VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 16, 2016) – Atico Mining Corporation (TSXV:ATY) today announced its financial results for the three months ended September 30, 2016, posting a net income of $0.24 million.
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 16, 2016) – Atico Mining Corporation (TSXV:ATY) today announced its financial results for the three months ended September 30, 2016, posting a net income of $0.24 million. The Company is also pleased to report that it has restructured its senior secured debt facility (the “Debt Facility”) with the lender Trafigura Pte. Ltd. (“Trafigura”).
Fernando E. Ganoza, CEO, commented, “Despite a very challenging third quarter due to a 40 day national transportation strike in Colombia during June and July, the Company was able to deliver strong operating results and had a profitable quarter.” Mr. Ganoza continued, we anticipate the negative effect the strike had in on-site cost during the quarter won´t influence the last quarter of the year, as we are already seeing direct mining and processing costs back to normal levels.”
Mr. Ganoza added: “We are also pleased to announce the debt restructuring agreement which is an important milestone in Atico’s prudent management of its financial position in a challenging metal price environment.” Mr. Ganoza continued, “reducing the quarterly repayment amounts and pushing out the maturity date immediately improves the Company’s financial position. In addition, we will gain in optionality to better allocate free cash flow generated by the El Roble mine while still maintaining debt flexibility.”
Third Quarter Financial Highlights
- Net income for the third quarter amounted to $0.24 million, compared with loss of $0.51 million for the same period last year. The net income was positively affected by an increase in concentrate shipped and provisionally invoiced, partially offset by a lower realized copper price and increased direct mining and processing costs caused by a national transportation strike in Colombia.
- Sales for the third quarter increased 6% to $11.5 million when compared with the same period last year. The increase is due to an increase in concentrate shipped and provisionally invoiced, partially offset by lower realized copper price as compared to the same period last year. Copper accounted for 85.0% and gold 15.0% of total amount provisionally invoiced during the quarter. The average realized price per metal on provisional invoicing was $2.18 per pound of copper, $1,324.86 per ounce of gold, and $19.59 per ounce of silver
- Cash costs(1) were $116.20 per tonne of processed ore and $1.35 per pound of payable copper produced(2), a 23% and 38% increase over the same period last year, respectively.
- Income from operations was $0.07 million while cash flow from operations, before changes in working capital was $3.78 million. Cash used for capital expenditures amounted to $2.16 million.
- At the quarter-end, 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 Q3-2016 was $1.86.