Trekor Metals reported Q2 adjusted EBITDA of $125 million as record copper prices drove strong cash flow. Florence Copper is ramping, and the end of copper collars frees margins.
Trekor Metals reported second-quarter adjusted EBITDA of $125 million, its highest in recent years, as record copper prices and strong output from the Gibraltar mine lifted earnings. The Vancouver-based miner posted consolidated revenue of $331 million from sales of 37.5 million pounds of copper and 575,000 pounds of molybdenum. Net income came in at $22 million, or $0.06 per share, while adjusted net income was $40 million ($0.11 per share).
Stuart McDonald, President and CEO, said the results were among the best the company has ever recorded. “Record copper prices and strong production at Gibraltar led to some of the best results we have ever recorded,” he said in a statement. “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 in the quarter, with sales volumes of 32 million pounds. Mining activity focused on the lower benches of the Connector Pit, where grades matched the life-of-mine average. Copper cathode production was temporarily reduced by planned downtime at the SX/EW plant in April, when the company integrated a second leach pad designed to support higher future output. Molybdenum by-product revenue helped offset inflation from higher diesel prices. The mine produced 559,000 pounds of molybdenum, and the realized price of nearly $30 per pound provided a by-product credit of $0.65 per pound of copper sold.
Florence Copper produced 5.2 million pounds of copper in its first full quarter of operations. Two metrics drive output: solution flow rates through the SX/EW plant and the grade of pregnant leach solution (PLS). Average flow rates reached 3,200 gallons per minute in the second quarter, up 16% from the first quarter after the addition of 20 new production wells in June. PLS grades averaged 1.6 grams per litre. The company said flows and grades have stabilized at expected levels, and it continues to optimize wellfield practices. New wells scheduled for the second half of the year are expected to increase the amount of copper flowing to the plant.
Consolidated copper production of 36 million pounds was up 80% from the same quarter last year, driven by both Gibraltar’s stronger performance and the early ramp at Florence. Operating cash flow reached $183 million, giving the company flexibility to fund capital projects and debt reduction. The expiration of the copper collar program in June removes a ceiling on realized prices, allowing Trekor to capture full spot market gains. The CEO said he expects continued strong financial performance as Florence ramps and margins expand.
Trekor trades on the TSX and NYSE American under the ticker TKO. The company's stock page tracks the shares and provides access to historical data, filings, and analyst coverage.
Earnings from mining operations before depletion, amortization, and non-recurring items were $154 million in the quarter. Adjusted EBITDA, which the company defines as earnings before interest, taxes, depletion, amortization, and non-recurring items, came in at $125 million.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.