The KE Report

By KE ReportBusiness Investing

The KE Report episodes

August 17Jeff Phillips – Juniors With Compelling Catalysts – Revival Gold, Headwater Gold, Kingsmen Resources, Gladiator Metals, and Greenlight Metals
Jeff Phillips, President of Global Market Development, and an activist investor in the junior resource space, joins us to review the changing price trends and investor sentiment swings thus far in 2026. He goes on to unpack the value proposition in 5 junior resource stocks exploring for gold, silver, and copper that he holds in his portfolio.

Throughout the discussion, we get more perspective on how Jeff evaluates opportunities in the junior exploration stocks, and the types of management teams and share structure that he likes to see to participate in their financings.

Jeff has been involved in the natural resource space for the last three decades, and is a large strategic shareholder of over a dozen junior companies, and still a significant shareholder in a number of other mining stocks that he helped finance in the past. Jeff also serves as a technical consultant and advisor to several of these companies in the junior resource space, working on improving their messaging to the marketplace, roster of investors, and liquidity. Even though he doesn’t do many public-facing interviews or write in widely followed publications, Jeff is one of the most influential and well-respected people in the business. You’ll often see him hard at work at mining conferences, doing his due diligence and connecting people to one another.

The companies we discuss in this interview are:
Revival Gold Inc. (TSXV: RVG) (OTCQX: RVLGF)
Headwater Gold (CSE: HWG) (OTCQB: HWAUF)
Kingsmen Resources Ltd. (TSXV: KNG) (OTCQB: KNGRF)
Gladiator Metals Corp. (TSXV: GLAD) (OTCQB: GDTRF)
GreenLight Metals Inc. (TSXV: GRL) (OTCQB: GRLMF)

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
14 min
August 17Craig Hemke - Precious Metals Rebound, Fed Pivot Expectations, and the Macro Drivers Fueling Gold & Mining Stocks
In this Daily Editorial, we are joined by Craig Hemke, Founder and Editor of the TF Metals Report, to break down the sharp August rebound across the precious metals complex. We examine the fundamental drivers behind gold’s resilience, shifting Federal Reserve rate expectations, and why mining equities are beginning to demonstrate significant operating leverage.
Key discussion points include:
Macro Tailwinds and Monetary Policy Shifts: Why falling Fed rate hike expectations, cooling economic data, and a weakening US Dollar are rekindling upside momentum across the precious metals complex.
Global Currency and Debt Market Pressures: The broader implications of international central bank interventions, sovereign bond market volatility, and how ballooning US debt servicing costs make sustained higher interest rates mathematically unsustainable.
Decoupling from Broad Equities: Analyzing gold's recent strength alongside rising geopolitical tensions and oil price spikes, suggesting the yellow metal may be pricing in future global liquidity injections.
Mining Share Leverage and Earnings Performance: How precious metals producers are capitalizing on robust realized metal prices and manageable cost structures to deliver outsized operational cash flows.
Technical Breakouts and Key Chart Levels: A technical overview of the precious metals equities rebound, assessing unfilled price gaps and whether holding above the 200-day moving average confirms a structural trend reversal for the VanEck Gold Miners ETF.
Upcoming Catalysts and August Volatility: What investors should monitor heading into the July FOMC minutes release and the upcoming Jackson Hole Economic Symposium amid typical late-summer trading liquidity.

Click here to visit Craig’s website - TF Metals Report - https://www.tfmetalsreport.com/

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For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
19 min
August 17TG Watkins - Breakout or Bull Trap? Technical Levels in Gold, Copper, and Tech
In this Daily Editorial, we welcome back TG Watkins, Director of Stocks at Simpler Trading and Editor of the Profit Pilot website, to break down the technical setups driving precious metals, commodities, and broad equity markets.
Precious Metals & GDX Pullback Levels: A technical look at the sharp rebound in gold and gold equities following a multi-month base, along with the critical moving averages to watch to determine whether this move is a sustainable uptrend or an overextended bounce facing resistance.
Copper Equities Playing Catch-Up: Analysis on the consolidation in copper stocks following major long-term runs, the impact of recent tech deleveraging, and why emerging chart patterns signal actionable opportunities on pullbacks.
Broad Market Resilience & Market Breadth: Discussion on major indexes reaching new highs, the expanding participation across equal-weight indexes and small caps, and what the US Dollar breakdown means for broader risk assets.
Fed Policy & Election Season Dynamics: An evaluation of shifting interest rate expectations, Fed communication strategy, and how upcoming midterms could introduce tactical volatility.
Tech Sector Rotation: Where capital is rotating within the AI ecosystem, examining the divergence across software, hardware, and mega-cap leaders.
Stocks & Tickers Mentioned: GDX, GDXJ, SIL, SILJ, TGB, HBM, SCCO, COPX, IWM, RSP, SPX, TLT, DXY, MSFT, AMZN, GOOGL, AAPL

Click here to visit TG’s site - Profit Pilot - https://www.profit-pilot.com/

Click here to visit the Profit Pilot YouTube page - https://www.youtube.com/@Profit-Pilot

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For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
22 min
August 17Headwater Gold - Expanding the Newmont Partnership: New Earn-In At Jupiter & Spring Peak Phase 2 JV, Portfolio Drilling Update
In this Company Update, I chat with Caleb Stroup, President and CEO of Headwater Gold (CSE: HWG | OTCQX: HWAUF), to discuss the company’s expanding exploration footprint across Nevada and Idaho, highlighted by new and progressing exploration partnerships with Newmont.
New Earn-In Agreement with Newmont at Jupiter: Caleb breaks down the rapid progression of the newly acquired Jupiter project in Nevada's Walker Lane district and outlines the terms of Newmont’s earn-in commitment, including initial work plans on this large epithermal alteration footprint.
Spring Peak Advances to Phase 2 Joint Venture: An overview of the transition into the next stage of the Newmont agreement, unlocking up to $40M in exploration funding, alongside the timeline for the Burnt Rock Plan of Operations permit approval.
Partner-Funded Drilling at Crane Creek and Jade Creek: An update on the active 3,000m drill program with Centerra Gold in Idaho targeting depth extensions, as well as the ongoing 3,500m campaign with OceanaGold in Nevada.
Generative Pipeline and Strong Cash Position: A look at Headwater’s healthy treasury of C$6M to C$7M and how the team continues to generate and evaluate new epithermal targets across the Great Basin.

Please email your questions for Caleb to us at [email protected].

Click here to visit the Headwater Gold website to read over the recent news - https://headwatergold.com/

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For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
15 min
August 15Weekend Show - Doc & Dana Lyons - Technical Setups: Gold, Silver, GDX, Copper, Oil, Uranium, Bond, Value Stocks
In this Weekend Show, we dissect the recent sharp rebound across precious metals and evaluate whether the broader market rally has real staying power. Featuring expert technical analysis from veteran resource investor Richard Postma (Doc) and fund manager Dana Lyons (The Lyons Share Pro), this episode breaks down critical moving average tests, unfilled chart gaps in gold and mining ETFs, macro warnings in the bond market, and the accelerating rotation from overextended momentum tech into durable value sectors.
Segment 1 & 2 - Richard Postma (also known as "Doc") discusses technical outlooks across precious metals, bonds, and equities. Doc analyzes recent price rebounds in gold and silver as temporary bounces within a broader corrective phase, offering insights on key technical levels, long-term bond market pressures, and his strategies for accumulation in mid-tier producer equities.
Segment 3 & 4 - Dana Lyons, a fund manager and editor of The Lyons Share Pro, wraps up the show providing a technical analysis of current market trends across multiple asset classes. He discusses taking a neutral stance on precious metals following recent bounces, maintains a bullish outlook on copper and energy equities, and explains his strategy of rotating out of overextended growth, tech, and semiconductor sectors into broad-market value sectors like healthcare and financials.
Click here to visit the Lyons Share Pro website and learn more about Dana’s investment services - https://lyonssharepro.com/

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If you enjoy the show, be sure to subscribe to our podcast feed (KER Podcast), YouTube channel, and follow us on X for more market commentary and company interviews. Don’t forget to subscribe and leave us a review!

For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
54 min
August 15Mako Mining – Q2 2026 Production / Financial Results From The San Albino and Moss Mines, Development Pathway For Mt Hamilton and Eagle Mountain
Akiba Leisman, President and CEO of Mako Mining (NASDAQ:MAKO) (TSXV:MKO), joins me for a comprehensive review of all 4 company Projects, on an operational, developmental and exploration perspective.

The Company operates the high-grade San Albino gold mine in Nueva Segovia, Nicaragua. Mako owns the Moss Mine, an open pit gold mine in northwestern Arizona, which is ramping up into commercial production. Mako now controls the permitted development-stage Mt. Hamilton Gold-Silver Project located in White Pine County, Nevada, USA. Mako also holds a 100% interest in the development-stage Eagle Mountain Project in Guyana, South America.

Q2 2026 Highlights

Financial
$62.6 million in Revenue
$31.7 million in Adjusted EBITDA
$25.9 million in Mine OCF (
$13.9 million in Net Income
$112.9 million in Cash, Trade Receivables and Marketable Securities
$1,996 Cash Cost ($/oz sold)
$2,286 AISC ($/oz sold): San Albino $1,535 and Moss Mine $3,708
Return on Equity ("ROE") of 36.6% and Return on Assets ("ROA") of 23.8%

Growth
$2.9 million in exploration and evaluation expenses ($1.4 million in areas surrounding San Albino, $1.4 million at Eagle Mountain, Guyana and $0.1 million in Mt. Hamilton)

The Company currently has a cash and gold-linked securities balance of approximately $112 million, which along with operating cash flow from their two mines, is more than sufficient to fully fund the two remaining development projects, without the need for any external capital. Over the ensuing weeks, the Company plans to unveil its plans for lowering its cost of capital, which could include a pathway for substantial shareholder capital returns.

We went on to review all the ongoing exploration work at San Albino, and Akiba outlined the development progress and next steps for growth at the Moss Mine, the permitting update and rough timeline for development at Mt Hamilton, and the permitting progress being made at Eagle Mountain.

If you have any further questions for Akiba regarding Mako Mining, then please email them into me at [email protected].
In full disclosure, Shad is a shareholder of Mako Mining at the time of this recording and may choose to buy or sell more shares at any time.

Click here for a summary of the recent news out of Mako Mining.

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
37 min
August 15Goliath Resources – High-Grade Gold Mineralization Stepping Out 320 Meters At The Golden Gate Zone, Listener Questions on Drill Density, MRE, and Adit
Roger Rosmus, Founder, CEO, & Director of Goliath Resources Ltd (TSX-V: GOT) (OTCQX: GOTRF) (FSE: B4IF), joins me for another exploration update on more high-grade gold drill assays returned stepping out 320 meters in the Golden Gate Zone at the Surebet Discovery on the Golddigger Property; located in the Golden Triangle, British Columbia.

We also rapid-fire through some listener questions on the drill density of all the prior years drill programs, how that would set up a future MRE, (even though that is not the focus this year), and why they elected to focus on big step-out drilling to expand the deposit over pursuing a more costly exploration adit.

The fully funded 2026 drill program comprises approximately 50,000 meters of systematic drilling, including 7 drill rigs targeting expansion of the known gold mineralization laterally and at depth.
45 out of 98 planned drill holes have been completed with a total of 25,651 meters drilled in 2026.
All drill holes completed during the 2026 drill campaign have intersected quartz-sulphide mineralization which generally corresponds to high-grade gold mineralization.
Expansion drilling will continue to focus on extending the footprint of the Bonanza and Golden Gate Zones to the Southwest, East and Northeast.
Directional drilling consisting of multiple holes stemming from a single ‘mother’ hole is being used on selected drill pads in order to minimize drill time and costs while increasing target accuracy.

Drill hole GD-25-420 extended the Golden Gate Zone by 320 meters to the Northeast. The interval assayed 6.51 g/t AuEq (6.16 g/t Au and 7.27 g/t Ag) over 5.73 m, including 13.49 g/t AuEq (12.79 g/t Au and 14.12 g/t Ag) over 2.73 m, including 36.27 g/t AuEq (34.43 g/t Au and 35.17 g/t Ag) over 0.97 m consisting of a series of broad quartz sulphide veins hosted in volcanic rocks where VG-NE occurs in association with semi-massive pyrrhotite, sphalerite, pyrite and galena.

Drill hole GD-26-424 intersected the Golden Gate Zone in an interval that assayed 10.32 g/t Au over 6.00 meters, including 15.61 Au over 3.96 meters, including 33.80 g/t Au over 1.82 meters (gold only). It contained a series of quartz-sulphide veins containing multiple occurrences of Visible Gold to The Naked Eye (VG-NE) hosted in volcanic rocks. The veins contain disseminated sulphides consisting of pyrite, pyrrhotite, sphalerite, galena, and trace chalcopyrite

Drill hole GD-25-412 intersected multiple mineralized intervals belonging to the Surebet and Golden Gate Zones.
The Surebet Zone interval assayed 4.41 g/t AuEq (3.33 g/t Au and 61.14 g/t Ag) over 7.79 meters, including 8.47 g/t AuEq (6.58 g/t Au and 106.53 g/t Ag) over 3.81 meters within a broader interval of mineralization. This intercept contains multiple occurrences of VG-NE within quartz veins and breccias associated with disseminated galena, sphalerite and pyrrhotite.
The Golden Gate interval assayed 4.17 g/t AuEq (3.87 g/t Au and 7.96 g/t Ag) over 3.75 meters, including 7.52 g/t AuEq (7.07 g/t Au and 11.37 g/t Ag) over 1.94 meters within a broader interval of mineralization. This intercept is characterized by several occurrences of VG-NE associated with quartz-sulphide veins
containing pyrite, pyrrhotite, sphalerite and galena.

Drill hole GD-26-414 intersected multiple mineralized intervals belonging to the Surebet and Golden Gate zones.
The Surebet Zone interval assayed 2.81 g/t Au over 4.00 m, including 9.79 g/t Au over 1.00 m part of the Surebet Zone. This first interval contains multiple occurrences of VG-NE within quartz-sulphide veins and breccias with substantial calc-silicate alteration.
The Golden Gate interval assayed 9.87 g/t Au over 5.00 m, including 65.65 g/t Au over 0.75 m part of the Golden Gate Zone. This second interval is characterized by several occurrences of VGNE associated with quartz-sulphide veins containing lenses of semi-massive pyrrhotite, galena, sphalerite, and minor chalcopyrite

We then shift to a rapid-fire Q&A session where Roger fielded a number of questions from listeners about why the company was prioritizing expanding resources with big step-outs in this year program, how the drill density over ~75% of the deposit was already at 25 meter to 50 meter spacings, how recent step-outs would still need more infill drilling next year, and why the company chose to focus its funds on more drilling this season versus pursuing the longer-process and costly exploration adit idea that had been investigated.

If you have any questions for Roger about Goliath Resources, then please email them to me at [email protected].
In full disclosure, Shad is a shareholder of Goliath Resources at the time of this recording and may choose to buy or sell shares at any time.

Click here to follow the latest news from Goliath Resources

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
14 min
August 14Marc Chandler - Breaking Down the Slumping Dollar, Global Rate Divergence, Yen Volatility Persists, Tariff Impacts
In this Daily Editorial, we are joined by Marc Chandler, Chief Market Strategist at Bannockburn Capital Markets and Editor of the Marc to Market website. Marc provides a detailed assessment of recent macroeconomic data, shifting central bank policy expectations, and key technical levels to watch across major global currencies.
Key Discussion Points:
Cooling U.S. Economic Momentum: How a string of softer inflation readings, disappointing retail sales, and weaker employment figures are dragging down the U.S. economic surprise index.
Technical Breakdown and Key Dollar Levels: A deep dive into whether the U.S. dollar index is setting up for a bear flag breakdown toward the 200-day moving average and May/June lows.
Fed vs. BOJ Divergence: Why interest rate expectations are shifting toward a potential rate hike from the Bank of Japan while pricing in a pause or fewer hikes from the Federal Reserve.
Yen Carry Trades and Foreign Inflows: Analysis of the historic volume of foreign assets purchased by Japanese investors following recent currency interventions.
Fiscal Pressures and Rising Tariffs: The broader market implications of the record July U.S. budget deficit, ongoing tariff refunds, and upcoming trade policy deadlines.
Key Catalysts for Next Week: What to expect from China’s economic releases, Japan’s Q2 GDP, global flash PMIs, and the implementation of new U.S. tariffs.

Click here to visit Marc’s site - Marc To Market - https://www.marctomarket.com/

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For more market commentary & interview summaries, subscribe to our Substacks:
The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
19 min
August 14Magna Mining – Q2 Financials, Development Updates at Levack and Crean Hill, Comprehensive Exploration Strategy, Growing The Team
Jason Jessup, CEO and Director of Magna Mining (TSX: NICU) (OTCQX: MGMNF), joins me for a review of Q2 financials and operations at the McCreedy West Mine and the expedited development pathway for the Levack and Crean Hill mines located in Sudbury, Ontario. We also discuss the larger exploration strategy across many projects, and how the company is continuing to recruit and grow a quality base of employees.

Q2 Highlights:
In Q2 2026, Magna achieved record production with 98,446 tons of ore processed from the 700 Footwall Copper Zone at the McCreedy West copper-precious metals-nickel Mine in Sudbury, Ontario, Canada at a grade of 3.34% copper equivalent (“CuEq”) and 6.6 million CuEq contained pounds (“lbs”) based on realized metal prices in the quarter.
The Company produced 4.5 million CuEq payable lbs in Q2 2026 and 8.6 million CuEq payable lbs in the first half of 2026. The Company continues to expect to achieve full year 2026 guidance for all metrics, including production of 16.0-18.0 million CuEq payable lbs.
The Company’s Q2 2026 year-to-date Total Recordable Injury Frequency Rate (TRIFR) was 0.63, compared to 3.87 during the same period in 2025, representing an 84% reduction. Additionally, McCreedy West Mine achieved a significant milestone in June 2026 by completing one year without a recordable injury.
During Q2 2026, Magna generated record positive cash margin3 of $8.9 million and free cash flow of $5.1 million.
Quarterly cash costs and All-in sustaining costs (“AISC”) of US$3.76 per CuEq lb, and US$4.54 per CuEq lb, respectively. Production costs per ton processed in Q2 2026 declined by 6.9% from the prior quarter to $199 per ton.
Exploration and evaluation expenses in Q2 2026 of $5.3 million, including $5.0 million at Levack Mine with a focus on infrastructure readiness to support early ore sources and establishing underground exploration platforms to continue drill testing the R2 Footwall Zone as well as other targets. Both the Levack Preliminary Economic Assessment (“PEA”) and the Crean Hill Pre-Feasibility Study (“PFS”) are on track to be completed during Q3 2026.
Ended Q2 2026 with cash and cash equivalents of $40.0 million and a working capital balance of $45.3 million.
On June 23, 2026, the Company graduated from the TSX Venture Exchange (“TSXV”) to the Toronto Stock Exchange (“TSX”). The TSX uplisting is expected to enhance the Company’s profile within the investment community, improve trading liquidity, and provide greater access to a broader range of investors.
Subsequent to the end of Q2 2026, on July 6, 2026, the Company announced a strategic investment by Alpayana S.A.C (“Alpayana”) via a non-brokered private placement financing to purchase 62,222,222 common shares of the Company at a price of $2.25 per common share for aggregate gross proceeds of approximately $140.0 million. Upon closing, Alpayana is expected to hold approximately 19.9% of the issued and outstanding shares of the Company and closing of the Offering is anticipated during Q3 2026, subject to receipt of all required regulatory approvals.
Magna’s Chief Financial Officer, Scott Gilbert, has advised the Company of his intention to retire by the end of 2026. Greg Huffman, Senior Vice President, Capital Markets, will formally assume the role of Chief Financial Officer upon Scott’s retirement. Greg will work closely with Scott over the coming months to support a smooth transition.

Click here to follow along with the news at Magna Mining

If you have questions for Jason regarding Magna Mining, then please email me at [email protected].
In full disclosure, Shad is a shareholder of Magna Mining at the time of this recording, and may choose to buy or sell shares at any time.

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
28 min
August 13Surge Energy - Comprehensive Overview Of This Leading Intermediate Canadian Oil Company, Highlighting Strong Q2 Earnings Numbers
Paul Colborne, President and CEO, of Surge Energy Inc. (TSX: SGY) (OTCQX: SGYEF), joins us to for a comprehensive overview of the value proposition in this leading intermediate Canadian public oil company that produces ~24,000 boepd (89% light and medium gravity conventional crude oil). Surge has a dominant operational position in two core areas in some of the most economic oil plays in North America. Its Sparky and SE Saskatchewan premium, low risk, conventional oil assets possess large reservoirs, low recovery factors, high netbacks, quick well payouts, and a significant 12+ year development drilling inventory.

As a result of continued successful drilling and waterflood results, on June 1, 2026 the Company upwardly revised its 2026 capital budget and production guidance. Surge's 2026 exit production guidance increased from 23,000 boepd to 24,000 boepd, and 2026 average production guidance increased from 23,000 boepd to 23,375 boepd. Budgeted capital expenditures for 2026 are now estimated to be $175 million, as compared to Surge's original capital guidance of $150 million, with $16 million of the incremental capital being allocated to additional drilling, and the remaining $9 million being directed towards accelerating Surge's waterflood programs, primarily focused in the Sparky core area.

During Q2/26, Surge generated adjusted funds flow ("AFF")1 of $91.5 million ($0.92 per share), and cash flow from operating activities of $95.3 million ($0.95 per share). This represents an increase of 26 percent in AFF, as compared to Q2/25 AFF of $72.8 million, and a 69 percent increase in cash flow from operating activities, as compared to $56.3 million in Q2/25.
During Q2/26, the Company spent $32.8 million on property, plant, and equipment expenditures. On this basis, Surge generated $58.7 million in free cash flow ("FCF")1 in the second quarter, representing 64 percent of Q2/26 AFF.
With the Company's longer-term primary corporate goals of maximizing FCF, enhancing shareholder returns, and reducing net debt, Surge's Board and Management allocated Q2/26 FCF to the following initiatives:
$12.9 million to the Company's monthly cash dividend ($0.52 per share, per annum);
$15.0 million towards share buybacks under Surge's Normal Course Issuer Bid ("NCIB"), repurchasing 1,564,300 shares;
$16.7 million reduction in net debt, reducing net debt by 8 percent during the quarter, from $213.3 million as at March 31, 2026, to $196.6 million as at June 30, 2026; and
$10.8 million of FCF was allocated to the strategic acquisition of the Hansman Lake gas plant, centrally located in the Sparky core area, which was previously leased by the Company. The Hansman Lake plant has 14 mmcf/d of capacity and controls a significant portion of the gas produced by both Surge and third parties in the Provost/Cadogan area. This acquisition of a 100 percent owned and operated gas plant in this core operating area is expected to increase Surge's FCF by an estimated $4.6 million annually, beginning in Q3/26.

Surge's Q2/26 drilling program consisted of 12 gross (11.5 net) wells drilled during the quarter, comprised of the following:
4 gross (4.0 net) producing wells drilled in Sparky;
5 gross (5.0 net) dedicated injectors drilled in Sparky; and
3 gross (2.5 net) producing wells drilled in SE Saskatchewan.

Due to wet spring weather, only 4 of the producing wells were brought on production late in Q2/26, with the remaining wells being brought on production in Q3/26.

Paul then takes us through a high level review of their company strategy on returning capital to shareholders, their growth wedge, their hedging strategy, and key value drivers on tap for the balance of this year and looking out many years into the future.

If you have any questions for Paul regarding Surge Energy then please email those into us at [email protected] or [email protected].

Click here to follow the latest news from Surge Energy

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/
Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
26 min

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