Q1 2026 Earnings - Continuing Growth and Paying Down Hedges

Research evidence excerpt

Q1 2026 Earnings - Continuing Growth and Paying Down Hedges

Hedging on Increasing Spot Sales

37,000oz of the 60,000oz sold this quarter were delivered into the hedge and streaming agreements.

The Q1 MD&A provided quarterly scheduled deliveries in the balance of the year. The mandatory and

discretionary hedge book started at 220,000oz in total. Artemis has now delivered 20% of the ounces

with the balance scheduled through September 2028. The Q1 MD&A provided an updated schedule of

deliveries as follows:

• 14,000oz of discretionary hedges remain in 2026 at C$3,350/oz

• Mandatory hedges at C$2,820/oz:

○25,173oz in Q1 2026

○15,828oz in both Q2 and Q3 2026

○12,158oz in Q4 2026

○63,307oz in 2027

○35,535oz in 2028

Re-Loading the Revolver

In Q1 Artemis issued $450mm of senior notes due 2031 used to repay in full the revolving credit

facility, preserving the revolver liquidity and timing repayments of the debt to coincide with expanded

production and cash flows. Following the refinancing, $700mm is now available on the revolving credit

facility, and a total of $874mm of liquidity is available for the ongoing expansion work. The company in

February disclosed plans to initiate dividends of $0.05 per share beginning in Q3 and increasing to $0.08

in 2027, and in 2028 adding a variable top-up to total payments at ~40% of free cash flow.

Expanding Operations

The Phase 1A expansion, which increases processing capacity to 8mtpa, is now 34% complete as of the

Q1 earnings release. Concrete pours for the vertical mill and mill building, along with the oxygen plant's

precast foundations have been completed in Q1. The conference call indicated that some of the Phase 1A

expansion upgrades relating to recovery improvements may come on stream before the Q4 2026 startup