Rio2 copper acquisition adds Peru mine cash flow exposure

Rio2 Mining

Rio2 has agreed a Rio2 copper acquisition that pushes the company beyond gold. The Rio2 copper acquisition targets the Condestable underground operation in Peru. As a result, Rio2 gains near-term cash flow and stronger copper leverage.

Rio2 will buy 99.1% of Condestable from Southern Peaks Mining for $217mn in staged consideration. The package includes $80mn cash and $65mn vendor debt. It also includes $35mn equity and a $37mn deferred payment due in 2027–30. Meanwhile, Rio2 has lined up a $120mn equity raise to support the Rio2 copper acquisition.

Condestable sits about 90km south of Lima and runs an 8,400 t/d plant. The plant produces a clean concentrate with no processing penalties. Output is forecast near 27,000 t/yr of copper equivalent over five years. The mine also runs on 100% renewable hydropower.

Deal structure targets copper exposure and scale

The staged structure reduces near-term cash strain while locking in control. It also blends debt and equity to broaden funding options. Therefore, Rio2 can add a Peru copper mine without delaying other growth plans.

Rio2 expects the deal to lift copper revenue exposure to about 30% in the near term. That shift matters as copper prices hit record highs on the London Metal Exchange this week. Meanwhile, stable concentrate quality supports margin clarity for traders and smelters.

Condestable supports a broader Peru-Chile growth story

The mine complements Rio2’s operating footprint in Chile. It also returns the company to a familiar jurisdiction. Rio2 previously built and sold Rio Alto Mining in Peru. Closing will depend on customary approvals.

Rio2 also projects pro-forma annual EBITDA of $330mn once its Fenix gold mine reaches commercial production. As a result, management frames copper as a second cash engine. However, integration discipline will decide whether the acquisition expands returns or complexity.

The Metalnomist Commentary

This deal shows how mid-tier gold miners chase copper optionality without waiting for greenfield builds. However, funding terms and copper-cycle timing will shape investor confidence. Therefore, watch the equity raise pricing and early cash conversion at Condestable.