en.Wedoany.com Reported - Rio2 Limited has published its financial results for the quarter ended June 30, 2026, covering operations at its Fenix Gold mine in Chile and Condestable copper mine in Peru. Consolidated production for the quarter totaled 13,539 ounces of gold, 75,437 ounces of silver, and 9,296,883 pounds of copper, during a period marked by extreme weather conditions in northern Chile.

Rio2 Chairman and Chief Executive Officer Andrew Cox stated that Fenix Gold delivered its second consecutive quarter of production growth in Q2, driven by an expanded operating area, increased staffing, and the arrival of equipment from the primary mining contractor. The company expects these adjustments to translate into higher productivity and lower costs in the third quarter. Cox also noted that unusually low temperatures and snowfall during the second quarter posed challenges for the field team, which has also prepared for winter operations in the coming months.

In Chile, the Fenix Gold mine continued advancing the second phase of its production ramp-up during the second quarter, with gold production of 9,088 ounces and first-half cumulative output of 13,736 ounces at a cash cost of $2,701 per ounce sold. The company reported progress during the quarter in addressing factors that had impacted commissioning, including expanding the Fenix Sur mining area, establishing the Fenix Central mining access, growing the permanent workforce, and mobilizing high-capacity equipment from mining contractor STRACON. Haul truck payload capacity was increased from 35 tonnes to 42 tonnes.

Processing plant efficiency also improved, with daily throughput reaching 16,300 cubic meters in June, up from 10,700 cubic meters in March. At the leach pad, sub-zero temperatures in May affected operations in certain areas, prompting the company to test different cover options on drip irrigation lines. A double-layer black cover was ultimately adopted, generating a temperature differential of approximately 12°C under ambient conditions, with plans to extend the cover across the entire leach pad. Ore mining increased from 13,600 tonnes per day in April to 16,100 tonnes per day in June, with Rio2 expecting to reach 20,000 tonnes per day in the third quarter. Given the uncertainty arising from extreme weather events, Rio2 revised its 2026 gold production guidance downward (previously 60,000 to 65,000 ounces) while maintaining its target of achieving commercial production in the fourth quarter of this year.

On the exploration front, Rio2 resumed drilling at Fenix Gold for the first time in 12 years, planning 23,190 meters of drilling with a budget of $9.5 million. The program was more than halfway complete as of the end of the second quarter, is expected to conclude by the end of August, and will be followed by a resource update at year-end. The company is also evaluating desalinated water supply options and is currently in discussions with three potential suppliers to establish a water connection between Fenix Gold and Copiapó. Following supplier selection, a pre-feasibility study will be advanced with the goal of increasing ore throughput to 80,000 tonnes per day, which Rio2 expects to complete in the fourth quarter of 2026.

The Condestable copper mine in Peru, acquired in January 2026, is progressing smoothly through integration, which is expected to be completed by early in the fourth quarter. The mine produced 9,296,883 pounds of copper in the second quarter at a cash cost of $2.34 per pound, along with 4,451 ounces of associated gold and 74,374 ounces of silver. Ore processed exceeded 700,000 tonnes at grades of 0.66% copper, 0.24 g/t gold, and 3.88 g/t silver, with a unit processing cost of $39.5 per tonne. The mine employs 1,745 people (including contractors), all of whom are Peruvian, with 48% being local hires from the Mala region. For 2026, Rio2 expects payable copper-equivalent production of 21,500 to 23,500 tonnes from February to December.

Condestable's 2026 exploration program is advancing in three phases. Phase one commenced in the first quarter with a 46,480-meter underground diamond drilling program, which was 45% complete as of the end of the second quarter and is focused on updating and expanding mineral resources. A near-surface drilling program will be defined and budgeted in the third quarter, with implementation expected in 2027. The resource update released on June 23 reported combined measured and indicated resources of 82.1 million tonnes at 0.69% copper, 0.13 g/t gold, and 4.12 g/t silver, plus inferred resources of 22.2 million tonnes. Proven and probable reserves stand at 36.5 million tonnes, with an after-tax net present value of approximately $710 million at an 8% discount rate and an estimated mine life of 14 years.

Regarding mine expansion, work continued in the second quarter on the ore sorting test program. In July, Rio2 signed a contract for a pilot plant, with equipment expected to arrive on site in November 2026, while preliminary infrastructure work for equipment installation proceeds in parallel. The company is advancing basic engineering, cost estimates, and scheduling for the plant expansion and has engaged external consultants to conduct a preliminary assessment, with the goal of increasing the mine's daily processing capacity to 10,000 tonnes. Approval of the Environmental Impact Assessment (EIA) modification, which includes the environmental authorization to increase capacity to 10,000 tonnes per day, is expected in the third quarter. The tailings filter plant entered its commissioning phase in the second quarter and has begun producing filtered tailings; this process will be integrated into operations in the third quarter as the transition from the conventional wet tailings system to dry stacking proceeds. Once the filter plant is fully operational, it will meet the water demand associated with increased processing capacity.

On the financial front, Rio2 reported consolidated revenue of $105.3 million for the second quarter, mining operating income of $39.2 million, and net income of $46.8 million. EBITDA reached $76.2 million, adjusted EBITDA was $46.5 million, and adjusted net income was $17.1 million. For the remainder of 2026, capital expenditures are expected to be $26.9 million at Fenix Gold and $22.0 million at Condestable, to be funded through cash reserves and operating cash flow.