Rio2's Gold Mine Is Built. Now Comes the Hard Part: Ramping Up
The miner posted $115 million in quarterly revenue and a $50 million adjusted profit, but a one-off stream settlement pushed it to a reported loss — and its new Fenix mine still has to hit commercial production by year-end.
Rio2's third quarter was a study in two numbers. On the company's preferred measures, the miner had a strong three months: $115.4 million in revenue and $50 million in adjusted EBITDA. On the official bottom line, it lost $28.5 million. The gap between the two tells the story of a company finishing construction on a major gold mine while cleaning up old obligations.
The Vancouver-based miner, which operates the Fenix Gold Mine in Chile and the Condestable Copper Mine in Peru, reported results for the quarter ended September 30, 2026, on Tuesday. Adjusted net income was $22.4 million, or $0.03 per share. The reported loss, the company said, reflected a $19.9 million non-cash loss on settling a stream obligation with Franco-Nevada and $16.7 million of share-based compensation. The stream loss, Rio2 noted, does not affect cash flow from operations.
Fenix: construction done, ramp-up under way
The quarter's headline event was the completion of construction at Fenix Gold, Rio2's new mine in Chile. President and CEO Alex Black called the third quarter "a pivotal period," saying the mine is now ramping up toward steady-state production, with commercial production expected in the fourth quarter of 2026.
It was not a smooth quarter. A severe winter storm in July brought heavy snow and temporarily halted mining and leaching. Fenix still produced 8,500 ounces of gold in the quarter and sold 10,800 ounces at an average realized price of $3,838 per ounce. Production and ore placement on the leach pad picked up in August and September as operations resumed, according to the release.
The target now is 20,000 tonnes of ore per day to the leach pad. Fenix generated $41.4 million in revenue in the quarter, with mine operating income of $15.8 million. Its all-in sustaining cost was $2,615 per ounce sold — high for a mine still ramping up, and a figure investors will watch as volumes rise.
Condestable keeps the lights on
While Fenix ramps, Condestable in Peru remains the steady earner. The mine produced 4,800 tonnes of copper, 3,600 ounces of gold, and 38,500 ounces of silver in the quarter, generating $73.9 million in revenue and $28 million in mine operating income. Rio2 also completed 3,200 metres of drilling at Condestable during the quarter, aimed at extending the mine's life, with results expected in the fourth quarter.
Cash is the number to watch. Rio2 ended September with $26.8 million in cash, down from $46.4 million at the end of 2025, though operating activities generated $21.6 million in the quarter. Working capital stood at $63.1 million. The company also continued early work on its Kalzas tungsten project in Canada's Yukon Territory, where it completed a field program and is planning drilling for 2027 — and is weighing whether to spin the project into a standalone company.
Rio2 will host a webinar on November 12 at 11:00 a.m. ET to discuss the results. For investors, the question is straightforward: the construction phase is over, the balance sheet is thinner than it was, and the next milestone — commercial production at Fenix before year-end — is now the one that matters.
Written by the BidAsk Newsroom. Based on reporting from the sources below.
