News Summary
On December 15, 2025, Artemis Gold announced that its Board of Directors has formally approved the Expanded Phase 2 (EP2) development for the Blackwater Mine in British Columbia. This major expansion carries a capital cost of C$1.44 billion and aims to increase the processing plant’s capacity from 8 Mtpa (post-Phase 1A) to 21 Mtpa.
Key projections for the EP2 expansion include:
* Production: Average annual gold production of 500,000 to 525,000 ounces and silver production of 2.0 to 2.5 million ounces over the first 10 years.
* Costs: All-In Sustaining Costs (AISC) are guided at US$800 to US$1,100 per gold ounce for the next 10 years.
* Timeline: Early works are scheduled to begin in January 2026, with major construction starting in Q3 2026. The first gold pour from the expanded facility is targeted for Q3 2028.
* Funding: The expansion is expected to be funded primarily from the mine’s operating cash flow.
The project is conditional upon receiving formal confirmation for hydro-electricity supply from BC Hydro (expected early 2026) and provincial permit alignment (expected 2026). The company also reiterated its 2025 guidance of 190,000 to 210,000 ounces of gold at an AISC of US$825 to US$875 per ounce.
Material Impact
This announcement is a material positive catalyst that delivers on a key corporate objective outlined throughout 2025. The company has consistently messaged its intent to make an investment decision on a major Phase 2 expansion before the end of the year, and this news confirms they have executed on that timeline.
Tracing the progression of this initiative:
* May/June 2025: Initial discussion of accelerating Phase 2 expansion with an investment decision targeted for “later this year.”
* September 15, 2025: The company firmed up its timeline, targeting a board approval for the Phase 2 expansion before year-end, concurrent with advancing the smaller Phase 1A expansion (to 8 Mtpa).
* November 4, 2025: Reiteration that the investment decision was imminent and expected before the end of 2025.
* December 15, 2025: The company delivered precisely as promised. This strong execution track record, following the successful on-time, on-budget construction of Phase 1, lends significant credibility to the new expansion plan.
The announcement is material because it provides the market with concrete metrics (C$1.44B capex, 21 Mtpa throughput, ~500k+ oz/yr production) to model the company’s long-term future. This solidifies the vision of transforming Blackwater into a world-class, long-life, low-cost mine and elevates Artemis into the ranks of major gold producers.
However, the funding plan introduces the most significant risk. Stating the C$1.44B project will be funded “primarily from operating cash flow” is ambitious. Based on Q3 2025 results, the mine generates strong cash flow (C$163.7M in the quarter), but this plan creates a dependency on sustained high gold prices and flawless operational performance. It leaves little room for error, cost overruns, or operational disruptions. The company’s negative working capital position (C$123.4M deficit as of Sept 30, 2025) further highlights the tightness of its short-term liquidity. While the C$700M revolving credit facility provides a backstop, the market will be keenly focused on how the company intends to manage this large capital program without further shareholder dilution or a substantial increase in its debt burden.
Catalysts
* Immediate: The conference call on December 16, 2025, will be critical for management to provide further details on the C$1.44B funding plan and the assumptions underpinning it.
* Early 2026: Formal confirmation of the hydro-electricity supply from BC Hydro is a key de-risking milestone.
* Q1/Q2 2026: Look for Q4 and full-year 2025 financial results to confirm if production and cost guidance were met. This will be the first full picture of the mine’s cash-generating potential, which is the cornerstone of the EP2 funding strategy.
* Throughout 2026: Updates on the progress and cost-tracking of the Phase 1A expansion, which is targeted for completion in Q4 2026. Any delays or overruns here could be a negative read-through for the much larger EP2 project.
Materiality Conclusion
The news is Material – Positive. It fulfills a major promised catalyst, provides a clear and ambitious growth trajectory, and is backed by a management team with a proven track record of execution. While significant funding and execution risks remain, this announcement removes the uncertainty around the scope and timing of the Blackwater expansion.
