Trekor Metals reported a 100% increase in third-quarter revenue as higher copper prices, stronger sales and growing production at its Florence Copper operation bolstered results.
Revenue rose to CAD 342 million, driven by a 40% increase in copper sales and a 40% higher copper price from a year earlier, Chief Financial Officer Bryce Hamming said on the company’s third-quarter 2026 earnings call. Stronger molybdenum prices and a weaker Canadian dollar also contributed.
President and CEO Stuart McDonald said the company realized a record copper price of US$6.40 per pound during the quarter. He cited CAD 164 million in adjusted EBITDA, while Hamming later reported adjusted EBITDA of CAD 161 million. The executives did not address the difference on the call.
Cash flow from operations was CAD 122 million, Hamming said. He attributed some of the effect on cash flow to higher finished inventory at Gibraltar because of shipment timing, as well as payments of accounts payable and the reversal of some deferred revenue from the second quarter.
Gibraltar Production Guidance Raised
Gibraltar produced 34 million pounds of copper, its strongest quarter of the year and a 12% increase from the second quarter. McDonald attributed the gain to access to higher-grade ore in the lower benches of the Connector Pit and increased mill throughput.
Management expects production to decline in the fourth quarter as mining moves to upper benches containing more oxidized ore. McDonald said the company expects lower grades and recoveries from that material. Third-quarter recoveries averaged 77%.
Even so, Trekor raised its 2026 Gibraltar production guidance by 5 million pounds to 115 million to 120 million pounds, citing its year-to-date results.
Quarterly costs rose to $2.72 per pound, McDonald said. Higher diesel prices are adding about $0.20 per pound of copper year over year, while explosives costs have increased approximately 8% since the third quarter of last year. Trekor also expects higher capital spending next year for work on Gibraltar’s tailings storage facility and water management.
Chief Operating Officer Richard Tremblay said management expects throughput to return to the design basis of approximately 85,000 short tons per day.
Florence Ramp-Up Continues
Florence Copper produced 7 million pounds in the third quarter, up 35% from the prior quarter. McDonald said 20 new wells that entered operation in August were the main driver of a 40% increase in solution flow rates.
Because newly accessed ore can take as long as three months to become acidified and begin producing copper in solution, McDonald said the company expects higher copper grades in the solution from those wells in the fourth quarter.
Trekor expects Florence to produce 25 million to 28 million pounds in 2026 and is targeting a production run rate of 7 million pounds per month in the early months of 2027. McDonald cautioned that the company is still refining its wellfield operating strategies.
Florence’s C1 operating cost fell to US$3.54 per pound, down about 25% from the previous quarter, Hamming said. Management expects unit costs to decline as production increases, although McDonald said sulfuric acid consumption will rise during the ramp-up and the company expects higher acid costs next year. Pricing negotiations for 2027 remain in progress.
In response to an analyst’s question, McDonald said sustaining capital spending at Florence could remain around US$25 million per quarter in the short term as the company expands the wellfield. He said it was too early to be definitive about longer-term spending.
Liquidity and Yellowhead Permitting
Trekor ended the quarter with CAD 214 million in cash and approximately CAD 400 million in total liquidity, Hamming said. The company extended its revolving credit facility to October 2029 and increased it to US$130 million from US$110 million, with an additional uncommitted US$50 million accordion feature.
Reducing debt remains a priority, Hamming said. The company’s trailing 12-month net debt-to-EBITDA ratio fell to around one times in the third quarter.
At Yellowhead Copper, McDonald said British Columbia’s Environmental Assessment Office confirmed in July that the project was ready to move into the process-planning phase. In August, the Canadian government approved a substitution decision allowing the province to lead a single environmental assessment on the federal government’s behalf.
Hamming said Trekor spent CAD 19 million on development assets during the first three quarters of 2026, compared with CAD 9 million for all of the prior year. He expects project expenditures to continue rising into 2027 as environmental assessment work advances.
About Taseko Mines (TSE:TKO)
Taseko Mines Ltd is a Canadian mining company. It is principally engaged in the production and sale of metals, as well as related activities, including exploration and mine development, within the province of British Columbia, Canada, and the State of Arizona, the United States. The Gibraltar, Aley, New Prosperity, and Harmony properties are located in British Columbia whereas Florence copper is in central Arizona.
