Florida Canyon Capital Investment Supports Multi-Year Production Growth at Integra Resources

• 2026 guidance of 70,000 to 75,000 ounces of gold, rising to 80,000 to 90,000 ounces annually in 2027 and 2028, with 45% of 2026 production in the first half as Central Pit stripping advances.
• Capital-intensive 2026 plan results in cash costs of $1,900 to $2,100 per ounce (oz) and mine-site all-in sustaining costs (AISC) of $2,750 to $2,950 per oz, with approximately $62 million to $68 million sustaining capital and $7.5 million to $9.5 million growth capital.
• 33.2 million tonnes of total material movement, including approximately 13.9 million tonnes of ore and 19.3 million tonnes of waste, at a 1.39 strip ratio to secure future ore access.
• Approximately 31,000 metres of reverse circulation (RC) drilling in-pit, plus about 8,000 metres of RC and about 1,000 metres of core drilling externally, ahead of the updated 2026 Technical Report in the second half of 2026.
• Florida Canyon underpins funding for DeLamar and Nevada North, supported by over $110 million in treasury and a transition toward producer valuation metrics.

2026 Guidance & Forward Production Profile at Florida Canyon

Integra Resources has issued 2026 production guidance of 70,000 to 75,000 ounces of gold, alongside a three-year outlook targeting 80,000 to 90,000 ounces annually in 2027 and 2028. Approximately 45% of 2026 output is expected in the first half of 2026, reflecting ore sequencing as stripping advances through the Central Pit. The mine plan includes extraction of approximately 13.9 million tonnes (Mt) of ore and 19.3 Mt of waste, totalling 33.2 Mt of material movement at a strip ratio of 1.39, meaning 1.39 tonnes of waste are moved for every tonne of ore mined. In open-pit heap leach operations, this elevated strip ratio indicates deliberate front-loaded waste removal to expose future ore zones, resulting in near-term capital absorption and cost pressure but positioning the operation for improved access and production consistency from 2027 onward.

President and Chief Executive Officer of Integra Resources, George Salamis, described the strategic rationale for the reinvestment phase: 

“Essentially, 2026 is about building capacity today at Florida Canyon to deliver more ounces, stronger cash flow, and lower costs tomorrow.” 

The 2026 guidance establishes Florida Canyon as the financial and operational cornerstone of a multi-asset United States-focused gold platform, providing investors with a measurable benchmark to assess execution against the projected 80,000 to 90,000 ounce annual production profile.

Capital Reinvestment, Cost Structure & Operational Risk Reduction

Integra's 2026 capital programme reflects a period of concentrated reinvestment across cost structure, fleet capacity, and site infrastructure, with near-term cost intensity a direct function of planned expenditure rather than operational underperformance.

Elevated Cost Profile & Strip Ratio as Forward Indicators

Integra’s 2026 cost guidance reflects a capital-intensive reinvestment phase, with cash costs projected at $1,900 to $2,100 per ounce (oz) and mine-site all-in sustaining costs (AISC) projected at $2,750 to $2,950 per oz. These levels are driven by fleet rebuild financing, capital stripping to access Central Pit ore, and higher royalties linked to gold price assumptions embedded in guidance. Sustaining capital expenditure is guided at approximately $62 million to $68 million, with approximately 55% allocated to the first half of 2026, while growth capital is projected at $7.5 million to $9.5 million, covering expansion studies and external exploration. Separately, approximately $5 million in additional capital stripping is planned to expand the Central Pit and provide access to additional mineralisation in subsequent years.

Fleet Renewal & Infrastructure Investment

A core component of the 2026 programme is the rebuilding of existing mining equipment alongside the addition of a new excavator, loader, eight haul trucks and auxiliary units to improve availability, reduce unplanned downtime, and enhance overall mining performance. Additional sustaining capital is allocated to safety systems, water security, leach pad planning, and mining technology, reflecting operational risk mitigation rather than discretionary expansion. Following post-acquisition stabilisation, the 2025 to 2026 reinvestment cycle reflects a continued capital-intensive period, with improved production performance and lower cost intensity projected from 2027 as stripping campaigns conclude, and higher ore exposure from the Central Pit supports the targeted increase in annual production.

Drilling Programmes & Portfolio Funding Strategy

The 2026 drilling programme serves two functions: expanding Florida Canyon's oxide resource base to support mine life, and generating the technical data underpinning the updated Technical Report that will inform portfolio financing decisions at DeLamar and Nevada North.

External Exploration Ahead of the 2026 Technical Report

Integra has allocated approximately 31,000 metres of reverse circulation (RC) drilling in 2026 within the mine boundary, targeting historical low-grade stockpiles and inter-pit zones to expand oxide reserves and resources and sustain heap leach feed continuity. In parallel, the company has budgeted $2.8 million for exploration outside the active pit, including approximately 8,000 metres of RC and approximately 1,000 metres of core drilling, marking the first systematic external target testing at Florida Canyon in several years. 

Salamis stated: 

“We don't look at it as a short mine life. This is an operation that was once regarded as basically done a few years ago. We still have five years sitting in front of us in terms of mine life, and the feasibility study that we'll be putting out in a few months on Florida Canyon will show a much longer mine life.”

An updated Technical Report in the second half of 2026 will incorporate recent drilling results, establish revised reserve and resource estimates, update life-of-mine scheduling and cost assumptions, and provide a refreshed basis for enterprise value per ounce (EV/oz) calculations.

Florida Canyon as the Funding Base for DeLamar & Nevada North

Florida Canyon’s cash-generating capacity is positioned as the primary funding source for advancing DeLamar and Nevada North, reducing reliance on equity issuance for development-stage capital. Integra Resources has prioritised balance sheet flexibility, with a reported treasury position of over $110 million, reflecting a strategy of consolidating the operational base before accelerating development spending. The portfolio structure combines an operating heap leach asset generating current production and cash flow with development-stage projects offering medium-term growth optionality, with DeLamar operating under a Bureau of Land Management-confirmed National Environmental Policy Act permitting schedule and Nevada North advancing toward a pre-feasibility study. This approach positions the current period of elevated capital intensity as a deliberate phase aimed at strengthening long-term financing capacity and project sequencing.

Operational Sequencing: From Stabilisation to Growth

Following the acquisition of Florida Canyon, Integra prioritised operational stabilisation by establishing reliable production, managing the existing fleet, and building predictable cash flow. The 2025 to 2026 reinvestment phase extends this strategy, allocating capital to stripping, fleet reliability, and infrastructure required to sustain and expand output over the next three years. The sequencing is clear: front-loaded stripping in 2026 reduces waste intensity in 2027 to 2028, fleet rebuilds improve equipment availability and reduce unplanned downtime, oxide drilling strengthens resource confidence, and the updated Technical Report will incorporate updated drilling results and establish revised reserve and resource estimates, collectively underpinning the targeted increase to 80,000 to 90,000 ounces per year in 2027 and 2028.

Risk Factors, Timeline Considerations & Economic Implications

The primary near-term risk is the elevated 2026 mine-site AISC of $2,750 to $2,950 per oz, which, while supporting positive free cash flow at current gold prices, implies compressed margins relative to lower-cost peers. Execution risk tied to fleet rebuilds and stripping schedules could additionally affect ore access timing in the second half of 2026. The medium-term case rests on production growth to 80,000 to 90,000 ounces per year in 2027 and 2028 as stripping intensity declines, capital intensity moderates, and drilling supports resource expansion. 

Salamis noted that the three-year production outlook exceeded analyst expectations:

“I do believe that this sort of guidance range, looking out two years out to 80,000 to 90,000 ounces per year in 2027 and another 80 to 90,000 ounces in 2028, that was a surprise. But it was a positive surprise.” 

As Florida Canyon shifts from a development narrative to a defined three-year production profile, valuation frameworks may increasingly reference producer metrics such as EV/oz and earnings before interest, taxes, depreciation and amortisation (EBITDA), with the 2026 Technical Report in the second half of 2026 serving as a key input for recalculating net asset value (NAV) and EV/oz benchmarks.

The Investment Thesis for Integra Resources

• Self-funded growth model anchored by a cash-flowing United States heap leach operation, with Florida Canyon generating the capital required to advance DeLamar and Nevada North while reducing reliance on equity dilution.
• Front-loaded capital and stripping programme in 2026, including a 1.39 strip ratio and elevated mine-site all-in sustaining costs of $2,750 to $2,950 per ounce, is designed to unlock improved ore access, lower stripping intensity and stronger margin potential in 2027 to 2028.
• Defined three-year production profile of 70,000 to 75,000 ounces in 2026, rising to 80,000 to 90,000 ounces annually in 2027 and 2028, provides measurable execution benchmarks and supports a transition toward producer valuation metrics such as enterprise value per ounce and earnings before interest, taxes, depreciation and amortisation.
• 31,000 metres of reverse circulation drilling, external target testing and the updated 2026 Technical Report in the second half of 2026 represent clear reserve, life-of-mine and net asset value reference points for investors.
• Strong balance sheet position, with over $110 million in treasury, reinforces balance sheet flexibility during a capital-intensive phase and supports disciplined project sequencing across the portfolio.

Integra's 2026 guidance establishes Florida Canyon as the operational and financial cornerstone of a scalable United States-focused gold platform, with near-term cost pressure positioned as a deliberate step toward medium-term production growth and margin improvement.

TL;DR

Integra Resources is using a capital-intensive 2026 reinvestment year at Florida Canyon to reset the operation for growth, guiding 70,000 to 75,000 ounces of gold in 2026 before ramping to 80,000 to 90,000 ounces annually in 2027 and 2028, supported by heavy stripping, fleet upgrades and 33.2 million tonnes of material movement at a 1.39 strip ratio. Cash costs of $1,900 to $2,100 per oz and mine-site AISC of $2,750 to $2,950 per oz reflect near-term capital intensity rather than steady-state operating economics, drilling, an updated 2026 Technical Report, and a treasury of over $110 million position Florida Canyon as the cash-flow base funding DeLamar and Nevada North and underpin a shift toward producer valuation metrics.

FAQs (AI-Generated)