Key Highlights

  • MAIFF reported second-quarter 2026 Revenue of $32.6 million, with Earnings from mine operations of $13.2 million and a net loss of $15.7 million, or $0.14 per share.
  • Adjusted Net Income was $6.5 million, or $0.06 per share, and adjusted EBITDA was $9.3 million, excluding a Cerro de Oro Royalty repurchase and expenses tied to settling Auramet gold Loan and Call Option obligations.
  • Gold production was 8,217 ounces at an average realized price of $3,920 per ounce, below the approximately $4,500 average spot price, reflecting the settlement of 1,500 ounces of call options at $2,096 per ounce.
  • The company reaffirmed full-year 2026 Pan Mine guidance of 32,000 to 38,000 ounces of gold production, with cash costs of $1,750 to $1,900 per ounce and all-in sustaining costs of $1,850 to $2,000 per ounce.

Gold Hedge Settlement Restores Full Spot Price Exposure

Mining Americas Inc. (OTC:MAIFF), a Toronto-headquartered gold production and development company operating the Pan Mine complex in Nevada and advancing the Copperstone project in Arizona, settled the remainder of its gold loan and call option obligations with Auramet during the quarter, an action management said gives the company's future gold production complete exposure to higher trending gold prices. The settlement combined with a new $75 million revolving Credit Facility to reduce the company's average realized gold price to $3,920 per ounce in the quarter, well below the roughly $4,500 average spot price, as 1,500 ounces of call options settled at $2,096 per ounce.

Because this hedge settlement was a one-time event affecting only the current quarter's average realized price, management said future production will no longer be constrained by legacy pricing obligations, meaning the gap between realized and spot gold prices seen this quarter should not recur in subsequent periods.

Pan Mine Mining Rates Ramp Ahead of Second-Half Cost Improvement

The company transitioned to a new mining contractor and mining agreement at Pan Mine earlier in the year, and mining rates have since ramped up progressively, exceeding budgeted levels during and after the second quarter. Despite higher-than-budgeted diesel prices, which represent approximately 15 percent of total mining costs, unit mine operating costs benefited from Economies of Scale tied to increased mining rates. Year-to-date cash costs of $1,740 per ounce ran below the bottom end of full-year guidance, while all-in sustaining costs of $1,930 per ounce sat at the guidance midpoint.

Because Pan Mine's heap leach process creates a lag between changes in mining rates and corresponding changes in gold production, the recent ramp in mining activity is expected to translate into higher production and lower unit costs primarily in the second half of the year rather than immediately.

Copperstone Project Advances Toward Doubling Gold Production

The company released a preliminary feasibility study on its Copperstone underground gold project during the quarter, highlighting Economics that management said would more than double current gold production over an initial six-to-seven-year mine life. Work during the quarter included finalizing detailed engineering, coordinating with an underground mining contractor, initiating early mine rehabilitation, and transporting existing mill equipment to Arizona for refurbishment. The company also initiated a surface drilling program at Copperstone targeting open-pit potential not included in the underground mine plan.

Conclusion

Mining Americas' settlement of its remaining gold price obligations, combined with a strengthened Balance Sheet featuring $73.5 million in total available Liquidity and no Debt payments until 2029, positions the company to fund its pipeline of growth projects while capturing higher gold prices on future production. The pace of the Pan Mine mining rate ramp-up and continued progress at Copperstone toward a construction decision represent the primary catalysts likely to shape the company's production growth trajectory through 2027.