Denarius Metals Announces Third Quarter and First Nine Months 2026 Financial Results

Rhea-AI Summary

Denarius Metals (DNRSF) reported third-quarter revenue of $8.047 million as Zancudo shipments increased and operations turned profitable. Shipments rose 72% from the second quarter to 6,727 tonnes, with payable gold of 1,744 ounces. Quarterly operating income was $952,000 versus a $1.394 million loss a year earlier. Net loss widened to $45.883 million, principally reflecting a $44.2 million financial-instrument loss associated with debenture redemption.

Nine-month revenue reached $16.494 million, with gross profit of $6.284 million. September cash was $13.928 million; working capital improved to $7.4 million after debentures were redeemed using common shares. Denarius completed a CA$28.8 million Copper Giant investment funded through shares and warrants. Aguablanca production is expected in the third quarter of 2027, with a $25 million financing facility still awaiting finalization.

19 points · 1 major

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2 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Debentures were redeemed July 31, 2026; Denarius estimates approximately CA$150 million in eliminated payments over four years.
• Moderate pointQuarterly revenue rose to $8.047 million from $456,000; nine-month revenue reached $16.494 million versus $505,000.
• Moderate pointZancudo shipments rose 72% quarter over quarter to 6,727 tonnes, marking a fourth consecutive quarter of growth.
• Moderate pointGold sold reached 1,744 ounces versus 113 quarterly; nine-month sales reached 3,260 ounces versus 126.
• Moderate pointPayable silver reached 14,175 ounces quarterly and 31,318 ounces over nine months, versus 1,694 a year earlier.
• Moderate pointGross profit rose to $2.943 million from $107,000 quarterly; nine-month profit reached $6.284 million versus $121,000.
• Moderate pointOperating income reached $952,000 versus a $1.394 million quarterly loss; nine-month income reached $30,000 versus a $4.089 million loss.
• Moderate pointRealized gold prices, non-GAAP, rose to $4,135 per ounce quarterly and $4,382 over nine months, versus $3,469 and $3,460.
• Moderate pointCash increased to $13.928 million at September 30, 2026, from $6.899 million at December 31, 2025.
• Moderate pointWorking capital improved to $7.4 million from a $53.8 million deficit at December 31, 2025.
• Moderate pointCopper Giant investment closed for CA$28.8 million, acquiring a 15% equity interest and exposure to Mocoa.
• Moderate pointRNR financing raised $7.5 million through secured notes in two tranches. 4.2% of market cap

7 minor points

• Minor pointCash costs, non-GAAP, fell to $2,447 per ounce quarterly and $2,455 over nine months, versus $2,522 and $2,500.
• Minor pointTrafigura private placement raised CA$28.8 million to fund the Copper Giant investment.
• Minor pointZancudo drilling has completed approximately 7,500 meters in 35 holes within a 15,100-meter resource-conversion campaign.
• Minor point. Forward-looking: it has not happened yet and may not happen.Aguablanca restart targets production in the third quarter of 2027; open-pit dewatering began in October 2026.
• Minor pointToral received a maiden mineral resource estimate and rights to an additional 800 hectares, including the historic Antonina mine.
• Minor point. Forward-looking: it has not happened yet and may not happen.2027 Toral exploration drilling is being planned, alongside further Lomero drilling to upgrade and expand resources.
• Minor pointLomero resource estimate update is nearing completion ahead of a technical report supporting a production decision.

Negative

• Major pointQuarterly net loss widened to $45.883 million, or $0.12 per share, from $11.666 million, or $0.09.
• Major pointCommon shares were used to redeem the debentures, diluting existing holders.
• Moderate pointNine-month finance costs increased to $17.4 million from $2.5 million, principally associated with debentures.
• Moderate point67,000,000 common shares and 12,500,000 warrants were issued to Trafigura for CA$28.8 million, diluting holders.
• Moderate pointOther debt increased to $10.059 million at September 30, 2026, from $5.945 million at December 31, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Aguablanca funding depends on finalizing a $25 million senior secured facility, anticipated in the fourth quarter of 2026. 14% of market cap
• Moderate pointExploration and capital expenditures rose to $7.099 million from $5.267 million over nine months; quarterly spending declined.

3 minor points

• Minor pointNine-month net loss widened to $56.023 million, or $0.22 per share, from $20.921 million, or $0.19.
• Minor pointFinancial-instrument losses reached $44.2 million quarterly versus $10.3 million; nine-month losses were $42.2 million versus $14.4 million.
• Minor pointRNR notes carry a 12% interest rate, five-year maturity and secured status.

News Explained

Aguablanca dewatering has begun, while full restart funding remains contingent on the senior secured facility being put in place.

The company says its early redemption of the debentures on July 31, 2026 is complete and removes an estimated CA$150 million in gold-premium and interest payments over the following four years. It also says the redemption eliminates quarterly fair-value adjustments on the debentures, a source of future earnings volatility.

At Aguablanca, open-pit dewatering commenced in October 2026; RNR signed a term sheet in July 2026 for a $25 million senior secured facility, with finalization anticipated in Q4 2026. The company says the RNR joint venture will be fully funded to complete the restart activities once the facility is in place.

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• Fourth consecutive quarter of growth in shipments of crushed material from the Zancudo Project for sale to Trafigura, up 72% over the second quarter. 1,744 payable gold ounces in the third quarter brings the total for the first nine months of 2026 to 3,260 ounces of gold.
• $8.0 million of revenue in the third quarter brings the total for the first nine months of 2026 to $16.5 million. Year-to-date gross profit of $6.3 million, equivalent to 38% of revenue.
• Balance sheet significantly strengthened through the early redemption of the Debentures at the end of July 2026. Cash position of $13.9 million as at September 30, 2026.
• Completed strategic investment with 15% equity interest in Copper Giant, gaining exposure to its Mocoa copper-molybdenum project in Colombia.

Toronto, Ontario--(Newsfile Corp. - November 12, 2026) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or "the Company") announced today that it has filed its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three and nine months ended September 30, 2026. These documents can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted. Non-GAAP financial performance measures in this press release are identified with "^NG". For a detailed description of each of the non-GAAP measures used in this press release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the Company's MD&A.

Denarius Metals continued to increase production, revenues and gross profit at its Zancudo Project in Colombia in the third quarter of 2026. The Company delivered a total of 6,727 tonnes of mined material during the third quarter of 2026 to a local port for sale to Trafigura Pte. Ltd. ("Trafigura"), representing a 72% increase compared with the second quarter and almost three times what it shipped in the first quarter this year. Head grades remained solid in the third quarter of 2026, averaging 11.6 g/t for gold and 188.9 g/t for silver. These shipments contained approximately 2,508 ounces of gold and 40,856 ounces of silver. Payable gold and silver in the third quarter of 2026 amounted to 1,744 ounces and 14,175 ounces, respectively. This brought the total payable production for the first nine months of 2026 to 3,260 ounces of gold and 31,318 ounces of silver. Payable production in the first nine months of 2025 amounted to 126 ounces of gold and 1,694 ounces of silver, most of which was generated in the third quarter of 2025.

		Third Quarter										Nine Months
		2026				2025						2026				2025
Operating data
Gold sold (ounces)		1,744				113						3,260				126
Average realized gold price ($/oz sold) NG	$	4,135			$	3,469					$	4,382			$	3,460
Total cash cost ($/oz sold) NG	$	2,447				2,522					$	2,455				2,500
Financial data ($000's except per share)
Revenue	$	8,047			$	456					$	16,494			$	505
Gross profit		2,943				107						6,284				121
Income (loss) from operations		952				(1,394				)		30				(4,089	)
Net loss		(45,883		)		(11,666				)		(56,023		)		(20,921	)
Per share - basic and diluted		(0.12		)		(0.09				)		(0.22		)		(0.19	)
Exploration and capital expenditures		1,651				2,046						7,099				5,267
								September 30,					December 31,
								2026					2025
Balance sheet ($000's):
Cash and cash equivalents								$ 13,928					$ 6,899
Total assets								161,026					112,623
Debentures (at fair value)								-					55,559
Other debt, current and long-term								10,059					5,945

 

Total revenue in the third quarter of 2026 amounted to $8.0 million bringing the total revenue for the first nine months of 2026 to $16.5 million compared with $0.5 million in the first nine months last year. In the first nine months of 2026, the average realized gold price ^NG was $4,382 per ounce sold and the total cash costs ^NG was $2,455 per ounce of gold sold. The Company generated a gross profit of $2.9 million in the third quarter of 2026 bringing the total for the first nine months of 2026 to $6.3 million, equivalent to approximately 38% of total revenue.

The improvement in the Company's operating performance in the third quarter of 2026 resulted in its first quarterly income from operations of $1.0 million, up from a loss from operations of $1.4 million in the third quarter last year. The net loss for the third quarter of 2026 was $45.9 million ($0.12 per share), principally driven by the $44.2 million loss of financial instruments recognized in conjunction with the early redemption of the Debentures. The net loss for the third quarter of 2025 was $11.7 million ($0.09 per share), including a $10.3 million loss on financial instruments associated with the Debentures. For the first nine months of 2026, income from operations was slightly better than breakeven compared with a loss from operations of $4.1 million for the first nine months last year. The Company reported a net loss of $56.0 million ($0.22 per share) for the first nine months of 2026, including a loss on financial instruments of $42.2 million and finance costs of $17.4 million, both of which were principally associated with the Debentures. The net loss for the first nine months of 2025 was $20.9 million ($0.19 per share), including a loss on financial instruments of$14.4 million and finance costs of $2.5 million.

At September 30, 2026, the Company had a cash position of $13.9 million, up from $6.9 million at December 31, 2025. Working capital improved to $7.4 million at September 30, 2026 from a working capital deficit of $53.8 million at December 31, 2025. The improvement in the Company's working capital in the first nine months of 2026 was largely attributable to the early redemption on July 31, 2026 of its Debentures, which were included in current liabilities, using its common shares. Redeeming the Debentures eliminates a source of volatility in the Company's future earnings driven by the quarterly fair value adjustments recognized on financial instruments in the statement of operations. More important to the Company's decision to redeem the Debentures prior to maturity is the positive impact on its future cash flow achieved through the elimination of payments for gold premiums and interest associated with the Debentures, estimated to total approximately CA$150 million over the next four years following the early redemption.

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. To date, a total of approximately 7,500 meters of drilling has been completed in 35 drillholes with two rigs in operation, primarily at the Brisas target and more recently shifting to focus on the El Castano and Independencia Mine targets. The Company is awaiting final assays for a number of drillholes and has thus far reported the results from the first 2,270 meters completed in 12 drillholes at the Brisas target. Multiple high gold and silver grade intercepts were intersected, as reported from the initial round of drilling, and the reported results continue to demonstrate the high-grade continuity and upside of the Santa Catalina and Manto Antiguo systems at the Brisas target and the potential for resource growth at the Zancudo Project. Further results will be reported as assays become available.

In Spain, the Company, as operator of the Aguablanca Project, continues on a path to re-start operations with production expected to begin in the third quarter of 2027. Earlier in 2026, the Company, on behalf of the Rio Narcea Recursos, S.A. ("RNR") joint venture, closed a private placement in two tranches of $7.5 million of five-year, 12% secured notes issued directly by RNR (the "RNR Notes"). RNR then signed a term sheet in July 2026 with a third party for a $25 million senior secured facility to be undertaken by RNR that is anticipated to be finalized in the fourth quarter of 2026. Dewatering of the open pit commenced in October 2026 and METSO will start its work at the RNR plant later in November. Once the senior secured facility is in place, the RNR joint venture will be fully funded to carry out the activities to complete the re-start activities at Aguablanca.

In September 2026, the Company announced a maiden NI 43-101 Mineral Resource Estimate ("MRE") for the Toral Project in Spain along with the news that it had been awarded the rights to an additional 800 hectares of property, including the historic producing Antonina Zn-Pb Mine, adjacent to the Toral deposit. The Company is now making plans to carry out an exploration drilling campaign in 2027 at the Toral Project along with further drilling at the Lomero Project in Spain to upgrade and expand its resources ahead of preparing a technical report to support a production decision at the Lomero Project that incorporates the use of the Aguablanca plant to process the material mined at Lomero. An updated MRE for the Lomero Project is nearing completion.

On August 21, 2026, the Company closed a strategic investment, acquiring a 15.3% equity interest in Copper Giant Resources Corp. ("Copper Giant") through a CA$28.8 million subscription in a non-brokered private placement with Copper Giant, giving the Company exposure to Copper Giant's world class Mocoa copper-molybdenum deposit located in the Putumayo Department of southern Colombia. To fund this investment, the Company issued 67,000,000 common shares and 12,500,000 warrants in a non-brokered private placement with Trafigura for cash proceeds of CA$28.8 million.

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 100%-owned Zancudo Project while it completes construction of a 1,000 tonnes per day processing plant to produce gold-silver concentrates. The Zancudo Project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is located in the Cauca Belt, about 30 km southwest of Medellin.

In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a 21.8% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has been recognized by the EU as a Strategic Project. The Aguablanca Project comprises a turnkey 5,000 tonnes per day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, approximately 88 km southwest of the Aguablanca Project, and a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.

Denarius Metals entered into a strategic collaboration in early 2026 as JV partners with ProGrowth Ltd. Company, a Saudi-based diversified group of companies with long-standing experience across construction and infrastructure, oil & gas, petrochemicals, mining, trading and technology-enabled services in the Kingdom of Saudi Arabia ("KSA"). This strategic collaboration will focus on a mandate to establish arrangements in the KSA for 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 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 Debenture and the ongoing results and potential for resource growth from the Zancudo drilling program. 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.

For Further Information, Contact:

Michael Davies
Chief Financial Officer
(416) 360-4653
investors@denariusmetals.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323826

FAQ

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What were Denarius Metals' third-quarter 2026 financial results?

Denarius Metals reported $8.047 million in revenue, $952,000 in operating income and a $45.883 million net loss. The net loss was $0.12 per share, compared with $0.09 a year earlier, and principally reflected a $44.2 million financial-instrument loss associated with early debenture redemption.

When does Denarius Metals expect Aguablanca production to restart?

Denarius expects Aguablanca production to begin in the third quarter of 2027. A $25 million senior secured facility is anticipated to be finalized in the fourth quarter of 2026. Once that facility is in place, the RNR joint venture will be fully funded to complete restart activities.

What grades did Denarius Metals report for Zancudo shipments in the third quarter of 2026?

Zancudo shipment head grades averaged 11.6 grams per tonne of gold and 188.9 grams per tonne of silver. The shipments contained approximately 2,508 ounces of gold and 40,856 ounces of silver, distinct from payable production of 1,744 gold ounces and 14,175 silver ounces.

What drilling results has Denarius Metals released from its Zancudo campaign?

Denarius has reported results from the first 2,270 meters in 12 drillholes at the Brisas target, including multiple high gold and silver grade intercepts. Final assays remain pending for a number of holes. Further results will be reported as assays become available.