Oct 29, 2026 earnings call — Island Gold record quarter; shaft delayed
Island Gold produced a record 68,700 ounces and shaft commissioning was delayed about one quarter, now scheduled for mid-2027.
Revenue $0.5B (est $0.6B) · EPS $0.43 (est $0.43)
Key quotes
"As a result, commissioning of the shaft has been delayed by approximately one quarter and is now scheduled to be completed mid-2027."
"During the quarter, we returned $22 million to shareholders through our quarterly dividend and ongoing share buybacks."
"The Lynn Lake project remains within budget and on schedule for completion in the first half of 2029, with production expected to average 186,000 ounces over its first 10 years."
Analyst Q&A 4
Island Gold production guidance timing
Q (Fahad Tariq · Jefferies): He asked how the quarter delay to shaft commissioning affects next year's production guidance and whether the previous range still applies.
A: They said previous guidance assumed running at 2,400 tons per day from the start, but they are about six months delayed. They expect to be ramping to over 2,000 tons per day by year end and into 2027, leaving a shortfall of about 400 tons per day they will try to close in the first half; budgeting is still being finalized.
"Our view is our previous guidance had expected that we'd be running at 2,400 tons per day from the outset." — Luc Guimond (COO)
YD grades, stockpiles and budget confidence
Q (Sathish Kasinathan · BofA): He asked how mined versus blended grades look in Q4, whether stockpiles will supplement mill feed in 2027, how much stockpile exists and its grade, and asked why management remains confident in the $165 million MD&A budget and whether offsets exist.
A: They said underground will run about 5,000 tons per day in Q4 with grades around 17-18, and the mill will run about 7,000 tons per day with roughly 2,000 tons per day from low-grade stockpile at about 0.3-0.4 grams; stockpile inventory is in the neighborhood of about 300,000 tons and can supplement into 2027. They also said they remain comfortable with the $165 million MD&A budget, with roughly $100 million for mill construction and $60 million-$65 million for development, and noted only a minor increase for additional ground support and improving contractor performance.
"We are still comfortable with the $165 million." — Luc Guimond (COO)
Ground conditions, dike, and dilution issues
Q (Cosmos Chiu · CIBC): He asked whether the slow underground development was due to a structure or poor rock quality and what extra ground support was required; he also asked if the dike at Island Gold is a known structure and if it could affect other areas; and he asked about the higher-than-expected mining dilution in some stopes.
A: They said the two portals encountered a known fault system that required more ground support, including mesh and shotcrete, which slowed daily performance but they are now past it and in better ground. Regarding the dike, they said the dike caused localized overbreak at the bin collar and forced a safer sequence change with extra civil work, which delayed shaft infrastructure commissioning by about a quarter but will not cause wider impact. On dilution, they said dilution can happen periodically, and a couple of higher-grade stopes underperformed this quarter, which pushed realized grades below the typical 9 grams to 11.5 grams range.
"With regards to the structure, with the two portals that we've developed there is a known fault system that we knew we had to go through." — Luc Guimond (COO)
Q4 progress and Island Gold grades
Q (Carey MacRury · Canaccord Genuity): He asked how they are tracking on Q4 guidance a month in, whether any milestones remain, and specifically whether Island Gold has reached 11+ gram material.
A: They said they expected higher grades in Q4 and are tracking well. They also said Island Gold mining rates have increased quarter over quarter, the ramp-up continues, and they expect to be exiting at 2,000 tons per day by the end of the year.
"Yeah, we were expecting higher grades in Q4, and we are tracking well on that basis as well as the ramp-up that we are continuing to do with Island." — Luc Guimond (COO)