Trekor Metals Ltd. press release

Trekor Announces $164 Million of Adjusted EBITDA in Third Quarter

2026-11-04

TSX - Toronto Stock Exchange · Copper · Molybdenum · Silver · Gold · Niobium · Canada · Corporate Finance

VANCOUVER, British Columbia, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Trekor Metals Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Trekor" or the "Company") reports third quarter 2026 Adjusted EBITDA* of $164 million and Cash flow from operations of $122 million. Revenues in the third quarter were $342 million from consolidated sales of 37.4 million pounds of copper and 358 thousand pounds of molybdenum. Third quarter net income was $34 million ($0.09 per share) and Adjusted net income* was $55 million ($0.15 per share).

Stuart McDonald, President & CEO of Trekor, commented, “Another solid production quarter at Gibraltar, and continued strength in copper prices drove excellent financial performance in the quarter. Net income and Adjusted EBITDA for the third quarter both surpassed any previous quarter in our history. We’re looking forward to continued improvement as Florence Copper ramps-up to its production capacity over the coming months.”

Gibraltar produced 34 million pounds of copper in the third quarter, a 12% increase over the prior quarter, driven by higher copper grades and mill throughput. Recoveries were impacted by more challenging ore as mining operations began to transition out of the bottom of the Connector Pit. Copper sales from Gibraltar in the third quarter were 30.5 million pounds, lagging production due to timing of shipments. Through three quarters, Gibraltar has produced 94 million pounds of copper and guidance for the year has been increased to 115 to 120 million pounds (from 110 to 115 million pounds).

“Gibraltar’s solid performance through three quarters has been a positive catalyst and has allowed us to capitalize on a very strong copper market. We continue to see some inflationary pressure on input costs, particularly diesel and explosives which increased unit costs by approximately US$0.30 per pound compared to a year ago. Offsetting some of these higher costs are a continued strong molybdenum by-product credit and favourable treatment and refining terms, which will improve again in 2027,” added Mr. McDonald.

*Non-GAAP performance measure.

In the third quarter, Florence produced seven million pounds of copper, a 35% increase over the previous period. The ramp-up progressed smoothly with steady monthly production increases. In August, 20 new wells were brought online, significantly increasing solution flows to the plant and resulting in 40% higher flow rates over the second quarter. Average pregnant leach solution (“PLS”) grades for the quarter declined slightly, as expected, until the new sections of the wellfield are fully acidified and start producing more copper in solution. The focus today remains on wellfield expansion and continuing to bring new wells online every month. Total production at Florence Copper in 2026 is expected to be 25 to 28 million pounds of copper. Increasing flow rates and consistent PLS grades are expected to drive production up to capacity run rates in early 2027.

“We have been operating the Florence wellfield for nearly a year now and are pleased with the progress made in the production ramp-up. Wellfield drilling productivities have improved significantly in recent months. With six drill rigs now operating, we expect to complete the planned 100 wells this year, positioning us to achieve full production capacity early next year,” added Mr. McDonald.

Mr. McDonald concluded, “Yellowhead, which represents an important source of longer-term value for Trekor, continues to advance through the environmental assessment process. Alongside ongoing community engagement and consultation and other permitting work, site investigation activities carried out over the summer and fall are now wrapping up for the season. In September, the project was highlighted at the Canada Investment Summit, where the federal government showcased Canada’s top energy, critical mineral, and other projects to leading international investors.”

Third Quarter Highlights

Earnings from mining operations before depletion, amortization and non-recurring items* was $170.6 million, Adjusted EBITDA* was $164.2 million and cash flow from operations was $122.1 million; Net income was $33.6 million ($0.09 per share) and Adjusted net income* was $54.6 million ($0.15 per share); Gibraltar produced 33.9 million pounds of copper, including 1.3 million pounds of copper cathode, at a total operating cost (C1)* of US$2.72 per pound of copper produced. Copper head grades averaged 0.28% and recoveries averaged 77%; Gibraltar sold 30.4 million pounds of copper at an average realized copper price of US$6.40 per pound contributing to total revenues of $342.2 million for Trekor; Florence produced 7.0 million pounds of copper cathode in the third quarter. Wellfield expansion continues to support the ongoing ramp-up of copper production at Florence. Florence brought online 32 new operating wells in the third quarter; In July 2026, the Company submitted a Detailed Project Description (“DPD”) for the Yellowhead project to the BC Environmental Assessment Office (“BC EAO”). The DPD provides more information about the proposed Yellowhead project, incorporating additional technical work and community feedback received to date. On July 30, 2026, the BC EAO issued a Notice of Decision for Yellowhead to proceed to an environmental assessment; and At September 30, 2026, the Company had a cash balance of $214 million.

*Non-GAAP performance measure. See end of news release.

| | Three months ended September 30, | Nine months ended September 30, | | | | | | Operating data | 2026 | 2025 | Change | 2026 | 2025 | Change | | Gibraltar | | | | | | | | Tons mined (millions) | 26.1 | 29.3 | (3.2) | 76.5 | 82.9 | (6.2) | | Tons milled (millions) | 7.5 | 7.8 | (0.3) | 21.7 | 23.4 | (1.7) | | Production (million pounds Cu) | 33.9 | 27.6 | 6.3 | 94.1 | 67.4 | 26.7 | | Sales (million pounds Cu) | 30.4 | 26.3 | 4.1 | 89.6 | 67.1 | 22.5 | | | | | | | | | | Florence Copper | | | | | | | | Average flow rate (gpm) | 4,454 | - | 4,454 | 3,042 | - | 3,042 | | Average PLS grade (g/L) | 1.5 | - | 1.5 | 1.5 | - | 1.5 | | Production (million pounds Cu) | 7.0 | - | 7.0 | 13.7 | - | 13.7 | | Sales (million pounds Cu) | 6.9 | - | 6.9 | 12.8 | - | 12.8 | | | | | | | | |

| | Three months ended September 30, | Nine months ended September 30, | | | | | | Financial data | 2026 | 2025 | Change | 2026 | 2025 | Change | | Revenues | 342,222 | 173,906 | 168,316 | 909,868 | 429,137 | 480,731 | | Cash flows from operations | 122,131 | 36,478 | 85,653 | 399,378 | 118,324 | 281,054 | | Net income (loss) | 33,605 | (27,838) | 61,443 | 72,669 | (34,530) | 107,199 | | Per share – Basic (“EPS”) | 0.09 | (0.09) | 0.18 | 0.20 | (0.11) | 0.31 | | Earnings from mining operations before depletion, amortization and non-recurring items* | 170,636 | 67,118 | 103,518 | 439,174 | 126,609 | 312,565 | | Adjusted EBITDA* | 164,164 | 62,137 | 102,027 | 382,336 | 113,960 | 268,376 | | Adjusted net income (loss)* | 54,589 | 5,584 | 49,005 | 122,611 | (14,384) | 136,995 | | Per share – Basic (“Adjusted EPS”)* | 0.15 | 0.02 | 0.13 | 0.34 | (0.05) | 0.39 | | | | | | | | |

*Non-GAAP performance measure. See end of news release.

Review of Operations

| Operating data | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | | | | | | | Gibraltar | | | | | | | | | | | | Tons mined (millions) | | 26.1 | | 26.2 | | 24.2 | | 28.0 | | 29.3 | | Tons milled (millions) | | 7.5 | | 7.2 | | 7.0 | | 7.2 | | 7.8 | | Strip ratio | | 2.2 | | 3.3 | | 2.6 | | 2.2 | | 1.5 | | Site operating cost per ton milled* | $17.79 | $16.47 | $18.15 | $16.61 | $14.98 | | | | | | | Copper concentrate | | | | | | | | | | | | Head grade (%) | | 0.28 | | 0.25 | | 0.25 | | 0.26 | | 0.22 | | Recovery (%) | | 77.1 | | 81.6 | | 82.6 | | 80.9 | | 77.2 | | Production (million pounds Cu) | | 32.6 | | 29.7 | | 29.2 | | 29.8 | | 26.7 | | Sales (million pounds Cu) | | 29.3 | | 31.7 | | 26.0 | | 30.8 | | 25.4 | | Inventory (million pounds Cu) | | 6.8 | | 3.8 | | 5.9 | | 2.9 | | 4.0 | | Copper cathode | | | | | | | | | | | | Production (thousand pounds Cu) | | 1,271 | | 643 | | 733 | | 919 | | 895 | | Sales (thousand pounds Cu) | | 1,175 | | 470 | | 938 | | 783 | | 905 | | Molybdenum concentrate | | | | | | | | | | | | Production (thousand pounds Mo) | | 380 | | 559 | | 717 | | 830 | | 558 | | Sales (thousand pounds Mo) | | 358 | | 575 | | 708 | | 953 | | 421 | | Per unit data (US$ per Cu pound produced)1 | | | | | | | | | | | | Site operating cost* | $2.83 | $2.81 | $3.09 | $2.80 | $3.09 | | | | | | | By-product credit* | | (0.35) | | (0.65) | | (0.62) | | (0.59) | | (0.39) | | Site operating cost, net of by-product credit* | | 2.48 | | 2.16 | | 2.47 | | 2.21 | | 2.70 | | Off-property cost* | | 0.24 | | 0.25 | | 0.16 | | 0.26 | | 0.17 | | Total operating cost (C1)* | $2.72 | $2.41 | $2.63 | $2.47 | $2.87 | | | | | | | | | | | | | | | | | |

1Gibraltar copper pounds produced includes copper in concentrate and copper cathode.

Operations Analysis

Gibraltar

Third Quarter Review

Gibraltar delivered another strong quarter of operating performance, supported by higher grade ore mined from the lower benches of the Connector pit. Gibraltar produced 33.9 million pounds of copper in the quarter, including 1.3 million pounds of copper cathode.

Mill throughput was 7.5 million tons in the third quarter, compared to 7.2 million tons in the second quarter. Copper head grades averaged 0.28% and recoveries averaged 77% and were impacted by lower-recovery supergene ore from the upper benches of the next phase of mining.

*Non-GAAP performance measure. See end of news release.

Operations Analysis – Continued

The Gibraltar SX/EW plant operated with material from two leach pads during the third quarter following the successful integration of the second heap leach dump, and benefitted from increased PLS flow rates and grade. The additional leach material contributed to higher copper cathode production of 1.3 million pounds in the third quarter.

A total of 26.1 million tons were mined in the third quarter at an average strip ratio of 2.2, as ongoing waste stripping activities continued to provide access to the next phases of the Connector pit.

Gibraltar copper sales totaled 30.4 million pounds in the quarter. Sales were affected by the timing of shipments resulting in a build-up of an additional 3.0 million pounds of inventory during the quarter.

Gibraltar total site costs* were $144.5 million (including capitalized stripping of $10.2 million) in the third quarter, which is in line with the previous two quarters but higher than the prior year. Diesel costs increased $9.6 million compared to the third quarter of 2025, primarily driven by higher diesel prices as a result of the ongoing conflict in the Middle East. Explosives costs increased $3.9 million compared to the third quarter of 2025, primarily driven by higher explosives prices. Other site costs have generally trended higher than 2025 due to broader inflationary pressures.

Molybdenum production was 380 thousand pounds in the third quarter and reflects lower recoveries in the Gibraltar molybdenum plant. At an average molybdenum price of US$32.98 per pound for the quarter, molybdenum provided a by-product credit of US$0.35 per pound of copper produced.

Off-property costs were US$0.24 per pound of copper produced in the third quarter, compared to US$0.17 per pound of copper produced in the third quarter of 2025, reflecting higher treatment and refining charges (“TCRC”) for the last year of a longer-term contract.

Total operating costs (C1)* were US$2.72 per pound of copper produced for the third quarter, compared to US$2.87 per pound of copper produced for the third quarter of 2025. The decrease in total operating costs (C1)* was primarily driven by higher copper production and higher capitalized stripping costs, partially offset by higher site costs.

*Non-GAAP performance measure. See end of news release.

Operations Analysis – Continued

Gibraltar Outlook

Gibraltar continues to provide consistent operating performance. Mining operations are focused in the Connector pit, which will be the primary source of ore for the next several years. Lower grades and recoveries are expected as mining transitions back to the upper benches of the Connector Pit for the next phase of mining. The second heap leach pad was integrated into the Gibraltar SX/EW circuit earlier this year and should continue to provide higher PLS flow rates and grades going forward. Gibraltar is expected to produce 115 to 120 million pounds of copper in 2026, an increase over original production guidance of 110 to 115 million pounds.

Site landed diesel prices remain elevated due to the continued conflict in the Middle East. Diesel prices are currently around $0.85 per litre higher than February pre-war levels. These higher diesel prices have increased Gibraltar’s operating costs by approximately US$0.20 per pound over 2025 levels.

Molybdenum production is expected to remain at similar levels as Gibraltar advances through the Connector pit. Strong molybdenum by-product credits are expected to continue with current molybdenum prices around US$33.00 per pound.

The Company has offtake agreements covering Gibraltar’s copper concentrate production for the remainder of 2026, which contain low, and in certain cases, negative treatment and refining charges (“TCRCs”) rates reflecting the continued tight copper smelting market. Based on the contract terms, the Company expects overall TCRCs to be nominal in 2026. The Company has also tendered substantially all of its 2027 tonnage to take advantage of favorable market conditions obtaining terms which include payable gold and deeply negative TCRCs.

The Company has a prudent hedging program in place to protect a minimum copper price. Currently, the Company has copper put options in place with a strike price of US$4.75 per pound for 27 million pounds covering the fourth quarter of 2026, and US$5.00 per pound for 45 million pounds covering the first half of 2027. The Company expects to purchase copper put options going forward to provide downside price protection while retaining full exposure to increases in the copper price. Refer to “Financial Condition Review—Hedging Strategy” for details.

Operations Analysis – Continued

Third Quarter Review

| Operating data | Q3 2026 | Q2 2026 | | | | Florence Copper | | | | | | Average PLS1flow rate (gpm) | | 4,454 | | 3,182 | | Average PLS grade (g/L) | | 1.5 | | 1.6 | | Operating production well count | | 141 | | 110 | | Copper cathode | | | | | | Production (million pounds Cu) | | 7.0 | | 5.2 | | Sales (million pounds Cu) | | 6.9 | | 5.3 | | Inventory (million pounds Cu) | | 1.0 | | 0.8 | | Per unit data (US$ per Cu pound produced) | | | | | | Site operating cost* | $2.89 | $4.02 | | | | Production royalties2and other off-property costs* | | 0.65 | | 0.70 | | Total operating cost (C1)* | $3.54 | $4.72 | | | | 1 Pregnant leach solution | | | | | | 2 Production royalties include royalties payable to the State of Arizona and Conoco Phillips Inc. | | | | | | | | | | |

Florence Copper is an in-situ copper recovery operation, located in Arizona, USA, designed to produce LME Grade A copper cathode without conventional open-pit mining methods or major surface disturbance. Florence Copper has an annual production capacity of 85 million pounds of copper over the current mine life of 22 years.

Florence Copper is ramping-up production in 2026 and steady progress continued in the third quarter. Copper production increased month-over-month and no wellfield performance issues of any significance were encountered. The operations team has stabilized key process circuits and is focusing on wellfield flow rates and PLS grades. Florence Copper produced 7.0 million pounds of copper cathode in the third quarter compared to 5.2 million pounds in the previous quarter, driven by higher solution flow rates from the wellfield.

There are currently six drill rigs operating on site. The first new production wells were successfully integrated into the system in early June, resulting in higher solution flow rates and PLS grades and increased copper production. At the end of the third quarter, there were 141 production wells providing solutions to the SX/EW plant at flow rates of approximately 5,100 gallons per minute and PLS grades of 1.5 grams per litre.

Copper cathode sales for the third quarter were 6.9 million pounds. Cathode quality has met all customer specifications and trucking logistics have been running smoothly.

*Non-GAAP performance measure. See end of news release.

Operations Analysis – Continued

| Florence Copper site costs (US$ in thousands) | Three months ended September 30, 2026 | Nine months ended September 30, 2026 | | Wellfield development capital expenditures | 25,457 | 65,007 | | Commissioning and start-up costs | - | 15,175 | | Site operating costs | 24,457 | 55,684 | | Total site costs | 49,914 | 135,866 | | | | |

Florence Outlook

Initial flow rates across the wellfield have exceeded expectations, and work is ongoing to establish best practices for wellfield operations. The SX/EW plant has been operating very well, producing high-quality copper cathode with no impurities. The one area where progress remains behind the initial plan is the wellfield expansion. Drilling rates have improved in recent months and new wells are being added on a monthly basis, however overall wellfield development is still about three months behind the original plan set out at the start of the year.

Total production at Florence Copper in 2026 is expected to be 25 to 28 million pounds of copper. Wells recently brought online, together with those expected to come online shortly, are anticipated to support a significant increase in copper cathode production, completing the ramp-up to full production capacity in early 2027.

Florence Copper has had a fixed price contract in place for all sulfuric acid requirements in 2026. Negotiations are in progress to establish an acid supply contract for 2027. Higher acid prices are expected next year due to reported disruptions in global acid supply chains and geopolitical events in the Middle East.

Long-term Growth Strategy

Trekor’s strategy has been to grow the Company by acquiring and developing a pipeline of projects focused on copper in North America. We continue to believe this will generate long-term returns for shareholders. Our other development projects are located in BC, Canada.

Yellowhead copper project

In July 2025, the Company published a new report titled “Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada” (the “Yellowhead Technical Report”). Based on the Yellowhead Technical Report, the Yellowhead copper project is expected to produce 4.4 billion pounds of copper over a 25-year mine life at an average C1 cost, net of by-product credit, of US$1.90 per pound of copper produced. During the first five years of operations, the Yellowhead project is expected to produce an average of 206 million pounds of copper per year at an average C1 cost, net of by-product credit, of US$1.62 per pound of copper produced. The Yellowhead project also contains valuable precious metal by-products with 282,000 ounces of gold production and 19.4 million ounces of silver production over the life of mine.

Long-term Growth Strategy – Continued

The economic analysis in the Yellowhead Technical Report was prepared using a copper price of US$4.25 per pound, a gold price of US$2,400 per ounce, and a silver price of US$28.00 per ounce.

Project highlights based on the Yellowhead Technical Report are detailed below:

Average annual copper production of 178 million pounds over a 25 year mine life at total cash costs (C1) of US$1.90 per pound of copper produced; Over the first five years of the mine life, copper grade is expected to average 0.32% producing an average of 206 million pounds of copper at total cash costs (C1) of US$1.62 per pound of copper produced; Concentrator designed to process 90,000 tonnes per day of ore with an expected copper recovery of 90%, and produce a clean copper concentrate with payable gold and silver by-products; Conventional open pit mining with a low strip ratio of 1.4; After-tax net present value of $2.0 billion (8% after-tax discount rate) and after-tax internal rate of return of 21%; Initial capital costs of $2.0 billion with a payback period of 3.3 years; and Expected to be eligible for the Canadian Federal Clean Technology Manufacturing Investment Tax Credit, with 30% (approximately $540 million) of eligible initial capital costs reimbursed in year 1 of operation.