WHITEHORSE, YT, March 31, 2022 /CNW/ - Minto Metals Corp.
("Minto" or the "Company") today announced the Company's
financial and operating results for the fourth quarter ("QTR 4
2021") and the Full Year results of 2021 ("YTD 2021"). The Full
Year Results include a strong 44% growth in production and an
increase of $27.6 million in Adjusted
EBITDA(1) compared to 2020.
For complete details of the audited Consolidated Financial
Statements and associated Management's Discussion and Analysis
("MD&A"), please refer to the Company's filings on SEDAR
(www.sedar.com) or the Company's website (www.mintometals.com).
Fourth Quarter Highlights:
- Copper sales increased 109% to 8.4 million pounds compared to
4.0 million pounds in Quarter 4 2020.
- Revenue grew 160.8% to $47.3 million, a $29.2 million increase from $18.1 million in Quarter 4 2020.
- Improved operating result
-
- Mill Feed for Quarter 4 was 261,615 dry metric tonnes
(dmt), a 58.6% increase from 164,969 dry metric tonnes (dmt) in
Quarter 4 2020.
- Production costs increased 40.0% to $34.8
million compared to $24.9
million in Quarter 4 2020, consistent with operational
ramp-up.
- Operating cash costs per pound sold (2)
averaged USD $2.92/lb, a 35.0%
decrease from USD $4.49/lb in Quarter
4 2020.
- All-In Sustaining Costs ("AISC") per pound
sold (2) averaged USD $3.50/lb, a 33.5% decrease from USD $5.26/lb in Quarter 4 2020.
- Adjusted EBITDA totaled $13.1
million, a $20.4 million
increase from loss of $7.3 million in
Quarter 4 2020.
Full Year Highlights:
- Copper sales increased by 43.8% to 25.6 million pounds compared
to 15.0 million pounds in 2020.
- Revenue grew 72.3% to $138.3
million, a $58.0 million
increase from $80.3 million in
2020.
- Operating cash flow increased 72.2% to $12.2 million a $5.1
million increase from $7.1
million in 2020.
- Improved operating results
-
- Mill Feed total for the year was 903,498 dry metric tonnes
(dmt), a 43.6% improvement from 629,078 dry metric tonnes (dmt) in
2020
- Production costs increased 35.1% to $113.5
million compared to $84.0
million in 2020, consistent with the operational
ramp-up.
- Operating cash costs per pound sold (2)
averaged USD $3.19/lb, 9.6%
lower than USD $3.53/lb in 2020, the
result of increased maintenance expenses to improve operational
performance.
- AISC per pound sold (2) averaged USD
$3.87/lb, 6.5% lower than USD
$4.14/lb in 2020.
- Adjusted EBITDA(1) totaled $22.2 million, a $27.6
million increase from a loss of $5.4
million in 2020.
- Total year-to-date Net Loss of $2.0
million, a 89.1% improvement from the $18.3 million net loss in 2020.
1. Refers to
Adjusted Earnings before Interest, Taxes, Depreciation, and
Amortization see "Alternative Performance Measures" on page 19 of
the Company's 2021 Annual MD&A. 2. Refers to Cash
Costs & All-In Sustaining Costs see "Alternative Performance
Measures" on page 19 of the Company's 2021 Annual
MD&A.
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"Our operation is showing positive momentum and is poised for an
exciting step-change in 2022 thanks to the Yukon Government, the
continued cooperation of the Selkirk First Nation and the employees
and contractors at our Minto Mine located in central Yukon. Our investment to optimize and automate
our process over the past 12 months will allow us to take advantage
of the robust copper prices, positioning for growth in the future.
Our Q4 2021 Adjusted EBITDA improved to $13.1 million dollars compared to a loss of
$7.3 million dollar a year ago. The
improved performance is extraordinary and a testament to the drive
and passion to win shown by everyone who works here at Minto" said
Chris Stewart, President & Chief
Executive Officer of Minto Metals.
"From the mine's improved performance to the enhancements in our
milling operation, we are pleased with the turnaround our team has
accomplished in such a short period of time. I am excited about the
future at Minto Metals and in particular the Minto Mine and look
forward to building stronger relationships within the Selkirk First
Nation and the Yukon regulatory
agencies. We are focused on delivering great results and carrying
the momentum from Q4 of 2021 into 2022 should serve us well!"
Stewart added.
Outlook for 2022
Outlook
The following table summarises the production, cost, and capital
expenditure outlook for 2022 which is consistent with the Company's
guidance provided earlier in 2022. The plan is to operate the mill
at an average throughput of 3,000 tonnes/day for the first half of
2022 and 3,250 tonnes/day for the second half of 2022 as the
ore production continues to ramp up towards our mill's ultimate
permitted capacity of 4,200 tonnes/day.
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|
|
|
|
Year
Ended
|
|
|
Production
Volumes
|
|
|
Dec 31,
2022
|
|
Dec 31,
2021
|
|
Dec 31,
2020
|
Payable Copper
(million pounds)
|
|
|
27.0 - 31.0
|
|
25.6
|
|
17.8
|
Gold (ounces)
(1)
|
|
|
11,000 -
12,100
|
|
11,783
|
|
8,419
|
Silver (ounces)
(1)
|
|
|
140,000 -
150,000
|
|
135,354
|
|
74,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
Costs
|
|
|
Dec 31,
2022
|
|
Dec 31,
2021
|
|
Dec 31,
2020
|
Cash Costs
($USD/lb)(2)
|
|
|
$2.70 -$2.90
|
|
$
|
3.19
|
|
$
|
3.53
|
AISC ($USD/lb)
(2)
|
|
|
$3.85 -$4.00
|
|
$
|
3.87
|
|
$
|
4.14
|
Exploration ($
millions)
|
|
|
$9.2
|
|
$
|
3.6
|
|
$
|
-
|
Sustaining Capital
(2)
|
|
|
$27.0-
$31.0
|
|
$
|
6.3
|
|
$
|
1.8
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1. 100%
amounts. Under the agreement with Wheaton Precious Metals, the
Company receives 75% of the value of gold shipments up to 11,000
ounces. Silver receipts are at the lesser of the prevailing market
price and US $4.35/oz.
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|
2. Refers to Cash
Costs, All-In Sustaining Costs and Sustaining Capital. See
"Alternative Performance Measures" on page 19 of the Company's 2021
Annual MD&A.
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2021 Financial Highlights
Adjusted EBITDA(1) Reconciliation to Net
Income
|
Q4
2021
|
Q4 2020
|
2021
|
2020
|
2019
|
Net income (loss) and
comprehensive income (loss)
|
$
|
4,080
|
$
|
(9,498)
|
$
|
(1,970)
|
$
|
(18,281)
|
$
|
(28,484)
|
Finance
costs
|
1,338
|
1,345
|
4,973
|
4,849
|
4,011
|
Depletion and
amortization
|
3,559
|
1,392
|
11,240
|
8,097
|
2,568
|
Income tax
expense
|
295
|
92
|
439
|
143
|
245
|
EBITDA
|
$
|
9,272
|
$
|
(6,669)
|
$
|
14,682
|
$
|
(5,192)
|
$
|
(21,660)
|
Share-based
compensation expense
|
3,110
|
-
|
3,110
|
-
|
-
|
Mark-to-market revenue
adjustments
|
(2,421)
|
(1,044)
|
288
|
(836)
|
(2,723)
|
Unrealized foregin
exchange (gain) loss
|
(128)
|
397
|
(144)
|
427
|
269
|
Impairment of
equipment
|
1,213
|
-
|
1,213
|
-
|
-
|
Loss on lease
terminations
|
9
|
-
|
201
|
-
|
-
|
Loss on forgiveness of
loan
|
-
|
-
|
-
|
-
|
15,867
|
RTO Financing
expenses
|
1,065
|
-
|
1,948
|
205
|
-
|
Listing
expense
|
948
|
-
|
948
|
-
|
-
|
Adjusted
EBITDA
|
$
|
13,068
|
$
|
(7,316)
|
$
|
22,246
|
$
|
(5,396)
|
$
|
(8,247)
|
|
1. Refers to
Adjusted Earnings before Interest, Taxes, Depreciation, and
Amortization see "Alternative Performance Measures" on page 19 of
the Company's 2021 Annual MD&A for more
information.
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2021 Consolidated Statements of Loss and Comprehensive
Loss
|
Twelve months
ended
|
|
December 31,
2021
|
December 31,
2020
|
Revenue
|
$
|
138,297
|
$
|
80,251
|
Production
costs
|
(113,510)
|
(83,959)
|
Royalty
expense
|
(1,496)
|
(928)
|
Depletion and
amortization
|
(11,240)
|
(8,097)
|
Income (loss) from
mine operations
|
12,051
|
(12,733)
|
Expenses
|
|
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Related party
management fees
|
(888)
|
(771)
|
Stock-based
compensation expense
|
(3,110)
|
-
|
Other
expenses
|
(2,896)
|
(205)
|
Income (loss) from
operations
|
5,157
|
(13,709)
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Other income (loss),
net
|
(1,715)
|
420
|
Finance
costs
|
(4,973)
|
(4,849)
|
Loss before income
taxes
|
(1,531)
|
(18,138)
|
Income tax
expense
|
(439)
|
(143)
|
Net loss and
comprehensive loss
|
$
|
(1,970)
|
$
|
(18,281)
|
|
|
|
Per share
amounts
|
|
|
Basic and
diluted
|
$
|
(0.03)
|
$
|
(0.45)
|
Weighted Average Number
of Common Shares Outstanding
|
61,539,216
|
40,439,144
|
2021 Consolidated Statements of Financial Position
As at
|
December 31,
2021
|
December 31,
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
|
9,979
|
$
|
507
|
Accounts
Receivable
|
|
20,762
|
|
6,437
|
Inventories
|
|
6,212
|
|
5,604
|
Prepaid
expenses
|
|
2,855
|
|
755
|
|
|
39,808
|
|
13,303
|
Non-current
assets
|
|
|
|
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Mineral properties,
plant and equipment
|
|
53,702
|
|
48,594
|
Right-of-use
assets
|
|
9,245
|
|
10,433
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Long-term
deposits
|
|
13,399
|
|
8,988
|
Total assets
|
$
|
116,154
|
$
|
81,318
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
36,370
|
$
|
20,937
|
Current portion of
Sumitomo loan
|
|
10,221
|
|
2,012
|
Current portion of Due
to Pembridge
|
|
4,000
|
|
-
|
Current portion of
lease liability
|
|
5,436
|
|
6,065
|
|
|
56,027
|
|
29,014
|
Non-current
liabilities
|
|
|
|
|
Lease
liabilities
|
|
3,895
|
|
3,610
|
Due to
Pembridge
|
|
1,174
|
|
4,841
|
Note payable to
Pembridge
|
|
6,368
|
|
-
|
Due to
Sumitomo
|
|
-
|
|
1,732
|
Long-term
debt
|
|
11,702
|
|
11,347
|
Deferred
revenue
|
|
14,463
|
|
14,901
|
Deferred income tax
liabilities
|
|
3,109
|
|
2,670
|
Asset retirement
obligation
|
|
35,288
|
|
32,196
|
Total
liabilities
|
|
132,026
|
|
100,311
|
Shareholders' equity
(deficiency)
|
|
|
|
|
Share
capital
|
|
221,840
|
|
216,749
|
Deficit
|
|
(237,712)
|
|
(235,742)
|
Total shareholders'
equity (deficiency)
|
|
(15,872)
|
|
(18,993)
|
Total liabilities
and shareholders' equity (deficiency)
|
$
|
116,154
|
$
|
81,318
|
2021 Consolidated Statements of Cash Flows
|
Twelve months
ended
|
|
December 31,
2021
|
December 31,
2020
|
Operating
activities
|
|
|
Net loss for the
period
|
$
|
(1,970)
|
$
|
(18,281)
|
Adjustments for the
following items:
|
|
|
Depletion, depreciation
and accretion
|
11,240
|
8,097
|
Finance
costs
|
4,973
|
4,849
|
Other income (loss),
net
|
1,715
|
187
|
Stock-based
compensation expense
|
3,110
|
-
|
Listing
expense
|
948
|
-
|
Amortization of
deferred revenue
|
(1,548)
|
(2,084)
|
Income tax
expense
|
439
|
143
|
Reclamation
payments
|
(86)
|
-
|
Change in non-cash
working capital
|
(4,989)
|
15,896
|
|
13,832
|
8,807
|
Interest
paid
|
(1,642)
|
(1,728)
|
Net cash provided by
operating activities
|
12,190
|
7,079
|
|
|
|
Investing
activities
|
|
|
Additions to mineral
properties, plant and equipment
|
(6,302)
|
(6,573)
|
Right-of-use asset
additions
|
(1,343)
|
-
|
Net cash used in
investing activities
|
(7,645)
|
(6,573)
|
|
|
|
Financing
activities
|
|
|
Advances from
Sumitomo
|
11,958
|
3,798
|
Repayments on Sumitomo
loan
|
(5,501)
|
-
|
Repayment of lease
liabilities
|
(7,426)
|
(7,406)
|
Share
issuance
|
31,033
|
-
|
Share issuance
costs
|
(1,674)
|
-
|
Class B common shares
issued
|
-
|
4,076
|
Return of
capital
|
(6,306)
|
-
|
Payment of Note
Payable
|
(12,796)
|
-
|
Advances from
Pembridge
|
-
|
4,546
|
Long-term
deposits
|
(4,362)
|
(5,741)
|
Net cash provided by
(used in) financing activities
|
4,926
|
(727)
|
Impact of foreign
exchange on cash balances
|
1
|
(7)
|
Change in
cash
|
9,472
|
(228)
|
Cash, beginning of
year
|
507
|
735
|
Cash, end of
year
|
$
|
9,979
|
$
|
507
|
About Minto Metals Corp.
Minto operates the producing Minto mine located in the Minto
Copper Belt, Yukon. The Minto mine
has been in operation since 2007 with underground mining commencing
in 2014. Since 2007, approximately 500Mlbs of copper have been
produced from the Minto mine. The current mine operations are based
on underground mining, a process plant to produce high-grade
copper, gold, and silver concentrate, and all supporting
infrastructure associated with a remote location in Yukon. The Minto property is located west of
the Yukon River, about 20 km WNW of Minto
Landing, the latter on the east side of the river, and
approximately 250 road-km north of the City of Whitehorse, the capital city of
Yukon.
Forward-Looking Information
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates, and projections as of the date of this
news release. Any statement that involves discussions with respect
to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as "expects", or "does not expect",
"is expected", "anticipates" or "anticipated" or "does not
anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might " or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking statements. In this news release, forward-looking
statements relate, among other things, too (a) timing and listing
of the Resulting Issuer Shares on the Exchange, (b) the use of
proceeds from the RTO Financing, and (c) details with respect to
the business of the Resulting Issuer. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors, which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic,
competitive, political and social uncertainties; the delay or
failure to receive board, shareholder, court or regulatory
approvals; the supply and demand for labour and other project
inputs; changes in commodity prices; changes in interest and
currency exchange rates; risks relating to inaccurate geological
and engineering assumptions; risks relating to unanticipated
operational difficulties (including failure of equipment or
processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of government
approvals, industrial disturbances or other job action, and
unanticipated events related to health, safety and environmental
matters); risks relating to adverse weather conditions; political
risk and social unrest; changes in general economic conditions or
conditions in the financial markets; changes in laws; risks related
to the direct and indirect impact of COVID-19 including, but not
limited to, its impact on general economic conditions, and the
ability to obtain financing as required; and other risk factors as
detailed from time to time. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
the forward-looking statements and information contained in this
news release. Except as required by law, the Resulting Issuer
assumes no obligation to update the forward-looking statements of
beliefs, opinions, projections, or other factors, should they
change, except as required by law. The statements in this news
release are made as of the date of this release.
Contact Information:
For further information:
David J. Birch,
Chief Financial Officer
(416) 895-4824
E-mail: info@mintomine.com
Chris Stewart,
President & Chief Operating Officer
(647) 523-6618
SOURCE Minto Metals Corp.