Trekor Metals Ltd. press release

Trekor Announces $125 Million of Adjusted EBITDA in Second Quarter

2026-08-05

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

VANCOUVER, British Columbia, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Trekor Metals Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Trekor" or the "Company") reports second quarter 2026 Adjusted EBITDA* of $125 million. Earnings from mining operations before depletion and amortization and non-recurring items* was $154 million. Revenues in the second quarter were $331 million from consolidated sales of 37.5 million pounds of copper and 575 thousand pounds of molybdenum. Second quarter net income was $22 million ($0.06 per share) and Adjusted net income* was $40 million ($0.11 per share).

Stuart McDonald, President & CEO of Trekor, commented, “Record copper prices and strong production at Gibraltar led to some of the best results we have ever recorded. Operating cash flow of $183 million underscores Trekor's significant leverage to copper price with additional upside as Florence Copper progresses through its ramp-up. We expect strong financial performance in the coming quarters with production growth at Florence Copper, and as our margins are no longer limited by the US$5.40 copper collars which matured in June.”

Gibraltar produced 30 million pounds of copper and copper sales volumes were 32 million pounds. Mining activities in the second quarter were focused in the lower benches of the Connector Pit, which delivered grades in line with the life of mine average. Copper cathode production was temporarily reduced during the quarter due to planned SX/EW plant downtime in April for the integration of a second leach pad, which will support higher cathode production going forward. Molybdenum revenue remains an important by-product to offset inflation of Gibraltar’s cost structure from higher diesel prices. A total of 559 thousand pounds of molybdenum were produced in the second quarter, and the realized price of nearly US$30 per pound resulted in a by-product credit of US$0.65 per pound of copper.

Florence Copper produced 5.2 million pounds of copper in the second quarter, the first full quarter of plant operations. Copper cathode production is primarily driven by two key operating metrics: solution flows (SX/EW feed) and pregnant leach solution ("PLS") grades. In the second quarter, flow rates averaged 3,200 gallons per minute, which was 16% higher than in the first quarter from the addition of 20 new production wells in June. PLS grades in the quarter averaged 1.6 grams per litre. Solution flows and PLS grades have stabilized at expected levels, and wellfield operating practices continue to be optimized to increase production from existing wells. Wellfield expansion remains a key focus for the site operating team, and new wells to be added in the second half of the year will increase the amount of copper flowing to the SX/EW plant.

Consolidated production in the second quarter reached 36 million pounds, an 80% increase over the same period in 2025. Growth came from improved production from Gibraltar as well as early stage ramp up production from Florence Copper.

“Strong operating performance in the quarter was underpinned by continued steady operations at Gibraltar and the new cathode production from Florence Copper. Florence Copper delivered its first quarter of production and we are encouraged by the early results from the ramp-up process. An additional 18 wells are being integrated into the wellfield this week, with more to be commissioned in coming weeks, providing a further boost to production later this quarter. With the five drill rigs we have operating today, we expect to achieve the required drilling to support the planned production ramp-up this year,” added Mr. McDonald.

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

Mr. McDonald concluded, “Yellowhead permitting activities continue to advance steadily. Last week, another notable milestone was achieved as the BC Environmental Assessment Office issued a positive Readiness Decision, which confirms the project is ready to move into process planning and the next phases of the Environmental Assessment.”

Production guidance remains unchanged for Gibraltar (110 to 115 million pounds) and Florence Copper (30 to 35 million pounds).

Second Quarter Highlights

Earnings from mining operations before depletion, amortization and non-recurring items* was $154.0 million, Adjusted EBITDA* was $125.1 million and cash flow from operations was $183.4 million; Net income was $22.2 million ($0.06 per share) and Adjusted net income* was $40.5 million ($0.11 per share); Gibraltar produced 30.3 million pounds of copper, including 0.6 million pounds of copper cathode, at a total operating cost (C1)* of US$2.41 per pound of copper produced. Copper head grades averaged 0.25% and recoveries averaged 82%; Gibraltar site costs remain at a higher level in the second quarter compared to 2025 as a result of higher diesel and explosive costs which could remain elevated in the coming quarters due to market factors; Gibraltar sold 32.2 million pounds of copper at an average realized copper price of US$6.10 per pound contributing to total revenues of $330.6 million for Trekor; Florence produced 5.2 million pounds of copper cathode in the second quarter. Drilling and expansion of the wellfield will continue in 2026 to support the ongoing ramp-up of copper production at Florence; 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; The Company had copper collar contracts that matured in the second quarter for 27 million pounds with a ceiling price of US$5.40 per pound, resulting in a realized derivative loss of $24.2 million. Going forward, the ceiling price for the third quarter is US$7.50 and US$8.50 per pound. The Company has reverted to using put options with no ceiling for the fourth quarter; and At June 30, 2026, the Company had a cash balance of $186 million and total available liquidity of $342 million including its undrawn corporate revolving credit facility.

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

| | Three months ended June 30, | Six months ended June 30, | | | | | | | | Operating data | 2026 | 2025 | Change | 2026 | 2025 | Change | | | | Gibraltar | | | | | | | | | | Tons mined (millions) | 26.2 | 30.4 | (4.2 | ) | 50.4 | 53.6 | (3.2 | ) | | Tons milled (millions) | 7.2 | 7.7 | (0.5 | ) | 14.2 | 15.6 | (1.4 | ) | | Production (million pounds Cu) | 30.3 | 19.8 | 10.5 | | 60.2 | 39.8 | 20.4 | | | Sales (million pounds Cu) | 32.2 | 19.0 | 13.2 | | 59.1 | 40.8 | 18.3 | | | | | | | | | | | | | Florence Copper | | | | | | | | | | Average flow rate (gpm) | 3,182 | - | 3,182 | | 2,768 | - | 2,768 | | | Average PLS grade (g/L) | 1.6 | - | 1.6 | | 1.7 | - | 1.7 | | | Production (million pounds Cu) | 5.2 | - | 5.2 | | 6.7 | - | 6.7 | | | Sales (million pounds Cu) | 5.3 | - | 5.3 | | 5.9 | - | 5.9 | | | | | | | | | | | |

| | Three months ended June 30, | Six months ended June 30, | | | | | | | | | Financial data | 2026 | 2025 | Change | 2026 | 2025 | Change | | | | | Revenues | 330,553 | 116,082 | | 214,471 | | 567,646 | 255,231 | | 312,415 | | Cash flows from operations | 183,390 | 25,954 | | 157,436 | | 277,247 | 81,846 | | 195,401 | | Net income (loss) | 22,220 | 21,868 | | 352 | | 39,064 | (6,692 | ) | 45,756 | | Per share – Basic (“EPS”) | 0.06 | 0.07 | | (0.01 | ) | 0.11 | (0.02 | ) | 0.13 | | Earnings from mining operations before depletion, amortization and non-recurring items* | 153,977 | 20,700 | | 133,277 | | 268,538 | 59,491 | | 209,047 | | Adjusted EBITDA* | 125,094 | 17,432 | | 107,662 | | 218,557 | 51,682 | | 166,875 | | Adjusted net income (loss)* | 40,487 | (13,025 | ) | 53,512 | | 68,022 | (19,968 | ) | 87,990 | | Per share – Basic (“Adjusted EPS”)* | 0.11 | (0.04 | ) | 0.15 | | 0.19 | (0.06 | ) | 0.25 | | | | | | | | | | | |

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

Review of Operations

| Operating data | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | | | | | | | | | | | | Gibraltar | | | | | | | | | | | | | | | | | Tons mined (millions) | | 26.2 | | | 24.2 | | | 28.0 | | | 29.3 | | | 30.4 | | | Tons milled (millions) | | 7.2 | | | 7.0 | | | 7.2 | | | 7.8 | | | 7.7 | | | Strip ratio | | 3.3 | | | 2.6 | | | 2.2 | | | 1.5 | | | 2.3 | | | Site operating cost per ton milled* | $16.47 | | $18.15 | | $16.61 | | $14.98 | | $11.23 | | | | | | | | Copper concentrate | | | | | | | | | | | | | | | | | Head grade (%) | | 0.25 | | | 0.25 | | | 0.26 | | | 0.22 | | | 0.20 | | | Recovery (%) | | 81.6 | | | 82.6 | | | 80.9 | | | 77.2 | | | 63.2 | | | Production (million pounds Cu) | | 29.7 | | | 29.2 | | | 29.8 | | | 26.7 | | | 19.4 | | | Sales (million pounds Cu) | | 31.7 | | | 26.0 | | | 30.8 | | | 25.4 | | | 19.0 | | | Inventory (million pounds Cu) | | 3.8 | | | 5.9 | | | 2.9 | | | 4.0 | | | 2.7 | | | Copper cathode | | | | | | | | | | | | | | | | | Production (thousand pounds Cu) | | 643 | | | 733 | | | 919 | | | 895 | | | 395 | | | Sales (thousand pounds Cu) | | 470 | | | 938 | | | 783 | | | 905 | | | - | | | Molybdenum concentrate | | | | | | | | | | | | | | | | | Production (thousand pounds Mo) | | 559 | | | 717 | | | 830 | | | 558 | | | 180 | | | Sales (thousand pounds Mo) | | 575 | | | 708 | | | 953 | | | 421 | | | 178 | | | Per unit data (US$ per Cu pound produced)1 | | | | | | | | | | | | | | | | | Site operating cost* | $2.81 | | $3.09 | | $2.80 | | $3.09 | | $3.15 | | | | | | | | By-product credit* | | (0.65 | ) | | (0.62 | ) | | (0.59 | ) | | (0.39 | ) | | (0.19 | ) | | Site operating cost, net of by-product credit* | | 2.16 | | | 2.47 | | | 2.21 | | | 2.70 | | | 2.96 | | | Off-property cost* | | 0.25 | | | 0.16 | | | 0.26 | | | 0.17 | | | 0.18 | | | Total operating cost (C1)* | $2.41 | | $2.63 | | $2.47 | | $2.87 | | $3.14 | | | | | | | | | | | | | | | | | | | | | | | |

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

Operations Analysis

Gibraltar

Second Quarter Review

Gibraltar continued to deliver steady copper production, supported by more consistent ore characteristics as mining activities focused in the lower benches of the Connector pit. Gibraltar produced 30.3 million pounds of copper in the quarter, including 0.6 million pounds of copper cathode, in line with management expectations.

A total of 26.2 million tons were mined in the quarter at an average strip ratio of 3.3, as ongoing waste stripping activities create access to the next phases of the Connector pit.

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

Operations Analysis – Continued

Mill throughput was 7.2 million tons, which was consistent with the previous quarter but lower than the second quarter of 2025 due to softer ore feed in the prior year. Copper head grades averaged 0.25% and recoveries averaged 82%, remaining consistent with the previous quarter and in line with life of mine averages.

The Gibraltar SX/EW plant was taken offline in April to allow for integration of a second leach pad, impacting second quarter cathode production. The plant was restarted in May and ramped-up by the end of June and is now producing at higher levels.

Copper sales from Gibraltar totaled 32.2 million pounds in the period, which included a drawdown of finished goods inventory at the end of the first quarter.

Gibraltar total site costs* were $145.8 million (including capitalized stripping of $27.8 million) in the quarter reflecting higher costs for key inputs and higher costs related to maintenance activities that were brought forward. Diesel costs increased $7.1 million compared to the second quarter of 2025, primarily driven by higher diesel prices as a result of the ongoing conflict in the Middle East. Explosives costs increased $4.9 million compared to the second quarter of 2025, driven by higher usage and higher unit costs. Repairs and maintenance costs were also higher as some mill maintenance activities originally planned for July and August were brought forward and completed in June.

Molybdenum production was 559 thousand pounds in the quarter and reflects lower recoveries in the Gibraltar molybdenum plant. At an average molybdenum price of US$29.63 per pound for the quarter, molybdenum provided a significant by-product credit of US$0.65 per pound of copper produced.

Off-property costs were US$0.25 per pound of copper produced in the second quarter, compared to US$0.18 per pound of copper produced in the second quarter of 2025, reflecting higher sales volumes in the quarter and some higher treatment and refining charges (“TCRC”) for the last year of a longer-term contract.

Total operating costs (C1)* were US$2.41 per pound of copper produced for the quarter, compared to US$3.14 per pound of copper produced for the second quarter of 2025. The decrease in total operating costs (C1)* was primarily driven by higher copper production and higher molybdenum by-product credits from higher molybdenum sales prices and volume, partially offset by higher prices of key inputs, particularly diesel and explosives, higher repairs and maintenance costs, and SX/EW operating costs which were just beginning in 2025.

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

Operations Analysis – Continued

Gibraltar Outlook

Gibraltar continues to provide consistent operating performance from the Connector pit. The second leach pad has also now been integrated into the Gibraltar oxide operation. Annual Gibraltar copper production guidance for 2026 remains unchanged at 110 to 115 million pounds.

Site landed diesel prices have eased from their peak in April but remain elevated due to the continued conflict in the Middle East. Diesel prices are currently around $0.40 per litre higher than February pre-war levels. These higher diesel prices would increase Gibraltar’s operating costs will increase by approximately US$0.15 per pound in the second half compared to the prior year.

Molybdenum production in 2026 is expected to remain at similar levels as the first half of the year, and with molybdenum prices currently at US$32.00 per pound, we continue to expect strong molybdenum by-product credits.

The Company has offtake agreements covering substantially all of Gibraltar’s copper concentrate production for 2026, which contain low and in certain cases negative TCRC rates reflecting the continued tight copper smelting market. Based on the contract terms, the Company expects overall TCRCs to be nominal in 2026, similar to 2025. The Company has recently tendered additional 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 and during the ramp-up of commercial operations at Florence Copper. Currently, the Company has copper collar contracts in place with a floor of US$4.75 per pound and a ceiling of US$7.50 and US$8.50 per pound for 24 million pounds of copper production for the third quarter of 2026. For the fourth quarter of 2026 and beyond, there is no ceiling price in place, and the Company expects to purchase copper put options going forward to protect a minimum copper price without selling any call options. The Company has copper put options at US$4.75 per pound for 27 million pounds of copper production for the fourth quarter of 2026 (refer to “Financial Condition Review—Hedging Strategy” for details).

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

Operations Analysis – Continued

Florence Copper

Second Quarter Review

| Operating data | Q2 2026 | | Average PLS recovery flow (gpm) | 3,182 | | Average PLS grade (g/L) | 1.6 | | Operating production well count | 110 | | Copper cathode | | | Production (million pounds Cu) | 5.2 | | Sales (million pounds Cu) | 5.3 | | Inventory (million pounds Cu) | 0.8 | | Per unit data (US$ per Cu pound produced) | | | Site operating cost* | $4.02 | | Production royalties1and other off-property cost* | 0.70 | | Total operating cost (C1)* | $4.72 | | | |

1Production royalties include royalties payable to the State of Arizona and Conoco Inc.

Florence Copper is an in-situ copper recovery operation, located in Arizona, USA. It produces LME Grade A copper cathode without conventional open-pit mining methods or major surface disturbance. Florence Copper is projected to rank among the lowest greenhouse gas (“GHG”) intensity primary copper producers in North America, delivering environmentally responsible copper to North American manufacturers and consumers. Florence Copper has an annual production capacity of 85 million pounds of copper over a current mine life of 22 years. Florence Copper is expected to be in the lowest quartile of primary producers on the global copper cost curve based on its long-term operating parameters once at full production capacity.

The production ramp-up at Florence Copper advanced smoothly during the quarter, with the operations team making significant progress stabilizing key process circuits and achieving consistent copper production from the initial production wells. Florence Copper produced a total of 5.2 million pounds of copper cathode in the second quarter compared to 1.5 million pounds in the first quarter, driven by higher solution flow rates from the wellfield.

Wellfield drilling re-commenced in late 2025, and there are currently five 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 pregnant leach solution (“PLS”) grades and increased copper production for the month. At the end of the quarter, there were 110 production wells operating and feeding the SX/EW plant with flow rates of approximately 3,400 gallons per minute and PLS grades of 1.8 grams per liter.

Sales for the quarter were 5.3 million pounds of copper. Cathode quality has met all customer specifications and trucking logistics have been running smoothly to-date.

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

Operations Analysis – Continued

Florence Copper has a fixed price contract in place for all sulphuric acid requirements for 2026, so there is no expected near-term impact from reported disruptions in global acid supply chains due to geopolitical events in the Middle East.

| Florence Copper site costs (US$ in thousands) | Three months ended June 30, 2026 | Six months ended June 30, 2026 | | Wellfield development capital expenditures | 26,475 | 39,550 | | Commissioning and start-up costs | - | 15,175 | | Site operating costs | 23,813 | 31,227 | | Total site costs | 50,288 | 85,952 | | | | |

Florence Outlook

The ramp-up of the Florence Copper operation is advancing on plan. The site operating team continues to refine and optimize wellfield operations to maximize copper production from the existing wells. Wellfield expansion is also a key focus for the ongoing ramp-up, and Florence Copper is on track to bring an additional 26 wells online in August with regular monthly additions of new wells for the remainder of the year. Ongoing expansion of the wellfield will be required to support copper production over the life of mine. Annual Florence Copper production guidance for 2026 is 30 to 35 million pounds.

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 5 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.