(All amounts
expressed in US dollars, unless otherwise stated)
VANCOUVER, British Columbia, April
23, 2018 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the
"Company" or "Atico") (TSX-V:ATY) (OTC:ATCMF) today announced its
financial results for the year ended December 31, 2017, posting
income from mining operations of $15.32 million and a net income of
$4.04 million. Production for the year at Atico's El Roble mine
totaled 20.6 million pounds ("lbs") of copper and 10,923 ounces
("oz") of gold in concentrates at a cash cost(1) of
$1.45 per payable pound of copper produced(2).
Fernando E. Ganoza, CEO and
Director, commented, "We are pleased to report our strongest year
to date both operationally and financially, as the Company
concluded 2017 exceeding nearly all set objectives for the year.
Operationally, we delivered above our higher end guidance while
further increasing operational standards at El Roble. Financially,
we have delivered a record year in most metrics while
significantly strengthening our balance sheet. These
accomplishments allowed us to allocate additional funds to drill
test three of the fifteen targets on the 6,600-hectare prospective
land package the Company controls. Mr. Ganoza continued, "In 2018,
we will focus on organic growth at El Roble property by following
up on positive exploration results from the previous year while
also testing at least two new regional drill targets. In parallel,
the search for a second asset remains to be a high priority as we
continue to strive towards our goal of becoming a leading mid-tear
producer."
2017 Consolidated Financial Highlights
- Net income for the year amounted to $4.04
million, compared with $0.32 million for the previous year. Net
income for the year was positively affected by an increase in
revenue (increase in realized copper price of 26.2%), partially
offset by increases in direct mining and processing costs, and
selling, general and administrative expenses.
- Sales for the year increased 49% to $57.00
million when compared with 2016. The increase was due to additional
concentrate shipped and provisionally invoiced with a higher
realized copper price when compared to 2016. Copper ("Cu")
accounted for 97.6% and gold ("Au") 2.4% of total amount
provisionally invoiced during the year. The average realized price
per metal on provisional invoicing was $2.79 (2016 - $2.21) per
pound of copper and $1,265.21 (2016 - $1,256.11) per ounce of
gold.
- Working capital was $4.6 million (2016 - $1.7
million), while the Company repaid principal of $3.1 million (2016
- $2.0 million) on its long-term loans payable with $2.7 million
(2016 - $5.6 million) outstanding at the reporting date.
- Cash costs(1) were
$118.94 per tonne of processed ore and $1.44 per pound of payable
copper produced(2), increases
of 20% and 32% over last year, respectively.
- Income from operations was $7.58 million (2016 -
$1.56 million) while cash flow from operations, before changes in
working capital was $18.18 million (2016 - $11.44 million). Cash
used for capital expenditures amounted to $10.18 million (2016 -
$8.50 million).
- At the year-end, 3,797 (2016 - 7,366) wet metric
tonnes of non-invoiced concentrate remained at the Company's
warehouses.
- All-in sustaining cash cost per payable pound of
copper produced(1)(2) for
the year was $2.05 (2016 - $1.63).
2017 Consolidated Operating Highlights
- Ore processed increased 6%
year-on-year;
- Copper head grade increased 4%
year-on-year;
- Gold head grade decreased 3%
year-on-year;
- Concentrate production increased 3%
year-on-year;
- Copper metal production increased 10%
year-on-year; and
- Gold metal production decreased 2%
year-on-year.
Fourth Quarter Operating and Financial
Highlights
- The Company produced 11,224 dry metric tonnes of
concentrate during the quarter with a metal content of 5.3 million
pounds of copper, 2,972 ounces of gold and 9,586 oz of
silver.
- Sales of $13.75 million were generated during the
quarter, where copper accounted for 98.9% and gold for 1.1% of the
total. The average realized price per metal on provisional
invoicing was $3.04 per pound of copper and $1,289.88 per ounce of
gold.
- Cash costs(1) for
the quarter were $133.24 per tonne of processed ore and $1.67 per
pound of payable copper produced(2).
- Cash flow from operations, before changes in
working capital, for the quarter was $3.44 million.
2017 Consolidated Operations Review
In 2017, the Company produced 20.6
million lbs of copper, 10,923 oz of gold, and 40,283 oz of silver.
When compared to 2016, production increased by 10% for copper and
decreased by 2% for gold. The increase in copper produced is mainly
explained by 6% more processed material and a 4% increase in the
copper head grade. In the case of gold, the increase in processed
material was partially offset by a 3% decrease in the gold head
grade and a 4% decrease in the metal recovery.
Cash costs(1)(2) were
$118.94 per tonne of processed ore and $1.44 per pound of payable
copper produced, which was an increase of 20% and 32% over 2016,
respectively (refer to non-GAAP Financial Measures). All-in
sustaining cash cost per payable pound of copper
produced(1)(2) was
$2.05.
For fiscal 2017, treatment charges
had a variable surcharge component dependent on the copper price.
The higher average copper price during fiscal 2017 alone had a
negative effect of 12.1% on the cash cost per payable pound of
copper produced over 2016. The Company does not anticipate a
similar treatment surcharge for fiscal 2018.
Fourth Quarter Operations Review
During the quarter, the Company produced 5.3 million lbs of copper,
2,972 oz of gold, and 9,586 oz of silver. When compared to Q4-2016,
production increased 4% for copper and 5% for gold. The increases
in copper and gold produced are mainly explained by a 2% increase
in processed material and 2% and 3% increases in the copper and
gold head grades, respectively.
Cash costs(1) for
the period were $133.24 per tonne of processed ore, and $1.67 per
pound of payable copper produced(2), increases
of 40% and 27% over the same period last year, respectively. The
increase in the cash cost per pound of payable copper net of by
products is mainly explained by the increase in the cost per
processed tonne and treatment surcharge, partially offset by a
higher gold credit. All-in sustaining cash cost per payable pound
of copper produced(1)(2) was
$2.28. The treatment surcharge during the quarter had a negative
effect of 21.6% on the cash cost per payable pound of copper
produced over Q4-2016.
Consolidated Operational Details
|
Q1 Total |
|
Q2 Total |
|
Q3 Total |
|
Q4 Total |
|
2017 Total |
|
Production (Contained
in Concentrates)* |
|
|
|
|
|
|
|
|
|
|
Copper (000s pounds) |
5,046 |
|
5,154 |
|
5,099 |
|
5,326 |
|
20,625 |
|
Gold (ounces) |
2,550 |
|
2,570 |
|
2,831 |
|
2,972 |
|
10,923 |
|
Silver (ounces) |
9,852 |
|
10,005 |
|
10,840 |
|
9,586 |
|
40,283 |
|
Mine |
|
|
|
|
|
|
|
|
|
|
Tonnes of ore mined |
63,468 |
|
65,942 |
|
74,919 |
|
64,705 |
|
269,034 |
|
Mill |
|
|
|
|
|
|
|
|
|
|
Tonnes processed |
62,885 |
|
62,802 |
|
66,443 |
|
63,948 |
|
256,078 |
|
Tonnes processed per day |
810 |
|
794 |
|
794 |
|
763 |
|
790 |
|
Copper grade (%) |
3.89 |
|
3.94 |
|
3.68 |
|
3.98 |
|
3.87 |
|
Gold grade (g/t) |
19.2 |
|
2.07 |
|
2.16 |
|
2.25 |
|
2.10 |
|
Silver grade (g/t) |
9.12 |
|
9.96 |
|
10.31 |
|
8.24 |
|
9.42 |
|
Recoveries |
|
|
|
|
|
|
|
|
|
|
Copper (%) |
93.5 |
|
94.4 |
|
94.3 |
|
95.0 |
|
94.3 |
|
Gold (%) |
65.8 |
|
61.8 |
|
61.1 |
|
64.2 |
|
63.2 |
|
Silver (%) |
53.9 |
|
49.9 |
|
49.5 |
|
56.7 |
|
52.5 |
|
Concentrates |
|
|
|
|
|
|
|
|
|
|
Copper Concentrates (dmt) |
10,566 |
|
10,460 |
|
10,551 |
|
11,224 |
|
42,801 |
|
Copper (%) |
21.7 |
|
22.3 |
|
21.9 |
|
21.5 |
|
21.8 |
|
Gold (g/t) |
7.5 |
|
7.6 |
|
8.4 |
|
8.2 |
|
7.9 |
|
Silver (g/t) |
29.0 |
|
29.7 |
|
32.0 |
|
26.5 |
|
29.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Payable copper produced (000s lbs) |
4,790 |
|
4,897 |
|
4,844 |
|
5,060 |
|
19,591 |
|
Cash cost per pound of payable copper(1)(2) ($/lbs) |
1.41 |
|
1.30 |
|
1.37 |
|
1.67 |
|
1.44 |
|
* Subject
to adjustments due to final settlement |
|
(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
The financial statements and MD&A are
available on SEDAR and have also been posted on the company's
website
at http://aticomining.com/investors/financial-reports/
Annual
General Meeting
Atico Mining cordially invites all
shareholders to its Annual General and Special Meeting of
Shareholders, at 10:00 am, Wednesday, May 30, 2018, at Suite 501 -
543 Granville Street Vancouver, British Columbia.
El Roble Mine
The El Roble mine is a high grade,
underground copper and gold mine with nominal processing plant
capacity of 800 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 a measured and
indicated resource of 1.87 million tonnes grading 3.46% copper and
2.27 g/t gold, at a cut-off grade of 0.93% copper equivalent.
Mineralization is open at depth and along strike and the Company
plans to further test the limits of the resource.
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.
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 operates the El Roble
mine and is pursuing additional acquisition opportunities. For more
information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza
CEO
Atico Mining Corporation
Trading symbols: TSX.V: ATY | OTC:
ATCMF
Investor Relations
Igor Dutina
Tel: +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; 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
The Company has
not based its production decisions and ongoing mine production on
mineral reserve estimates, preliminary economic assessments or
feasibility studies, and historically such projects have increased
uncertainty and risk of failure. Mineral resources that are not
mineral reserves do not have demonstrated economic
viability.
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, 2017 as filed on SEDAR and as available on the Company's
website for further details.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Atico Mining Corporation via Globenewswire
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