ebidta

Peruvian Metals Achieves Positive Adjusted-EBITDA During the First Half of 2021 and Restarts Exploration at Minas Maria Norte

Peruvian Metals Corp. (TSXV: PER) (OTC: DUVNF) ("Peruvian Metals" or the "Company") is pleased to provide an update regarding the mineral processing at its 80-per-cent-owned fully permitted Aguila Norte processing plant ("Aguila Norte" or the "Plant") located in Northern Peru.

During the second quarter of 2021, the Company is also pleased to report second quarterly positive adjusted-EBITDA (see table below), representing a second quarterly positive EBITDA in 2021. During the second quarter, the Company invested $85,675 US into the Palta Dorada Au-Ag-Cu project completing our 50% earn-in with Rio Silver Inc. Furthermore, the yearly holding costs due June 30th of $53,180 US were paid to keep many of the Company's concessions in good standing. Due to the complicated social conditions in the Mansa Musa project area the Company and its partner GEXEG S.A.C decided not to renew the concessions. Third quarter EBITDA performance is expected to reflect similar performance with continued investments into the Company's wholly owned projects.

During the month of August, Peruvian Metals processed 2,190 metric tonnes ("mt") of material for third parties. As of August 31st, the Plant has processed 16,560 tonnes in 2021 exceeding total tonnes processed in 2020 of 13,185 tonnes. The Company expects a record year for 2021 and is on track to exceed 2019's total processing record of 18,510 tonnes.

Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, commented: "We are pleased that we are on track for a record processing year in 2021 at Aguila Norte. We are continuing to report positive adjusted-EBITDA and we have started to deploy our income to advance our other projects in Northern Peru. Investment in our properties is intended to provide further feed for the Plant which will result in increased profit margins on each tonne processed at Aguila Norte."

The Company also intends to re-start exploration at Minas Maria Norte located in the Huachocolpa Mining District. New recent developments on Silver X Mining's prospective Tangana property have created a renewed interest in the area. The Minas Maria Norte project is located less than three kilometres from Tangana. Previous sampling and mapping showed a gold rich polymetallic vein system and is summarized in the Company's press release dated July 21st, 2020. A field crew is scheduled to be mobilized to the area at the end of the month to conduct further sampling and commence community introductions.

The Aguila Norte processing plant has an environmental permit ("IGAC") from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level. Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation, or approved the scientific and technical disclosure contained in this news release.

Adjusted EBITDA - UNAUDITED
Three Months Ended June 30,
2021 2020 2019
Net (loss) income $ (267,582) $ (191,515) $ (142,758)
Add
   Interest expense $ 3,782 $ 3,838 $ 6,706
   Share-based compensation $ - $ - $ -
   Non-operating loss (gain) on investments $ 220,573 $ 2,370 $ 21,100
   Gain on disposal of exploration subsidiary $ - $ - $ -
   Non-operating property impairment charge $ - $ - $ -
   Amortization $ 59,574 $ 58,118 $ 57,885
   Accretion expense $ 3,093 $ 2,945 $ 2,058
 
Adjusted EBITDA* $ 19,440 $ (124,244) $ (55,009)
 
   
Six Months Ended June 30,
2021 2020 2019
 
Net (loss) income $ (330,759) $ 577,598 $ (917,000)
Add
   Interest expense $ 7,495 $ 7,765 $ 13,338
   Share-based compensation $ 28,541 $ 28,961 $ -
   Non-operating loss (gain) on investments $ 303,982 $ - $ 37,630
   Gain on disposal of exploration subsidiary $ - $ (1,033,689) $ -
   Non-operating property impairment charge $ - $ - $ 582,051
   Amortization $ 118,374 $ 116,236 $ 117,106
   Accretion expense $ 6,186 $ 5,890 $ 4,116
 
Adjusted EBITDA* $ 133,819 $ (297,239) $ (162,759)


* adjusted to also include non-cash share-based compensation and non-cash loss/(gain) on investments and exploration subsidiary


About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange : Symbol "PER"
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com Email: jeffrey.reeder@peruvianmetals.com

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.

Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96683

News Provided by Newsfile via QuoteMedia

Peruvian Metals

Peruvian Metals Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
abx tsx

Peruvian Metals

Positive Cashflow and First-Mover Advantage in Peru

Positive Cashflow and First-Mover Advantage in Peru Keep Reading...
Standing gold bar in front of stacks of gold bars. Words read "5 Top Canadian Mining Stocks This Week."

Top 5 Canadian Mining Stocks This Week: Belo Sun is Radiant with 109 Percent Gain

Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.On Tuesday (February 17) Canadian Prime Minister Mark Carney announced the creation of... Keep Reading...
TSX and TSXV website on phone screen.

Gold and Silver Stocks Dominate TSX Venture 50 List

This year's TSX Venture 50 list showcases a major shift in sentiment toward the mining sector. The TSX Venture 50 ranks the top 50 companies on the TSX Venture Exchange based on annual performance using three criteria: one year share price appreciation, market cap growth and Canadian... Keep Reading...
Ole Hansen, investment graphics.

Ole Hansen: Next Gold Target is US$6,000, What About Silver?

Ole Hansen, head of commodity strategy at Saxo Bank, believes US$6,000 per ounce is in the cards for gold in the next 12 months; however, silver may not enjoy the same price strength. "If gold moves toward US$6,000, I would believe that ... silver at some point will struggle to keep up, and... Keep Reading...
Red stamp on paper with "approved" marked in red.

Kinross’ Great Bear Gold Project Accelerated Under Ontario’s 1P1P Framework

Ontario is moving to accelerate one of Canada’s largest emerging gold projects, cutting permitting timelines in half for Kinross Gold's (TSX:K,NYSE:KGC) Great Bear development in the Red Lake district.The province announced that Great Bear will be designated under its new One Project, One... Keep Reading...
Massan Indicated Conversion Programme Continues to Deliver

Massan Indicated Conversion Programme Continues to Deliver

Asara Resources (AS1:AU) has announced Massan indicated conversion programme continues to deliverDownload the PDF here. Keep Reading...
Peruvian Metals

Peruvian Metals Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Interactive Chart

Latest Press Releases

Related News