DENARIUS METALS ANNOUNCES SECOND QUARTER AND FIRST HALF 2026 FINANCIAL RESULTS
Rhea-AI Summary
Denarius Metals (OTCQX: DNRSF) reported second-quarter 2026 revenue of $4.9 million, bringing first-half 2026 revenue to $8.4 million, mainly from early production at the Zancudo Project in Colombia. Q2 2026 payable gold sales were 923 oz at an average realized gold price NG of $4,536/oz and total cash costs NG of $2,513/oz, generating gross profit of $1.9 million.
The company recorded Q2 2026 net income of $8.3 million ($0.04/share), versus a $5.0 million loss a year earlier, aided by a $15.5 million non-cash gain on financial instruments. First-half 2026 still showed a net loss of $10.1 million ($0.05/share).
As of June 30, 2026, cash was $18.9 million and total assets were $135.9 million, supported by $18.0 million from warrant exercises and $3.5 million drawn under the Zancudo Prepayment Facility with Trafigura. The facility was increased from $9 million to $16 million for exploration and mine development.
The company fully redeemed CA$34.2 million principal of Convertible Debentures on July 31, 2026 using common shares, improving adjusted working capital at June 30, 2026 to $12.8 million and eliminating an estimated CA$157 million of future gold premium and interest payments over four years. Denarius Metals also advanced a 15,100 m drilling campaign at Zancudo, progressed restart preparations at Spain’s Aguablanca Project via RNR financing initiatives, and agreed to acquire a 15.6% stake in Copper Giant Resources through a CA$28.8 million subscription funded by a share and warrant placement with Trafigura.
Positive
- Revenue growth to $4.9 million in Q2 2026 and $8.4 million in H1 2026 versus $1.7 million in full-year 2025
- Q2 2026 net income of $8.3 million ($0.04/share) versus $5.0 million loss in Q2 2025, supported by $1.9 million gross profit and $15.5 million non-cash gain
- Cash balance increased to $18.9 million at June 30, 2026 from $6.9 million at year-end 2025, driven by $18.0 million warrant exercises and $3.5 million Trafigura funding
- Convertible Debentures of CA$34.2 million principal fully redeemed in shares on July 31, 2026, improving adjusted working capital to $12.8 million and removing about CA$157 million of future payments
- Zancudo Prepayment Facility with Trafigura increased from $9 million to $16 million, providing an additional $7 million available in H2 2026 for exploration and mine development
- Strategic investment to acquire a 15.6% equity interest in Copper Giant via a CA$28.8 million subscription, funded by issuing 67,000,000 shares and 12,500,000 warrants to Trafigura
Negative
- First-half 2026 net loss of $10.1 million ($0.05/share) despite Q2 profitability, compared with a $9.3 million loss ($0.09/share) in first-half 2025
- Working capital deficit of $38.8 million at June 30, 2026 before adjusting for the July 31, 2026 debenture redemption
- Total cash costs NG of $2,463 per ounce of gold sold in first-half 2026, compared with an average realized gold price NG of $4,667/oz, indicating significant operating cost levels
- Equity dilution from fully redeeming CA$34.2 million principal of Convertible Debentures with common shares and issuing 67,000,000 shares plus 12,500,000 warrants to Trafigura to fund CA$28.8 million Copper Giant subscription
AI-generated analysis. How Rhea-AI works. Not financial advice.
Early production continued to ramp up in the second quarter of 2026 at Denarius Metals' Zancudo Project in
Second Quarter | First Half | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Operating data | |||||||
Gold sold (ounces) | 923 | 13 | 1,516 | 13 | |||
Average realized gold price ($/oz sold) NG | $ 4,536 | $ 3,303 | $ 4,667 | $ 3,303 | |||
Total cash cost ($/oz sold) NG | $ 2,513 | 2,260 | $ 2,463 | 2,260 | |||
Financial data ( | |||||||
Revenue | $ 4,920 | $ 49 | $ 8,447 | $ 49 | |||
Gross profit | 1,868 | 14 | 3,341 | 14 | |||
Loss from operations | (197) | (1,413) | (922) | (2,695) | |||
Net income (loss) | 8,270 | (5,012) | (10,140) | (9,255) | |||
Per share – basic and diluted | 0.04 | (0.05) | (0.05) | (0.09) | |||
Exploration and capital expenditures | 3,347 | 2,094 | 5,447 | 3,221 | |||
June 30, | December 31, | ||
2026 | 2025 | ||
Balance sheet ( | |||
Cash and cash equivalents | $ 18,947 | $ 6,899 | |
Total assets | 135,910 | 112,623 | |
Convertible Debentures (at fair value) (1) | 51,573 | 55,559 |
(1) | As at June 30, 2026 and December 31, 2025, the total principal amount of Convertible Debentures issued and outstanding amounted to CA |
Total revenue in the second quarter of 2026 amounted to
The Company reported net income of
The Company successfully took a major step forward to improve its future liquidity by fully retiring its Convertible Debentures on July 31, 2026 through an early redemption using its common shares. At June 30, 2026, the Company had a total of CA
As at June 30, 2026, the Company's cash position stood at
In April 2026, the Company commenced a 15,100 meters diamond drilling campaign at the Zancudo Project, primarily focused on in-fill drilling to convert additional Inferred resources to the Indicated category. The campaign also includes 3,200 meters of brownfield drilling with the objective of increasing resources in the next mineral resource update expected to be completed in late 2026. In July 2026, the Company announced that multiple high gold and silver grade intercepts were intersected in the first four in-fill drill holes completed on the Las Brisas Target, providing further confirmation of the high-grade nature of the mineralization previously modelled on the Manto Antiguo and Santa Catalina structures. Further updates will be provided by the Company as drill results become available through the course of this year's drilling campaign.
In
On August 6, 2026, the Company announced it is making a strategic investment to acquire a
About Denarius Metals
Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada where it trades under the symbol "DMET". The Company also trades on the OTCQX Market in the United States under the symbol "DNRSF".
In Colombia, Denarius Metals is producing gold and silver in an "early production" phase at its
In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a
Denarius Metals entered into a strategic collaboration in early 2026 as JV partners with ProGrowth Ltd. Company, a Saudi-based diversified group of companies, focused on the processing, smelting and commercialization of material sourced from the Company's projects and to identify, acquire, develop and operate gold and nickel mining concessions within the KSA.
Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including the timing to commence commercial concentrate production at the Zancudo Project, the timing and completion of the senior secured financing and the re-start of operations at the Aguablanca Project, the financial impact of the early redemption of the Convertible Debentures, the timing and amounts to be drawn under the Zancudo Prepayment Facility, the ongoing results from the Zancudo drilling program and the closing of the Copper Giant investment and associated private placement by the Company. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated March 31, 2026 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
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SOURCE Denarius Metals Corp.