West Red Lake Gold Mines Ltd. Announces Commercial Production at Madsen Mine
West Red Lake Gold Mines Ltd. (TSXV: WRLG, OTCQX: WRLGF) formally declared that its 100 % owned Madsen Gold Mine entered commercial production on January 1, 2026. The announcement was issued via a press release distributed through Globe Newswire and subsequently covered by a series of industry outlets, including StockWatch, The Market Online, and Mining.com.
Production Milestone
- First Day of Commercial Output: January 1, 2026
- December 2025 Throughput: average 689 tonnes per day (tpd)
- Permitted Throughput: 800 tpd (Madsen operates at 86 % of capacity)
The Madsen operation is situated in the Red Lake Mining District of north‑western Ontario, a region renowned for high‑grade gold deposits. The mine’s ramp‑up period saw the mill process an average of 689 tpd in December, a level that satisfies the company’s internal throughput targets and positions the facility for sustained, high‑grade output.
Financial Impact
West Red Lake reported the following results for the fourth quarter of 2025:
- Gold Sales Revenue: US$30 million
- Full‑Year 2025 Revenue: US$73 million
The company’s management highlighted that the Q4 performance reflects the successful December ramp‑up and that the commercial production start is expected to reinforce revenue growth in 2026. The high‑grade nature of the Red Lake deposits suggests a continued strong contribution margin as the mine transitions fully into production mode.
Market Context
- Trading Venue: TSX Venture Exchange
- Last Closing Price (2026‑01‑11): CAD 1.115
- 52‑Week High: CAD 1.18 (2025‑09‑10)
- 52‑Week Low: CAD 0.54 (2025‑04‑06)
- Market Capitalisation: CAD 412,170,000
- Price‑to‑Earnings Ratio: –2.52 (negative due to lack of earnings)
The market’s reaction to the production announcement has been modest, with the share price stabilising within a narrow band around CAD 1.10. Analysts note that the company’s valuation remains sensitive to commodity price swings and operational execution risks, yet the transition to commercial production mitigates some of the exploration‑stage uncertainties that previously dominated investor sentiment.
Forward‑Looking Outlook
West Red Lake’s management emphasises that the commencement of commercial production marks the culmination of a multi‑year development plan and sets the stage for:
- Optimised Gold Recovery – Leveraging the mine’s high‑grade resource profile to maximise recovery rates.
- Operational Scale‑Up – Gradual increase in throughput toward the 800 tpd target, supported by planned capital investments in milling and processing capacity.
- Cash Flow Generation – Enhanced cash flow profiles from steady gold sales, allowing for the servicing of existing debt and the potential for dividends or share buy‑backs.
The company’s long‑term strategy focuses on maintaining a robust production pipeline in the Red Lake district, with an eye toward potential extensions or additional resource discoveries that could further expand throughput and reserve life. Given the recent production milestone, investors should monitor the company’s quarterly updates for evidence of sustained output levels and the translation of higher throughput into revenue growth.
The information above is drawn exclusively from the news releases and factual data provided in the input. No additional data or speculation beyond the supplied material has been incorporated.
