Another Solid Profitable Quarter earning $1.9 m US
Atico Mining earns $1.87-million (U.S.) in Q3
2020-11-19 16:16 ET - News Release
Mr. Fernando Ganoza reports
ATICO REPORTS FINANCIAL RESULTS FOR THIRD QUARTER OF 2020
Atico Mining Corp. has released its financial results for the three months ended Sept. 30, 2020, posting income from mining operations of $5-million (U.S.) and a net income of $1.9-million (U.S.). All amounts are expressed in U.S. dollars, unless otherwise stated.
Fernando E. Ganoza, chief executive officer and director, commented: "We are pleased to report strong financial results despite selling only one concentrate shipment in the period. These results are a good reflection of the current strong metal price environment combined with our solid operating results. In the fourth quarter, we anticipate selling two concentrate shipments and financial results reflecting a very robust second half of the year. At El Roble, the team will continue focusing on the exploration program while achieving our planned operational targets. At La Plata, the focus continues to be the infill drill program to advance the feasibility study while also adding a step-out drill program to test new target areas like Guatuza. As we continue to reap the rewards of strong financial results, our ability to carry out the planned growth programs at both El Roble and La Plata will be enhanced." Mr. Ganoza continued, "Throughout the company, we continue to prioritize the health and safety of all of our employees during these unprecedented times."
Third quarter financial highlights
- Net income for the three months ended Sept. 30, 2020 amounted to $1.9-million, compared with loss of $300,000 for the same period last year. Net income for the quarter was positively affected by an increase in concentrate shipped and invoiced at higher realized copper price and lower cost of sales per unit, as compared with Q3 2019.
- Sales for the period increased 47 per cent to $14.1-million when compared with $9.6-million in Q3 2019. Copper and gold accounted for 83 per cent and 17 per cent of the 9,291 (Q3 2019 -- 6,911) dry metric tonnes shipped and invoiced during Q3 2020. The average realized price per metal on invoicing was $2.98 (Q3 2019 -- $2.62) per pound of copper and $1,991 (Q3 2019 -- $1,508) per ounce of gold.
- Working capital was $9.4-million (Dec. 31, 2019 -- $9.9-million), while the company had $1.1-million (Dec. 31, 2019 -- $2.2-million) in long-term loans payable.
- Cash costs were $113.90 per tonne of processed ore and $1.13 per pound of payable copper produced, which were increases of 6 per cent and 5 per cent over Q3 2019, respectively. The increase in the cash cost per pound of payable copper net of byproducts is primarily explained by a higher cost per processed tonne, along with lower byproduct credit from gold.
- Cash margin was $1.85 (Q3 2019 -- $1.54) per pound of payable copper produced, which was an increase of 20 per cent over Q3 2019.
- All-in sustaining cash cost per payable pound of copper produced was $1.54 (Q2-2019 -- $1.52).
Third quarter operational review
In Q3 2020, the company produced 5.5 million lbs of copper, 2,607 oz of gold, and 9,953 oz of silver. When compared with Q3 2019, production decreased by 3 per cent for copper and 21.5 per cent for gold. The decreases for both copper and gold were mainly driven by lower processed tonnes this quarter. In the case for copper, this was partially offset by higher head grades while gold was further impacted by a lower-than-anticipated recovery and head grade. The company anticipates that gold recovery will improve in the fourth quarter.
Cash costs for the period were $113.90 per tonne of processed ore, and $1.13 per pound of payable copper produced, increases of 6 per cent and 5 per cent over the Q3 2019, respectively. All-in sustaining cash cost per payable pound of copper produced was $1.54.
The financial statements and management discussion and analysis are available on SEDAR and have also been posted on the company's website.
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 Nov. 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 1.47 million tonnes grading 3.4 per cent copper and 1.88 g/t gold, at a cut-off grade of 1.93 per cent copper equivalent as of June 30, 2018. 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 10 kilometres. This contact has been determined to be an important control on volcanogenic massive sulfide mineralization on which Atico has identified numero