PPX Mining Reports Callanquitas Operating Results for the First Nine Months of 2026

PPX Mining Corp. (PPX) reported financial results for its Callanquitas operation for the nine months ended September 30, 2026. The figures provided are mine-level and do not constitute a company-level income statement, cash flow statement, or guidance.

Revenue for the period was CAD $78.5 million (PEN 194.7 million), with a gross profit of CAD $48.7 million (PEN 120.6 million). Operating profit stood at CAD $47.0 million (PEN 116.6 million), and income before taxes was CAD $47.3 million (PEN 117.3 million). The operation recorded a gross margin of 62.0% and an operating margin of 59.9%.

Under the assignment agreement with Proyectos La Patagonia S.A.C. (PLP), PPX is entitled to 75% of Callanquitas income before taxes, calculated in accordance with the agreement’s provisions. Net Profit Interest attributable to PPX was CAD $32.4 million (PEN 80.5 million). This figure represents 68.5% of the reported pre-tax income, a variance attributed to deductions, streaming, and royalty mechanics layered under the headline participation rate.

Operations at Callanquitas included mining activities as well as the sale and toll treatment of mineralized material. Ore continues to be shipped to third-party processing facilities, meaning the on-site plant has not yet contributed to revenue. The site features a 350 tonnes per day flotation and carbon-in-leach facility. The release indicates that the current priority is completing the regulatory procedures required for initiating commercial production.

Exploration activities are advancing at Callanquitas and Portachuelos. The release did not provide assay results, resource numbers, tonnage, or grade guidance.

The company did not disclose capital expenditure figures, cash balance, debt, share count, per-share earnings, or cash flow. There was also no statement regarding the status of the going-concern language previously included in the company’s MD&A.

PPX Mining Corp. (PPX) reported nine-month net proceeds from interest (NPI) of CAD $32.4 million, a figure that already exceeds the full-year 2025 NPI guidance of CAD $15.3 million by more than two times. Additionally, nine-month mine revenue of PEN 194.7 million stands approximately 50% above the entire 2025 revenue forecast of PEN 129.5 million.

The monthly production records underlying these figures have been public since early July. On 6 July 2026, the company disclosed that April 2026 NPI reached PEN 12.59 million and May 2026 NPI hit PEN 14.67 million. These releases also confirmed year-to-date NPI through May of PEN 50.56 million, a trailing-twelve-month record of PEN 91.41 million, and first-quarter 2026 NPI of PEN 23.3 million (CAD $8.9 million), which was released on 5 May 2026.

Derived from the disclosed data, the implied NPI for the second and third quarters is approximately PEN 29.9 million. This is calculated by subtracting the year-to-date figure through May (PEN 50.56 million) from the nine-month total of PEN 80.5 million. This equates to roughly PEN 7.5 million per month, a rate below the first-quarter average of approximately PEN 7.8 million per month and significantly lower than the April and May peaks of PEN 12.6 million to PEN 14.7 million per month.

Margin trends during this incremental period show compression. First-quarter 2026 gross margin was approximately 71%, based on revenue of PEN 61.8 million and gross profit of PEN 43.8 million. The nine-month gross margin stands at 62.0%. Backing out the first-quarter results implies a second- and third-quarter gross margin of approximately 58%, with an implied operating margin of roughly 55% compared to approximately 69% in the first quarter. This suggests that grades, costs, toll-treatment charges, or metal-price realization mix deteriorated materially between April and September.

The record production in May was driven by an average grade of approximately 8.72 g/t Au from Callanquitas East. The current release does not disclose the grade for the June through September period, and management has not provided this data. For a deposit whose oxide category reserve and resource base averages roughly 3.7 to 3.8 g/t Au per the February 2024 NI 43-101 report, the 8.72 g/t mining grade represents a high-grading event rather than a sustainable run-rate, which is the likely mechanism behind the recent margin compression.

Financial statements for the nine months ended 30 June 2026 show as-reported interest income of CAD $23.4 million, an operating loss of CAD $7.4 million, net income of CAD $2.09 million, and earnings per share of CAD $0.00. The company reported negative operating cash flow of CAD $8.1 million and capital expenditures of CAD $13.9 million, funded by CAD $14.5 million in financing.

Identifiable drags on profitability include gold streaming expenses to RIVI of CAD $6.0 million, compared to CAD $2.0 million in the prior year; a 15% silver royalty to Silver Crown; a CAD $1.6 million write-off of Sienna Minerals intangible balances following a Peruvian tax audit; a CAD $19.8 million derivative liability; and general and administrative expenses associated with a 350 tpd construction project.

Two data inconsistencies exist within the supplied records. The 2025 full-year NPI was reported as PEN 38.1 million in the 11 February 2026 release and as PEN 47.69 million in the 6 July 2026 release; the latter figure is consistent with the disclosed trailing-twelve-month math. Additionally, the as-reported cash balance of CAD $7.6 million at the latest balance-sheet date does not reconcile with the CAD $21.6 million quoted in management’s MD&A.

PPX Mining Corp. is a Canadian-listed miner, trading on the TSXV and the Bolsa de Valores de Lima, with assets in northern Peru. Its 100%-owned flagship asset is the Igor project in eastern La Libertad department, located in the Northern Peru gold belt roughly 140 km from Trujillo. The company holds over 1,400 hectares of mining claims and 409 hectares of key surface rights, with social agreements in place with the Callanquitas and Igor communities through 2028.

The project comprises the Callanquitas operating underground mine, which produces oxide, mixed, and, since 2024, Tension sulphide vein material containing gold, silver, and copper. Additional components include the Callanquitas East and West extensions, Portachuelos—a separate, under-explored breccia system—and other targets such as Domo and Tesoros. Currently, ore mined at Callanquitas is shipped approximately 600 km to a third-party facility for toll treatment. PPX’s economic interest is defined as a contractual 75% Net Profit Interest (NPI) over Callanquitas pre-tax income via the PLP assignment agreement, rather than direct ownership of the processing plant.

Management aims to transition to the 350 tpd flotation plus carbon-in-leach plant at Igor, situated at approximately 3,500 masl. The company states this facility would reduce transport costs from approximately $35/t to $3/t, halve processing costs, lift recovery rates from approximately 80% to 88%, and increase the NPI margin from 75% to 80%, while enabling the treatment of both oxide and sulphide ore.

The resource base is defined by a February 2024 NI 43-101 report covering Callanquitas West only. Using a 2.00 g/t AuEq cut-off based on $1,800/oz gold and $20/oz silver, the report lists oxide measured and indicated resources of 663,700 t at 3.80 g/t Au and 137 g/t Ag, equating to 100,290 oz AuEq. Total measured, indicated, and inferred resources stand at 209,500 oz AuEq. The supplied materials do not include a reserve, economic study, NPV, IRR, mine life, or AISC.

Underground production has varied based on grade. In 2021, the company produced 13,000 t at 10.0 g/t for an NPI of $4.6 million. Production in 2022 consisted of 13,000 t at 12.0 g/t, generating an NPI of $6.1 million. In 2023, output was 8,600 t at 8.6 g/t with an NPI of $2.3 million. Production in 2024 dropped to 5,400 t at 6.2 g/t, resulting in an NPI of $1.0 million. The company reported a recovery in the first half of 2025 to 7.2 g/t and an NPI of $8.6 million, with record NPI projected for 2026.