Integra Raises Second Quarter Gold Output 30% Over the First Quarter as Unit Costs Climb

• Gold production rose 30% over the first quarter of 2026 to 16,379 ounces.
• Revenue reached US$70.8 million on 15,794 ounces sold at an average realised price of US$4,426 per ounce for gold.
• Free cash flow was US$9.3 million, against US$2.1 million in the same quarter of 2025.
• Cash costs averaged US$2,495 per ounce of gold sold, up from US$1,849 a year earlier.
• Full-year cost guidance was raised, with total cash costs now set at US$2,300 to US$2,500 per ounce sold.
• Cash and cash equivalents stood at US$111.1 million at June 30, 2026, up US$48.0 million from the end of 2025.

Company Overview

Integra Resources (TSXV: ITR | NYSE American: ITRG) is a precious metals producer operating in the Great Basin of the western United States. Its principal operating asset is the producing Florida Canyon Mine in Nevada, and its development pipeline comprises the past-producing DeLamar Project in southwestern Idaho and the Nevada North Project in western Nevada.

Mining & Production at Florida Canyon

Total material movement at Florida Canyon set a record for the mine in the second quarter of 2026. Integra mined 4.4 million tonnes of ore, up 44% on the prior-year quarter, and 3.6 million tonnes of waste at a strip ratio of 0.81 against 0.96. Total mining rates averaged 87,867 tonnes per day (tpd), up from 66,382 tpd a year earlier, driven by new mining equipment integrated into the fleet over the previous two quarters and shorter haul distances.

Gold production increased 30% over the first quarter of 2026 to 16,379 ounces, against 18,087 ounces in the second quarter of 2025. Average process recovery was 57.8%, slightly below the 60.5% achieved a year earlier.

President and Chief Executive Officer of Integra Resources, George Salamis, is direct about what the quarter's stacking rate builds:

"Approximately 4.2 million tonnes of ore were placed on the heap leach pads during the quarter, a 45% increase over the first quarter, creating a large inventory of recoverable gold ounces that is expected to support stronger gold production through the balance of the year."

Costs & Revised 2026 Guidance

Unit costs rose even as record physical volumes lifted production. Cash costs averaged US$2,495 per ounce of gold sold against US$1,849 a year earlier, and mine-site all-in sustaining costs (AISC) averaged US$3,371 per ounce sold against US$2,641. Both reflect higher tonnes mined, stacked, and processed to support production; lower gold ounces sold during the first quarter; increased royalties and excise taxes resulting from stronger-than-anticipated gold prices; and higher diesel fuel and explosives costs.

Royalties and excise taxes move directly with the gold price. Revised guidance assumes an average gold price of US$4,200 per ounce, and a US$100-per-ounce change in the gold price produces an estimated US$7 change in each measure. Total cash costs are now guided at US$2,300 to US$2,500 per ounce sold, a US$400 increase on the original range, and mine-site AISC at US$3,300 to US$3,500, a US$550 increase. Non-sustaining growth capital is guided at US$16.5 million to US$18.5 million, a US$9 million increase reflecting improvements in the life-of-mine plan, including the advancement of heap-leach pad construction originally planned for future years.

Earnings, Cash Flow & Financial Position

A higher realised gold price carried revenue above the prior-year quarter on fewer ounces sold. Integra sold 15,794 ounces of gold at an average realised price of US$4,426 per ounce, generating revenue of US$70.8 million, compared with 18,194 ounces at US$3,332 per ounce and US$61.1 million a year earlier. Cost of sales rose to US$47.4 million from US$35.9 million, with mine operating earnings of US$23.4 million, down from US$25.2 million, and an operating margin of 33%, down from 41%. Net earnings were US$12.0 million, or US$0.06 per share, against US$10.6 million, and adjusted earnings were US$13.1 million against US$11.8 million.

Operating cash flow was US$22.8 million, up US$6.5 million from the year earlier, driven by a US$9.0 million increase in cash generated from working capital, partially offset by US$4.7 million in increased income taxes paid. Free cash flow was US$9.3 million, or US$0.05 per share, against US$2.1 million, or US$0.01 per share.

Cash and cash equivalents stood at US$111.1 million at June 30, 2026, up US$48.0 million from US$63.1 million at December 31, 2025. Working capital was US$146.5 million, up US$53.6 million, benefiting from the US$57.5 million bought deal public offering completed in the first quarter of 2026.

Exploration & the Updated Life of Mine Plan

Drilling at Florida Canyon is running at the largest scale in the company's history. Integra completed 8,501 metres (m) in the quarter, bringing the year-to-date total to 17,055 m within a 42,500-metre growth-focused programme designed to support resource and reserve growth and extend mine life.

The updated feasibility study and life-of-mine plan for Florida Canyon were filed in July 2026 with an effective date of May 31, 2026. It sets out an eight-year mine life, a 74% increase in proven and probable mineral reserves, and a 17% increase in average annual gold production, generating approximately US$0.8 billion in after-tax free cash flow over the life of mine and carrying a US$601 million after-tax net present value at a 5% discount rate (NPV5%).

Salamis frames what the reserve and fleet work has produced:

"Through strategic investments to expand the mineral reserve base, modernize the mining fleet, and integrate future heap leach expansions into the mine plan, we have developed a more stable, longer-life operation with higher annual production and lower long-term operating costs."

DeLamar Permitting & Site Readiness

DeLamar entered the federal permitting process under the National Environmental Policy Act (NEPA) in May 2026. The project's mine plan of operations was submitted to the Bureau of Land Management as the basis for the agency's environmental review, which began with publication of the Notice of Intent (NOI) on May 29, 2026, and a 30-day public scoping process. An environmental effects analysis of the project and a no-action alternative will be included in an environmental impact statement (EIS), which will be accompanied by a record of decision.

DeLamar was selected for the US Federal Permitting Improvement Steering Council transparency projects programme in January 2026, which coordinates the permitting timetable across agencies. The project's posted permitting timeline sets an accelerated 15-month environmental review schedule from start to finish.

Site work has proceeded alongside permitting, with state-of-good-repair programmes commenced on site, including test mining and crush optimisation analysis. Integra incurred US$5.7 million in exploration and project expenses in the quarter and invested a further US$4.6 million in mineral property, plant, and equipment at DeLamar.

Safety & Environmental Performance

Injury frequency at Florida Canyon improved against the first half of 2025, with the year-to-date total reportable incident frequency rate at 1.6 against 2.3. Integra recorded zero fatalities, one lost time injury, and three Mine Safety and Health Administration reportable injuries in the quarter, alongside one reportable spill and one minor reportable permit noncompliance.

Next Steps

Investment in sustaining capital expenditures is targeted to continue in the third quarter.

Salamis is precise on the condition attached to the full-year production figure:

"With ore stacking on the heap leach pad exceeding expectations, the Company is maintaining its full year production guidance of 70,000 to 75,000 ounces of gold."

The EIS and record of decision for DeLamar are targeted for the second half of 2027, with construction to follow receipt of all applicable federal, state, and local permits.

FAQs (AI-Generated)