Labour shortage hurts West Lake Gold output - The Northern Miner

AI desk brief

West Red Lake Gold cut 2026 output guidance at its Madsen gold mine by about 25% to 27,000-32,000 oz from 35,000-45,000 oz, citing labour shortages and more difficult mining in previously worked areas. The stock fell 12% to C$0.61, underscoring execution risk at a project that declared commercial production only in January.

The company said selective extraction and extra ground support are needed in remnant pillars, and third-quarter production already eased 8.4% to 7,859 oz from Q2. All-in sustaining costs fell 30% in Q2 to US$3,284/oz sold after volumes rose 51% q/q, highlighting how sensitive margins are to output continuity at the mine.