Moody's Revises Trekor Metals Outlook to Positive on Copper Project Ramp-Up

Moody's Ratings has revised its outlook on Trekor Metals Limited to positive from stable, signaling confidence in the miner's improving operational and financial standing. The ratings agency attributed the change to the successful ramp-up of the Florence Copper operation and stronger credit metrics driven by higher copper prices and solid performance at its Gibraltar mine.

Ratings Details

In its Friday announcement, Moody's affirmed Trekor's B3 corporate family rating, B3-PD probability of default rating, and B3 backed senior secured notes rating. The agency noted that the improved performance is leading to materially higher EBITDA, operating cash flow, and liquidity.

Reflecting this stronger financial position, Moody's upgraded Trekor’s Speculative Grade Liquidity Rating to SGL-2 from SGL-3. This indicates a good liquidity profile, which the agency expects to be maintained through the end of 2027.

Key Drivers and Constraints

The positive outlook is primarily based on the Florence Copper project's successful transition from construction to operations. The facility is now ramping up production toward its annual design capacity of 85 million pounds. Moody's also highlighted the company's long reserve lives of approximately 21 years at both its Florence and Gibraltar sites, which are located in the favorable mining jurisdictions of the United States and Canada.

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However, the agency stated that Trekor's rating remains constrained by its limited mine diversity, as the Gibraltar mine continues to be the primary source of cash flow. The rating also reflects the company's exposure to copper price volatility and the remaining execution risks associated with scaling up the large-scale in-situ copper recovery process at Florence.

Financial Position

Trekor's liquidity is considered good, with Moody's projecting approximately CAD 460 million in financial sources through the end of 2027, compared to about CAD 20 million in uses. These sources include:

• CAD 187 million in cash as of June 30, 2026.
• A fully available USD 110 million revolving credit facility expiring in November 2027.
• Expected free cash flow of about CAD 120 million.