schedule and on budget and expected to be completed at a capital cost of $1.44 billion.
The Company has also secured supply assurances from BC Hydro that ensure the continued supply of low-cost renewable hydropower at the expanded throughput capacity.
During the quarter, the Company continued its 2026 resource expansion drill program, primarily targeting extensions of the Blackwater deposit to the north and east of the existing mineral reserve pit design. The Blackwater deposit is open to the north, northwest, and at depth. The 2026 resource expansion drill program is planned to test the extensions of the deposit, with approximately 25,000 metres of diamond drilling and an initial budget of $10 million. Two diamond drill rigs started drilling in Q2 2026 on this program, and a third rig is being mobilized to site in Q3 2026 to further accelerate the drilling program.
During Q2, the regional exploration drill program resumed after a winter/spring break. Initial drilling this year will be in the Top Lake area with one RC (reverse circulation) rig, following up on anomalies identified in Q4 2025. The rig will then move to targets in the Van Tine area.
Updates to the resource model and optimization of the mine plan for both the Phase 1A and EP2 expansions are being undertaken in 2026. The updates will incorporate new resource expansion drill results, a review of cut-off grade strategies, and an assessment of additional low- and medium-grade ore that is being identified through grade control drilling.
Various studies have also commenced on asset optimization and growth options at Blackwater beyond EP2. Options to debottleneck both Phase 1A and EP2 to achieve 25 Mtpa are being studied, along with sizing considerations of another crushing and grinding line for potential further expansions to throughput capacity for a new Phase 3 in the future. Mining studies include electrification and automation of equipment along with alternative waste movement options such as crushing and conveying.
Corporate Updates
On February 18, 2026, the Company announced the introduction of a dividend policy as part of the Company's disciplined capital allocation framework, providing guidance for returning capital to shareholders in a manner that is sustainable, prudent, and consistent with the Company's growth strategy. On August 5, 2026, the Company announced an inaugural dividend of $0.05 per common share, payable on September 9, 2026 to shareholders of record on August 19, 2026.
The Company appointed Mr. Erik Marchand as Chief Financial Officer and Corporate Secretary effective July 1, 2026. As part of a planned leadership succession, Mr. Marchand replaced Mr. Gerrie van der Westhuizen, who departed the Company on July 31, 2026. Mr. Marchand joined Artemis Gold in September 2021 and most recently served as the Company's Vice President Finance.
In June 2026, the Company entered into gold put option contracts for 172,500 ounces of gold exercisable at a strike price of CAD$5,300 per ounce, with expiry dates between July 2026 and June 2027, to mitigate gold price risk on operating cash flows during the Phase 1A and EP2 construction periods. The Company paid premiums for these gold put options of $36.3 million.
Outlook
The Company is maintaining its full year 2026 production guidance of 265,000-290,000 ounces of gold at AISC of US$925-US$1,025 per ounce sold. As previously announced, AISC for 2026 is expected to trend towards the higher end of the annual guidance range primarily due to general inflationary pressures, including higher oil prices, which the Company expects to partially offset through continuous improvement initiatives.
Previously disclosed sustaining capital guidance remains unchanged at $5 million for 2026. Resource expansion and exploration drilling expenditures are also unchanged at $15 to $20 million, with a primary focus on expanding the Blackwater Mine resource at depth, together with the next phase of greenfield exploration across the broader district.
Total growth capital is expected to be $685 to $755 million and is anticipated to be funded from operating cash flow. This includes $110 million to complete the $120 million Phase 1A expansion, $385 to $435 million to advance the $1.44 billion EP2 project, and $190 to $210 million of other expansion capital, primarily related to tailings and water infrastructure, as well as additional mining fleet equipment.
During Q2 2026, the Company delivered 15,828 ounces under the mandatory hedge program and 7,000 ounces under the discretionary hedge program. Under the mandatory hedge program, the remaining contracts mature as follows:
During the 3 months ending September 30, 2026 – 15,826 ounces
During the 3 months ending December 31, 2026 – 12,158 ounces
During the 12 months ending December 31, 2027 – 63,307 ounces
During the 12 months ending December 31, 2028 – 35,535 ounces
For the remainder of 2026, 27,984 ounces will be delivered under the mandatory hedge program at a weighted average price of $2,830 per ounce. Under the discretionary hedge program, the Company has 7,000 gold ounces remaining, which were delivered in July 2026 at a weighted average price of $3,345 per ounce.
Conference Call and Webcast Details
Artemis Gold will host a conference call and webcast today, August 6, 2026, at 9:00am PDT (12:00pm EDT).
Conference call
Toll-free in Canada and the US: 1-833-752-3746 International: +1-647-846-8723
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=mWE7ISte
The webcast will be available for replay on the Company's website at www.artemisgoldinc.com until November 6, 2026.
About Artemis Gold
Artemis Gold is a well-financed, growth-oriented gold and silver producer and development company with a strong financial capacity aimed at creating shareholder value through the identification, acquisition, and development of gold properties in mining-friendly jurisdictions. The Company's primary focus is the operation and further development of the Blackwater Mine in central British Columbia approximately 160km southwest of Prince George and 450 kilometres northeast of Vancouver. The first gold and silver pour at Blackwater was achieved in January 2025 and commercial production was declared on May 1, 2025. Artemis Gold trades on the TSX-V under the symbol ARTG and the OTCQX under the symbol ARGTF. For more information visit www.artemisgoldinc.com .
Qualified Person
Artemis Gold Chief Business Development Officer, Tony Scott, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Non-IFRS Measures
This press release refers to certain financial measures, such as average realized gold price per oz sold, EBITDA, adjusted EBITDA, adjusted income, adjusted EPS, cash costs, all-in sustaining costs ("AISC"), AISC margin, sustaining and growth capital expenditures, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures have been derived from the Company's financial statements because the Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and stakeholders will use the non-IFRS measures to evaluate the Company's future operating and financial performance. However, these non-IFRS performance measures do not have any standardized meaning and may therefore not be comparable to similar measures presented by other issuers. Accordingly, these non-IFRS performance measures are intended to provide additional information and should not be considered in isolation or as a substitute of performance measures prepared in accordance with IFRS.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the Company's MD&A for the three and six months ended June 30, 2026 available on the Company's website at www.artemisgoldinc.com and on SEDAR+ at www.sedarplus.ca .
In addition, for purposes of determining future dividends under the Company's inaugural dividend policy, free cash flow is defined as the cash generated by the business that is available to be distributed to shareholders and is calculated as net cash from operating activities, less net cash used in investing activities, lease payments, and scheduled payments of principal and interest on the Company's recurring financing arrangements.
Cautionary Note Regarding Forward-looking Information
This press release contains certain forward-looking statements and forward-looking information as defined under applicable Canadian and U.S. securities laws. Statements contained in this press release that are not historical facts are forward-looking statements that involve known and unknown risks and uncertainties. Any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. In certain cases, forward-looking statements and information can be identified using forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", "potential" or similar terminology. Forward-looking statements and information are made as of the date of this press release and include, but are not limited to, statements regarding the potential for Artemis to deliver dividends to shareholders under its dividend policy; the declaration and payment of future dividends, liquidity available to invest in expansion projects, and the strategy, plans, future financial and operating performance of the Blackwater Mine , including (i) estimates of grades, throughput, recoveries, future production and sales; (ii) estimates of future costs, all-in sustaining costs, all-in sustain cost margins, and growth capital expenditures; (iii) the extent and timing of any exploration programs; (iv) the plans of the Company with respect to optimizing and enhancing current operations, including the expected costs and benefits of work to be undertaken as part of Phase 1A and EP2 expansions, and the expected timing of procurement, construction, commissioning and completion works; (v) the anticipated life of mine and options to extend, and (vi) other financial and operational expectations of the Company with respect to the mine.
These forward-looking statements represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance, which are based on information currently available to management, management's historical experience, perception of trends and current business conditions, expected future developments and other factors which management considers appropriate. Such forward-looking statements involve numerous risks and uncertainties, and actual results may vary. Important risks and other factors that may cause actual results to vary include, without limitation: risks related to ability of the Company to accomplish its plans and objectives with respect to the operations, optimization, enhancement and expansion of the Blackwater Mine within the expected timing or at all, the timing and receipt of certain required approvals, changes in commodity prices, changes in interest and currency exchange rates, litigation risks (including the anticipated outcome or resolution of ongoing or potential claims and counterclaims, the timing and success of such claims and counterclaims) , risks inherent in mineral resource and mineral reserves estimates and results, risks inherent in exploration and development activities, changes in exploration, mining, optimization, enhancement or expansion plans due to changes in logistical, technical or other factors, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability or unanticipated delays to the delivery of materials, resources (including hydropower), plant and equipment or third party contractors, delays in the receipt of government approvals, industrial disturbances, job action, and unanticipated events related to health, safety and environmental matters including climate change, weather events, and the possibility that assumptions relating to hydrogeological conditions, water quality, water availability or related mitigation measures may prove inaccurate or incomplete)), changes in governmental regulation of mining operations, political risk, social unrest, changes in general economic conditions or conditions in the financial markets, and other risks related to the ability of the Company to proceed with its plans for the Mine and other risks set out in the Company's most recent MD&A, which is available on the Company's website at www.artemisgoldinc.com and on SEDAR+ at www.sedarplus.ca
In making the forward-looking statements in this press release, the Company has applied several material assumptions, including without limitation, the assumptions that: (1) market fundamentals will result in sustained mineral demand and prices; (2) any necessary permits, approvals and consents in connection with the exploration program or the operations and expansion of the Mine will be obtained; (3) financing for the continued operation of the Blackwater Mine and future expansion activities will continue to be available on terms suitable to the Company; (4) sustained commodity prices will continue to make the Mine economically viable; and (5) there will not be any unfavourable changes to the economic, political, permitting and legal climate in which the Company operates. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause the actual results or performance by the Company to differ materially from those expressed in or implied by any forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or the financial condition of the Company. Investors should therefore not place undue reliance on forward-looking statements. The Company is under no obligation and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future events or otherwise, except as may be required under applicable securities laws.
SOURCE Artemis Gold Inc.
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August 6, 2026 - 3:45 AM PDT
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