Peruvian copper muscle drives US$50M earnings bonanza for Rio2

Résumé détaillé

TSX-listed Rio2 Ltd banked US$115M in quarterly revenue and US$50M in EBITDA as its Peruvian copper mine delivered and its weather-affected Chilean gold continued to ramp up in Chile.

Canadian-listed copper and gold producer Rio2 Limited has demonstrated the value of its dual-asset strategy in South America, banking US$115.4 million (A$177 million) in revenue and US$50 million (A$77 million) in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the September quarter.

Leading the charge was its Peruvian Condestable copper mine, which delivered steady production after mining more than 700,000 tonnes of ore grading 0.72 per cent copper, 0.23 grams per tonne (g/t) gold and 5.27g/t silver.

The underground operation produced 9.6 million pounds of copper, alongside 3807 ounces of gold and 93,854 ounces of silver, providing a valuable financial backbone for the company’s expanding operations.

Meanwhile, the company’s Fenix Gold mine in Chile faced a tougher assignment after two major snowstorms in July and August - followed by further snowfall and high winds in September - dumped up to five metres of snow across parts of the project. The severe conditions disrupted mining and processing activities at the high-altitude operation, slowing the production ramp-up achieved during the previous quarter.

Despite the icy setback, Fenix managed to produce 8500 ounces of gold and stack just over one million tonnes of ore onto its heap-leach pad, where gold is extracted by passing a chemical solution through crushed ore.

Rio2 says its site crew successfully kept the crucial leach pad and adsorption-desorption-recovery plant operating and still expects Fenix Gold to ramp up to the planned 20,000-tonnes-per-day target in the fourth quarter.

The company has forecast conditional monthly gold production of 4000 ounces in October, 6000 in November and 7000 in December as a possible path through the final quarter, assuming minimal further disruption.

Rio2 Limited president and chief executive officer Andrew Cox said: “Q3 was a challenging quarter at Fenix Gold.

The company says its quarter also saw a renewed focus on exploration, with the first…

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