DENARIUS METALS FILES FIRST QUARTER 2026 INTERIM FINANCIAL STATEMENTS, INTERIM MD&A AND ZANCUDO TECHNICAL REPORT ON SEDAR+
Rhea-AI Summary
Denarius Metals (OTCQX: DNRSF) reported Q1 2026 revenue of $3.5 million from early production at its Zancudo gold-silver project, generating $1.5 million gross profit and a net loss of $18.4 million. Cash rose to $17.9 million, supported by $15.1 million in warrant exercises.
The updated Zancudo PEA outlines an 11-year mine life with expected net revenue of $2.0 billion and after-tax undiscounted free cash flow of $452 million. The company advanced financing and restart plans for Spain’s Aguablanca project and formed a strategic collaboration with Saudi-based ProGrowth, which plans up to a 10% equity investment.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue reached $3.5 million from Zancudo early production
- Quarterly gross profit totaled $1.5 million, about 51% of gold revenue
- Cash and cash equivalents increased to $17.9 million from $6.9 million
- $15.1 million cash received from warrant exercises in Q1 2026
- Zancudo PEA projects $2.0 billion net revenue over 11 years
- Zancudo LOM after-tax undiscounted free cash flow estimated at $452 million
- $7.5 million of five-year 12% secured RNR notes placed for Aguablanca
- ProGrowth plans initial equity investment of up to 10% via private placement
Negative
- Q1 2026 net loss widened to $18.4 million from $4.2 million
- Non-cash loss on financial instruments increased to $13.5 million
- Convertible Debentures fair value rose to $67.9 million from $55.6 million
- $4.4 million quarterly gold premium on Convertible Debentures settled in shares
- Early production gold payability only 30%–70%; silver 20%–40%
Denarius Metals continued to ramp up mining operations in the first quarter of 2026 at its Zancudo Project in
During the first quarter of 2026, the Company delivered a total of 2,337 tonnes mined at its Zancudo Project to a local port for sale to Trafigura. With grades averaging 11.5 g/t gold and 269.3 g/t silver, these shipments contained approximately 863 ounces of gold and 20,237 ounces of silver. Payable gold and silver amounted to 593 ounces and 7,839 ounces, respectively. There was no production in the first quarter of 2025. During the current early production phase, Trafigura's payability rates range from
With an average realized gold price NG of
The Company reported a net loss of
In the first quarter of 2026, the Company received
First Quarter | |||
2026 | 2025 | ||
Operating data | |||
Gold sold (ounces) | 593 | - | |
Average realized gold price ($/oz sold) (1) | $ 4,870 | $ - | |
Total cash cost ($/oz sold) (1) | $ 2,386 | $ - | |
Financial data ( | |||
Revenue | $ 3,527 | $ - | |
Gross profit | 1,473 | - | |
Loss from operations | (725) | (1,282) | |
Net loss | (18,410) | (4,243) | |
Per share – basic and diluted | (0.11) | (0.04) | |
Exploration and capital expenditures | 2,100 | 1,127 | |
March 31, | December 31, | ||
2026 | 2025 | ||
Balance sheet ( | |||
Cash and cash equivalents (2) | $ 17,925 | $ 6,899 | |
Total assets | 129,452 | 112,623 | |
Convertible Debentures (at fair value) (3) | 67,874 | 55,559 | |
(1) | Refer to non-GAAP measures on page 24. |
(2) | Subsequent to March 31, 2026, the Company received cash proceeds of approximately CA |
(3) | As at March 31, 2026 and December 31, 2025, the total principal amount of Convertible Debentures issued and outstanding amounted to CA |
On March 30, 2026, the Company announced the results of an updated Preliminary Economic Assessment ("PEA") for its Zancudo Project. The PEA, based on the updated Mineral Resource Estimate ("MRE") for the Zancudo Project, envisions an 11-year mine life over which the Company expects to generate net revenue of
In April 2026, the Company commenced a 15,000 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 MRE update expected to be completed in late 2026.
In
In February 2026, the Company announced that it has entered into a strategic collaboration as partners with ProGrowth Ltd. Company ("ProGrowth"), 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
Zancudo Project Technical Report
The Company also announced today the filing of a National Instrument 43-101 – Standards of Disclosure for Mineral Projects compliant technical report in support of the PEA for its
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
In
In
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, completion of financing and the re-start of operations at rge Aguablanca Project and the proposed ProGrowth equity private placement. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/denarius-metals-files-first-quarter-2026-interim-financial-statements-interim-mda-and-zancudo-technical-report-on-sedar-302772936.html
SOURCE Denarius Metals Corp.