Skip to main content

Denarius Metals: Concentrate Sales Targeted for Early 2027 at Zancudo

Mining Network Sep 26, 2026 19:29

Summary

Denarius targets commercial concentrate production at Zancudo by early 2027, with plant installation underway and Q3 output tracking 50% above Q2.

CFO Mike Davies projects 7,000-10,000 payable ounces of gold this year and 25,000-30,000 next year, with current margins running 35-40%.

Trafigura is both a seven-year offtake partner and roughly 15% shareholder, after stepping up via an August placement that funded Denarius's stake in Copper Giant.

Gold payability should jump from about 65% on crushed rock to 90% once concentrate shipments start, lifting gold to ~95% of Zancudo revenue.

In Spain, a 22% JV in the permitted Aguablanca plant is targeted to restart by mid-2027, with 100%-owned Lomero about two years behind it.

Key points on Aris Mining Corp

  • Davies cites Aris Mining (now a $3 billion company) as Serafino Iacono's prior success story, with the Marmato project previously permitted and handed over to Aris before Denarius pursued Zancudo

Key points on Denarius Metals

  • Concentrate sales at Zancudo are targeted for early 2027; moving from crushed-rock shipments to concentrate with Trafigura should lift gold payability from about 65% to 90%
  • Full-year 2025 guidance of 7,000-10,000 oz payable gold at 35-40% margins, with 2026 expected at 25,000-30,000 oz; the 2028 target is 45,000-50,000 oz/year once the project hits 1,000 tpd
  • Spain pipeline includes a 22% JV in Agua Blanca (5,000 tpd plant restart targeted mid-2027), 100%-owned Lamero (about two years to production), and Torral (about three years out)
  • Trafigura is a 15% shareholder (after the August private placement), the 7-year offtake counterparty, and a $16M prepayment lender ($9M already drawn, $7M additional to be drawn in the second half of the year)
  • Current Zancudo resource is about 1.2M oz gold equivalent with a 15,000-meter drill program underway; a resource update incorporating drill results is expected in spring 2027

Frank Giustra's takeaways

  • Top takeaway Has a long-term business relationship with Serafino Iacono, and that collaboration is cited as a key reason Copper Giant reached out to Denarius for the Macoa partnership

Mike Davies's takeaways

  • Top takeaway Frames Denarius as a developer moving into cash generation, with Zancudo concentrate sales targeted for early 2027 and a Spain pipeline (Agua Blanca restart mid-2027, Lamero around 2028, Torral about three years out) intended to replicate Serafino's Aris Mining playbook
  • Argues Serafino's Gran Colombia Gold track record (now $3 billion Aris Mining) and Colombia permitting expertise justify the Copper Giant stake, even though the initial balance-sheet outlay was modest
  • Sees 1,000 tpd throughput at Zancudo as achievable in 2028 with current grades of around 11 g/t gold and 200 g/t silver, while conceding 2027 tonnage may come in lighter than hoped as semi-mechanized mining ramps in
  • Positions Agua Blanca's existing 5,000 tpd plant as the key de-risking asset for Lamero, since toll milling avoids a greenfield build and lengthy permitting cycle
  • Bullish on Colombia's new government and on copper as a strategic metal, and sees further growth optionality in Tural, additional Spain consolidation, and a possible Zancudo mill expansion