Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Gold production | 45% increase | Year-over-year |
| Revenue | 77% increase | Year-over-year |
| Adjusted EBITDA | $448 million | Nearly 70% increase year-over-year |
| GAAP net income | $109 million | Not stated |
| Free cash flow | $240 million | 27% higher year-over-year |
Guidance and outlook
- The company expects to land near the low end of full-year guidance ranges for gold, silver, and copper production.
- Full-year adjusted cost applicable to sales is expected to be near the upper end of guidance.
- Cash taxes, capital expenditures, amortization, exploration, and G&A are trending towards the low end of their respective guidance ranges.
How management sounded
Positive (+5 on our -10 to +10 scale). Management maintains full-year guidance despite third-quarter operational headwinds, citing a strong portfolio approach and expected production increases in the fourth quarter. Management sounded more upbeat than on 6% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
New Afton mining rates
Asked: Did New Afton reach the 16,000 tonne per day run rate ahead of year-end?
Answer: Yes, the team achieved the 16,000 tonne per day mining rate by the end of October despite the conveyor belt failure.
Q4 production step-up
Asked: What are the key drivers for the significant production increase in Q4?
Answer: Management pointed to higher sustained mining and milling rates at New Afton, improved crusher performance and grade at Rochester, increased contribution from Palmarejo, and higher grades at Kensington.
Rochester sulfide management
Asked: How is the company managing the sulfide ore mix at Rochester?
Answer: The team limits the percentage of sulfides to a maximum of 0.7% and is currently targeting 0.3% to manage recovery curves and blending.
Palmarejo outlook
Asked: Can Palmarejo increase grades in Q4 after the Q3 challenges?
Answer: Yes, the team is executing a plan to access higher-grade areas in the Hidalgo region now that wet weather challenges have subsided.
M&A strategy
Asked: Is the company looking for further acquisitions?
Answer: No, the current priority is to focus on execution and digesting the recent acquisitions of the Canadian operations.
What to watch before the next call
- The ability of the company to achieve the significant production step-up in the fourth quarter to meet full-year guidance.
- The ongoing management of sulfide ore blending at the Rochester operation to maintain recovery targets.
- The successful ramp-up of mining rates at New Afton and Rainy River heading into 2027.
