Q2 FY2026
Filed Aug 5, 2026Trekor Announces $125 Million of Adjusted EBITDA in Second Quarter
Second-quarter revenue, operating cash flow, Adjusted EBITDA and copper production increased sharply versus the same period in 2025, supported by record copper prices, stronger Gibraltar output and the first full quarter of Florence Copper plant operations. Higher diesel, explosives and maintenance costs, together with a $24.2 million realized derivative loss, limited reported net income.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenuesother | 330,553 | – | 214,471 |
| Net incomeother | 22,220 | – | 352 |
| Basic EPSother | 0.06 | – | (0.01) |
| Cash flows from operationsother | 183,390 | – | 157,436 |
| Earnings from mining operations before depletion, amortization and non-recurring itemsnon-GAAP | 153,977 | – | 133,277 |
| Adjusted EBITDAnon-GAAP | 125,094 | – | 107,662 |
| Adjusted net incomenon-GAAP | 40,487 | – | 53,512 |
| Adjusted EPSnon-GAAP | $0.11 | – | 0.15 |
| Consolidated copper productionother | 36 million pounds | – | 80% |
| Gibraltar copper productionother | 30.3 million pounds Cu | – | 10.5 million pounds Cu |
| Gibraltar copper salesother | 32.2 million pounds Cu | – | 13.2 million pounds Cu |
| Gibraltar copper concentrate productionother | 29.7 million pounds Cu | – | – |
| Gibraltar copper cathode productionother | 643 thousand pounds Cu | – | – |
| Gibraltar molybdenum productionother | 559 thousand pounds Mo | – | – |
| Gibraltar total operating cost (C1)non-GAAP | $2.41 per pound of copper produced | – | – |
| Gibraltar site operating costnon-GAAP | $2.81 | – | – |
| Gibraltar by-product creditnon-GAAP | $(0.65) | – | – |
| Gibraltar site operating cost, net of by-product creditnon-GAAP | 2.16 | – | – |
| Gibraltar off-property costnon-GAAP | 0.25 | – | – |
| Gibraltar site operating costs per ton millednon-GAAP | $16.47 | – | – |
| Florence Copper productionother | 5.2 million pounds Cu | – | – |
| Florence Copper salesother | 5.3 million pounds Cu | – | – |
| Florence Copper total operating cost (C1)non-GAAP | $4.72 | – | – |
2026 outlook
- NoteAnnual Gibraltar copper production guidance for 2026 remains unchanged at 110 to 115 million pounds.
- NoteAnnual Florence Copper production guidance for 2026 is 30 to 35 million pounds.
- NoteThe Company expects overall TCRCs to be nominal in 2026, similar to 2025.
- NoteThese 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.
- NoteThe 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.
- NoteThe Company has copper put options at US$4.75 per pound for 27 million pounds of copper production for the fourth quarter of 2026.
What drove it
- Record copper prices and strong production at Gibraltar supported results.
- Gibraltar sold 32.2 million pounds of copper at an average realized copper price of US$6.10 per pound.
- Gibraltar mining focused on the lower benches of the Connector Pit, with copper head grades of 0.25% and recoveries of 82%.
- Molybdenum averaged US$29.63 per pound and generated a US$0.65 per pound of copper produced by-product credit.
- Florence Copper delivered its first full quarter of plant operations, producing 5.2 million pounds of copper cathode.
- Florence flow rates averaged 3,200 gallons per minute, 16% higher than in the first quarter, following the addition of 20 new production wells in June.
Concerns
- Gibraltar site costs remained higher than in the second quarter of 2025 because of higher diesel and explosive costs.
- Diesel costs increased $7.1 million compared to the second quarter of 2025 and explosives costs increased $4.9 million.
- The April Gibraltar SX/EW plant downtime for second-leach-pad integration temporarily reduced copper cathode production.
- Copper collar contracts that matured in the second quarter for 27 million pounds, with a ceiling price of US$5.40 per pound, resulted in a realized derivative loss of $24.2 million.
- Florence Copper remains in ramp-up and requires ongoing wellfield expansion to support production over the life of mine.
- The filing identifies copper prices, input-cost inflation, indebtedness, ramp-up execution, permitting, financing availability and geopolitical instability as risks.
What to watch
- The addition of 26 Florence Copper wells in August and regular monthly well additions for the remainder of the year.
- Florence Copper solution flows, PLS grades and cathode production as the wellfield expands.
- Gibraltar operating costs as diesel prices remain around $0.40 per litre higher than February pre-war levels.
- Third-quarter copper collars with ceilings of US$7.50 and US$8.50 per pound, followed by fourth-quarter put options with no ceiling.
- Progress of Yellowhead through process planning and the environmental assessment process following the July 30, 2026 Notice of Decision.
Balance sheet and cash flow
- Cash flows from operations were 183,390 for the three months ended June 30, 2026, compared with 25,954 for the three months ended June 30, 2025.
- Cash flows from operations were 277,247 for the six months ended June 30, 2026, compared with 81,846 for the six months ended June 30, 2025.
- 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.
- Gibraltar total site costs were $145.8 million, including capitalized stripping of $27.8 million, in the quarter.
- Florence Copper wellfield development capital expenditures were 26,475 for the three months ended June 30, 2026.
Analysis
Trekor reported a materially stronger second quarter, with revenues of 330,553 compared with 116,082 in the same period of 2025. Cash flows from operations rose to 183,390 from 25,954, while Adjusted EBITDA increased to 125,094 from 17,432. Net income was 22,220, broadly comparable with 21,868 a year earlier, while adjusted net income was 40,487 versus an adjusted net loss of (13,025). The difference between stronger operating measures and more limited reported net income included a $24.2 million realized derivative loss from copper collars that matured during the quarter.
The operating improvement was driven by higher copper output and pricing. Consolidated production reached 36 million pounds, an 80% increase over the same period in 2025. Gibraltar produced 30.3 million pounds of copper and sold 32.2 million pounds at an average realized copper price of US$6.10 per pound. Gibraltar copper production benefited from more consistent ore characteristics in the Connector Pit, where head grades averaged 0.25% and recoveries averaged 82%. Molybdenum output of 559 thousand pounds and an average molybdenum price of US$29.63 per pound provided a US$0.65 per pound of copper produced by-product credit.
Florence Copper produced 5.2 million pounds of copper cathode in its first full quarter of plant operations, compared with 1.5 million pounds in the first quarter. Average PLS recovery flow was 3,182 gpm and PLS grade was 1.6 g/L for the quarter. At quarter end, 110 production wells were operating, with flow rates of approximately 3,400 gallons per minute and PLS grades of 1.8 grams per liter. Florence's total operating cost (C1) was $4.72, and the company is focused on additional well additions to advance the ramp-up.
Gibraltar cost performance improved on a per-pound basis despite input inflation. Total operating cost (C1) was $2.41 per pound of copper produced, compared with $3.14 in the second quarter of 2025, supported by higher copper production and molybdenum by-product credits. However, diesel costs increased $7.1 million and explosives costs increased $4.9 million from the prior-year quarter, while maintenance work was brought forward. The company said diesel prices remain elevated and expects higher diesel prices to increase Gibraltar operating costs by approximately US$0.15 per pound in the second half compared to the prior year.
Management maintained 2026 production guidance of 110 to 115 million pounds at Gibraltar and 30 to 35 million pounds at Florence Copper. The hedge profile changes after the second-quarter collars with a US$5.40 ceiling matured: third-quarter collars cover 24 million pounds with a US$4.75 floor and US$7.50 and US$8.50 ceilings, while fourth-quarter protection is through US$4.75 put options for 27 million pounds with no ceiling. Trekor ended the quarter with $186 million of cash and $342 million of total available liquidity. Yellowhead also advanced when the BC EAO issued its Notice of Decision on July 30, 2026, allowing the project to proceed to an environmental assessment.
Management, verbatim
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.
Stuart McDonald, President & CEO of Trekor
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.
Stuart McDonald, President & CEO of Trekor
Not in the filing
stated, not guessed- Segment revenue for Gibraltar was not reported.
- Segment revenue for Florence Copper was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Free cash flow was not reported.
- Debt balance was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Revenue guidance was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Quarter-over-quarter revenue, cash flow from operations, basic EPS and reported percentage changes for the reported financial metrics were not printed.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.