Fernando E. Ganoza, CEO and Director, stated: "Strong first-quarter earnings were driven by record revenue growth from higher metal prices and increased sales volumes. As our operations continue to improve quarter over quarter and we reach planned operational objectives, we expect our financial results to follow the same positive trend this year." Mr. Ganoza added, "This quarter's strong performance, supported by higher metal prices, demonstrates the Company's ability to accelerate our key objective of deleveraging and strengthening the balance sheet in the near term. Achieving this goal will give the Company a strong platform toward continued organic and external growth."
First Quarter 2026 Financial Highlights
Revenue for the quarter rose 54% to $30.6 million from $19.9 million in Q1-2025, reflecting higher metal prices and greater sales volume. Copper ("Cu") and gold ("Au") accounted for 62% and 38% of the 8,833 (Q1-2025, 8,468) dry metric tonnes of concentrate ("DMT") sold during Q1-2026.
The average realized price per metal was $5.58 (Q1-2025 - $4.44) per pound of copper and $4,722 (Q1-2025 - $2,987) per ounce of gold.
Net income was $2.8 million for the quarter, compared with a $0.8 million loss in Q1-2025, primarily due to higher sales.
As of March 31, 2026, the Company had reduced its working capital deficit to $9.6 million from $20.2 million on December 31, 2025. It also had $6.8 million in long-term loans payable (December 31, 2025 - $6.7 million) and $5.0 million in long-term arbitration award payable (December 31, 2025 - $Nil), both due beyond one year.
Cash costs(1) in Q1-2026 were $213.34 per tonne of processed ore (up 21% from Q1-2025, $176.98) and $1.39 per pound of payable copper produced (net of gold credits) (1)(2) (down 54% from Q1-2025, $3.00). The increase in cash cost per tonne was primarily attributable to higher mining costs due to increased mine preparation meters and higher ground support costs as mining operations transition extraction to the upper zones of the mine and prepare stopes in these areas for production, along with a more unfavorable foreign exchange rate in Colombia during Q1-2026. Cash costs per pound of payable copper produced decreased mainly due to higher gold by-product credits because of higher gold prices and grades, partially offset by lower copper output resulting from lower copper grades.
Cash margin was $4.19 (Q1-2025 - $1.44) per pound of payable copper produced(1), up 191% from Q1-2025, driven by higher realized copper prices and the lower cash cost per pound noted above.
All-in sustaining cash cost per payable pound of copper produced(1)(2) in Q1-2026 decreased to $3.83 from $4.65 in Q1-2025, mainly because higher gold by-product credits (as described above) more than offset lower copper output.
First Quarter 2026 Consolidated Financial Results
Q1-2026
Q1-2025
% Change
Revenue
$
30,613,621
$
19,855,914
54
%
Cost of sales
(22,729,086
)
(16,113,098
)
41
%
Income from mining operations
7,884,535
3,742,816
111
%
As a % of revenue
26
%
19
%
General and administrative expenses
(1,320,676
)
(1,218,814
)
8
%
Income from operations
6,190,998
2,515,347
146
%
As a % of revenue
20
%
13
%
