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Andrew Todd
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.
Rio2 Limitedโs Condestable mine in Peru (pictured) provided steady production and cash flow during a challenging quarter for the companyโs Fenix Gold mine in Chile.
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 companyโs expanding operations.
Meanwhile, the companyโs 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.
โTwo major storm events associated with the El Niรฑo weather pattern in July and August significantly disrupted operations.โ
Rio2 Limited president and chief executive office Andrew Cox
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: โQ3 was a challenging quarter at Fenix Gold. Two major storm events associated with the El Niรฑo weather pattern in July and August significantly disrupted operations, while continued snowfall and high winds affected production into September.โ
The company says its quarter also saw a renewed focus on exploration, with the first phase of a massive 33,870-metre surface drilling program set to follow up on district-scale mapping at Condestable. Meanwhile, Rio2 is also turning its attention north to its Kalzas tungsten project in Canadaโs Yukon, which is slated for a drill campaign in early 2027.
The company also provided an update on its exploration plans in Chile. Although drilling was suspended at Fenix Gold due to the adverse weather, it is scheduled to resume in January 2027 to take advantage of the summer conditions. The program will incorporate results from the 43 holes already completed, totalling 14,669m.
With its Peruvian copper mine delivering steady production, Rio2 appears to have demonstrated plenty of operational resilience, weathering a tough Chilean winter as it pushes towards commercial gold production at Fenix, backed by a healthy US$26.8 million (A$38.9 million) cash balance at the end of September.
As the weather improves and the ramp-up at Fenix gathers momentum, Rio2 enters a pivotal stretch in 2027 as it looks to turn its emerging copper-gold operation into a second consistent cash-cow producer.
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