Atico Mining Corporation (the “Company” or “Atico”) (TSX.V:
ATY | OTC: ATCMF) today announced its financial results for the
year ended December 31, 2020, posting income from mining operations
of $18.1 million and a net income of $8.4 million. Production for
the year at Atico’s El Roble mine totaled 20.6 million pounds
(“lbs”) of copper and 10,821 ounces (“oz”) of gold in concentrate
at a cash cost(1) of $1.06 per payable pound of copper(2).
Fernando E. Ganoza, CEO and Director, commented,
"In 2020, operations at the El Roble mine performed within guidance
while delivering an impressive all in sustaining cash cost of $1.53
per payable pound of copper produced(1)(2) despite navigating
unprecedented challenges caused by the global pandemic. During the
second half of the year we saw a considerably positive move in the
copper price which tied to our strong production resulted in
remarkable financial results for the company. Our balance sheet has
improved significantly, particularly our robust working capital
position of $22.5 million, while achieving a net income of $8.4
million for the year.” Mr. Ganoza continued, "for 2021 and in this
current copper price environment, we anticipate that our balance
sheet and financial metrics will continue to grow while allowing
further flexibility to get more aggressive on our planned
activities at both El Roble and La Plata.”
2020 Consolidated Financial
Highlights
- Net income for the year ended
December 31, 2020 amounted to $8.4 million, compared with $6.9
million for last year. Net income for the year was positively
affected by a higher realized copper price and a lower cost of
concentrate production, as compared to 2019.
- Sales for the year decreased 3% to
$59.6 million when compared with 2019. Copper (“Cu”) and gold
(“Au”) accounted for 86% and 14% of the total amount provisionally
invoiced during the year. The average realized price per metal on
provisional invoicing was $2.87 (2019 - $2.72) per pound of copper
and $1,802.61 (2019 - $1,412.96) per ounce of gold.
- Working capital was $22.5 million
(2019 - $9.9 million), while the Company had $6.8 million (2019 -
$2.2 million) in long-term loans payable and convertible
debenture.
- Cash costs(1) were $104.78 per
tonne of processed ore and $1.06 per pound of payable copper
produced(2), decreases of 9% and 15% over the previous year,
respectively.
- Income from operations was $12.8
million (2019 - $11.6 million) while cash flow from operations,
before changes in working capital, was $20.3 million (2019 - $21.4
million). Cash used for capital expenditures amounted to $10.9
million (2019 - $9.4 million).
- All-in sustaining cash cost per
payable pound of copper produced(1)(2) for the year was $1.53 (2019
- $1.81).
- At the end of the year, 5,291 (2019
- 3,104) wet metric tonnes (“WMT”) of non-invoiced concentrate
remained at the Company’s warehouses.
2020 Consolidated Operating Highlights
and Review
- Ore processed increased 24%
year-on-year;
- Copper head grade decreased 1%
year-on-year;
- Gold head grade decreased 16%
year-on-year;
- Concentrate production increased
27% year-on-year;
- Copper metal production increased
22% year-on-year; and
- Gold metal production increased 3%
year-on-year.
The Company has met most while exceeding other
operational goals set for El Roble mine in 2020. Beyond achieving
operational guidance, the most impressive feat this year was the
team’s ability to safely deliver results while navigating through
unprecedented conditions caused by the global pandemic as no
employees of the Company contracted any serious illness due to
COVID-19 during the year ended December 31, 2020.
In 2020, the Company produced 20.7 million lbs
of copper, 10,821 oz of gold, and 39,593 oz of silver. When
compared to 2019, production increased by 22.4% for copper and 3.3%
for gold. The increase for both copper and gold are mainly
explained by the 75-day strike in 2019 during which the Company did
not operate the mine and mill. In the case of gold, the increase in
processed tonnes was partially offset by a decrease in gold head
grades.
Cash costs(1) were $104.78 per tonne of
processed ore and $1.06 per pound of payable copper produced(2),
which were decreases of 8.9% and 14.6% over 2019, respectively. The
cash cost per pound of payable copper produced decrease is mainly
explained by a lower cost per processed tonne and an increase in
the gold contribution as a by-product. The decrease in the cost per
processed tonne was driven by decreases in direct mining,
processing, and indirect costs. The all-in sustaining cash cost net
of by-product credits(1)(2) was $1.53 per pound of payable copper
produced, which represents a 15.5% decrease over 2019.
2020 Consolidated Operational
Details
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Production (Contained in Concentrates)(3) |
|
|
|
|
|
Copper (000s pounds) |
4,947 |
4,956 |
5,540 |
5,181 |
20,626 |
Gold (ounces) |
2,658 |
2,718 |
2,607 |
2,838 |
10,821 |
Silver (ounces) |
9,921 |
10,401 |
9,953 |
9,318 |
39,593 |
Mine |
|
|
|
|
|
Tonnes of ore mined |
72,777 |
76,825 |
71,993 |
72,825 |
294,421 |
Mill |
|
|
|
|
|
Tonnes processed |
73,374 |
71,804 |
73,603 |
73,500 |
292,281 |
Tonnes processed per day |
878 |
877 |
860 |
870 |
871 |
Copper grade (%) |
3.32 |
3.38 |
3.74 |
3.50 |
3.48 |
Gold grade (g/t) |
1.94 |
2.02 |
1.93 |
2.03 |
1.98 |
Silver grade (g/t) |
9.20 |
9.10 |
9.20 |
8.20 |
8.92 |
Recoveries |
|
|
|
|
|
Copper (%) |
91.9 |
92.9 |
91.4 |
91.4 |
92.0 |
Gold (%) |
59.0 |
58.6 |
56.3 |
59.1 |
58.2 |
Silver (%) |
46.3 |
49.4 |
47.0 |
48.3 |
47.9 |
Concentrates |
|
|
|
|
|
Copper Concentrates (dmt) |
10,232 |
10,828 |
11,957 |
11,516 |
44,534 |
Copper (%) |
21.9 |
20.8 |
21.0 |
20.4 |
21.0 |
Gold (g/t) |
8.1 |
7.8 |
6.8 |
7.6 |
7.5 |
Silver (g/t) |
30.1 |
29.8 |
25.8 |
25.2 |
27.7 |
|
|
|
|
|
|
Payable copper produced (000s lb) |
4,700 |
4,708 |
5,263 |
4,922 |
19,595 |
Cash cost per pound of payable copper(1)(2) ($/lb) |
1.13 |
0.93 |
1.13 |
1.03 |
1.06 |
The financial statements and MD&A are
available on SEDAR and have also been posted on the company's
website at http://www.aticomining.com/s/FinancialStatements.asp
Fourth Quarter Financial
Highlights
During the quarter, the Company generated sales
of $25.1 million, where copper accounted for 90% and gold for 10%.
The average realized price per metal on provisional invoicing was
$3.31 per pound of copper and $1,872.14 per ounce of gold. Cash
flow from operations, before changes in working capital, for the
quarter was $11.7 million. Cash costs(1) for the quarter were
$109.30 per tonne of processed ore and $1.02 per pound of payable
copper produced(2), decreases of 3% and 10% over Q4-2019,
respectively.
Granting of Incentive Stock
Options
Pursuant to its stock option plan, the Company
granted 2,360,975 incentive stock options exercisable at C$0.65 per
share for a period of five years to directors, officers, employees,
and consultants of the Company.
Annual General Meeting
Atico Mining cordially invites all shareholders
to its Annual General and Special Meeting of Shareholders, at 10:00
am, Tuesday, June 15, 2021, at Suite 501 - 543 Granville Street,
Vancouver, British Columbia. This year, to proactively deal with
the unprecedented health impact of the novel coronavirus, also
known as COVID-19, to mitigate risks to the health and safety of
our communities, shareholders, employees, and other stakeholders,
and in compliance with current government direction and advice, the
meeting will be held by teleconference.
El Roble Mine
The El Roble mine is a high grade, underground
copper and gold mine with nominal processing plant capacity of
1,000 tonnes per day, located in the Department of Choco in
Colombia. Its commercial product is a copper-gold concentrate.
Since obtaining control of the mine on November
22, 2013, Atico has upgraded the operation from a historical
nominal capacity of 400 tonnes per day.
El Roble has Proven and Probable reserves of
1.00 million tonnes grading 3.02% copper and 1.76 g/t gold, at a
cut-off grade of 1.3% copper equivalent as of September 30th, 2020.
Mineralization is open at depth and along strike and the Company
plans to further test the limits of the deposit.
On the larger land package, the Company has
identified a prospective stratigraphic contact between volcanic
rocks and black and grey pelagic sediments and cherts that has been
traced by Atico geologists for ten kilometers. This contact has
been determined to be an important control on VMS mineralization on
which Atico has identified numerous target areas prospective for
VMS type mineralization occurrence, which is the focus of the
current surface drill program at El Roble.
La Plata Overview
The La Plata project is a gold rich volcanogenic
massive sulphide deposit that was the subject of small-scale mining
from 1975-1981 by Outokumpu Finland. The project benefits from a
modern drill and exploration database which was completed by
Cambior Inc. from 1996-1999, Cornerstone Capital from 2006-2009 and
Toachi from 2016-2019. In total, there is drill core and logs from
more than 28,300 metres of drilling.
Historic resources based on drilling by Cambior
and Cornerstone were estimated at 913,977 tonnes grading 8.01 grams
gold per tonne, 88.3 grams silver per tonne, 5.01% copper, 6.71%
zinc and 0.78% lead per tonne in the inferred category. More
recently, Toachi Mining completed a PEA estimating an inferred
resource of 1.85 million tonnes grading 4.10 grams gold per tonne,
50.0 grams silver per tonne, 3.30% copper, 4.60% zinc and 0.60%
lead per tonne.
The La Plata project consists two concessions
covering a total area of 2,300 hectares along its 4-kilometer
length, which contains known mineralization in two VMS lenses and
nine priority exploration targets.
The Company has a binding option agreement with
a private Ecuadorean company to earn up to 75% in the La Plata
project, of which the first option to acquire the initial 60%
ownership has been exercised. Please refer to the Company’s
MD&A for the year ended December 31, 2020 for further
details.
Qualified Person
Mr. Thomas Kelly (SME Registered Member
1696580), advisor to the Company and a qualified person under
National Instrument 43-101 standards, is responsible for ensuring
that the technical information contained in this news release is an
accurate summary of the original reports and data provided to or
developed by Atico.
About Atico Mining Corporation
Atico is a growth-oriented Company, focused on
exploring, developing and mining copper and gold projects in Latin
America. The Company generates significant cash flow through the
operation of the El Roble mine and is developing its high-grade La
Plata VMS project in Ecuador. The Company is also pursuing
additional acquisition of advanced stage opportunities. For more
information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. GanozaCEOAtico Mining
Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor RelationsIgor DutinaTel:
+1.604.633.9022
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
No securities regulatory authority has either
approved or disapproved of the contents of this news release. The
securities being offered have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the
‘‘U.S. Securities Act’’), or any state securities laws, and may not
be offered or sold in the United States, or to, or for the account
or benefit of, a "U.S. person" (as defined in Regulation S of the
U.S. Securities Act) unless pursuant to an exemption therefrom.
This press release is for information purposes only and does not
constitute an offer to sell or a solicitation of an offer to buy
any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward Looking
Statements
This announcement includes certain
“forward-looking statements” within the meaning of Canadian
securities legislation. All statements, other than statements of
historical fact, included herein, without limitation the use of net
proceeds, are forward-looking statements. Forward- looking
statements involve various risks and uncertainties and are based on
certain factors and assumptions. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company’s expectations include
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainty of
estimates of capital and operating costs; the need to obtain
additional financing to maintain its interest in and/or explore and
develop the Company’s mineral projects; uncertainty of meeting
anticipated program milestones for the Company’s mineral projects;
the world-wide economic and social impact of COVID-19 is managed
and the duration and extent of the coronavirus pandemic is
minimized or not long-term; disruptions related to the COVID-19
pandemic or other health and safety issues, or the responses of
governments, communities, the Company and others to such pandemic
or other issues; and other risks and uncertainties disclosed under
the heading “Risk Factors” in the prospectus of the Company dated
March 2, 2012 filed with the Canadian securities regulatory
authorities on the SEDAR website at www.sedar.com
Non-GAAP Financial Measures
The items marked with a "(1)" are alternative
performance measures and readers should refer to Non-GAAP Financial
Measures in the Company's Management's Discussion and Analysis for
the year ended December 31, 2020 as filed on SEDAR and as available
on the Company's website for further details.
(1) Alternative performance measures; please refer to “Non-GAAP
Financial Measures” at the end of this release.(2) Net of
by-product credits(3) Subject to adjustments on final
settlement
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