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,
202120202019
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,
202120202019
 
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

The Conversation (0)
Map of Ontario, Canada, with "Top 5 Canadian Mining Stocks This Week" text overlay.

Top 5 Canadian Mining Stocks This Week: Onyx Gold Shines with 118 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.

Statistics Canada released April’s gross domestic product (GDP) numbers on Friday (June 27). The data showed a slowing in the Canadian economy with a 0.1 percent monthly decline after it increased 0.2 percent in March as businesses attempted to get ahead of US tariff deadlines.

In April, the shift in US trade policy led to significant declines in the manufacturing sector, which saw its largest drop in four years at 1.9 percent. Durable goods manufacturing declined for the first time in four months, dropping 2.2 percent d. The most heavily impacted sub-sectors were transportation equipment and the auto sector, which fell 21.6 percent and 5.2 percent, respectively.

Keep reading...Show less
Gold bars with "5 Top Australian Mining Stocks" text overlay.

Top 5 Australian Mining Stocks This Week: GBM Soars on AU$13 Million Raise

Welcome to the first edition of the Investing News Network's weekly round-up of Australia’s top-performing mining stocks on the ASX, starting with news in Australia's resource sector.

In significant news for Australia's iron sector, mining giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), together with its joint venture partner Hancock Prospecting, said on Tuesday (June 24) that the partners will invest a combined US$1.6 billion to develop the Hope Downs 2 iron ore project in the Pilbara region, Western Australia.

Companies focused on antimony and gold have also been making news this week, such as Resolution Minerals (ASX:RML) announcing its acquisition of the Horse Heaven project in Idaho, US, and Ausgold (ASX:AUC,OTC Pink:AUSGF) signing an agreement to acquire Critica’s (ASX:CRI,OTC Pink:VTMLF) Kulin gold project in Western Australia.

Keep reading...Show less

Latest Press Releases

Related News

×