Atico Mining Corporation Releases Q2 2024 Financial Results
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Atico Mining Corporation Reports Financial Results
(All amounts expressed in US dollars, unless otherwise stated)
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) has announced its financial results for the three months ended June 30, 2024, posting income from mining operations of $2.6 million and a net loss of $0.4 million. Production at Atico’s El Roble mine totaled 3.7 million pounds of copper and 2,850 ounces of gold in concentrate at a cash cost of $1.48 per payable pound of copper.
CEO Comments
Fernando E. Ganoza, CEO and Director, stated that the company had improvements in nearly all operational metrics compared to the previous quarter and the same period last year. He noted that these improvements would not be fully reflected in revenue and income because a material portion of the concentrate shipped will be recognized as revenue in the third quarter due to shipping delays caused by poor weather conditions.
Second Quarter Financial Highlights
Operational Metrics
- Net loss for the quarter amounted to $0.4 million, compared to $0.1 million net income for the same quarter last year. This loss was primarily due to lower sales and net realized loss on derivative instruments.
- Sales decreased 11% to $10.9 million compared to $12.2 million in Q2-2023, mainly due to weather-related delays at the Port of Loading.
- The average realized price per metal was $4.34 per pound of copper and $2,303 per ounce of gold.
- Ending working capital was negative $4.3 million, with $6.1 million in long-term loans payable.
- 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 over Q2-2023 respectively.
- Cash margin was $2.86 per pound of payable copper produced, an increase of 68% over Q2-2023.
- 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
In Q2-2024, the Company produced 3.7 million lbs of copper and 2,850 oz of gold, marking increases of 32% for copper and 23% for gold due to higher average copper and gold head-grades.
El Roble Operational Updates
The Company has made significant advancements, including the ongoing arbitration regarding the El Roble royalty dispute which is progressing, with the tribunal’s final decision due by January 2025. Current payments under the Payment Plan amount to approximately $7.4 million.
La Plata Project Updates
Atico is progressing with the La Plata project, having received a technical approval for the Environmental and Social Impact Assessment. The consultation process has resumed following a ruling from the Ecuadorian Constitutional Court. The court ruling allows the environmental consultation process to proceed, necessary for the upcoming environmental license.
Additional Highlights
- Initial Capex of US$91 million estimated, with an average annual production projection around 9.71 Mlbs of copper over an 8.1-year mine life.
- After Tax NPV projected at US$93 million at a 5% discount rate with internal rates of return around 25.1%.
About Atico Mining Corporation
Atico Mining Corporation is focused on exploring, developing, and mining copper and gold projects in Latin America, generating significant 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 lbs of copper and 2,850 oz 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 receives technical approval for its ESIA, and the environmental consultation process is now ongoing.
Who can be contacted for investor relations?
Igor Dutina is the Investor Relations contact and can be reached at +1.604.633.9022.
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