Major Gold ETF Adds Canadian Producer as 130,000-Meter Drill Program Advances

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1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Hemlo Mining Corp.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Hemlo Mining Corp. (HMMC:TSX; HMMCF:OTCQX) announced on September 18 that it had been added to the VanEck Junior Gold Miners ETF (GDXJ), with the inclusion becoming effective at market close that day.

Jason Kosec, President, CEO, and Director of Hemlo Mining, said in the company news release, "Our inclusion in the GDXJ represents an important milestone in Hemlo Mining's evolution as a public company. We believe our addition to one of the largest and most widely followed gold mining ETFs will enhance trading liquidity, broaden our shareholder base, and increase awareness among institutional and retail investors globally."

Kosec added, "Inclusion in the GDXJ reflects the progress we have made in establishing Hemlo Mining as a recognized participant in the gold sector and supports our ongoing efforts to strengthen the Company's capital markets profile."

Hemlo Mining is a Canadian gold producer focused on operating and enhancing the Hemlo gold camp in northwestern Ontario. Its flagship Hemlo Gold Mine has produced approximately 25 million ounces of gold since 1985 from underground and open-pit operations. The company's September 2026 corporate presentation reported approximately 121,000 ounces of attributable gold production in 2025. For the first half of 2026, attributable gold sold totaled approximately 60,000 ounces at site attributable all-in sustaining costs of US$2,157 per ounce sold.

The presentation indicated that the mine was processing approximately 3,800 tonnes per day. It identified a current throughput capacity of approximately 6,000 tonnes per day, a total mill capacity of 10,000 tonnes per day, and a permitted capacity of 13,500 tonnes per day. Underground infrastructure includes a 1,300-meter-deep shaft, two skip compartments with a capacity of 2.6 million tonnes per year, and two ramps from surface that can be used for production haulage.

In the second quarter of 2026, Hemlo produced 27,858 ounces of gold on a 100% basis and sold 32,425 ounces. Attributable production was 25,188 ounces, and attributable gold sold was 27,858 ounces. The presentation said development meters increased 42%, longhole production drilling increased 65%, total tonnes moved increased 5%, and ore milled increased 7% from the first quarter. Seven additional equipment units were delivered during the quarter.

Second-quarter revenue was US$142.5 million based on an average realized gold price of US$4,467 per ounce. The company reported US$31.0 million in net income, US$77.2 million in EBITDA, US$35.6 million in operating cash flow, and US$11.3 million in free cash flow. Capital expenditures totaled US$24.4 million, consisting of US$17.5 million in sustaining expenditures and US$6.9 million in growth expenditures directed toward underground development, mining fleet additions, and the Tailings Storage Facility. Hemlo ended the quarter with US$130.2 million in cash and US$19.8 million in net debt.

Gold Holds Ground as Rates and Geopolitical Uncertainty Shape the Sector

The gold sector remained supported by elevated prices in late September, even as higher interest rates and changing expectations for Federal Reserve policy weighed on near-term momentum. In a September 21 article, The Motley Fool's David Jagielski noted that gold had been trading around US$4,300 per ounce after having exceeded US$5,000 earlier in the year.

Looking at the broader market environment, he wrote, "Economic and political uncertainty could lead to investors loading up on safe-haven assets such as gold." Jagielski also pointed to the historical relationship between monetary policy and the metal, noting that gold had fallen after the Federal Reserve began aggressively raising interest rates in early 2022.

Trading Economics reported on September 22 that gold had fallen toward US$4,300 per ounce as comments from Federal Reserve officials strengthened expectations for additional U.S. interest-rate increases. The report said falling oil prices had provided some support amid diplomatic efforts surrounding the Middle East and continued regional energy flows. Longer-term support had also come from central bank purchases, geopolitical uncertainty, fiscal sustainability concerns, and currency debasement.

Stifel Nicolaus analyst Ralph M. Profiti reiterated a Buy rating on September 15 with a US$9.35 price target.

Trading Economics described gold as "one of the most widely followed precious metals" and said it was "often regarded as a safe-haven asset during periods of economic uncertainty, inflation, and geopolitical risk."

According to a September 22 analysis by Gold Predictors' Muhammad Umair, PhD, gold had remained in a broad consolidation as markets assessed Federal Reserve policy, oil markets, and geopolitical developments.

Umair wrote, "Higher rates can create pressure on non-yielding assets like gold. At the same time, geopolitical uncertainty continues to provide an important counterbalance." From a technical perspective, the analysis said gold had been trading between a long-term rising support trendline and descending resistance. Umair characterized the resulting pattern as a narrowing range and said, "The rising support area remains important for maintaining the broader structure, while the descending trendline remains the main technical resistance."

Wall Street Lines Up Behind the Gold Producer

Third-party analyst coverage compiled by TipRanks showed six analysts with Buy ratings on Hemlo Mining Corp. as of September 15, 2026. The most recent rating came from Stifel Nicolaus analyst Ralph M. Profiti, who reiterated a Buy rating on September 15 with a US$9.35 price target, representing 68.72% upside based on the share price used by TipRanks.

Canaccord Genuity analyst Simon Wildsmith initiated coverage on June 10 with a Buy rating and US$7.91 price target, while CIBC analyst Luke Bertozzi reiterated a Buy rating on July 23 with a US$7.19 target.

BMO Capital analyst Kevin O'Halloran initiated coverage on May 1 with a Buy rating and US$7.19 target.

Scotiabank analyst Ovais Habib reiterated a Buy rating on July 21 with a US$6.83 price target.

TD Cowen analyst Steven Green initiated coverage on May 4 with a Buy rating and US$6.47 target.

Across the six analysts shown by TipRanks, price targets ranged from US$6.47 to US$9.35.

Mine, Mill, and Exploration Work Set Out Through 2027

Hemlo Mining's September 2026 corporate presentation outlined a staged increase in mine throughput over two to three years to approximately 6,000 tonnes per day, with the optimal scope and timing to be evaluated. The company expects an updated mineral reserve and technical report in the second half of 2027. The strategy also calls for incremental capital expenditures for fleet additions, ventilation, materials handling, and upgrades to the back end of the plant, while open-pit capital expenditures are to be evaluated.

The company's multi-year mill throughput goals begin with a Phase 1 target of 4,800 tonnes per day, followed by a Phase 2 target of 6,000 tonnes per day and a Phase 3 target of 10,000 tonnes per day. The presentation said the goals are to be supported by mining optimization, additions to the workforce and equipment, and mill upgrades.

At the mine, Hemlo identified several areas of ongoing work. In C-Zone Lower, the company is considering bottom-up rather than top-down mining for material handling and down-hole rather than up-hole drilling for stope performance. A modified Avoca method is being implemented for waste filling. In E-Zone, Hemlo is fast-tracking access and development to maximize portal haulage, while the area has multiple available mining fronts.

Additional work includes design to incorporate the identified areas into a new mine plan. C-Zone Upper contains additional Longhole and Alimak stoping areas, while B-Zone West has been identified for bulk mining and is located near existing infrastructure with a short haul to the underground crusher. Hemlo also plans to extend Alimak mining, rebuild underground crushers, expand ventilation, and optimize and accelerate mining in the past-producing B-Zone Main and Golden Giant areas.

At the mill, the operation was running at approximately 40% of its total capacity, or approximately 3,800 tonnes per day. The presentation identified an increase to approximately 6,000 tonnes per day without major upgrades or costs. To achieve a throughput rate of 10,000 tonnes per day, the listed mill requirements include installing a second Knelson concentrator, adding tailings flotation cells, installing an additional cyanide destruction tank, and refurbishing the open-pit crushing circuit. The Tailings Storage Facility plan uses a phased approach involving rises of the existing dams, with the next significant investment planned for 2028.

Exploration work includes a 130,000-meter drill program targeting growth, resource conversion, and high-definition drilling. The growth component totals 30,000 meters and targets areas near existing infrastructure and mineralized zones outside the existing resource footprint, with a target of adding new Inferred Resources followed by rapid follow-up drilling. Recent results listed in the presentation included 16.1 grams per tonne gold over 8.1 meters and 89.9 grams per tonne gold over 3.0 meters in the newly interpreted South-Rim Zone adjacent to active mining in C-Zone.

Another 70,000 meters of the program is allocated to resource conversion drilling targeting the potential upgrade of Inferred to Indicated mineral resources, primarily in the B-, C-, and E-Zones. The remaining 30,000 meters is allocated to high-definition drilling, with tight drill spacing planned for the next 24 months to improve geological confidence, grade control, and operational predictability.

The company also identified regional exploration targets across an approximately 44,500-hectare land package. The presentation listed Beggs Lake, Page Lake, Wire Lake, Gowan Lake, Porphyry Lake, Hemlo West, Dead Otter, and Dotted Lake as regional targets. Dead Otter was described as having strong alteration and quartz veining along shear zones and as never having been drill tested, while Dotted Lake was described as a shear-hosted quartz vein system with surface values of up to 18.0 grams per tonne gold.

The corporate timeline identifies implementation of mill upgrades, resource conversion and growth drilling, trade-off analysis, rehabilitation, ventilation, and material handling work. It also includes re-establishing the second grinding line, detailed engineering and upgrades for mill expansion, evaluation of regional greenfields opportunities, and evaluation of high-potential brownfields exploration zones. The timeline places an updated technical report with potential for increased mine life and throughput in 2027.

Ownership and Share Structure¹

4.75% of Hemlo is held by management and insiders. Institutions own 39% and strategic entities hold 7.79%. 

The company's market capitalization was approximately CA$2.08 billion, based on a share price of CA$7.02 and approximately 296.4 million outstanding shares. The 52-week range was CA$3.63–CA$8.47.

Frequently Asked Questions

Why was Hemlo Mining Corp. added to the VanEck Junior Gold Miners ETF (GDXJ)?

Hemlo Mining Corp. was added to the VanEck Junior Gold Miners ETF as part of the GDXJ's semi-annual review and quarterly rebalancing. The inclusion became effective at market close on September 18.

What does Hemlo Mining's GDXJ inclusion mean for the gold producer?

Hemlo Mining President, CEO, and Director Jason Kosec said the company believed its addition to the GDXJ would enhance trading liquidity, broaden its shareholder base, and increase awareness among institutional and retail investors globally.

What is Hemlo Mining Corp.'s primary gold asset?

Hemlo Mining is a Canadian gold producer focused on operating and enhancing the Hemlo Gold Camp in northwestern Ontario. Its flagship Hemlo Gold Mine has produced approximately 25 million ounces of gold since 1985 from underground and open-pit operations.

How much gold does the Hemlo Gold Mine produce?

Hemlo reported approximately 121,000 ounces of attributable gold production in 2025. During the first half of 2026, attributable gold sold totaled approximately 60,000 ounces at site attributable all-in sustaining costs of US$2,157 per ounce sold.

How much processing capacity does the Hemlo Gold Mine have?

The Hemlo Gold Mine was producing at approximately 3,800 tonnes per day, compared with its current capacity of approximately 6,000 tonnes per day. Total mill capacity was approximately 10,000 tonnes per day, while permitted capacity was 13,500 tonnes per day.

What are Hemlo Mining's mill throughput targets?

Hemlo outlined a phased throughput plan beginning with a Phase 1 target of 4,800 tonnes per day, followed by 6,000 tonnes per day in Phase 2 and 10,000 tonnes per day in Phase 3. The company's multi-year goals were to be supported by mining optimization, additional workforce and equipment, and mill upgrades.

What exploration drilling is underway at the Hemlo Gold Mine?

Hemlo outlined a 130,000-meter drilling program consisting of 30,000 meters of growth drilling, 70,000 meters of resource conversion drilling, and 30,000 meters of high-definition drilling. Resource conversion drilling primarily targeted the B-, C-, and E-Zones.

What recent gold results has Hemlo Mining reported?

The company's September corporate presentation cited results including 16.1 grams per tonne gold over 8.1 meters and 89.9 grams per tonne gold over 3.0 meters from the newly interpreted South-Rim Zone adjacent to active mining in C-Zone.

When is Hemlo Mining expecting its updated technical report?

Hemlo's corporate presentation said an updated mineral reserve and technical report were expected in the second half of 2027. The company's corporate timeline also identified an updated technical report with potential for increased mine life and throughput in 2027.

What did analysts rate Hemlo Mining stock?

The TipRanks information provided showed six analysts with Buy ratings. Price targets ranged from US$6.47 to US$9.35, with the most recent listed rating from Stifel Nicolaus analyst Ralph M. Profiti, who reiterated a Buy rating on September 15 with a US$9.35 price target.

What was Hemlo Mining's most recent quarterly revenue and cash position?

For the second quarter, Hemlo reported revenue of US$142.5 million, net income of US$31.0 million, and operating cash flow of US$35.6 million. The company ended the quarter with US$130.2 million in cash and US$19.8 million in net debt.

What factors were affecting the gold price in September?

The supplied sector reports identified Federal Reserve interest-rate policy, oil-market developments, and geopolitical uncertainty among the factors affecting gold. Gold was trading around US$4,300 per ounce in the late-September reports, while central bank buying, geopolitical uncertainty, and concerns about fiscal sustainability and currency debasement were also cited as longer-term sources of support.