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Peruvian Metals (TSXV:PER,OTCPL:DUVNF) is positioning for first gold production in 2026 as it continues its transformation from a prospect generator into an exploration and mineral processing company, according to Jeff Reeder, chairman, CEO and director.

After operating as a prospect generator across Latin America, the company has reshaped its business model by building and operating its own toll-milling facility in Peru.

“I went and built a toll mill with the cash that I had, and we got it going. We started construction in 2017, and we started producing our first minerals in 2018. And from there, it’s bringing in lots of cash. We have an operating profit in Peru of about C$1 million.”

With the mill firmly established and generating cashflow, Peruvian Metals has shifted its focus to bringing its own high-grade underground material into production.

The company’s first gold production is anticipated in 2026. Reeder said the team plans to ramp up underground drifting at the Mercedes property. He noted that the focus will be on extracting minerals from approximately 900 meters of historic workings that have already been rehabilitated. According to Reeder, the first shipment of company-owned minerals to the mill is expected in May, with target grades of around 10 to 15 ounces.

Building on initial production, Reeder said the company is laying the groundwork for gold bullion output in 2027, leveraging multiple veins and a planned gold oxide plant — all funded internally.

“We can do it all out of cashflow, which is really what I want to do, as our shareholders’ dilution needs to be protected," he said.

Watch the full interview with Peruvian Metals Chairman, CEO and Director Jeff Reeder above.