Atico Reports Consolidated Financial Results for 2020

Rhea-AI Summary

Atico Mining Corporation (ATCMF) reported strong financial results for 2020, with income from mining operations of $18.1 million and net income of $8.4 million. The El Roble mine produced 20.6 million pounds of copper and 10,821 ounces of gold at a cash cost of $1.06 per pound. Despite a 3% decline in sales to $59.6 million, the company benefited from higher copper prices and lower production costs, significantly improving its working capital to $22.5 million. Management forecasts continued growth in 2021 amid favorable copper market conditions.

Positive

• Net income increased to $8.4 million, up from $6.9 million in 2019.
• Working capital improved significantly to $22.5 million, compared to $9.9 million in 2019.
• Production of copper increased by 22% year-on-year to 20.6 million lbs.
• All-in sustaining cash cost per payable pound of copper decreased by 15.5% to $1.53.

Negative

• Sales decreased by 3% to $59.6 million compared to 2019.
• Gold head grade decreased by 16% year-on-year.

(All amounts expressed in US dollars, unless otherwise stated)

VANCOUVER, British Columbia, April 21, 2021 (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, 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

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FAQ

What were Atico Mining's financial results for 2020?

In 2020, Atico Mining reported a net income of $8.4 million and income from mining operations of $18.1 million.

How much copper did Atico Mining produce in 2020?

Atico Mining produced 20.6 million pounds of copper in 2020.

What is Atico Mining's stock symbol?

Atico Mining is traded under the stock symbol ATCMF.

What were the cash costs for Atico Mining in 2020?

The cash cost per payable pound of copper produced was $1.06 in 2020.

What is the outlook for Atico Mining in 2021?

Atico Mining anticipates continued growth in 2021 due to a favorable copper price environment.