Fernando E. Ganoza, CEO and Director, commented: "Throughout most of the year, the El Roble mine transitioned from the lower levels to the upper areas of our recently discovered reserves. Despite the challenges of this transition and the delay in sale of a significant portion of produced concentrate in inventory at year-end, we delivered solid margins and operating income. However, the write-down of past regional exploration expenditures materially impacted our bottom line." Mr. Ganoza continued: "For the current year, we will remain focused on meeting our production targets, further improving cost efficiencies at El Roble, and taking full advantage of the favorable metal price environment."
2025 Financial Highlights
Net loss for 2025 was $16.1 million, down from $18.7 million in 2024. The main reason for the 2025 net loss was a $15.8 million impairment on mineral properties tied to El Roble's regional exploration targets in Colombia (2024 - $Nil). In accordance with IFRS 6, the Company assessed its current strategy which primarily focuses on expanding the El Roble ore body within and around an area of historical mining. As such, no additional capital expenditures have been budgeted in respect to the regional exploration targets in Colombia in the near term. Consequently, the Company identified an indicator of impairment resulting in the write-off.
Sales for the year decreased 7% to $63.4 million when compared with $68.5 million in 2024. Copper ("Cu") and gold ("Au") accounted for 59% and 41% of the 24,674 (2024, 35,774) dry metric tonnes of concentrate ("DMT") sold during 2025.
The average realized price per metal was $4.52 (2024 - $4.19) per pound of copper and $3,498 (2024 - $2,452) per ounce of gold.
Ending working capital at December 31, 2025, was a deficit of $20.2 million, up from an $11.3 million deficit at December 31, 2024, mainly due to the December concentrate shipment being completed after year end, delaying inventory realization and resulting cash advances from the customer for $9.1 million being recorded as deferred revenue in current liabilities. These amounts advanced were fully settled after year end following the complete sale of the inventory to the customer. Additionally, remaining Royalty Payment Plan instalments for Colombia's National Mining Agency's Tribunal Award were reclassified as current liabilities at December 31, 2025, further increasing the deficit.
Cash costs(1) for the year rose to $179.04 per tonne of processed ore (up 25% from 2024, $142.68) and $2.35 per pound of payable copper produced (net of by-product credits) (up 14% from 2024, $2.07). The increase in cash cost per tonne was driven by lower ore extraction in 2025, leading to underused processing capacity, higher infill drilling, preparation and ground support as mine extraction transitions to the new upper zones of the El Roble mine, and an unfavorable foreign exchange in Colombia. Lower copper output also drove an increase in cash costs per pound of payable copper produced (net of by-product credits) as the Company continued to mine lower copper-grade ore from the lower zones of the El Roble mine, not previously in reserves, allowed by higher metal prices. The Company expects improved grades in 2026 as more higher-grade ore from the new upper zones enters the mine plan.
Cash margin was $2.17 (2024 - $2.12) per pound of payable copper produced(1) which was an increase of 2% over 2024, due to the increase in realized copper price which more than offset the increase in cash cost per pound mentioned above.
All-in sustaining cash cost per payable pound of copper produced(1) (2) was $4.30, compared to $3.00 in 2024. The increase was primarily driven by lower copper production, as discussed above, and higher sustaining capital expenditures related to the development of upper zones and associated equipment additions as these areas were brought into operation.
During the year the Company repaid $4.0 million of loan payables and the Company ended the year with $6.7 million (December 31, 2024 - $7.0 million) in long-term loans payable.
On July 22, 2025, the Company announced the closing of a rights offering (the "Rights Offering"). Pursuant to the Rights Offering, 29,887,022 rights units of the Company were issued, at the subscription price of CAD$0.11 per unit for gross proceeds of CAD$3,287,572. Each Rights Unit consisted of one common share of the Company and one transferable Common Share purchase warrant (a "Rights Warrant"), with each Rights Warrant exercisable into one common share at a price of CAD$0.18 per share for a period of two years from the issue date.
On July 28, 2025, the Company announced the closing of a fully subscribed offering under the listed issuer financing exemption (the "LIFE offering"). Under the LIFE Offering, the Company issued 29,090,910 units of the Company, at a subscription price of CAD$0.11 per unit for gross proceeds of CAD$3,200,000. Each LIFE Unit consisted of one common share of the Company and one transferable Common Share purchase warrant (a "LIFE Warrant"), with each LIFE Warrant exercisable into one common share at a price of CAD$0.18 per share for a period of two years from the issue date.
On December 16, 2025, the Company amended and restated its unsecured convertible debenture removing the conversion rights and extending the maturity to December 16, 2027. The debenture now bears interest at 12.0% per annum, and the Company retained early prepayment rights. In connection with the amendment and restatement, the Company issued Dundee 1,000,000 non-transferable common-share purchase warrants, each exercisable for one common share of the Company at an exercise price of CAD$0.273 per share.
Subsequent Events to the Reporting Date:
On February 4, 2026, the Company and Colombia's National Mining Agency amended the Royalty Payment Plan. Of the outstanding principal balance of $9.8 million due in 2026, $4.9 million has been deferred and will be paid in two equal installments in May and November 2027.
On February 5, 2026, the Ministry of Environment and Energy of Ecuador granted the Company the Environmental License for its La Plata project in Ecuador.
2025 Summary of Consolidated Financial Results
2025
2024
% Change
Revenue
$
63,381,370
$
68,455,363
(7%)
Cost of sales
(53,872,023)
(54,413,545)
(1%)
Income from mining operations
9,509,347
14,041,818
(32%)
As a % of revenue
15%
21%
General and administrative expenses
(6,097,606)
(5,735,028)
6%
Income (loss) from operations
(12,841,365)
