Trekor Q2 2026 Results: C$125 Million EBITDA as Florence Copper Ramps Up

A strong quarter driven by copper prices and production

Trekor Metals Limited delivered a substantial improvement in its second-quarter financial performance, helped by higher copper production, strong realised prices and the first full quarter of operations at Florence Copper.

Adjusted EBITDA rose to C$125.1 million from C$17.4 million in Q2 2025. Adjusted EBITDA means earnings before interest, tax, depreciation and amortisation, with further adjustments intended to remove certain non-recurring or non-operating items.

Revenue reached C$330.6 million, compared with C$116.1 million a year earlier, while operating cash flow increased to C$183.4 million from C$26.0 million.

Those are eye-catching improvements. However, investors should note that adjusted EBITDA is a non-GAAP measure and is not the same as cash generation or statutory profit.

The original company announcement contains the full results and non-GAAP reconciliations.

Trekor's key Q2 figures

Metric	Q2 2026	Q2 2025
Revenue	C$330.6 million	C$116.1 million
Adjusted EBITDA	C$125.1 million	C$17.4 million
Operating cash flow	C$183.4 million	C$26.0 million
Net income	C$22.2 million	C$21.9 million
Adjusted net income	C$40.5 million	C$13.0 million loss
Adjusted EPS	C$0.11	C$0.04 loss
Consolidated copper production	35.5 million pounds	19.8 million pounds

The gap between adjusted EBITDA and net income is worth highlighting. Despite the large improvement in operating performance, statutory net income was only slightly ahead of last year at C$22.2 million.

This reflects the impact of items including finance and accretion expenses, tax, foreign exchange movements and derivatives. It is a reminder that headline adjusted figures should be considered alongside the statutory accounts.

Gibraltar remains the financial engine

Gibraltar produced 30.3 million pounds of copper during the quarter, up from 19.8 million pounds in Q2 2025. Sales reached 32.2 million pounds, helped by a drawdown of finished goods inventory.

Copper head grades averaged 0.25%, while recoveries were approximately 82%. Management said both measures were consistent with the previous quarter and in line with life-of-mine averages.

Gibraltar's C1 operating cost fell to US$2.41 per pound from US$3.14 a year earlier. C1 is an industry measure covering the direct cash cost of producing copper after taking account of by-product credits and certain off-site costs.

Molybdenum made a meaningful contribution. Trekor produced 559,000 pounds and realised an average price of US$29.63 per pound, providing a by-product credit of US$0.65 for every pound of copper produced.

That credit helped offset cost inflation, but the underlying pressures have not disappeared. Diesel costs increased by C$7.1 million year on year, while explosives costs were C$4.9 million higher. Management expects elevated diesel prices to add approximately US$0.15 per pound to Gibraltar's second-half operating costs compared with the prior year.

Annual Gibraltar production guidance remains unchanged at 110 million to 115 million pounds of copper.

Florence Copper is progressing, but the ramp-up remains crucial

Florence Copper produced 5.2 million pounds of copper cathode in Q2, up from 1.5 million pounds in the first quarter. This was its first full quarter of plant operations.

Average solution flow increased to 3,182 gallons per minute, supported by 20 new production wells added in June. Pregnant leach solution grades averaged 1.6 grams per litre. This is the copper-bearing solution fed into the solvent extraction and electrowinning plant, commonly shortened to SX/EW.

Florence's C1 operating cost was US$4.72 per pound. That is well above Gibraltar's cost, although Florence is still in its early ramp-up phase and current costs should not be treated as representative of mature operations.

An additional 26 wells are expected to come online in August, followed by regular monthly well additions for the remainder of the year. Five drill rigs are operating at the site.

Full-year Florence production guidance remains 30 million to 35 million pounds. With 6.7 million pounds produced during the first half, Florence must deliver a significant increase in output during the second half to reach that range.

This makes wellfield expansion, flow rates and solution grades the most important operational measures to watch over the coming quarters.

The hedging position is becoming less restrictive

Trekor's Q2 copper collars covered 27 million pounds with a ceiling price of US$5.40 per pound. These contracts resulted in a C$24.2 million realised derivative loss and limited the company's participation in stronger copper prices.

That particular ceiling matured in June. Third-quarter collars cover 24 million pounds, with a US$4.75 floor and ceiling prices of US$7.50 and US$8.50 per pound.

For Q4, Trekor has purchased put options covering 27 million pounds at US$4.75 per pound, without a ceiling. Put options provide protection if copper falls below a set price while allowing the company to retain exposure to higher prices.

This should improve Trekor's upside participation, although it will also leave financial performance more directly exposed to changes in the copper market.

Liquidity and Yellowhead permitting add support

Trekor ended June with C$186 million of cash and total available liquidity of C$342 million, including its undrawn revolving credit facility. That liquidity provides some support while Florence continues its production ramp-up and requires ongoing wellfield development expenditure.

The company also reported progress at Yellowhead. The British Columbia Environmental Assessment Office has allowed the project to proceed to an environmental assessment, moving it into the process-planning phase.

This is a permitting milestone rather than approval to construct the mine. Yellowhead remains a large and capital-intensive development proposal, with estimated initial capital expenditure of C$2.0 billion disclosed in its technical report.

For another example of how production, cash flow and project investment interact in mining results, see this analysis of Metals Exploration's record revenue and free cash flow.

What matters next for Trekor shareholders

The main positive is that Trekor is now generating stronger earnings and cash flow while adding a second source of copper production. Gibraltar is performing steadily, Florence is contributing initial output and the most restrictive Q2 copper hedges have expired.

The main risks are equally clear. Florence must accelerate materially to meet guidance, its current unit costs remain high, and Gibraltar faces continued pressure from diesel, explosives and maintenance expenditure. Copper prices will also have a greater influence as Trekor moves towards hedging without an upside ceiling.

The next results should therefore be judged less on another headline EBITDA number and more on Florence's monthly production trajectory, wellfield expansion and operating cost progression. Those measures will show whether Q2 marked the start of a sustained step-up in Trekor's production and cash generation.