Taseko Announces Continued Strong Operational and Financial Results in the First Quarter 2026
Taseko Announces Continued Strong Operational and Financial Results in the
First Quarter 2026
VANCOUVER, British Columbia, May 06, 2026 -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO)
("Taseko" or the "Company") reports first quarter 2026 Adjusted EBITDA* of $93 million and Earnings from mining operations
before depletion and amortization and non-recurring items* of $115 million, a 172% and 195% improvement over the same
period in 2025, respectively. Revenues in the first quarter were $237 million from the sale of 27 million pounds of copper and
708 thousand pounds of molybdenum. First quarter net income was $17 million ($0.05 per share) and Adjusted net income*
was $28 million ($0.08 per share).
As previously released, Gibraltar produced 30 million pounds of copper and 717 thousand pounds of molybdenum in the first
quarter, at Total operating cost (C1)* of US$2.63 per pound of copper produced. The strong production levels from the second
half of 2025 continued in the first quarter and copper grades of 0.25% were in line with the life of mine average. Mill throughput
was 7.0 million tons in the first quarter, slightly lower than the previous quarter. Throughput was adjusted to optimize copper
recoveries, which increased to 83% in the quarter, and was also impacted by unscheduled maintenance. Tons mined in the
first quarter were in line with plan.
At Florence Copper, the injection of solutions in the wellfield commenced in late 2025 in parallel with the SX/EW plant
commissioning. Initial flowrates were above expectations resulting in faster acidification of the wellfield, and solution grades
reached targeted levels in January. The SX/EW plant commenced operation in February, and first copper cathodes were
harvested at the end of February. A total of 1.5 million pounds of copper cathode was produced in the first quarter. Five drill
rigs are now operating on site and increased production from newly acidified wells is expected later in the second quarter.
Additional production growth will come as new groups of wells are constructed, tested, and integrated into the wellfield
operation over the remainder of the year. Expected copper cathode production in 2026 continues to be in the range of 30 to 35
million pounds.
Stuart McDonald, President & CEO of Taseko, commented, “Both of Taseko’s producing assets performed well in the first
quarter. Gibraltar operations have achieved a consistent production level in recent quarters as mining activities have been
advancing on plan in the Connector pit.”
“At Florence Copper, we are very pleased with the first six months of wellfield operations and first two months of plant
operations. After the initial cathode harvest at the end of February, our operating team has done an excellent job stabilizing
solution flow and grade from the wellfield through to the SX/EW plant circuits. Copper production from the initial wells has
achieved a steady rate, in line with our expectations, and the focus is now on expanding the wellfield to ramp-up production
over the remainder of the year.”
“Environmental assessment work on our Yellowhead copper project continued to advance in the quarter. After the first round of
community open houses that we held last fall, our next significant milestone is filing the detailed project description, which will
incorporate feedback received from the general public, Indigenous communities, and regulatory agencies. We are working on
this now with the goal to file it this coming summer.”
“Taseko is uniquely positioned as a North American copper growth story. Florence Copper is adding low-cost production and
cash flow growth this year, to Gibraltar’s existing production base. The Company is well positioned to capitalize on the strong
copper markets we see today, and continue to unlock value from our pipeline of large-scale longer term projects.”
*Non-GAAP performance measure. See end of news release.
First Quarter Review
• Earnings from mining operations before depletion and amortization* was $114.6 million, Adjusted EBITDA* was $93.5
million and cash flow from operations was $93.9 million;
• Net income was $16.8 million ($0.05 earnings per share) and Adjusted net income* was $27.5 million ($0.08 adjusted
earnings per share);
• Gibraltar produced 30.0 million pounds of copper, including 0.7 million pounds of copper cathode, at a total operating
cost (C1)* of US$2.63 per pound of copper produced. Copper head grades averaged 0.25% and recoveries averaged
83%;
• Gibraltar sold 27.0 million pounds of copper, including 0.9 million pounds of copper cathode, at an average realized
copper price of US$5.74 per pound contributing to revenues of $237.1 million for Taseko. The Company had copper
collar contracts maturing in the first quarter for 27 million pounds with a ceiling price of US$5.40 per pound, resulting in
a realized derivative loss of $17.4 million;
• Site costs increased in the 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;
• Florence Copper’s SX/EW plant started up in mid-February and first copper cathodes were harvested at the end of
February. A total of 1.5 million pounds of copper cathode was produced in the last five weeks of the quarter. Ongoing
drilling and expansion of the wellfield will continue in 2026 to support the ramp up of copper production at Florence; and
• At March 31, 2026, the Company had a cash balance of $169 million and total available liquidity of $322 million
including its undrawn corporate revolving credit facility.
Three months ended
March 31,
Gibraltar operating data 2026 2025 Change
Tons mined (millions) 24.2 23.2 1.0
Tons milled (millions) 7.0 7.9 (0.9)
Production (million pounds Cu) 30.0 20.0 10.0
Sales (million pounds Cu) 27.0 21.8 5.2
Financial data
Three months ended
March 31,
(Cdn$ in thousands, except per share amounts) 2026 2025 Change
Revenues 237,093 139,149 97,944
Cash flows from operations 93,857 55,892 37,965
Net income (loss) 16,844 (28,560) 45,404
Per share - Basic (“EPS”) 0.05 (0.09) 0.14
Earnings from mining operations before depletion, amortization and non-
recurring items* 114,561 38,791 75,770
Adjusted EBITDA* 93,463 34,391 59,072
Adjusted net income (loss)* 27,535 (6,943) 34,478
Per share - Basic (“Adjusted EPS”)* 0.08 (0.02) 0.10
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar
Operating data Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
Tons mined (millions) 24.2 28.0 29.3 30.4 23.2
Tons milled (millions) 7.0 7.2 7.8 7.7 7.9
Strip ratio 2.6 2.2 1.5 2.3 4.6
Site operating cost per ton milled* $ 18.15 $ 16.61 $ 14.98 $ 11.23 $ 8.73
Copper concentrate
Head grade (%) 0.25 0.26 0.22 0.20 0.19
Recovery (%) 82.6 80.9 77.2 63.2 67.5
Production (million pounds Cu) 29.2 29.8 26.7 19.4 20.0
Sales (million pounds Cu) 26.0 30.8 25.4 19.0 21.8
Inventory (million pounds Cu) 5.9 2.9 4.0 2.7 2.3
Copper cathode
Production (thousand pounds Cu) 733 919 895 395 -
Sales (thousand pounds Cu) 938 783 905 - -
Molybdenum concentrate
Production (thousand pounds Mo) 717 830 558 180 336
Sales (thousand pounds Mo) 708 953 421 178 364
Per unit data (US$ per Cu pound produced) 1
Site operating cost* $ 3.09 $ 2.80 $ 3.09 $ 3.15 $ 2.41
By-product credit* (0.62) (0.59) (0.39) (0.19) (0.33)
Site operating cost, net of by-product credit* 2.47 2.21 2.70 2.96 2.08
Off-property cost* 0.16 0.26 0.17 0.18 0.18
Total operating cost (C1)* $ 2.63 $ 2.47 $ 2.87 $ 3.14 $ 2.26
1 Copper pounds produced includes copper in concentrate and copper cathode.
Operations Analysis
First Quarter Results of Gibraltar
Gibraltar copper production totaled 30.0 million pounds in the quarter, including 0.7 million pounds of copper cathode, which
was comparable to the previous quarter and a 50% increase from the comparative prior year quarter. Gibraltar’s cathode
production benefited from the SX/EW plant operating continuously through the winter months.
Copper head grades averaged 0.25% and were in line with life of mine average grades. Copper recoveries averaged 83% and
benefitted from improved ore characteristics. Copper sales in the first quarter were 27.0 million pounds, and lower than
production due to shipment timing.
Mill throughput was 7.0 million tons in the first quarter, impacted by lower mill availability due to maintenance activities and ore
hardness.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - continued
A total of 24.2 million tons were mined in the first quarter, comparable to the comparative prior year quarter. The average strip
ratio was 2.6 in the quarter, reflecting continued advancement of waste stripping for the next phases of the Connector pit.
Total Gibraltar site costs* were $142.2 million (including capitalized stripping of $15.2 million) in the first quarter reflecting
higher costs for key inputs and unscheduled maintenance activities. Diesel costs increased $5.3 million compared to the
comparative prior year quarter, driven by both higher usage and increased diesel prices in March as a result of rising oil prices
due to the ongoing conflict in the Middle East. Explosives costs also increased $6.1 million compared to the comparative prior
year quarter, driven by higher usage and higher costs caused by a disruption in the supply chain. Site costs were also higher
due to unscheduled maintenance activities, primarily on the loader and dozer fleets.
Molybdenum production was 717 thousand pounds in the first quarter and reflects the higher molybdenum grades realized in
Connector pit ore. At an average molybdenum price of US$25.73 per pound for the quarter, molybdenum provided a by-product
credit of US$0.62 per pound of copper produced.
Off-property costs were US$0.16 per pound of copper produced and reflect the lower treatment and refining charges (“TCRC”)
realized on Gibraltar’s favorable offtake contracts.
Total operating costs (C1)* were US$2.63 per pound of copper produced for the first quarter, compared to US$2.47 per pound
of copper produced for the prior quarter, driven by higher repairs and maintenance costs and higher costs for key inputs,
particularly diesel and explosives, partially offset by higher capitalized stripping costs and lower offsite costs.
Gibraltar Outlook
Mining activity is focused in the Connector pit, which will be the primary source of ore for the next three years (2026 through
2028). Total copper production at Gibraltar for 2026 is expected to be in the range of 110 to 115 million pounds and is
expected to continue at similar levels (± 5%) until completion of mining in the Connector pit. This includes the expected
impact of supergene ore on mill recoveries as well as a more conservative forecast for head grade based on mining experience
to-date in the Connector pit.
*Non-GAAP performance measure. See end of news release.
Gibraltar Outlook - continued
Oxide ore mined from Connector Pit has been stacked on leach pads and will be processed in the Gibraltar SX/EW plant in
the coming years. The second oxide leach pad is now being integrated into the operation, which is expected to increase flow
rates to the SX/EW plant, and support higher copper cathode production going forward.
Site diesel prices are currently $0.50 per litre higher than February levels. At these higher prices, Gibraltar’s operating costs
will increase by approximately US$0.15 per pound in future quarters if these market conditions prevail.
Molybdenum production in 2026 is expected to remain at similar levels to 2025, and with molybdenum prices above US$25.00
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 TCRCs to be nominal in 2026, similar to 2025. Spot TCRC rates continue to be
attractive and the Company could tender additional 2027 tons in the coming months to take advantage of the favorable market.
The Company has a prudent hedging program in place to protect a minimum copper price and Gibraltar cash flow during the
ramp-up of commercial operations at Florence Copper. Currently, the Company has copper collar contracts in place with a
floor of US$4.00 per pound and a ceiling of US$5.40 per pound for 27 million pounds of copper production for the second
quarter of 2026, and a floor of US$4.75 per pound and a ceiling of between US$7.50 and US$8.50 per pound for 24 million
pounds of copper production for the third quarter of 2026 (refer to “Financial Condition Review—Hedging Strategy” for details).
The Company has not hedged any of its Florence Copper production.
Florence Copper
Florence Copper is an in-situ copper recovery operation, located in Arizona, USA, that produces LME Grade A copper metal
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. The commercial operations at Florence Copper have an annual
production capacity of 85 million pounds of copper and with current reserves has 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.
Construction activities at Florence Copper were substantially complete in the fourth quarter of 2025.
The focus of the operating team in the first quarter transitioned to wellfield operations, commissioning of the SX/EW plant and
the start of production. Commercial wellfield acidification commenced in November with initial injection flowrates slightly above
expectations. Commissioning of the SX/EW plant area advanced in parallel with initial wellfield operations, and plant
operations commenced mid-February. Plating of copper cathode commenced with the startup of the electrowinning circuit and
first cathodes were harvested at the end of February.
Florence Copper - continued
Wellfield drilling re-commenced in late 2025 and there are currently five drill rigs operating on site. Continued expansion of the
commercial wellfield will be required to support higher solution flows and increased copper production as the Florence Copper
commercial operation progresses through its ramp up in 2026.
Total production in 2026 at Florence Copper is expected to be in the range of 30 to 35 million pounds of copper. In the first
quarter, with the SX/EW plant operating, Florence Copper produced a total of 1.5 million pounds of LME Grade A copper
cathode with corresponding sales of 619 thousand pounds.
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
March 31, 2026
Commissioning and start-up costs 15,175
Wellfield development capital expenditures 13,075
Site operating costs 7,414
Total site costs 35,664
Long-term Growth Strategy
Taseko’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 2025 Technical Report”). Based on the Yellowhead 2025 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 operation, 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.
The economic analysis in the Yellowhead 2025 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 2025 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 5 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;
Long-term Growth Strategy - continued
• 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.
In June 2025, the Yellowhead project’s Initial Project Description was filed and accepted by the British Columbia
Environmental Assessment Office and Impact Assessment Agency of Canada, formally commencing the Environmental
Assessment process.
The Company continued to advance the environmental assessment work on the Yellowhead project in the quarter. After the
first round of community-based open houses that were held in the fall, the next significant milestone is filing the detailed
project description, based on public, Indigenous and agency feedback. On April 29, 2026, the Government of BC announced
that the Yellowhead copper project has been added to its list of priority major projects.
The Company continues to engage with project stakeholders to ensure that the development of the Yellowhead Project is in
line with environmental and social expectations. The Company has a community office for the Yellowhead project to support
ongoing engagement with local communities including First Nations.
New Prosperity copper-gold project
In June 2025, Taseko, the Tŝilhqot’in Nation and the Province of BC reached a historic agreement concerning the New
Prosperity project (the “Teẑtan Biny Agreement”). The Teẑtan Biny Agreement ended litigation among the parties while
providing certainty with respect to how the significant copper-gold resource at New Prosperity may be developed in the future.
As part of the Teẑtan Biny Agreement, Taseko contributed a 22.5% equity interest in the New Prosperity mineral tenures to a
trust for the future benefit of the Tŝilhqot’in Nation. The trust will transfer the property interest to the Tŝilhqot’in Nation if and
when it consents to a proposal to pursue mineral development in the project area. Taseko retains a majority interest (77.5%) in
the New Prosperity mineral tenures and can divest some or all of its interest at any time, including to other mining companies
that could advance a project with the consent of the Tŝilhqot’in Nation. However, Taseko has committed not to be the
proponent (operator) of mineral exploration and development activities at New Prosperity, nor the owner of a future mine
development. Taseko has also entered into a consent agreement with the Tŝilhqot’in Nation, whereby no mineral exploration or
development activity can proceed in the New Prosperity project area without the free, prior and informed consent of the
Tŝilhqot’in Nation. The Province of BC and the Tŝilhqot’in Nation have agreed to negotiate the process by which the consent of
the Tŝilhqot’in Nation will be sought for any proposed mining project to proceed through an environmental assessment process
and have also agreed to undertake a land-use planning process for the area of the mineral tenures and a broader area of land
within Tŝilhqot’in territory.
Long-term Growth Strategy - continued
Aley niobium project
Environmental monitoring and product marketing initiatives on the Aley niobium project continue. The converter pilot test is
ongoing to provide additional process data to support the design of commercial process facilities. In 2025, the Company
produced on-spec ferro-niobium, and the process is now scaling up to provide product samples to support marketing
initiatives. The Company is also conducting a scoping study to investigate the potential for Aley to produce high-purity
niobium oxides to supply the emerging niobium-based battery technology market.
Harmony gold project
On July 12, 2021, Taseko announced that it had entered into an asset purchase agreement (the “Agreement”) to sell the
Harmony Gold Project to JDS Gold Inc. ("JDS"), a newly incorporated company controlled by JDS Energy & Mining Inc. and
affiliates. Under the terms of the Agreement, JDS became the owner and operator of the Harmony Gold Project, a high-grade
development-stage gold project located on Graham Island in Haida Gwaii. Taseko retained a 15% carried interest in JDS and
a 2% net smelter return royalty on the Project. Taseko also had the right to terminate the Agreement and revert to 100%
ownership of Harmony in the event JDS did not achieve certain project development milestones and an IPO or other liquidity
event within an agreed timeframe. The agreed timeframe was subsequently extended several times and, as the conditions
were not met by the deadline, Taseko exercised its reversionary right to receive the mineral tenures back from JDS in late
2025. Taseko is in the process of negotiating and executing a new option agreement with JDS to advance the Harmony Gold
Project.
Conference Call and Webcast
The Company will host a telephone conference call and live webcast on Thursday, May 7, 2026, at 11:00 a.m. Eastern Time
(8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer
session open to analysts and investors. The conference call may be accessed by dialing 800-715-9871 toll free or 646-307-
1963, using the access code 3266924. The webcast may be accessed at tasekomines.com/investors/events and will be
archived until May 7, 2027 for later playback.
For further information on Taseko, see the Company’s website at tasekomines.com or contact:
• Investor enquiries Brian Bergot, Vice President, Investor Relations – 778-373-4554
Stuart McDonald
President and CEO
Non-GAAP Performance Measures
This MD&A includes certain non-GAAP performance measures that do not have a standardized meaning prescribed by IFRS
Accounting Standards. These measures may differ from those used by, and may not be comparable to such measures as
reported by, other issuers. The Company believes that these measures are commonly used by certain investors, in
conjunction with conventional IFRS Accounting Standards measures, to enhance their understanding of the Company’s
performance. These measures have been derived from the Company’s financial statements and applied on a consistent
basis. The following tables below provide a reconciliation of these non-GAAP measures to the most directly comparable IFRS
Accounting Standards measures.
Gibraltar total operating cost and site operating cost, net of by-product credit
Total operating cost includes all costs absorbed into inventory, as well as transportation costs and insurance recoverable.
Site operating cost is calculated by removing net changes in inventory, depletion and amortization, insurance recoverable, and
transportation costs from cost of sales. Site operating cost, net of by-product credit is calculated by subtracting by-product
credits from site operating cost. Site operating cost, net of by-product credit per pound is calculated by dividing the aggregate
of the applicable costs by pounds of copper produced. Total operating cost per pound is the sum of site operating costs, net
of by-product credits and off-property costs divided by pounds of copper produced. By-product credit is calculated based on
actual sales of molybdenum (net of treatment costs), silver and gold during the period divided by the total pounds of copper
produced during the period. These measures are calculated on a consistent basis for the periods presented.
Gibraltar
(Cdn$ in thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
Cost of sales 151,698 146,919 134,664 120,592 122,783
Less:
Depletion and amortization (29,166) (27,207) (27,876) (25,210) (22,425)
Changes in inventories of finished goods 19,875 (2,611) 1,425 2,123 (2,710)
Changes in inventories of ore stockpiles (1,332) 13,473 16,685 (5,718) (22,747)
Changes in inventories of copper in solutions 2,290 - - - -
Transportation costs (6,395) (10,989) (7,247) (5,720) (5,984)
Site operating costs 136,970 119,585 117,651 86,067 68,917
Less: Florence site operating costs (9,949) - - - -
Gibraltar site operating costs 127,021 119,585 117,651 86,067 68,917
Less by-product credits:
Molybdenum, net of treatment costs (27,009) (25,095) (13,903) (4,814) (8,774)
Silver, excluding amortization of deferred revenue 2,026 312 (295) (58) (131)
Gold (567) (619) (761) (351) (389)
Gibraltar site operating costs, net of by-product credits 101,471 94,183 102,692 80,844 59,623
Gibraltar total copper produced (thousand pounds) 29,893 30,712 27,593 19,813 19,959
Total costs per pound produced 3.39 3.07 3.72 4.08 2.99
Average exchange rate for the period (CAD/USD) 1.37 1.39 1.38 1.38 1.44
Site operating costs, net of by-product credits
(US$ per pound) 2.47 2.21 2.70 2.96 2.08
Gibraltar site operating costs, net of by-product credits 101,471 94,183 102,692 80,844 59,623
Add off-property costs:
Treatment and refining costs (premiums) 96 394 (512) (837) (510)
Transportation costs 6,395 10,989 7,247 5,720 5,984
Gibraltar total operating costs 107,962 105,566 109,427 85,727 65,097
Gibraltar total operating costs (C1) (US$ per pound) $ 2.63 $ 2.47 $ 2.87 $ 3.14 $ 2.26
Non-GAAP Performance Measures - continued
Gibraltar total site costs
Gibraltar total site costs include site operating costs charged to cost of sales and mining costs capitalized to property, plant
and equipment in the period. This measure is intended to capture total site operating costs incurred at Gibraltar during the
period calculated on a consistent basis for the periods presented.
Gibraltar
(Cdn$ in thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
Site operating costs (included in cost of sales) 136,970 119,585 117,651 86,067 68,917
Less: Florence site operating costs (9,949) - - - -
Gibraltar site operating costs 127,021 119,585 117,651 86,067 68,917
Gibraltar capitalized stripping costs 15,169 5,986 6,106 30,765 38,082
Total site costs 142,190 125,571 123,757 116,832 106,999
Adjusted net income (loss) and Adjusted EPS
Adjusted net income (loss) removes the effect of the following transactions from net income (loss) as reported under IFRS
Accounting Standards:
• Unrealized foreign currency gains and losses;
• Unrealized gains and losses on derivatives (including any reversals for prior periods);
• Other operating costs;
• Call premium on settlement of debt;
• Loss on settlement of debt, net of capitalized interest;
• Realized gain on sale of finished goods inventories;
• Realized gains on processing of ore stockpiles;
• Accretion on Florence royalty obligation;
• Accretion on Cariboo consideration payable;
• Tax effect of sale of non-controlling interest in New Prosperity; and
• Non-recurring other expenses for Cariboo acquisition.
Management believes that these transactions do not reflect the underlying operating performance of the Company’s core
mining business and are not necessarily indicative of future operating results. Furthermore, unrealized gains and losses on
derivative instruments, changes in the fair value of financial instruments, and unrealized foreign currency gains and losses are
not necessarily reflective of the underlying operating results for the periods presented.
Adjusted earnings per share (“Adjusted EPS”) is Adjusted net income attributable to common shareholders of the Company
divided by the weighted average number of common shares outstanding for the period.
Non-GAAP Performance Measures - continued
(Cdn$ in thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025
Net income (loss) 16,844 4,454 (27,838) 21,868
Unrealized foreign exchange loss (gain) 12,171 (9,000) 14,287 (40,335)
Unrealized (gain) loss and fair value adjustments on derivatives (9,582) 37,676 14,977 9,489
Accretion on Cariboo consideration payable 1,261 4,048 4,041 4,484
Accretion on Florence royalty obligation 6,294 18,415 6,991 6,201
Tax effect of sale of non-controlling interest in New Prosperity - - - (9,285)
Estimated tax effect of adjustments 547 (14,068) (6,874) (5,447)
Adjusted net income (loss) 27,535 41,525 5,584 (13,025)
Adjusted EPS $ 0.08 $ 0.11 $ 0.02 $ (0.04)
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560) (21,207) (180) (10,953)
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259) 5,408
Unrealized (gain) loss and fair value adjustments on derivatives 23,536 (25,514) 1,821 10,033
Accretion on Cariboo consideration payable 664 4,543 9,423 8,399
Accretion on Florence royalty obligation 2,571 3,682 3,703 2,132
Other operating costs - 4,132 4,098 10,435
Realized gain on sale of inventory1 - - - 3,768
Realized gain on processing of ore stockpiles2 - 1,905 3,266 4,056
Non-recurring other expenses related to Cariboo acquisition - - - 394
Call premium on settlement of debt - - - 9,571
Loss on settlement of debt, net of capitalized interest - - - 2,904
Estimated tax effect of adjustments (7,228) 2,465 (6,644) (15,644)
Adjusted net income (loss) (6,943) 10,468 8,228 30,503
Adjusted EPS $ (0.02) $ 0.03 $ 0.03 $ 0.10
1. Realized gain on sale of inventory relates to copper concentrate inventories held at March 25, 2024 that was written-up
to fair value as part of the acquisition of control of Gibraltar and subsequently sold. The realized portion of these gains
have been added back to Adjusted net income in the period the inventories were sold.
2. Realized gain on processing of ore stockpiles relates to ore stockpile inventories held at March 25, 2024 that was
written-up to fair value as part of the acquisition of control of Gibraltar and subsequently processed. The realized
portion of these gains have been added back to Adjusted net income in the period the inventories were processed.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is presented as a supplemental
measure of the Company’s performance and ability to service debt. Adjusted EBITDA is frequently used by securities
analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present adjusted
EBITDA when reporting their results. Issuers of “high yield” securities also present adjusted EBITDA because investors,
analysts and rating agencies considering it useful in measuring the ability of those issuers to meet debt service obligations.
Non-GAAP Performance Measures - continued
Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization, and also eliminates the
impact of a number of transactions that are not considered indicative of ongoing operating performance. Certain items of
expense are added back and certain items of income are deducted from net income that are not likely to recur or are not
indicative of the Company’s underlying operating results for the reporting periods presented or for future operating performance
and consist of:
• Unrealized foreign exchange gains and losses;
• Unrealized gains and losses on derivative (including any reversals for prior periods);
• Amortization of share-based compensation expense;
• Other operating costs;
• Call premium on settlement of debt;
• Loss on settlement of debt;
• Realized gains on sale of finished goods inventories;
• Realized gains on processing of ore stockpiles; and
• Non-recurring other expenses for Cariboo acquisition.
(Cdn$ in thousands) Q1 2026 Q4 2025 Q3 2025 Q2 2025
Net income (loss) 16,844 4,454 (27,838) 21,868
Depletion and amortization 29,166 27,207 27,974 25,210
Finance and accretion expenses 20,214 36,925 24,888 23,943
Finance income (1,474) (1,098) (1,368) (124)
Income tax expense (recovery) 16,657 13,096 2,918 (27,439)
Unrealized foreign exchange loss (gain) 12,171 (9,000) 14,287 (40,335)
Unrealized (gain) loss on derivatives and fair value adjustments (9,582) 37,676 14,977 9,489
Share-based compensation expense 9,467 7,204 6,299 4,820
Adjusted EBITDA 93,463 116,464 62,137 17,432
(Cdn$ in thousands) Q1 2025 Q4 2024 Q3 2024 Q2 2024
Net loss (28,560) (21,207) (180) (10,953)
Depletion and amortization 22,425 24,641 20,466 13,721
Finance and accretion expenses 18,877 21,473 25,685 21,271
Finance income (1,330) (1,674) (1,504) (911)
Income tax expense (recovery) (7,980) 11,707 (200) (3,247)
Unrealized foreign exchange loss (gain) 2,074 40,462 (7,259) 5,408
Unrealized (gain) loss on derivatives 23,536 (25,514) 1,821 10,033
Share based compensation expense (recovery) 5,349 (323) 1,496 2,585
Other operating costs - 4,132 4,098 10,435
Call premium on settlement of debt - - - 9,571
Loss on settlement of debt - - - 4,646
Realized gain on sale of inventory2 - - - 3,768
Realized gain on processing of ore stockpiles3 - 1,905 3,266 4,056
Non-recurring other expenses for Cariboo acquisition - - - 394
Adjusted EBITDA 34,391 55,602 47,689 70,777
Non-GAAP Performance Measures - continued
Earnings from mining operations before depletion, amortization and non-recurring items
Earnings from mining operations before depletion, amortization and non-recurring items is earnings from mining operations with
depletion and amortization, and any items that are not considered indicative of ongoing operating performance added back.
The Company discloses this measure, which has been derived from the Company’s financial statements and applied on a
consistent basis, to assist in understanding the results of the Company’s operations and financial position, and it is meant to
provide further information about the financial results to investors.
Three months ended
March 31,
(Cdn$ in thousands) 2026 2025
Earnings from mining operations 84,443 16,366