My colleagues and I are pleased to report another strong quarter with not only record free cash flow generated by our operations, but also record capital returns to our shareholders. Gold production of 856,000 ounces was, for the second consecutive quarter, above budget, with cash costs and all-in sustaining costs both within our guidance range. This quarter, we're reporting solid operations, excellent progress on our growth pipeline, continued exceptional exploration results, all with yet another quarter of record financials. For example, this quarter, I'm pleased to highlight that at Macassa, we had record skipped tons, record mill throughput, and the first processing of our AK ore at LZ5.
In and of itself, record mill throughput at half our mines represents substantial continuous operational improvement. Guy will spend some time going over some exciting holes that are both confirming and expanding our key mines and our organic growth projects. We're able to reinvest in our business to support the best organic growth in the industry. In the second quarter, we added over $350 million of cash to reach a record $3.5 billion of cash on hand.
All of this while delivering another record quarter of returns to our shareholders. Strong operational performance and disciplined cost management, combined with a favorable gold price environment to drive record free cash flow of over $1.3 billion for the quarter. We also delivered excellent financial results, generating adjusted net income of approximately $1.5 billion or $3.07 per share, and adjusted EBITDA of approximately $2.7 billion. Below our costs in the first quarter, below the midpoint of our guidance ranges, and hundreds of dollars below the industry average.
| Metric | Period | Current guidance |
|---|---|---|
| 2026 gold production | FY2026 | 3.3-3.5 million oz, toward lower end |
| Share of free cash flow returned to shareholders | FY2026 | ~48% returned in H1; potential to exceed 40% for the year |
| Odyssey/Malartic underground development rate | Q4 2026 | 2,000 m/month target |
| Metric | YoY | Note |
|---|---|---|
| Fosterville development rate | +14% | Productivity initiatives started last year: improved ventilation, operator training/retraining, independent blasting |
| Ontario internal labor cost | ~+4% | Wage inflation; contractor costs showed no major increase |
| LZ5 autonomous trucking productivity | +65% (first half) | Better network communication, software, and 3D scanning technology cutting sequence stops from 1,700 to 700 per shift |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Growth pipeline | Target of increasing production 20%-30% over the next decade | Reaffirmed 20%-30%, before the Finland consolidation; Hope Bay green-lit (400,000-450,000 oz/yr), Malartic and Detour moving toward 1 million oz each | — |
| Finland platform | KittilA, largest gold mine in Europe, ~17 years of operation | Consolidated Rupert Resources, Aurion Resources and the Fingold JV (~$600 million cash); ~2,500 sq km land package and Ikkari project, targeting a 500,000 oz/yr platform | — |
| Capital allocation | Balanced: shareholder returns, growth investment, balance-sheet strength | H1: ~30% of operating cash flow to shareholders, ~40% to organic pipeline, ~15% to Finland M&A, ~15% to balance sheet | — |
| Safety | Prior fatalities acknowledged | Accelerating critical-control work and strengthening supervision after three fatalities in the last year across three sites | — |