PPX Mining Provides Operational Update

PPX Mining Corp. released its operational update for the first quarter of 2026 on May 5, 2026. The company reported unaudited financial results from its Callanquitas Mine in Peru, highlighting continued profitability despite environmental challenges. Key metrics include: - Revenue: PEN 61.8 million (CAD$ 23.5 million). - Gross Profit: PEN 43.8 million (CAD$ 16.7 million), representing a 71% gross margin. - Pre-tax Earnings: PEN 42.8 million (CAD$ 16.3 million). - Net Income: PEN 31.1 million (CAD$ 11.8 million). - PPX Net Profit Interest (NPI): CAD$ 8.9 million for the quarter. - Operational Context: Heavy rainfall and river restrictions impacted transportation in Q1, yet profitability was maintained. - Strategic Funding: Sulphide exploration is fully funded via the Glencore partnership announced in December 2025.

The news is categorized as Routine - Positive. While the financial results are robust (CAD$ 8.9 million NPI in a single quarter exceeds the full-year 2024 performance and aligns with the record-breaking monthly trends seen in late 2025), this update serves primarily to validate the trajectory established by previous announcements rather than introducing new, unexpected catalysts. - Confirmation of Model: The results confirm that the Net Profit Interest model generates significant cash flow even before full processing plant commissioning is complete. - Weather Risk Mitigated: Management notes operational challenges due to rainfall but emphasizes resilience in profitability. This addresses a key risk factor without altering the fundamental investment thesis. - Consistency with History: The Q1 2026 NPI of CAD$ 8.9 million is consistent with the December 2025 monthly record of CAD$ 3.5 million (annualized run rate suggests growth, but quarterly aggregation smooths volatility). It does not represent a step-change beyond the expectations set by the Glencore deal and late-2025 operational updates. - No New Capital Events: Unlike the December 2025 Glencore transaction (which was Material - Game Changer), this update involves no new financing, M&A, or strategic shifts.

PPX Mining Corp. is a precious metals producer focused on the Igor Project in La Libertad, Peru. The flagship asset is the Callanquitas Mine, which operates under a Net Profit Interest (NPI) model with a partner (Proyectos la Patagonia SAC). The company is transitioning from a pure explorer to an integrated producer by constructing its own Carbon-in-Leach (CIL) and flotation processing plant. - Project Location: Igor Project, La Libertad, Peru. - Current Status: Producing via NPI; building in-house processing capacity. - Geology: High-grade gold-silver-copper mineralization hosted in breccia systems (Callanquitas East and West) and tensional veins.