Looks like we're good to go. Morning again, ladies and gentlemen. The next company to present is Rio2. They're a diversified precious metals and copper producer who's currently producing gold at its Fenix Gold heap leach mine in Chile, and copper, gold, silver at its recently acquired Condestable underground mine in Peru. Presenting on behalf of the company today is President, CEO, and Director, Alex.
Executive Chairman.
Executive Chairman, I guess. Alex Black. Well, we'll go with that.
Thanks, mate. Okay. Thanks a lot. Just two acknowledgments before I start. I'd like to acknowledge BMO for inviting us to this conference. We've been trying for many years to get in the door, knocking hard, we couldn't get in, here we are. The other acknowledgment is to Clive Johnson. As you know, Clive's retired from B2 this year. Clive's been an inspiration for me and the way we've developed Rio Alto in the past and also Rio2. I've known Clive for more than 20 years. He's a legend, he's going to be a big loss to the business. Okay. The Rio2 story revolves around two operating mines. One in Peru, Condestable. The other one in Chile, Fenix Gold. Both projects are long-life, large-scale projects. Condestable is an underground copper mine. It's the only underground copper mine in Peru.
Most of the copper mines or underground mines in Peru are polymetallic. In this case, Condestable is copper with about 20% precious metals. Fenix Gold is 100% gold. We started production just recently in January at Fenix Gold. Condestable has been operating for 60 years. We bought it with a 10-year mine life. 10 years of reserves and there's plenty of potential to expand that. This is really hard for me because I can't even see that screen very well. I'm going to have to look up here. The other thing that people need to know is this is not our first rodeo. We've done this before. We had a company called Rio Alto that we started in 2009. We sold in 2015 to Tahoe Resources for $1.2 billion.
Unfortunately, we were all shown the door, and I decided that we hadn't had enough and formed Rio2. This Fenix Gold project was discovered by Atacama Pacific back in 2010. They drilled it from 2010 to 2014, outlined 5 million ounces of gold. We haven't done any exploration at Fenix Gold because what's the point with 5 million ounces? This year we'll be starting, for the first time in 12 years, an exploration program at the project. We merged with Atacama Pacific in 2018. In the case of the mineral endowment, you can see it there, 5 million ounces of gold at Fenix Gold and over 550,000 tonnes of copper in M&I at Condestable. The team, this is all about people. This is the ex-Rio Alto team, apart from a couple of faces on that chart. Our team develops, builds, and operates mines.
We're not a junior that tells a story and hopes that we're going to get taken out by a major. That's not our case. Our performance, our share price graph over the last 2 years, you can see the stellar run we had. We outdid the GDX, and we also outdid the gold price. Today, we're sitting at a market valuation of about $1.8 billion. We did a $200 million financing to finance the acquisition of Condestable in December. The book started at $160 and it got up to $600 million, but we ended up taking $200 million. The shareholders, you can see there. Our largest institutional shareholder is Mackenzie. Our largest high net worth holder is Eric Sprott. There's the 2 mines. Very different. Condestable is 5 kilometers from the coast, 90 kilometers south of Lima. We're at sea level.
Fenix Gold, the peaks that we're taking down at Fenix Gold are 5,000 meters above sea level. Very different geographies. We know how to operate in that sort of environment. Just so you know, myself, who is the Executive Chairman, I was the CEO. Andrew Cox is the President and CEO of the company now. Myself, Andrew, both live in Lima. We're different to a lot of Canadian companies. We don't have an office in Toronto or Vancouver. We're based in Lima. We're overseeing the operation of these 2 assets. Statistics there are all very verbose, so you can check this out. This is on our website, so you can have a look at this anytime. This is really key to everything. Why did we buy a copper mine when we're a gold company? The reason was because of the cash-generating capabilities of Condestable.
You can see it there on the right-hand side. The EBITDA of Fenix phase 1, which is at 20,000 tons a day of ore to pad Fenix is run of mine. There is no crushing. 75% recovery, which looks like the case. We are just ramping up now from a production perspective. Then you add Condestable to that, and what you get is near on $400 million, $500 million of EBITDA from those two assets. We have an expansion plan for Fenix Gold. Obviously, we need money for that, but what we feel very comfortable about is that our starter project at Fenix and Condestable are going to help us self-fund that expansion. You can also see the gold equivalent production there on the left. What you see there is from two assets. We will get up to about 400,000 ounces of gold equivalent once we expand Fenix Gold.
There is also expansion possibilities at Condestable, which I will talk about in a minute. When you look at the EBITDA there, you can see what happens at spot. All the EBITDA that I showed you on the previous graph was at consensus, but the graph on the right there, the EBITDA at spot, we are over $400 million of EBITDA per annum coming out of these two projects. We have got a lot of leverage to the metal price. We have got a pathway to expansion at Fenix Gold. The secret source is water. We are trucking water to the project now very successfully for the starter project. We will get to a run rate of 20,000 tons a day by the end of this year. That will see us produce 60,000 to 70,000 ounces this year of gold from Fenix.
Next year, with our run rate of 20,000 tons a day, we will do about 100,000 ounces, and we will do that for at least four or five years going forward. The answer to the water is going to be desal. We are talking to several providers in the Copiapó area who already have desal plants, already bring water up to Copiapó. What we have to look at is building a pipe from Copiapó to the project, which is about 160 kilometers. We have a clear pathway of permitting and other things, and you can see us get to the expanded case of 80,000 tons a day, producing about 300,000 ounces per annum by around 2030, 2031. The other thing is Condestable is expandable. It is in a process of being expanded to 12,000 tons a day.
We envisage that to happen by the end of 2027, so 2028 will be at a run rate of about 12,000 tons a day. With that, the gold equivalent production will be about 120,000 ounces coming out of Condestable. You put that together with the expanded case of Fenix of 300,000, that is how you get the 420,000 ounces per annum of gold equivalent production. That is Fenix Gold. Beautiful location, 4,300 meters above sea level is where the plant is. You can see the PLS pond. You can see the leach pad. That leach pad area has capacity 400 million tons, that valley there. It will be suitable for the expansion case. Fenix North is in the top left-hand of that photo. The peak at Fenix North is at 5,000 meters.
We know how to operate in this type of environment, as you can see, there's nothing there, which is a great thing from a mining operation. The only thing is we don't have water from the point of view. There is water opportunities to get water from subsurface, but you can't get that permitted in Chile. It's not worth worrying about. We are going to go through this presentation. It's on our website. You can see the first gold pour happened in January. Everybody was pretty happy about that. A couple of different views of the plant. You can see the leach pad there in the photos wet. A lot of people didn't believe we were going to truck water to this project and do it economically. We are, we will.
The other thing is, from the metallurgical test work we've continued to do during the construction period, from samples at deeper levels than the current metallurgical samples, we're seeing that probably this mine is going to continue as a run of mine for the life of its time. That's a very positive thing as well. First time we're going to do exploration. You can see everything outcrops at surface. Beautiful thing. Strip ratio less than one. We're mining at Fenix South, which is to the right of the vision there. The black line there is the $1,800 resource shell. You can see the potential here to really upgrade the reserves of this project over time and with drilling. We've put together a lot of information. This is what the drilling targets look like around the ore body. That will be starting very shortly.
Two options shown here for desal water. Condestable, a different view. Once again, at the coast. Great operation. We loved what we saw there, and that's why we bought the asset. We paid two times EBITDA for this asset. Condestable has a precious metal stream with Franco-Nevada, and we have a stream at Fenix Gold with Wheaton Precious Metals. All the reserves at Condestable are from the 900 level above. It's had a great history over its time, and we're going to be doing more exploration there during the coming years. I think I'll stop there.
We are completely out of time. Thank you very much, Alex.