Mercer International Inc. Reports Third Quarter 2026 Results

(NASDAQ:MERC) Mercer International Inc. reported third quarter 2026 Operating EBITDA of negative $2.9 million, an improvement from negative $28.1 million in Q3 2025 and negative $21.0 million in Q2 2026. Net loss for Q3 2026 was $59.2 million ($0.88 per share), compared to $80.8 million ($1.21 per share) in Q3 2025 and $76.0 million ($1.13 per share) in Q2 2026. On November 2, 2026, Mercer entered into restructuring support agreements with holders of more than 87% of its senior notes and a majority of its common stock, providing for a comprehensive recapitalization. The recapitalization includes the exchange of approximately $1.1 billion of existing senior notes for equity, elimination of approximately $96 million of annual cash interest on senior notes, and $400 million of new capital through a fully-backstopped rights offering of senior secured notes. The recapitalization is being implemented through Mercer International Inc. and Mercer International (Texas) LLC, with no direct impact on other subsidiaries. Operations are continuing in the ordinary course with no impact on customers, suppliers, or employees. In Q3 2026, pulp sales realizations remained steady, with industry-wide curtailments and closures balancing supply, but soft demand and overcapacity in China kept prices flat. Fiber pricing improved for Canadian pulp mills and German sawmills, while fiber costs increased for German pulp mills due to supply shortages and competition from energy producers. Q3 2026 results were negatively impacted by 44 days of planned annual maintenance downtime (approximately 48,900 ADMTs), reducing Operating EBITDA by approximately $34.1 million. The Celgar mill is expected to have 18 days of planned downtime in Q4 2026. The Rosenthal mill experienced 24 days of unplanned downtime in Q4 2026 due to effluent treatment issues. Pulp prices were flat in Q3 2026; softwood pulp prices are expected to modestly increase in Q4 2026, while hardwood pulp prices are expected to remain stable. Lumber sales realizations increased in Q3 2026, mainly due to higher U.S. prices, but European demand remained weak. Lumber prices are expected to be flat in Q4 2026. The mass timber business order book and commitments were approximately $151 million at the end of Q3 2026, with contracts expected to contribute to results starting late 2026 and into 2027. Mercer secured approximately $13.0 million in grants and up to $13.5 million in low-interest repayable contributions for the Peace River mill in Q3 2026. The "One Goal One Hundred" program achieved $22.0 million in cost savings in Q3 2026 and $76.0 million in total since launch, with a $100 million target by end of 2026. Q3 2026 revenues were $440.7 million, down from $458.1 million in Q3 2025. Costs and expenses in Q3 2026 were $479.4 million, down from $525.7 million in Q3 2025. Q3 2026 included a $13.0 million government grant benefit and an $8.0 million non-cash inventory impairment; Q3 2025 included a $20.4 million impairment. Pulp segment Q3 2026 revenues were $281.1 million, down from $318.6 million in Q3 2025. Energy and chemical revenues were $29.1 million, up from $20.4 million. Pulp segment Operating EBITDA was $5.9 million, up from negative $12.7 million. Average NBSK pulp sales realizations in Q3 2026 were $671 per ADMT, down from $728 per ADMT in Q3 2025. Average NBHK pulp sales realizations were $601 per ADMT, up from $528 per ADMT. Total pulp sales volumes were 421,413 ADMTs, down from 452,840 ADMTs. Total pulp production was 406,519 ADMTs, down from 458,708 ADMTs. Pulp segment costs and expenses were $327.3 million, down from $378.6 million. Q3 2026 included a $7.0 million non-cash inventory impairment; Q3 2025 included $18.9 million. Overall average per unit fiber costs in Q3 2026 increased by 7% compared to Q3 2025, mainly due to higher costs in Germany. For Q4 2026, per unit fiber costs for German pulp mills are expected to slightly increase, while Canadian pulp mills are expected to see a decrease. The company continues to focus on cost reduction, operational efficiency, and cash flow preservation, and is exploring additional government support.

Mercado Minerals Expands El Triunfo Vein at Zamora Project with New Surface Results Including 0.60 Metres of 815 g/t Silver and 1.66 g/t Gold, Within 1.55 Metres of 381 g/t Silver and 0.85 g/t Gold

(CSE:MERC) (OTCQB:MRMNF) Mercado Minerals Ltd. announced new surface sample results from its Zamora Project in Sinaloa, Mexico. The ongoing exploration program is focused on expanding mineralization along the Campanillas – La Franca and El Triunfo vein corridors. Continued sampling and mapping at the El Triunfo Vein has more than doubled the strike length from 180 metres to over 370 metres. A surface chip sample from El Triunfo returned 1.55 metres (true width) of 381 g/t silver and 0.85 g/t gold (413 g/t AgEq), including 0.60 metres of 815 g/t silver and 1.66 g/t gold (868 g/t AgEq). A stockpile grab sample from a newly discovered second historic working returned 674 g/t silver and 1.00 g/t gold (715 g/t AgEq). Additional chip sampling along the vein returned 0.60 metres of 128 g/t silver and 0.26 g/t gold (139 g/t AgEq). The El Triunfo Vein is described as a grey banded, colloform to crustiform quartz vein with a thickness ranging from 0.40 to 1.55 metres. Preparations are underway for an inaugural 1,500 metre drill program at Zamora, with drill roads and pads currently being constructed. The company provided a table of surface chip sampling results, including sample IDs, sample types, lengths, lithology, and grades for silver, gold, lead, zinc, and silver-equivalent values. Metallurgical recoveries used in silver-equivalent calculations are 91% for silver, 94% for gold, 70% for lead, and 75% for zinc. Metal price assumptions are US$24/oz silver, US$1900/oz gold, US$0.90/lb lead, and US$1.10/lb zinc. CEO & Director Daniel Rodriguez stated that systematic exploration at Zamora continues to be rewarded, with mapping and prospecting more than doubling the strike length of the El Triunfo Vein and discovering a second historic working. He highlighted the high-grade nature of the veins, referencing the 0.60 metres of 815 g/t silver and 1.66 g/t gold (868 g/t AgEq) result. All rock samples are chip samples, with detailed QA/QC and chain of custody procedures described, including sample preparation and analytical methods by ALS Laboratories. The technical information was reviewed and approved by Kelson Willms, P.Geo., of Archer, Cathro & Associates (1981) Limited, a Qualified Person under NI 43-101.

Mercado Minerals Signs Community Access and Exploration Agreement with Local Ejido at the Zamora Project

(CSE: MERC) (OTCQB: MRMNF) Mercado Minerals Ltd. announced that its wholly owned subsidiary, Concordia Silver Company S.A. de C.V., has entered into a community access and exploration agreement with the local Ejido Rincon de Ibonia in Zamora and the surrounding area in Sinaloa, Mexico. Mercado will pay an annual fee of 100,000 MXN pesos, effective immediately, with a one-year renewal option, and will make a payment of 3000 MXN pesos per drill pad constructed. The agreement allows Mercado to commence the drill permit on the Campanillas area and covers a portion of the Zamora property. Zamora hosts 14 high-grade silver-gold vein occurrences and historic small-scale mines with mineralized veins with a cumulative strike length of more than 8 km, which have never been drill tested. Historic surface sampling has returned grades of 14,561 g/t silver and 15.53 g/t gold at the Campanillas workings, and 1.00 metre grading 286 g/t silver and 2.54 g/t gold at El Triunfo. Zamora is located approximately 110 km north of Mazatlán and 23 km southwest of Cosalá, Sinaloa, roughly 40 km west of Prime Mining's Los Reyes project and 35 km southwest of Americas Gold and Silver's Cosalá Operations. Mercado is actively advancing multiple projects across more than 3,000 hectares.

Mercado Minerals Provides Summary of Copalito Drill Program, Highlights New Renata Vein and Phase II Exploration Plans

(CSE: MERC) (OTCQB: MRMNF) Mercado Minerals Ltd. announced the completion of its inaugural 25-hole diamond drill program at the Copalito Project in Sinaloa, Mexico, confirming and expanding mineralization on three principal veins and testing several newly discovered vein structures. The drill program advanced the Copalito Project from 6 principal veins with 8 kilometres of cumulative vein strike length to 8 principal veins with 11 kilometres of cumulative vein strike length. Step-out drilling at the El Pilar Vein defined the vein over 1,250 metres of strike, with a higher-grade area of approximately 400 metres strike by 200 metres down-dip, and remains open in all directions. The El Agua Vein returned the program's highest-grade intercept: 3.50 metres of 30 g/t silver, 1.94 g/t gold, 9.47% lead and 14.61% zinc (686 g/t silver equivalent) from 124.75 metres. The 5 Señores Vein mineralized strike length was expanded to approximately 800 metres and to approximately 125 metres vertical depth, with a 250 metre southeast fault-offset strike length segment identified and tested. Surface exploration in 2026 identified and delineated extensions to four veins and discovered two new significant veins: El Pilar Sur and La Renata, with the Renata Vein having a strike length of 1,150 metres and an average width of 1.90 metres, with widths up to 5.00 metres. The company intends to complete a Phase Two program at Copalito, focusing on drill expansion of higher-grade areas, exploration drilling of vein extensions, initial drill testing of the Renata Vein, and surface mapping and prospecting work following up on unexplained soil anomalies.

Mercado Minerals Intersects 0.80 Metres of 675 g/t Silver Equivalent within 3.40 Metres of 403 g/t Silver Equivalent at El Pilar Vein Copalito Project

(CSE: MERC) (OTCQB: MRMNF) Mercado Minerals Ltd. announced drill results from its inaugural 3,000 metre diamond drill program at the Copalito Project in Sinaloa, Mexico. Highlight results include 0.80 metres of 9 g/t silver, 5.37 g/t gold, 1.65% lead and 10.05% zinc (675 g/t silver equivalent) within a wider 3.40 metre interval of 11 g/t silver, 3.53 g/t gold, 1.45% lead and 4.41% zinc (403 g/t silver equivalent) from 118.00 metres. Step-out drilling at the El Pilar Vein returned the two best mineralized intercepts at the target to date, with the vein defined by drilling over a strike length of 1,250 metres and a higher-grade area measuring approximately 400 metres in strike length by 200 metres down the dip plane. COP-26-023 intersected 8.00 metres of 103 g/t silver, 1.11 g/t gold, 0.18% lead, and 0.86% zinc (200 g/t silver equivalent). The four target veins have a mapped cumulative strike length of over 1,900 metres, with only seven drill holes to date testing the targets. Mercado Minerals Ltd. is a silver-focused exploration company targeting discoveries in Mexico's emerging Western Silver Belt, part of the Sierra Madre Occidental mining district. The company is advancing multiple projects across more than 3,000 hectares. The company projects future drill programs will focus on expanding higher-grade areas and vectoring towards potentially higher grades of mineralization.

New Metro Bank facilities

(AIM: MERC) Mercia Asset Management PLC announced that it has entered into a three-year facilities agreement with Metro Bank PLC for up to £38.0million. The agreement comprises a term loan facility of £13.0million and a £25.0million revolving loan facility. Each facility bears interest by reference to Sterling Overnight Index Average ("SONIA") plus the applicable margin, with the term loan facility having a margin of 3.99% per annum and the revolving loan facility having an opening margin of 3.50% per annum, subject to a net leverage ratchet reducing to 3.00% per annum depending on leverage. Mercia Asset Management PLC has over £2.2billion of assets under management. The Company intends to utilise the facilities to support the Group's on-going growth initiatives, as part of its Mercia '27 strategic plan. The facilities agreement includes customary representations, undertakings, financial covenants, security and events of default. Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".

Significant new investment into Warwick Acoustics

(AIM: MERC) Mercia Asset Management PLC announced a further significant investment round into Warwick Acoustics Ltd, with Warwick Acoustics completing an equity funding round of £6.4million and additional funding of up to £1.1million anticipated. Mercia invested £0.7million from its balance sheet as part of the round, with the balance coming from a Mercia managed fund, the Northern VCTs, and other existing co-investors. Following completion of the total anticipated funding round of £7.5million, Mercia will hold a fully diluted direct investment stake of 26.2% in Warwick Acoustics. Warwick Acoustics' technology was recently launched in the new Range Rover SV Ultra, marking a significant commercial milestone for the business. The additional funding is expected to come from both existing and new shareholders. The investment will support Warwick Acoustics in transitioning to new production facilities and further recruitment. The company projects that this funding round will enable Warwick Acoustics to maximise the potential of its first production partnership with JLR and pursue further growth opportunities.

Mercado Minerals Intersects 1.20 Metres of 1120 g/t Silver Equivalent Within 3.50 Metres of 686 g/t Silver Equivalent at El Agua Vein Copalito Project

(CSE: MERC) (OTCQB: MRMNF) Mercado Minerals Ltd. announced further drill results from its inaugural 3,000 metre diamond drill program at the Copalito Project in Sinaloa, Mexico. Highlight results include 1.20 metres of 34 g/t silver, 3.40 g/t gold, 19.00% lead and 21.00% zinc (1120 g/t silver equivalent) within a larger 3.50 metre interval of 30 g/t silver, 1.94 g/t gold, 9.47% lead and 14.61% zinc (686 g/t silver equivalent) from 124.75 metres. Drilling at 5 Señores Vein expanded the productive strike length to approximately 800 metres and vertical depth to approximately 125 metres, with a fault offset of 250 metre strike length identified to the southeast. COP-26-014 at 5 Señores returned 24.20 metres of 114 g/t silver, 0.50 g/t gold, 0.13% lead and 0.47% zinc (154 g/t silver equivalent) from 22.50 metres, including 7.60 metres of 340 g/t silver, 1.22 g/t gold, 0.34% lead, and 1.18% zinc (434 g/t silver equivalent). COP-26-009 returned 6.15 metres of 141 g/t silver, 0.40 g/t gold, 0.17% lead and 0.51% zinc (173 g/t silver equivalent) from 83.55 metres, including 2.75 metres of 234 g/t silver, 0.73 g/t gold, 0.30% lead, and 0.86% zinc (293 g/t silver equivalent). The company states that mineralization remains open in all directions and that drilling is ongoing with tests of the El Pilar Vein and first tests of the newly discovered Pilar Sur and El Medio veins. Mercado Minerals Ltd. is advancing multiple projects across more than 3,000 hectares in Mexico's emerging Western Silver Belt.

Mercado Minerals Signs Multiple LOI's to Acquire District Scale Land Holdings in the Prolific San Dimas Mining District of Durango, Mexico

(CSE: MERC) Mercado Minerals Ltd. has signed two Letters of Intent ("LOI") to acquire two adjacent silver-gold epithermal projects, creating a 4,617 ha district scale opportunity with over 6.5 km of cumulative strike potential in the Sierra Madre Occidental. The projects are located in the San Dimas mining district of Durango, Mexico, one of Mexico's highest-grade silver-gold epithermal districts, with past production through December 2024 estimated at more than 766 Moz of silver and more than 11.1 Moz of gold. The San Rafael Project is a 1,004 ha property with 4.5 km of identified fault structures and historical underground chip samples returning a highlight result of 1.4 m of 316 g/t silver and 22.08 g/t gold. The La California Project is a 3,613 ha property with over 2 km of cumulative vein strike length and historic channel sampling returning a highlight result of 2.5 m of 380 g/t silver and 1.28 g/t gold. Both projects can be acquired under five-year long option agreements to earn 100% interest for cash payments totalling approximately $5.6 million CAD, with larger payments weighted in the later years. There are no royalties or Net Smelter Return Royalty payments associated with the LOIs. The company projects advancing both La California and San Rafael, and intends to independently verify results of the historic work during a site visit later this year.

Direct investment portfolio cash receipts update

Mercia Asset Management PLC (AIM: MERC) announced that it has received approximately £1 million of realisation proceeds in the last six months from three of its former direct investments. The proceeds comprise £0.3 million from Impression Technologies Ltd, £0.1 million from LM Technologies Ltd, and £0.6 million from Fortis Frontier PLC. While these receipts are not individually material, they collectively represent a positive cash inflow for the company. The update reflects Mercia's ongoing focus on realising value from its direct investment portfolio.

Mercado Minerals Intersects 6.50 Metres of 256 g/t Silver and 1.46 g/t Gold from 43.60 m Depth at 5 Senores Vein Copalito Project

Mercado Minerals Ltd. (CSE: MERC, OTCQB: MRMNF) announced results from the first three holes of its inaugural 3,000 metre diamond drill program at the Copalito Project in Sinaloa, Mexico. Key intercepts include 3.45 metres of 445 g/t silver and 2.26 g/t gold, and a broader 6.50 metre interval of 256 g/t silver and 1.45 g/t gold. The company is targeting the 5 Señores Vein and has also begun testing the El Agua Vein and El Pilar. These results demonstrate significant mineralization and support the company's ongoing exploration efforts in Mexico's Western Silver Belt.