Mining Co. Finds Massive Copper Gains in New Report for Peru Mine

1. Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

On June 23, 2026, Rio2 Ltd. (RIO:TSX; RIOFF:OTCQX; RIO:BVL) announced a finalized National Instrument 43-101 Technical Report for its recently acquired Condestable copper mine in Lima, Peru. This report confirmed an increase in operational mine life, expanded mineral resources and mineral reserves, and "robust" economics for the underground operation, according to the company.

Rio2 has completed the acquisition of 99.1% interest in the Condestable mine from Southern Peaks Mining L.P. in January 2026, and the mine has provided immediate free cash flows from copper (Cu), gold (Au), and silver (Ag). Key highlights of the report include:

• Forecasted average annual production of approximately 18,000 tonnes of contained copper in concentrate, including an average of 12,900 oz of gold and 304,800 oz of silver per year at the current throughput rate of 8,400 tonnes per day. Average mill feed per year is projected to be 2.9 million tonnes (Mt), grading on average 0.73% copper, 0.15 g/t gold, and 4.28 g/t silver through LOM.
• Industry-competitive life-of-mine copper C1 cash costs are estimated at US$1.00/lb Cu after by-product credits. Life-of-mine All-In Sustaining Costs (AISC) are projected at US$1.46/lb Cu.
• 14-year life of mine confirmed through 2039, highlighting continued resource and reserve replacement at Condestable.
• After tax net present value at an 8% discount rate is US$710 million. Total LOM undiscounted after-tax free cash flow is projected at US$1,147 million, based on an average realized copper price of US$4.99 per pound, a realized gold price of US$3,884 per ounce, and a realized silver price of US$55.19/oz.

Rio2's updated Mineral Resource Estimate (MRE) for Condestable showed measured and indicated resources as 82.1 million tonnes grading 0.69% Cu, 0.13 g/t Au, and 4.12 g/t Ag. The report shows the mine containing 565,000 tonnes of Cu, 355,000 ounces of Au, and 10.87 million ounces of Ag. Inferred resources include 22.2 million tonnes grading 0.76% Cu, 0.09 g/t Au, and 2.78 g/t Ag, with the mine potentially containing 169,000 tonnes Cu, 66,000 ounces of Au, and 1.99 million ounces of Ag. Total provable and probable reserves equal 36.5 million tonnes grading 0.73% Cu, 0.15 g/t Au, and 4.28 g/t Ag, and total contained metal within the reserve plan stands at 267,450 tonnes of Cu, 176,890 ounces of Au, and 5.02 million ounces of Ag.

Condestable has a planned 46,480 m diamond drilling program for 2026 to complete the infill drilling required for short‑term reserve modeling. This program is classified as near‑mine exploration. As of May 30, 2026, a total of 17,200 m of diamond drilling had been completed, representing 37% progress toward the annual drilling target. Rio2 is confident that the program will be fully completed before the end of 2026. The second program focuses on increasing near-surface mineral resources in the Condestable and Raúl areas, with the objective of defining near-surface Cu-Au-Ag mineralization. The company will complete a detailed 1:2,000-scale geological mapping campaign, as well as a reinterpretation of the TITAN24 electromagnetic geophysical survey completed in 2012. According to the release: "Based on these datasets, a near-surface drilling program will be defined during the first half of 2026, with execution planned for the second half of the year."

Rio2 considers itself a diversified, ecologically responsible precious metals and copper producer with focus on building and operating mines within Chile and Peru. The company owns two subsidiaries: Fenix Gold Limitada and Compañía Minera Condestable S.A.

Industrial Copper Stays Strong

Copper prices are continuing to boom due to industrial demand and the rise of AI data centers. On May 12, 2026, Piyush Shukla of The Economic Times wrote that, "Copper prices are soaring aggressively in 2026 as copper futures smash record highs above US$14,000 per ton and COMEX copper crosses US$6.50 per pound. The rally is no longer only about manufacturing demand. AI data center construction is now driving a massive global copper rush. China's factory recovery, Middle East sulfuric acid shortages, and tightening mine supply are deepening the global copper crunch." So far, copper prices have risen more than 10% since the start of the year, and over 40% since the beginning of 2025.

Demand for copper is expected to rise due to continued use in electronics, especially with the widespread construction of new data centers and defense needs America is experiencing. A report from Businessworld claimed that "global copper demand is gradually shifting towards strategic and less price-sensitive sectors such as AI infrastructure, defense, power grids, and clean energy systems. By 2040, these categories are expected to account for nearly 45% of total copper demand, up from 32% in 2024."

Copper has experienced some volatility this year. While a bull market for traders, physical products are trending toward a bear market due to potential tariffs. Last year, the looming potential of President Donald Trump's tariffs surged copper prices in the U.S. as American investors stockpiled the metal.

This hype created an overstocking of copper, widening the gap between futures and physical worth. "Collectively, inventories at the world's main exchanges have risen by more than 500,000 tons since the start of the year," stated a March 6 article by Bloomberg News. The imagined certainty of inaccessible copper due to tariffs evaporated, however, when premiums for U.S. copper futures disappeared, and the tariffs did not materialize. Trump may choose to impose tariffs next year, but analysts and investors are skeptical since his administration chose to forego them in January 2026.

Copper futures fell to US$6.10 per pound on June 29, 2026, due to "easing supply concerns combined with softer demand conditions. Industry data showed that global shipments of copper concentrate have risen since April, pointing to ample raw material availability." Still, copper prices are unlikely to fall dramatically, even if a resolution is found. China's output fell by 3% in April 2026, and tariff expenses are keeping the stock price high.

Analysts Find Rio2 "Increasingly Compelling"

Upon the company's release on June 23, Ben Pirie of Atrium Research reiterated its "Buy" rating for Rio2 and upped its target price from CA$5.50 to CA$5.75. Pirie wrote: "We have updated our model for Condestable based on the mine plan outlined this morning. As discussed above, there is upside to our forecast from expanding capacity from 8.4Ktpd to 10-12Ktpd, and/or further extending the mine life via the extensive exploration programs underway on the property." The company's first production of gold at its Fenix gold mine in January, and its ramping toward 20Ktpd with 60-65Koz of gold production this year, and the acquisition of the Condestable copper mine are reasons Atrium "likes" Rio2.

Later, on June 25, 2026, Jeff Clark and Daniel Flynn of The Gold Advisor celebrated the acquisition, saying: "Fenix remains the main gold growth prize. But Condestable gives Rio2 a long-life operating platform, immediate copper-gold-silver cash flow, and more balance while Fenix ramps up in Chile." They gave the company a "Buy" rating, arguing that ". . . with Condestable now better defined, Rio2's broader growth platform looks increasingly compelling." 

Rio2 CEO Expects Bright Future

Looking to the future, Andrew Cox, President and CEO of Rio2, said: "To complement Rio2's growth strategy, the company will be conducting studies to expand production at Condestable. The company expects to receive approval for the modification of the mine EIA during Q3 2026, which will permit an increase in production from 8,400 tonnes per day to 10,000 tonnes per day, and will continue to assess opportunities to expand production further."

"Condestable has shown great promise to remain as a long-life component of Rio2's operating platform in Latin America," Cox finished.

Ownership & Share Information¹

Rio2 Ltd. has a market cap of CA$1.41 billion, with 548.47 million shares outstanding. The company's 52-week range is CA$1.36-CA$4.09.

Institutions own 20.19% of shares, while Management & Insiders own 6.93%. The remaining 72.88% of shares are held by Retail.