All right. Hello everyone, and thank you all for joining us during the day here at the Lytham Partners Fall 2026 Investor Conference. My name is Robert Blum, managing partner here at Lytham. Up next, Brian Bergot, who heads investor relations at Trekor Metals, will be taking us through the company's slide presentation. Brian, thanks so much for your participation here today. The floor is all yours.
Great. Thanks very much, Robert, and thanks for inviting us to present again. I will run you through the Trekor story and give you a good update where we are at and take it from there. So who is Trekor? We are sort of an emerging North American mid-tier copper producer. We operate two assets, one up here in British Columbia, our Gibraltar mine, which we have been running now for about 21 years, and we just started our new mine down in Arizona, our Florence Copper Mine. We are about six months into the ramp-up there and working towards getting to full capacity in for 2027. So it is an exciting year for us as we ramp that new operation up. We are focused in copper. We are North American. We are the only copper producer that is solely North American.
All of our peers have exposure to other areas such as South America and Africa, but we have made the choice to stay in North America, a nice, secure political jurisdiction. We have got a proven team of mine builders and operators, with the company today. We have spent a lot of time, years operating Gibraltar and expanding Gibraltar, and then we just finished the major project at Florence. Strong balance sheet. We manage it very prudently and conservatively, for both the good times and the bad times. We have a pipeline of growth projects back up here in B.C. These are longer dated. We have got our Yellowhead copper project, which we may get a chance to speak about later. We are in the environmental assessment phase with that project. Probably three to four more years of permitting EA work there ahead of us.
We also have our Aley Niobium project, a little bit of a different project. But we are doing some technical work there and we will be continuing that on for the next few years. Then we have our New Prosperity project, very large gold copper project up in, just a little bit north of Vancouver in southern B.C. Lots of new things that have happened there, but we can try and talk about that a little bit later as well. Actually, New Prosperity is the original project of Taseko's back from the 1990s. But our main focus is copper. Why have we focused on copper? Copper is such a fundamental, critical metal across all different demands, whether it be urban growth or now the electrification boom. We talk about data centers and AI.
All of these require a lot of copper, and the real issue here is a lack of new copper supply. There are very few large-scale projects being developed today, and it takes years to develop these projects. On average, it takes about 20 years to build a large-scale copper mine, and there just are not that many big projects on the horizon. In addition to that, the industry constantly underperforms. We have had some major mine outages in the last year and a half. Some of the biggest mines in the world have been underperforming due to technical reasons. There is a reason why copper price is at about CAD 6.60 today, which is really close to all-time high levels, and that is being driven by fundamentals. We have got strong demand and supply constraints.
We are very bullish on the long-term future for copper, which again, is why we have decided to focus in copper. A little quickly on our last quarter earnings. Our Q2 earnings were some of the best earnings we have ever produced. We did CAD 330 million of revenue, CAD 125 million of Adjusted EBITDA, and CAD 180 million of cash flow. Really that was driven by the strong copper price environment we are in. Plus, we now have production from our Florence Copper project down in Arizona. We produced 35 million pounds of copper in Q2, with sales of 38 million pounds. We had fantastic results and we expect those to continue to grow as our production ramps up down in Florence. Let me talk a little bit about our two key assets here. Gibraltar.
Gibraltar is here in B.C., just about a six-hour drive north of Vancouver. On average for the remaining 19 years of mine life here, it will produce 125 million- 130 million pounds of copper per year. Cash costs here are about CAD 2.30, CAD 2.40 per pound. Today, we are actually running a little bit higher than that, and that is mainly due to diesel prices. We burn a lot of diesel at Gibraltar, and in today's oil/diesel price environment, that is impacting our costs. We are probably more like CAD 2.50- CAD 2.60. But when we talk copper prices north of CAD 6.50 per pound, still lots of margin we are making at Gibraltar. We actually acquired Gibraltar in 1999 for CAD 1. We restarted it in 2004 when the price of copper started to move higher, and then we started investing in the mine.
Really between 2006 and 2013, we invested about CAD 800 million to not only modernize it, but to expand it. We took it from milling capacity of about 30,000 tons per day to what it is today, which is 85,000 tons per day. We have been running it at the steady state at the higher levels since 2015. We still have 19 years of mine life ahead of us here. Lots of resources over and above the reserves that we believe, at some point, we will convert to reserves and extend the mine life again. Gibraltar is the second largest copper mine in Canada, fourth largest in North America. This is a big operation. The leverage to copper price is quite large at Gibraltar.
As you can see in that table there, today at CAD 6.50 with cash costs, call it CAD 2.60 per pound, we can do about CAD 700 million of operating margin. You need to take away sustaining capital, which call it today would be CAD 100 million- CAD 150 million per year. That leaves a lot of free cash flow that this mine will generate here over the next little while. Our production guidance for this year is a little bit lower than the life of mine average. We have guided to 110 million- 115 million pounds. Through the first half of the year, we produced 60 million pounds, so we are definitely on target to achieve that guidance. This has been a great asset for us for the last 20 + years.
We have taken all the cash we have generated from Gibraltar and put it right back into our business, initially to expand the operation, and then next was to build Florence and to develop our other projects in the pipeline as well. Onto Florence. Florence, once we ramp it up, it will produce 85 million pounds of copper per year. Again, a very long mine life at 22 years. Cash costs here are much lower. We expect we will be able to produce at about CAD 1.10 per pound once it is fully ramped up. About half of what Gibraltar is. The reason we can produce at such low costs is the mining method we are using here, which is in- situ leaching or in- situ recovery. I will talk a little bit about that in a few minutes. We acquired the property in 2014.
It really was a permitting process for the first, well, really until 2023. It took us almost 10 years to permit this project. But during that time, we also ran a production test facility for about 18 months and produced a million pounds of copper. Because we are using a slightly or a different mining method for copper, we ran that test facility to prove that this process would work at Florence, and it was very much a success. We got our final permits in 2023, started construction in 2025, and then we produced our first copper cathode in 2026 in February of this year. To date, it has gone very well. Our guidance for this year, it is a ramp-up year, is 30 million- 35 million pounds, and our target is to be at that 80 million- 85 million pound capacity in 2027.
The economics here are fantastic. Again, 22 years of mine life, will produce on average about 80 million- 85 million pounds of copper per year. At $3.75 copper, Florence has got nearly a billion-dollar U.S. NPV. At $6, a little lower than where it is at today, that NPV jumps to over $2 billion. This is a fantastic asset and is going to generate a lot of cash for us. It will be the third largest copper cathode producer in the U.S., and this is an important point. We are not producing copper concentrate like we do at Gibraltar and like most mines around the world produce. We are producing pure 99.99% copper cathodes. The copper cathode we produce leaves our site and can go straight down the road to a rod mill. It is really a finished product that needs no further refining or smelting.
And we actually get a small premium for that because this is copper cathode production in the U.S., and the U.S. is an importer of copper cathodes. A little bit about the process. Again, it's ISR, in- situ recovery. We're not digging a big hole like you would in a conventional mine. We actually drill a well field. The wells are injection wells and recovery wells, and we inject a solution down into the deposit. As that solution moves from the injection well to the recovery well, it leaches out the copper or dissolves the copper. Then we recover that copper-bearing solution and pump it back to surface. Then that copper, that pregnant leach solution, is pumped into a SXEW plant. That SXEW is very conventional, and that's where we strip out the copper from the solution and produce pure copper cathode.
It's a very efficient operation. We're not moving any dirt, so we don't have any mining costs that typical mines have. That's again why our costs are so low here. As I mentioned, this is the ramp-up year. We started well field operations with about 90 wells late last year. We produced our first copper cathode in February. In the first quarter, we produced 1.5 million pounds of copper, and then that increased to 5.2 million pounds in Q2, and we expect a good jump in production again in Q3 and then again in Q4 to achieve that 30 million-35 million pounds of production guidance that we provided earlier this year. Again, our target is to produce upwards of 80 million-85 million pounds in 2027. We started production with 90 wells.
We've restarted drilling, so we'll drill about another 100 wells this year, and really, we drill 100 wells on average per year for the rest of the mine life. We just continue expanding the well field and leaching different areas of the deposit. It's a fantastic asset. It's a very exciting time for us, given how long it took us to get it permitted. Now we're in production, and we should see it turn cash flow positive here in the next month or so. Just real quick, I think I have a couple of minutes left. I'll talk about a couple of our other assets. Yellowhead, as I mentioned, this is a large-scale, open pittable project back up here in BC, about a four-hour drive north of Vancouver.
We started the environmental assessment a little over a year ago, and we have three to four more years of that work ahead of us realistically. We also updated the economics of the project in June of last year. This is a large-scale mine. If we built it today, it would cost about CAD 2 billion to build the project. The economics again here are very good. At $4.25 copper, it has a CAD 2 billion NPV. If you use $5.25 copper, that NPV jumps to CAD 3.6 billion, and $5.25 is sort of the current long-term consensus price for copper. This mine will produce about 180 million pounds of copper per year over a 25-year mine life. Big scale, long life mine that we would like to build at some point. We're probably four to five years from making that final investment decision.
So lots of work ahead of us here, but we're steadily moving towards that construction date. New Prosperity I mentioned is the original project of Taseko, sorry, Taseko's and now Trekor's back from the 1990s. This is one of the largest undeveloped gold copper projects in North America. There's 13 million ounces of gold and 5 billion pounds of copper in the ground here. This project's been stuck in permitting and legal challenges for quite a number of years. But last year, we announced a very significant deal with the indigenous group in this area and the province. We think this deal that we announced could potentially pave the way for future production here. So we're going to be patient. We'll see how things play out here over the next couple of years.
But this is a fantastic project, and there's a lot of value here yet to be unlocked. Then real quick, I'll just finish off with Aley. Aley is a niobium project. Not quite, maybe not core to the business, but still a very good project. Niobium is an interesting mineral. There's only three producing mines, niobium mines in the world today. This would be one of the largest deposits outside of South America. We actually bought this project in 2007 for CAD 5 million. We did a bunch of drilling. We've actually developed our own process to extract the niobium and produce ferro-niobium. We have a patent on that, actually. So we're doing some technical work and some marketing work, but really what we need here would be a strategic partner.
So a lot of value to be unlocked here, but again, this is a longer-dated project and really not core to the business today, but we'll see if we can unlock some value here over the next number of years. So that's really it. Trekor got a lot of things going on. We got Gibraltar, which we've been operating for over 20 years now and still value to be unlocked as we continue to wrap up Florence here over the next six months or so. With that, I'll turn it back to you, Robert.
Fantastic. Brian, thank you very much for the presentation here, participation in the conference, and of course, everybody here for watching as well. If you would like to schedule a meeting, either here at the event or in the weeks to come, with Trekor, send me an email. That's blum@lythampartners.com. Of course, to learn more about Lytham, make sure you visit our website, and then follow us on LinkedIn and subscribe on YouTube to make sure you stay connected on future events such as the presentation here from Brian. So we hope you enjoy the rest of the conference. Have a great day. Brian, thanks again for participation.
Thanks, Robert.