Denarius Metals Files Second Quarter and First Half 2025 Interim Filings on SEDAR+; Reports First Revenues from the Start of Production at Its Zancudo Project in Colombia
Rhea-AI Summary
Denarius Metals (OTCQX:DNRSF) has reported its Q2 and H1 2025 financial results, marking a significant milestone with its first revenue generation from the Zancudo Project in Colombia. The company commenced mining operations in April 2025, with initial production yielding 64 tonnes of crushed material containing grades of 9.4 g/t gold and 184.5 g/t silver.
The company achieved an average realized gold price of $3,303 per ounce with a total cash cost of $2,260 per ounce, generating a 31% margin. In July 2025, production increased to 266 tonnes with grades averaging 8.7 g/t gold and 224.1 g/t silver. The company reported a Q2 2025 net loss of $5.0 million ($0.05 per share) and strengthened its liquidity through two private placements raising $7.8 million.
Additionally, the Aguablanca Project in Spain has secured all necessary permits to restart operations, with production expected by mid-2026.
Positive
- None.
Negative
- Net loss of $5.0 million in Q2 2025 compared to $8.5 million profit in Q2 2024
- High total cash cost of $2,260 per ounce of gold sold
- Low initial payability rates from Trafigura (55-70% for gold, 30-40% for silver)
- Additional financing still needed for Aguablanca Project startup activities
News Market Reaction
On the day this news was published, DNRSF declined 0.29%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - August 14, 2025) - 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 six months ended June 30, 2025. 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 commenced mining operations in April 2025 at its Zancudo Project in Colombia. During the early production phase, expected to run until the first quarter of 2026 when the Company's new 1,000 tonnes per day ("tpd") processing plant is expected to go into operation, mined material is being crushed onsite and then shipped to a local port for sale to Trafigura Pte. Ltd. ("Trafigura") to start generating operating cash flow.
First production and revenues were recorded by the Company in the second quarter of 2025. In late June 2025, the first shipment of 64 tonnes of crushed material from the Zancudo Project was loaded and transported to port where it was sold to Trafigura. With grades averaging 9.4 g/t gold and 184.5 g/t silver, the material in the first shipment contained approximately 19 ounces of gold and 377 ounces of silver. During the current early production phase, Trafigura's payability rates range from
With an average realized gold price NG of
The frequency and quantity of shipments from the Zancudo Project will continue to increase over the next few months as the Company ramps up its mining operations. In July 2025, the Company delivered a total of 266 tonnes of material to port with grades averaging 8.7 g/t gold and 224.1 g/t silver, containing approximately 74 ounces of gold and 1,913 ounces of silver. Payable ounces from July's shipments amounted to 48 ounces of gold and 639 ounces of silver.
In Spain, the Aguablanca Project now has all the permits required to commence activities to restart mining operations. The Company has engaged METSO Spain S.A. ("METSO") to carry out the refurbishment program at Aguablanca's 5,000 tpd processing plant and, in October 2025, the Company expects to commence the dewatering of the existing open pit to gain access to the underground mine workings. In addition to financing being provided by METSO for the plant refurbishment program, the Company is continuing its efforts, as operator of the Rio Narcea Recusos, S.L. ("RNR") joint venture, to secure additional project financing directly through RNR to fund the capital expenditures associated with startup activities at RNR's Aguablanca Project. The Company has a
To bolster its liquidity to fund ongoing operating and investing activities at its projects in Spain and for general corporate purposes, the Company completed two private placements in the first half of 2025 raising total net proceeds of
The Company also took a step to improve its liquidity while it ramps up production at its Zancudo Project through a consent solicitation process successfully completed in June 2025 that enables the Company to issue shares rather than using cash to settle the monthly interest payments on both series of its Convertible Debentures during the period from June 2025 through May 2026. The Company issued 563,140 shares to settle the June 30, 2025 interest payments and 657,201 shares to settle the July 31, 2025 interest payments. The holders of the Convertible Debentures Series 1 due October 2029 also consented to receiving shares in lieu of cash payments for the quarterly gold premiums due in January and April 2026. Holders of both series of Convertible Debentures agreed to imposing a maximum price of
The Company reported a net loss of
Selected Financial Information
| Second Quarter | First Half | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Gold sold (ounces) | 13 | - | 13 | - | |||||||||
| Average realized gold price ($/oz sold) NG | $ | 3,303 | $ | - | $ | 3,303 | $ | - | |||||
| Total cash cost ($/oz sold) NG | 2,260 | - | 2,260 | - | |||||||||
| Revenue (000's) | $ | 49 | $ | - | $ | 49 | $ | - | |||||
| Net (loss) income (000's) | (5,012 | ) | 8,523 | (9,255 | ) | (2,588 | ) | ||||||
| Per share - basic and diluted | (0.05 | ) | 0.13 | (0.09 | ) | (0.04 | ) | ||||||
| Exploration and capital expenditures (000's) | 2,094 | 3,027 | 3,221 | 5,914 | |||||||||
| June 30, 2025 | December 31, 2024 | ||||||
| Balance sheet ( | |||||||
| Cash and cash equivalents (1) | $ | 4,412 | $ | 1,130 | |||
| Total assets | 101,609 | 81,053 | |||||
| Convertible Debentures (at fair value) (2) | 36,101 | 29,486 | |||||
| (1) The Company has up to (2) As at June 30, 2025 and December 31, 2024, the total principal amount of Convertible Debentures issued and outstanding amounted to CA | |||||||
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 commenced mining operations in the second quarter of 2025 at its
In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a
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 Zancudo production and future shipments, timing to commence operations at the Zancudo processing plant, future payability rates from Trafigura, future total cash cost per ounce sold, receipt of future advances from Trafigura, and re-start of operations and timing to commence production at the Aguablanca Project. 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, 2025 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 Office
(416) 360-4653
investors@denariusmetals.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262573
FAQ
What were Denarius Metals' (DNRSF) first production metrics from the Zancudo Project in Q2 2025?
What was DNRSF's financial performance in Q2 2025?
How much capital did Denarius Metals raise in H1 2025?
When will Denarius Metals' new processing plant at Zancudo be operational?
What are the current payability rates from Trafigura for DNRSF's Zancudo production?
