Rio2 achieves milestone quarter with first copper income, gold ramp-up
TSX-listed Rio2 delivered a milestone quarter in the three months ended March 31, highlighted by initial cash flows from the Condestable copper mine, in Peru, and the early stages of ramp-up at the Fenix gold mine, in Chile.
Rio2’s consolidated production for the quarter totalled 7 849 oz of gold, 49 198 oz of silver and 6.4-million pounds of copper.
Rio2 president and CEO Andrew Cox says the first quarter of the 2026 financial year was significant owing to first production from the Fenix mine and the addition of cashflows from Condestable following the company’s acquisition of the operation in January.
At Fenix, the team advanced through the initial ramp-up while addressing some unforeseen startup challenges.
“Although the ramp-up was slower than anticipated, most critical issues have now been addressed and rectified. We are expecting production to steadily increase to projected levels over the remaining three quarters of the year.
“Operating a new mine at high altitude in Chile is a challenging undertaking and the management team has done a great job in resolving those challenges,” Cox explains.
Some of the challenges at Fenix in the quarter include a delayed blasting permit, tight labour availability for Rio2’s contractor Stracon and the processing plant experiencing initial startup issues with the elution solution pump having failed three times.
Based on current ramp-up progress, Rio2 anticipates commercial production at Fenix in the fourth quarter, with the mine being poised to produce about 60 000 oz for the full year.
Meanwhile, the Condestable mine is performing up to expectation following the company’s acquisition of the operation in January.
Rio2’s income from mine operations totalled $24.6-million in the quarter under review, with adjusted net income having amounted to $12.1-million.
The company ended the quarter with $93.1-million of cash and cash equivalents on hand.
For comparison, cash provided by operating activities in the reporting quarter was $22.8-million, cash used from investing activities was $80.3-million, and net cash provided from financing activities was $103.5-million, compared to cash flow from operating activities in the comparative quarter ended March 31, 2025, which was $19.3-million, $16.2-million and $40 000, respectively.
