Artemis Gold Inc. press release

Artemis Gold Reports Financial and Operating Results for Q3 2026

2026-11-04

TSXV - TSX Venture Exchange · Gold · Silver · Canada · Corporate Finance

Canada NewsWire

TSXV: ARTG

Year-to-date gold production and AISC within guidance Phase 1A on track for December commissioning

(all amounts in Canadian dollars unless otherwise stated)

VANCOUVER, BC, Nov. 4, 2026/CNW/ -- Artemis Gold Inc. (TSXV: ARTG) ("Artemis Gold" or the "Company") reports financial and operating results for the three- and nine-month periods ended September 30, 2026 (Q3 2026 and YTD 2026). The Company will host a conference call and webcast today, November 4, 2026, the details of which are provided below.

Q3 2026 Highlights

Gold production of 69,546 ounces Gold sales of 67,091 ounces, including 22,826 ounces delivered into the hedge programs; gold sold into the spot market attracted an average realized price1of US$4,305 per ounce Revenue of $357.1 million Cash costs1of US$871 per ounce of gold sold and all-in sustaining costs ("AISC")1of US$1,048 per ounce of gold sold AISC margin1of US$2,257 per ounce of gold sold, representing 67% of cash revenue Cash flow from operating activities of $183.4 million Adjusted net income1of $157.7 million, or $0.66 per share fully diluted Adjusted EBITDA[1]of $222.0 million Paid inaugural quarterly dividend of $0.05 per share on September 9, 2026 At September 30, 2026, cash and equivalents totalled $190.9 million; total available liquidity of $890.9 million At the end of Q3 2026, 8.9 million hours had been worked without a lost time incident

As previously announced, on September 20, 2026, the Company entered into a definitive agreement to acquire all of the issued and outstanding shares of Vista Gold Corp. ("Vista Gold"), owner of the Mt Todd gold project in Northern Territory, Australia.

Artemis Gold CEO Dale Andres commented: "We achieved strong operating and financial results in the third quarter, with mill throughput higher by 10% compared to the previous quarter. Construction is progressing well on both thePhase 1AandEP2growth projects, with commissioning and ramp-up of Phase 1A expected during the fourth quarter. Early works activities on the EP2 project are now complete and major works construction is advancing as planned. Updates to the resource model and optimization of the mine plan for both the Phase 1A and EP2 expansions are also progressing well, along with various studies on asset optimization and growth options at Blackwater beyond EP2.

"As we continue to transform Blackwater into a +500,000 ounce per year gold operation over the next two years, the acquisition of Vista Gold adds a large and advanced-stage gold development asset located in a tier one jurisdiction to the Company's portfolio. The development timeline envisioned for the Mt Todd project fits well with our current Blackwater expansion activities and provides a pathway for future production growth to one million ounces per year."

| | | 1Refer to Non-IFRS Measures |

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

| Operating results | Units | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 (May to September) | | Ore mined | tonnes | 4,065,763 | 6,161,619 | 16,370,727 | 10,978,439 | | Waste mined | tonnes | 8,362,482 | 5,180,117 | 20,013,129 | 7,584,768 | | Strip ratio | waste / ore | 2.06 | 0.84 | 1.22 | 0.69 | | Total mined | tonnes | 12,428,245 | 11,341,736 | 36,383,856 | 18,563,207 | | Milled | tonnes | 1,477,738 | 1,528,851 | 4,139,164 | 2,517,439 | | Gold grade | grams per tonne | 1.55 | 1.48 | 1.66 | 1.43 | | Gold recoveries1 | % | 89.8 % | 84.9 % | 90.9 % | 84.6 % | | Gold produced | ounces | 69,546 | 60,985 | 205,532 | 95,809 | | Gold sold - spot sales | ounces | 38,900 | 56,400 | 111,382 | 81,221 | | Gold sold - stream deliveries | ounces | 5,365 | 6,463 | 16,525 | 9,754 | | Gold sold - hedge deliveries | ounces | 22,826 | - | 77,827 | 6,000 | | Gold sold - total | ounces | 67,091 | 62,863 | 205,734 | 96,975 | | 1 Recoveries include gold in circuit | | | | | |

| Unit analysis1,2 | Units | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 (May to September) | | Cash cost per gold ounce | CAD$ per ounce | $1,218 | $911 | $1,179 | $925 | | Cash cost per gold ounce | US$ per ounce | $871 | $661 | $849 | $671 | | AISC per gold ounce | CAD$ per ounce | $1,466 | $1,157 | $1,422 | $1,140 | | AISC per gold ounce | US$ per ounce | $1,048 | $840 | $1,024 | $828 | | AISC margin per gold ounce | CAD$ per ounce | $3,157 | $3,271 | $3,173 | $3,148 | | AISC margin per gold ounce | US$ per ounce | $2,257 | $2,374 | $2,285 | $2,285 | | AISC margin | % of cash revenue | 67 % | 72 % | 68 % | 72 % | | Avg realized gold price (spot sales) | CAD$ per ounce | $6,021 | $4,806 | $6,180 | $4,737 | | Avg realized gold price (spot sales) | US$ per ounce | $4,305 | $3,489 | $4,451 | $3,439 |

| 1 Totals may differ due to rounding | | 2Refer to Non-IFRS Measures |

The Blackwater Mine produced 69,546 ounces of gold in Q3 2026. Gold recoveries in the mill were 89.8% in the quarter, up from 84.9% in Q3 2025 as a result of process optimization of the milling circuit and improved ore characteristics as mining has advanced deeper into the deposit. Since Phase 1 commissioning and up until June 2026, ball mill scats were being recycled through the ball mill. Starting in Q3 2026, ball mill scats are being stockpiled for future processing which helped increase mill throughput during the quarter. Mill throughput for fresh feed material increased by 10% in Q3 2026 compared to Q2 2026. Plant feed grades averaged 1.55 g/t gold during the quarter, up from 1.48 g/t gold in Q3 2025. Debottlenecking and improvement projects are continuing, including rectification of deficient contractor work on tanks in the leach circuit, which is scheduled to be completed ahead of Phase 1A commissioning in Q4 2026.

A total of 12.4 million tonnes were mined during Q3 2026, 10% more than the comparative quarter in 2025. The ratio of waste to ore tonnes mined was higher during the quarter to support construction activities for the tailings dam raise.

The Company reported AISC of US$1,048 and US$1,024 per ounce of gold sold in Q3 2026 and YTD 2026, respectively, versus US$840 and US$828 per ounce of gold sold in Q3 2025 and YTD 2025, respectively. The increases were primarily related to higher contractor and reagent costs as part of the mill circuit optimization program to achieve higher recoveries, higher diesel prices and higher lease payments associated with the planned expansion of the mining fleet.

The Company reported an AISC margin of 67% in the period, compared to 72% in Q3 2025. The decrease was primarily attributable to the timing of deliveries into the mandatory and discretionary hedge programs, resulting in a lower proportion of gold sold at spot prices during Q3 2026 versus the comparable quarter last year, as well as the cost factors noted above, partially offset by higher realized gold prices.

Notwithstanding these impacts, margins remained strong, supported by the robust gold price environment and the Company's low-cost operating profile. Compared to the Company's peers, 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

| Select Financial Information

($000s except per share information) | Q3 2026 | Q3 2025 | YTD 2026 | YTD 2025 | | Revenue | 357,130 | 308,105 | 1,106,097 | 580,236 | | Cost of sales | | | | | | Production costs | (89,630) | (65,908) | (268,877) | (129,846) | | Depreciation and depletion | (11,792) | (10,531) | (36,888) | (18,989) | | Gross profit | 255,708 | 231,666 | 800,332 | 431,401 | | General and administrative expense | (4,698) | (6,496) | (14,452) | (16,619) | | Finance income | 1,041 | 452 | 3,160 | 703 | | Finance expense | (13,677) | (34,450) | (45,375) | (49,196) | | Equity gain(loss) from investment in associate | 11 | (126) | (209) | (235) | | Change in fair value of derivatives | (17,911) | (17,605) | (33,854) | (40,242) | | Income before income taxes | 220,474 | 173,441 | 709,602 | 325,812 | | Current income tax expense | (18,893) | (6,373) | (30,170) | (9,439) | | Deferred income tax expense | (61,745) | (56,215) | (226,376) | (100,691) | | Net income | 139,836 | 110,853 | 453,056 | 215,682 | | Net income per common share – basic | 0.60 | 0.48 | 1.94 | 0.94 | | Net income per common share – diluted | 0.58 | 0.46 | 1.90 | 0.92 | | Weighted number of common shares outstanding – basic | 234,874,238 | 231,580,655 | 233,909,186 | 228,398,931 | | Weighted number of common shares outstanding – diluted | 240,071,969 | 239,307,068 | 239,078,066 | 235,418,449 | | Adjusted net income1 | 157,736 | 141,703 | 487,119 | 269,278 | | Adjusted net income per common share – basic1 | 0.67 | 0.61 | 2.08 | 1.18 | | Adjusted net income per common share – diluted1 | 0.66 | 0.59 | 2.04 | 1.14 | | EBITDA1 | 245,055 | 217,970 | 789,125 | 393,294 | | Adjusted EBITDA1 | 222,035 | 211,396 | 683,087 | 384,922 | | Net cash provided by operating activities | 183,361 | 163,679 | 518,707 | 362,820 | | Net cash used in investing activities | (143,260) | (65,944) | (432,296) | (297,848) | | Sustaining capital expenditure and lease payments | 9,518 | 5,678 | 28,487 | 13,007 | | Resource expansion and exploration | 4,395 | - | 5,889 | - | | Phase 1A expansion project | 31,857 | 2,623 | 69,008 | 2,623 | | EP2 project | 73,177 | - | 181,069 | - | | Other expansion capital | 75,397 | - | 149,392 | - | | Phase 1 deferred capital | - | 80,566 | - | 114,586 | | Phase 1 capital (pre-commercial production) | - | - | - | 148,963 | | Total growth capital | 180,431 | 83,189 | 399,469 | 266,172 | | Total capital expenditure | 194,344 | 88,867 | 433,845 | 279,179 |

| 1Refer to Non-IFRS Measures |

The Company generated revenue of $357.1 million in Q3 2026, 16% higher than the $308.1 million of revenue in Q3 2025, and $1,106.1 million and $580.2 million in YTD 2026 and YTD 2025, respectively, from sales of gold and silver at the Blackwater Mine.

During Q3 2026, the Company sold 67,091 ounces of gold, consisting of 38,900 ounces sold into the spot market, 5,365 ounces delivered into the gold stream, 15,826 ounces delivered into the mandatory hedge program, and the final 7,000 ounces delivered into the discretionary hedge program. For the comparative period of Q3 2025, total gold sales were 62,863 ounces, comprised of 56,400 ounces sold into the spot market and 6,463 ounces delivered into the gold stream. The increase in ounces sold was attributable to the increased production in the current quarter.

For the year-to-date period ended September 30, 2026, total gold sales were 205,734 ounces, comprised of 111,382 ounces sold into the spot market, 16,525 ounces delivered into the gold stream, 21,000 ounces delivered into the discretionary hedges and 56,827 ounces delivered into the mandatory hedge program. For the comparative year to date period, total gold sales were 121,916 ounces, comprised of 103,052 ounces sold into the spot market, 9,864 ounces delivered into the gold stream, and 9,000 ounces delivered into the discretionary hedges.

The Company recorded total cost of sales of $101.4 million in Q3 2026 and $76.4 million in Q3 2025. YTD 2026 cost of sales amounted to $305.8 million compared to $148.8 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 increased contractor and reagent costs associated with the mill circuit optimization program to improve recoveries, higher diesel costs, and higher mobile maintenance costs related to planned fleet component changeouts compared to the 2025 periods.

The Company recorded total finance expense of $13.7 million and $45.4 million in Q3 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 $34.5 million and $49.2 million in Q3 2025 and YTD 2025, respectively. The decrease in finance expense during 2026 compared to the corresponding 2025 periods was primarily attributable to the one-time derecognition of $13.1 million of previously unamortized deferred financing costs in Q3 2025 associated with the Company's previous project loan facilities, which were repaid in full upon the execution and drawdown of the RCF in September 2025.

During Q3 2026, the Company reported adjusted EBITDA of $222.0 million and adjusted net income of $157.7 million, or $0.67 basic adjusted earnings per share. Cash flow from operating activities, after changes in working capital, was $183.4 million.

Total capital expenditures in Q3 2026 amounted to $194.3 million compared to $88.9 million in Q3 2025.

Phase 1A capital expenditures related to engineering, procurement and construction activities, including construction and mechanical installation work on the vertical grinding mill and associated building, pre-aeration and leach tanks, and related processing infrastructure in advance of completion during Q4 2026.

EP2 capital expenditures related to continued engineering and procurement activities and the advancement of major works construction following completion of the early works program. Construction activities included bulk earthworks, completion of the ball mill raft concrete pour and the initial SAG mill foundation concrete pour, along with further foundation works across the mill building, leach and carbon-in-pulp facilities.

Consistent with the planned capital expenditure profile, EP2 spending for the current year was expected to be weighted toward the back end of 2026, following the commencement of major works construction on August 1, 2026.

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 low-grade ore ("LGO") 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 September 30, 2026, cash and cash equivalents totalled $190.9 million. Including the undrawn portion of the RCF of $700 million, the Company's total available liquidity at end of Q3 2026 was $890.9 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 existing Blackwater processing plant, increasing nameplate capacity by 33% from 6 Mtpa to 8 Mtpa. At the end of Q3 2026, Phase 1A was 77% complete and remains on schedule for completion during Q4 2026.

Construction has advanced significantly across the Phase 1A expansion project, with mechanical installation of the new vertical grinding mill ("Vertimill") progressing in line with the overall project plan, including installation of the Vertimill body, shaft, screw, liners and door, along with associated internal structural steel and enclosed building works. Hydrotesting of the new pre-aeration and leach tanks has been completed, along with installation of associated launders and their process tie-ins to the original Stage 1 tank train. Construction of the new shear reactor facilities has also advanced, including installation of the shear reactors and infrastructure, including pumps and associated oxygen infrastructure. Electrical works have progressed across the expanded processing facilities, including installation of the associated transformer and completion of underground cable pulls.

In the dry circuit, upgrades to the existing crushing circuit, including improvements to tertiary crushing, screening, conveying and controls, have demonstrated the ability to achieve throughput rates equivalent to 8 Mtpa, confirming the planned increase in crushing capacity under Phase 1A. Engineering activities have increasingly focused on pre-commissioning readiness, with planning and preparations advancing toward the scheduled Q4 2026 completion.

Phase 1A continues to be 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 beyond 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 are expected to expand throughput capacity by 250%, from the existing 6 Mtpa to 21 Mtpa by Q4 2028, increasing annual gold production to over 500,000 ounces and delivering economies of scale through lower unit operating costs.

The early works program commenced in January 2026 and has been completed, with major works construction having commenced ahead of schedule on August 1, 2026. Construction activities have continued to advance, including completion of the ball and SAG mill raft concrete pours, which were completed ahead of schedule. Further foundation works are progressing well across the mill building, leach tank trains, including the first lift of the ball mill pedestal concrete complete, second lift of pedestal works well advanced as well as the SAG mill pedestal reinforcing steel installation, which is well underway. Excavation of the primary crusher to foundation underside is also complete, allowing foundation preparation to proceed. The construction camp expansion has been completed and commissioned, providing additional accommodation capacity to support the growing construction workforce. Engineering and procurement activities continue to advance, with all long-lead equipment ordered.

EP2 remains targeted for completion by Q4 2028 at an estimated capital cost of $1.44 billion for the new 13 Mtpa processing train.

Resource expansion diamond drilling continued in the Blackwater deposit area during the quarter.

During Q3 2026, the regional exploration drill program followed up on anomalies identified in the previous Top Lake program and initial pass drilling on targets in the Van Tine and Johnny Lake areas. During Q4 2026, drilling is expected in the Van Tine area and further follow up at Top Lake.

Updates to the resource model and mine plan optimization are being undertaken in 2026. The resource model revision will integrate recent resource expansion drilling data alongside current grade control reconciliation results. Mine plan optimization will incorporate an updated mineral reserve estimate, an evaluation of cut-off grade strategies, and enhanced process efficiencies. The mineral reserve estimate update will be based on higher metal price assumptions. Using higher price assumptions can be expected to incorporate additional low-grade tonnage and consequently will likely result in a lower average head grade of the updated reserve.

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.