Executive Summary / Key Takeaways

• Integra Resources has successfully transitioned from a development-stage company to a U.S. gold producer, leveraging the cash flow from its Florida Canyon mine to self-fund the advancement of its DeLamar and Nevada North projects, eliminating the need for external equity financing.
• The Florida Canyon mine is undergoing a significant, capital-intensive reinvestment phase through 2026, focused on heap leach pad expansion, fleet revitalization, and process optimization, aiming to extend mine life and improve its cost profile.
• Strong financial performance in Q2 2025, with record revenue of $61.1 million and $16.3 million in operating cash flow, underscores the company's significant leverage to rising gold prices and its robust liquidity, ending the quarter with a $63 million cash balance.
• Integra is actively de-risking its flagship DeLamar project, with the Mine Plan of Operations accepted by the BLM and federal permitting expected to commence in H2 2025, alongside the release of its feasibility study.
• The company's strategic focus on operational excellence, organic growth through exploration at Florida Canyon, and a favorable U.S. regulatory environment for mine permitting positions it for sustained growth towards becoming a mid-tier gold producer.

A New Era: Integra's Transformation into a U.S. Gold Producer

Integra Resources Corp. (NYSE American: ITRG), originally incorporated in 1997 as Mag Copper Limited, has undergone a significant transformation, evolving from a pure-play development company into a cash-generating U.S. gold producer. This pivotal shift occurred in November 2024 with the strategic acquisition of the Florida Canyon mine, a move designed to establish a consistent and reliable source of cash flow. This foundational asset now underpins Integra's ambitious strategy: to operate efficiently, develop responsibly, allocate capital wisely, and grow both organically and through tactical mergers and acquisitions, ultimately aiming to become a leading mid-tier gold producer in the heart of the Great Basin.

The company's strategic positioning within the Great Basin, one of the world's premier mining jurisdictions, provides a distinct advantage. Integra holds one of the largest inventories of gold and silver in this region not controlled by a major mining company, setting it apart from larger, more diversified competitors like Hecla Mining Company (HL), Pan American Silver Corp. (PAAS), and Coeur Mining, Inc. (CDE). While these larger players benefit from established scale and broader operational footprints, Integra's focused approach on high-potential U.S. assets allows for agile project execution and specialized expertise in regional deposits. This targeted strategy, coupled with a proven management team, is crucial as the company advances its pipeline of development projects.

A key differentiator for Integra lies in its operational and strategic innovations at Florida Canyon. The company is not merely operating an acquired asset but is actively implementing a long-term continuous improvement plan. This includes significant investments in heap leach pad expansion, a revitalized mobile equipment fleet, process optimization, and enhanced mine planning. Furthermore, Integra is leveraging Florida Canyon's existing refining capacity to create synergies for its DeLamar project, a move expected to positively impact capital costs and overall recovery. The company's growth-focused drill program at Florida Canyon, which has been expanded due to initial success, exemplifies an innovative approach to resource expansion. By re-evaluating historical low-grade dump material and exploring inter-pit areas, enabled by the current higher gold price environment, Integra is effectively expanding reserves and resources with minimal mining cost, thereby enhancing operational flexibility and reducing reliance on higher strip in-situ material.

Financial Strength and Operational Momentum

Integra's financial performance since the Florida Canyon acquisition demonstrates the success of its transformation. In Q2 2025, the company reported record revenue of $61.1 million and generated $16.3 million in operating cash flow from Florida Canyon. This robust performance was significantly bolstered by an average realized gold price of $3,332 per ounce during the quarter, highlighting Integra's substantial cash flow leverage to the spot gold price. Adjusted earnings for Q2 2025 reached $11.8 million, or $0.07 per share, a meaningful increase from Q1 2025 adjusted earnings of $4.4 million or $0.03 per share, primarily driven by the favorable gold price environment.

The first half of 2025 saw Florida Canyon produce 37,410 ounces of gold, aligning with the company's annual guidance. Cash costs averaged $1,936 per gold ounce, and mine site all-in sustaining costs (AISC) were $2,486 per gold ounce for H1 2025, consistent with the full-year guidance of $2,450 to $2,550 per ounce. While Q1 2025 experienced slightly elevated costs due to pre-stripping activities and higher royalty payments, these are part of the planned reinvestment strategy. Integra ended Q2 2025 with a robust cash balance of $63 million, marking its strongest financial position to date. This liquidity is critical, as it is expected to fully fund sustaining capital needs at Florida Canyon, development expenditures at DeLamar and Nevada North, and general and administrative costs for the foreseeable future, removing the need for additional equity financing.

The company's disciplined capital allocation is evident in its reinvestment strategy at Florida Canyon. In Q2 2025, $14.2 million was deployed in sustaining capital and $0.8 million in growth capital. The 2025 guidance projects sustaining capital expenditures between $48 million and $53 million, primarily for capitalized waste stripping, mobile fleet rebuilds, and heap leach pad expansion. Growth capital of $8 million to $10 million is allocated for expansion projects and studies, including the expanded 16,000-meter drill program aimed at near-mine oxide targets. This capital-intensive phase, particularly in Q3 2025 with 45% of annual sustaining capital planned, is a strategic investment to establish a more efficient, longer-life operation with an improved cost profile.

Advancing the Growth Pipeline and Mitigating Risks

Beyond Florida Canyon, Integra is making significant strides in advancing its development-stage projects. The DeLamar Project in Idaho, a flagship asset, is progressing towards federal permitting, with its updated Mine Plan of Operations formally accepted by the U.S. Bureau of Land Management (BLM) in September 2025. This marks the initiation of the federal permitting process under the National Environmental Policy Act (NEPA), which is anticipated to span two years. The feasibility study for DeLamar is expected to be released in the second half of 2025, further de-risking the project. The company has optimized the DeLamar plan to be an oxide-only heap leach project with a more compact footprint and design modifications to reduce environmental impacts, reflecting a commitment to modern sustainable mining practices.

The Nevada North Project, comprising the Wildcat and Mountain View deposits, is also advancing. The environmental analysis for Wildcat's exploration plan of operations is complete with a finding of no significant impact, and hydrogeological drilling is expected to conclude in H2 2025. Integra's enhanced financial strength has enabled an increased budget for Nevada North, allowing for crucial test work to support future economic studies and permitting efforts. The company views Nevada North as a potential extension of Florida Canyon, leveraging proximity for future synergies.

While Integra's growth trajectory is compelling, investors should be aware of inherent risks. The ongoing capital-intensive phase at Florida Canyon, particularly the elevated sustaining capital in 2025 and 2026, presents a period of higher costs and execution risk. Challenges such as maintaining mobile equipment fleet availability and managing cost pressures, which are common across the mining industry, require diligent operational oversight. To mitigate these, Integra is undertaking optimization studies, supplementing its fleet with rentals, and has implemented a hedging program for 2025, utilizing put options with a $2,400 floor to protect margins against potential gold price volatility. This proactive risk management, coupled with a favorable U.S. regulatory environment that is increasingly focused on streamlining mine permitting, provides a more stable backdrop for project advancement.

Conclusion

Integra Resources Corp. stands at a pivotal juncture, having successfully transformed into a cash-flow-positive gold producer. The Florida Canyon mine is proving to be a robust engine, generating significant cash flow that is strategically reinvested to enhance its long-term operational efficiency and fund the advancement of the high-potential DeLamar and Nevada North projects. The company's commitment to operational excellence, demonstrated through its continuous improvement initiatives and innovative exploration at Florida Canyon, is strengthening its competitive position in the Great Basin.

With a strong balance sheet, a clear development pipeline, and a supportive regulatory landscape, Integra is well-positioned to execute its strategy of becoming a leading mid-tier gold producer. The anticipated release of the DeLamar feasibility study and the commencement of federal permitting in the latter half of 2025 represent significant catalysts. While the capital-intensive period at Florida Canyon and broader industry cost pressures warrant monitoring, Integra's disciplined capital allocation and proactive risk management, including its hedging strategy, underscore a thoughtful approach to growth. For discerning investors, Integra Resources offers a compelling narrative of a U.S.-focused gold producer with a clear growth runway, leveraging its current production to build a more substantial and sustainable future.