Rio2 (RIO) Q1 2026 earnings summary

Executive summary

• Achieved first production at Fenix Gold and initial contribution from Condestable following its acquisition in January 2026, marking a milestone quarter with consolidated production of 7,849 oz gold, 49,198 oz silver, and 6.4M lbs copper.

• Ramp-up at Fenix Gold faced start-up challenges, but most issues have been addressed; production expected to increase through 2026.

• Condestable performed to expectations, providing immediate cash flows and integrating well with the company.

Financial highlights

• Income from mine operations was $24.6M and adjusted net income was $12.1M, compared to $0 and an adjusted net loss of $1.3M in Q1 2025.

• Consolidated revenue reached $65.9M in Q1 2026.

• EBITDA was $40.97M and adjusted EBITDA was $30.82M, up from negative values in Q1 2025.

• Ended Q1 2026 with $93.1M in cash and cash equivalents, after voluntary repayment of $20M in debt.

• Cash provided by operating activities was $22.8M; investing activities used $80.3M; financing activities provided $103.5M.

Outlook and guidance

• Fenix Gold expected to reach commercial production in Q4 2026, with 2026 gold production guidance of 60,000–65,000 oz.

• Condestable production guidance for Feb–Dec 2026 is 21,500–23,500 tonnes of payable copper equivalent.

• Efforts underway to increase Fenix Gold mining rate to 20,000 tonnes/day in Q2 2026 and recover Q1 shortfall.