Rio2 Reports Q2 2026 Financial and Operating Results and Webinar

Rio2 Limited (RIO) reported its second quarter as a multi-asset producer in Q2 2026, following the first gold production at Fenix Gold and the acquisition of Condestable. The company posted consolidated revenue of $105.3M, with net income of $46.8M, adjusted net income of $17.1M, EBITDA of $76.2M, and adjusted EBITDA of $46.5M.

At Fenix Gold, production reached 9,088 oz Au, with 6,814 oz sold at an average realized price of $4,163/oz. Operating metrics included cash costs of $2,701/oz, AISC of $2,873/oz, and AIC of $3,392/oz. Ore mining increased from 13,600 tpd in April to 16,100 tpd in June. Management has deferred approximately 265,000 t of ore and ~5,000 oz of gold production due to extreme El Niño weather, withdrawing the 2026 production guidance of 60,000–65,000 oz. Consequently, 20,000 tpd is now expected in Q3 rather than Q2, with commercial production still targeted for Q4 2026.

Condestable produced 9,296,883 lb Cu, 4,451 oz Au, and 74,374 oz Ag. Copper head grade was 0.66%, below plan due to internal dilution. Updated M&I resources stand at 82.1Mt and P&P reserves at 36.5Mt, supporting a 14-year life of mine.

Cash at June 30 was $49.7M, down from $93.1M at March 31, while Q2 operating cash flow was only $0.3M.

Rio2 Limited (RIO) analyst notes highlight significant operational headwinds for Fenix Gold, primarily driven by the withdrawal of its 2026 gold production guidance. This reduction represents a substantive cut rather than a routine weather-related adjustment. Through the first half of the year, Fenix produced only 13,736 oz, representing approximately 21–23% of its original full-year target range of 60,000–65,000 oz, rendering the initial goal realistically out of reach.

Financially, reported net income of $46.8M was bolstered by a $31.6M non-cash fair value gain on a stream obligation. More indicative of operating performance are the adjusted net income of $17.1M and adjusted EBITDA of $46.5M. Cash flow metrics presented a stark contrast, with cash provided by operating activities totaling just $0.3M in Q2 despite a reported EBITDA of $76.2M, signaling a notable cash-conversion issue.

Cost structures remain elevated for a heap-leach operation. Fenix’s all-in sustaining costs (AISC) stood at $2,873/oz against a realized price of $4,163/oz, yielding a mine-level margin of roughly 31%. However, all-in costs (AIC) were recorded at $3,392/oz. At the Condestable mine, operations performed broadly in line with plans, though copper grades fell short of expectations. Unit cash costs increased from $2.01/lb in Q1 to $2.34/lb in Q2.

In market context, the stock rose from $3.03 at the Q1 print on May 15 to $3.36 by August 12, an increase of about 10.9%, leaving limited room for negative news regarding Fenix.

Rio2 Limited is a Canadian-listed gold and copper producer focused on Latin America. The company operates Fenix Gold in Chile, a newly operating oxide heap-leach gold mine that produced its first pour in January 2026. The facility is currently ramping up toward 20,000 tpd, with Phase 2 targeting 80,000 tpd and roughly 300,000 oz Au per year.

In Peru, Rio2 owns 99.1% of Condestable, an underground copper-gold-silver mine acquired on January 30, 2026. The mine is currently processing about 8,400 tpd, with expansion studies underway toward 10,000 tpd. Additional assets include the Kalzas tungsten project in Yukon and a 16.33% stake in Royal Road Minerals.