Atico Mining Reports Consolidated Financial Results for the Second Quarter of 2016

Vancouver, August 16, 2016 – Atico Mining Corporation (TSXV:ATY) today announced its financial results for the three months ended June 30, 2016, posting a net loss of $1.41 million.
Fernando E. Ganoza, CEO, commented, “The Company had another record operating quarter with competitive production cost which didn’t translate to the quarterly financials. As we recognize revenue once the concentrate is shipped, the financials were negatively impacted by a delay of the second concentrate shipment scheduled for this quarter due to a countrywide transportation strike in Colombia. The negative effect on this quarter will be offset by recording the revenue of the delayed shipment in the third quarter.” Mr. Ganoza added, “We are looking forward to a strong second half of the year both operationally and financially while we remain on target to meet our annual consolidated production guidance.”
Second Quarter Financial Highlights

• Net loss for the second quarter amounted to $1.41 million, compared with a net income of $0.47 million for the same period last year. The net loss was mainly affected by a delay of the second concentrate shipment, originally schedule to be shipped during the quarter.

• Sales for the second quarter decreased 40% to $3.7 million when compared with the same period last year. The decrease is due to a delayed scheduled concentrate shipment and lower realized prices as compared to the same period last year. Copper accounted for 92.4% and gold 7.6% of total amount provisionally invoiced during the quarter. The average realized price per metal on provisional invoicing was $2.08 per pound of copper, $1,263.85 per ounce of gold, and $16.87 per ounce of silver

• Cash costs⁽¹⁾ were $90.20 per tonne of processed ore and $0.96 per pound of payable copper produced⁽²⁾, a 14% and 17% decrease over the same period last year, respectively.

• Loss from operations was $1.59 million while cash flow from operations, before changes in working capital was $0.03 million. Cash used for capital expenditures amounted to $1.84 million.

• At the quarter-end, 9,120 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 Q2-2016 was $1.53.

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