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Rio2 Limited is a gold developer moving into production at its Phoenix Gold project in Chile (heap leach, commissioning/ramp-up), while acquiring the producing Condestable underground copper mine in Peru (copper with precious-metals credits). This interview focused on why they bought Condestable, how they funded it, what cash it could generate, and how Phoenix is tracking into first gold and ramp-up, planned for 2026.
TLDR;
Rio2’s logic for acquiring the producing Condestable underground copper mine in Peru is “cash day one” plus diversification away from a single-asset risk profile. In 2026, Condestable is expected to do ~US$150M of EBITDA at spot and “plus US$100M” free cash flow after Peru tax (their estimate), with steady-state operations at 8,400 tpd and an assumed 10-year reserve life. Near term, upside at Condestable hinges on permitting and plant work toward 10,000 tpd approval (target by August 2026) and potential 12,000 tpd, with costs/timing still being defined. The financing was structured to limit dilution to ~21% and avoid a shareholder vote, using escrowed proceeds plus a local sidecar and vendor debt.
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Phoenix is on time and on budget with first gold expected in January 2026, then a 2026 ramp-up year targeting ~70k oz before ~100k oz/year in 2027.
- What have they done for shareholders lately?
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Rio2 completed a major financing to fund the acquisition of the Condestable mine, an underground copper mine in Peru. C$191M is placed into escrow as of December 15, and described an additional US$10M “sidecar” private placement in Peru/Chile that was about to close. Management said they are taking over the entire operating team under Rio2’s Peru-based structure and plan to run Condestable as “business as usual” initially. On Phoenix Gold, management said construction is on time and on budget, commissioning is underway, and first gold is expected in January.
– - What has changed since the last major update?
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Rio2 is no longer a single-asset story because it is adding a producing Peruvian copper mine alongside Chile ramp-up. The company structured funding to keep dilution around ~21% and below the 25% TSX threshold that would trigger a shareholder vote. Management put specific 2026 operating targets/expectations on both assets: Condestable steady-state at 8,400 tpd with ~10 years of reserves, and Phoenix ramping in 2026 with a stated ~70k oz production expectation before reaching ~100k oz/year in 2027.
– - How much money do they have and what are they spending it on?
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C$191M in escrow for the acquisition, plus a US$10M local sidecar placement expected to close, and vendor debt from the seller (amount not disclosed). Alex also said Phoenix was already funded and that they previously had about US$50M in the bank related to Phoenix, plus a US$14M Chile construction tax refund received and another ~US$14M expected about mid-next year. Near-term spending priorities include finishing Phoenix into production and ramp-up, maintaining Condestable operations steadily at 8,400 tpd, and preparing work that supports future growth studies/permitting; longer-term he mentioned “several hundreds of millions of dollars” of capex for Phoenix expansion and a water pipeline.
– - Upcoming catalysts
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First gold pour in Chile is expected in January 2026, followed by 2026 ramp-up toward the 20,000 tpd plan at Phoenix. For Condestable, they do not get full control until after a procedural Peruvian tax certificate, with timing implied around January 20, 2026 for that step and keys later in January. They also plan an updated NI 43-101 by end of Q1 2026 (SLR), and said the Condestable EIA modification for 10,000 tpd is already filed with approval expected by August 2026 at the latest, after which they described a pathway to 12,000 tpd via an additional short-form process.
– - Risks
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Alex said metal prices (especially copper) are the main business risk to near-term cashflow assumptions, and highlighted underground safety as the biggest operational risk even with a good track record. Phoenix ramp-up risk remains around unknown 2026 operating costs (they referenced the 2023 feasibility assumptions but said costs will be “interesting” to see as they bed down operations, with labor inflation in Chile noted), and execution/logistics risk around water trucking (he said it is going well, but driver availability is a constraint). For Condestable growth, the capex and timing to reach higher throughput are not finalized. “Less than US$50M” is the preliminary view focused mainly on plant upgrades, while explicitly saying the work still needs to be done.
Rio2 Limited Interview With Chairman Alex Black
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