TKO.TO · 2026-08-05 12:00:00

Trekor Announces $125 Million of Adjusted EBITDA in Second Quarter

Corporate Updates

VANCOUVER, British Columbia, Aug. 05, 2026 -- 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

2026

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

1 Gibraltar 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 royalties1 and other off-property cost* 0.70

Total operating cost (C1)* $4.72

1 Production 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.

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.

Long-term Growth Strategy – Continued

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 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;

• 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 (“BC EAO”) and Impact Assessment Agency of Canada, formally commencing the

Environmental Assessment (“EA”) process.

In April 2026, the Government of BC announced that the Yellowhead copper project has been added to its list of priority major

projects.

In July 2026, a Detailed Project Description (“DPD”) was submitted to the BC EAO providing more information about the

proposed Yellowhead project, incorporating additional technical work and community and Indigenous feedback received during

the Early Engagement Phase of the EA process. More than 1,000 local community members have participated in a series of

open houses and events hosted by the project team.

The DPD submission marks an important milestone, advancing the Project to the next phase of the provincial EA process and

informing the Readiness Decision and Process Planning phases to come. Process planning and scoping work is also

underway for the Simpcw Process – an Indigenous-led, consent-based decision-making model.

On July 30, 2026, the EAO issued a Notice of the Decision for Yellowhead to proceed to an environmental assessment and

published the Readiness Decision Report and Notice of Decision. Yellowhead will now proceed to the process planning phase

of the EA, formalizing how the EA will be carried out and what information must be provided, who will be involved in the EA and

how they will be engaged.

In July 2026, the Company also released an Economic Impact Study, which evaluates the potential economic impact of the

construction and operation of the Yellowhead project. The study highlights the Yellowhead project as a major economic driver,

with the potential to generate value-added GDP of $27 billion, significant employment and economic opportunities for local

communities and businesses, and $7 billion in total government payments.

Long-term Growth Strategy – Continued

New Prosperity copper-gold project

In June 2025, the Company, 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, Trekor 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. Trekor 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, Trekor 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. Trekor 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.

Aley niobium project

Recent activities at the Aley niobium project have been focused on product marketing initiatives. 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

In 2021, Trekor entered into an agreement to sell the Harmony Gold Project to JDS Gold Inc. ("JDS"), a subsidiary of JDS

Energy & Mining Inc. The Harmony Gold Project is a high-grade development-stage gold project located on Graham Island in

Haida Gwaii. As part of the transaction, Trekor retained a 15% carried interest in the Project and a 2% net smelter return

royalty on the Project. Trekor also had the right to terminate the Agreement and revert to 100% ownership of the Project if JDS

did not achieve project development milestones and an IPO or liquidity event within an agreed timeframe. The agreed

milestones were not achieved and Trekor exercised its reversionary right to receive the Harmony mineral tenures back from

JDS in late 2025. On August 4, 2026, Trekor became the owner of the Harmony project again, and entered into a new option

agreement with a company controlled by JDS Energy & Mining Inc. and affiliates. This option agreement allows for the future

transfer of the Project, on the same terms as the original 2021 transaction, if certain development milestones are achieved by

January 1, 2028.

Annual Sustainability Report

In July 2026, the Company published its annual Sustainability Report titled Growth with Purpose . The Report highlights

Trekor's operational, environmental and social performance in 2025, showcasing how the Company's continued growth is

creating lasting value for employees, Indigenous partners, local communities, business partners and shareholders.

Trekor’s Sustainability Report reflects a transformational year for Trekor, marked by the completion of construction and the

onset of commercial operations at Florence Copper in Arizona, Trekor’s second operating asset and the first greenfield in-situ

copper recovery operation in the world.

The Report illustrates how operational excellence can remain fundamental to business success in combination with

environmental and social performance. The Company remains focused on creating long-term, sustainable value for all

stakeholders by producing the copper needed for the global energy transition while strengthening the communities where it

operates.

The full report can be viewed and downloaded at www.trekormetals.com/sustainability/overview.

Conference Call and Webcast

The Company will host a telephone conference call and live webcast on Thursday, August 6, 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 5721085. The webcast may be accessed at https://trekormetals.com/investors/events

and will be archived until August 6, 2027 for later playback.

For further information on Trekor, see the Company’s website at trekormetals.com or contact:

• Investor Enquiries: Brian Bergot, Vice President, Investor Relations - 778-373-4533 or toll-free 1-877-441-4533

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.

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) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025

Gibraltar cost of sales 172,328 147,051 146,919 134,664 120,592

Less:

Depletion and amortization (29,225) (27,997) (27,207) (27,876) (25,210)

Changes in inventories of finished goods (7,637) 15,694 (2,611) 1,425 2,123

Changes in inventories of ore stockpiles (7,608) (1,332) 13,473 16,685 (5,718)

Transportation costs (9,934) (6,395) (10,989) (7,247) (5,720)

Gibraltar site operating costs 117,924 127,021 119,585 117,651 86,067

Less by-product credits:

Molybdenum, net of treatment costs (25,878) (27,009) (25,095) (13,903) (4,814)

Silver, excluding amortization of deferred revenue (1,252) 2,026 312 (295) (58)

Gold (86) (567) (619) (761) (351)

Gibraltar site operating costs, net of by-

product credits 90,708 101,471 94,183 102,692 80,844

Gibraltar total copper produced (thousand pounds) 30,323 29,893 30,712 27,593 19,813

Total costs per pound produced (CA$ per pound) 2.99 3.39 3.07 3.72 4.08

Average exchange rate for the period (CAD/USD) 1.38 1.37 1.39 1.38 1.38

Gibraltar site operating costs, net of by-

product credits (US$ per pound) 2.17 2.47 2.21 2.70 2.96

Gibraltar site operating costs, net of by-

product credits 90,708 101,471 94,183 102,692 80,844

Add off-property costs:

Treatment and refining costs 363 96 394 (512) (837)

Transportation costs 9,934 6,395 10,989 7,247 5,720

Gibraltar total operating costs 101,005 107,962 105,566 109,427 85,727

Gibraltar total operating costs (C1) (US$ per

pound) $2.41 $2.63 $2.47 $2.87 $3.14

Non-GAAP Performance Measures – Continued

Florence Copper

(Cdn$ in thousands) Q2 2026

Florence Copper cost of sales 43,493

Less:

Depletion and amortization (10,020)

Changes in inventories of finished goods 473

Changes in copper inventories in solution (191)

Production Royalties (4,430)

Transportation costs (567)

Florence Copper site operating costs 28,758

Add off-property costs:

Production royalties 4,430

Transportation and marketing costs 567

Florence Copper total operating costs 33,755

Florence Copper total copper produced

(thousand pounds) 5,183

Total costs per pound produced (CA$ per pound) 6.51

Average exchange rate for the period (CAD/USD) 1.38

Florence Copper total operating costs (C1) (US$

per pound) $4.72

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) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025

Gibraltar site operating costs (included in cost of

sales) 117,924 127,021 119,585 117,651 86,067

Gibraltar capitalized stripping costs 27,848 15,169 5,986 6,106 30,765

Total site costs 145,772 142,190 125,571 123,757 116,832

Non-GAAP Performance Measures – Continued

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;

• Realized gains on processing of ore stockpiles;

• Accretion on Cariboo consideration payable;

• Accretion on Florence royalty obligation;

• Realized costs of Florence financing obligations; and

• Tax effect of sale of non-controlling interest in New Prosperity

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 (loss) attributable to common shareholders of the

Company divided by the weighted average number of common shares outstanding for the period.

(Cdn$ in thousands) Q2 2026 Q1 2026 Q4 2025 Q3 2025

Net income (loss) 22,220 16,844 4,454 (27,838)

Unrealized foreign exchange loss (gain) 13,890 12,171 (9,000) 14,287

Unrealized (gain) loss and fair value adjustments on derivatives 3,750 (9,582) 37,676 14,977

Accretion on Cariboo consideration payable 1,765 1,261 4,048 4,041

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