Atico Mining Corporation Reports Financial Results
(All amounts are expressed in US dollars, unless stated otherwise)
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) has released its financial results for the three months ending June 30, 2024. The company reported income from mining operations of $2.6 million, alongside a net loss of $0.4 million. Production from Atico’s El Roble mine reached 3.7 million pounds of copper and 2,850 ounces of gold in concentrate, with a cash cost of $1.48 per payable pound of copper.
CEO Comments
Fernando E. Ganoza, CEO and Director, remarked that the company has seen improvements in nearly all operational metrics compared to both the previous quarter and the same period last year. However, he pointed out that these improvements may not be fully reflected in revenue and income figures, as a significant portion of the concentrate shipped will be recognized as revenue in the third quarter due to shipping delays caused by adverse weather conditions.
Second Quarter Financial Highlights
Operational Metrics
- The net loss for the quarter was $0.4 million, contrasting with a net income of $0.1 million during the same quarter last year. This loss was mainly attributed to lower sales and a net realized loss on derivative instruments.
- Sales fell by 11% to $10.9 million, down from $12.2 million in Q2-2023, primarily due to weather-related delays at the Port of Loading.
- The average realized prices were $4.34 per pound of copper and $2,303 per ounce of gold.
- Ending working capital stood at negative $4.3 million, with long-term loans payable amounting to $6.1 million.
- Cash costs were $131.07 per tonne of processed ore and $1.48 per pound of payable copper produced, reflecting a 5% increase and a 33% decrease compared to Q2-2023, respectively.
- The cash margin was $2.86 per pound of payable copper produced, showing a 68% increase over Q2-2023.
- The all-in sustaining cash cost per payable pound of copper produced was $2.32, down from $3.28 in Q2-2023.
Second Quarter Operational Details
During Q2-2024, the Company produced 3.7 million pounds of copper and 2,850 ounces of gold. This represents increases of 32% for copper and 23% for gold, driven by higher average copper and gold head-grades.
El Roble Operational Updates
The Company has made notable progress, including ongoing arbitration related to the El Roble royalty dispute. This process is advancing, with the tribunal’s final decision expected by January 2025. Current payments under the Payment Plan total approximately $7.4 million.
La Plata Project Updates
Atico is making strides with the La Plata project, having received technical approval for the Environmental and Social Impact Assessment (ESIA). The consultation process has resumed following a ruling from the Ecuadorian Constitutional Court, which allows the environmental consultation to continue, a crucial step for obtaining the upcoming environmental license.
Additional Highlights
- The initial capital expenditure is estimated at US$91 million, with an average annual production projection of around 9.71 million pounds of copper over an 8.1-year mine life.
- The after-tax net present value (NPV) is projected at US$93 million at a 5% discount rate, with internal rates of return estimated at approximately 25.1%.
About Atico Mining Corporation
Atico Mining Corporation is dedicated to exploring, developing, and mining copper and gold projects in Latin America, generating substantial cash flow through the operation of the El Roble mine.
Contact Information
Igor Dutina
Investor Relations
Tel: +1.604.633.9022
Frequently Asked Questions
What were Atico's production results for Q2 2024?
Atico produced 3.7 million pounds of copper and 2,850 ounces of gold during Q2 2024.
What was the net loss for Atico in Q2 2024?
The net loss for the quarter amounted to $0.4 million.
How has the El Roble project performed?
The El Roble mine showed operational improvements, with expected revenue recognition in the third quarter due to shipping delays.
What are the updates on the La Plata project?
La Plata has received technical approval for its ESIA, and the environmental consultation process is currently ongoing.
Who can be contacted for investor relations?
Igor Dutina is the Investor Relations contact and can be reached at +1.604.633.9022.
