Latest news with #AticoMiningCorporation
Business Upturn
a day ago
- Business
- Business Upturn
Atico Mining Announces Execution of Term Sheet with Trafigura to Restructure Outstanding Credit Facility
By GlobeNewswire Published on June 14, 2025, 02:52 IST VANCOUVER, British Columbia, June 13, 2025 (GLOBE NEWSWIRE) — Atico Mining Corporation (the 'Company' or 'Atico') (TSX.V: ATY | OTC: ATCMF) announces that, further to its press release dated June 9, 2025, it has entered into a term sheet with Trafigura PTE. LTD. (the 'Trafigura') regarding an amendment and extension of the Company's existing secured credit agreement (the 'Credit Agreement') with Trafigura and certain subsidiaries of the Company, of which US$8.7 million remains outstanding (the 'Principal Amount'). Pursuant to the term sheet, the Principal Amount will be repaid in two instalments of US$2.7 million on July 25, 2025 and US$6 million on December 30, 2026. The outstanding Principal Amount will bear interest at a rate of SOFR plus 7.5%. In addition, the parties have agreed to an extension of the existing commercial concentrate purchase contract between the Company and Trafigura covering the purchase of 100% of the concentrate produced from the El Roble mine for two additional years, subject to a minimum tonnage of 32kdm per year. Closing of the transactions is subject to finalization of definitive documentation, which will contain customary representations, warranties, covenants and conditions precedent to closing, including approval of the TSX Venture Exchange, and is expected to occur on or before June 30, 2025. About Atico Mining Corporation Atico is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company generates significant cash flow through the operation of the El Roble mine and is developing its high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities. For more information, please visit ON BEHALF OF THE BOARD Fernando E. GanozaCEO Atico Mining Corporation Trading symbols: TSX.V: ATY | OTCQX: ATCMF Investor RelationsIgor Dutina Tel: +1.604.729.5765 Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Cautionary Note Regarding Forward Looking Statements This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as 'forward-looking statements'). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'anticipates', 'believes', 'estimates', 'expects', 'confirm' and similar expressions, or the negatives of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'should', 'might', or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this news release speak only as of the date hereof or as of the date specified in such statement. Specifically, this news release includes, but is not limited to, forward-looking statements regarding: the expected terms contained in the definitive documentation and the expected closing of the loan refinancing with Trafigura including the timing thereof. Inherent in forward-looking statements are risks, uncertainties and other factors beyond Atico's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, risks associated with the Company's outstanding debt, including amounts due and payable to each of Trafigura and Dundee Corporation ('Dundee') on or before June 30, 2025 and December 30, 2025, respectively, or the ability to successfully amend and extend the Credit Agreement and the convertible debenture with Dundee; the availability and cost of funds; uncertainties relating to the closing of the Trafigura loan refinancing, including delays in obtaining or failure to obtain required approvals to complete the Trafigura loan refinancing; mining operations; market fluctuations in commodity prices; title risks and surface rights and access; changes in legislation; political instability; government or regulatory approvals; non-compliance with laws and regulations and compliance costs; environmental compliance; climate change; uninsured and uninsurable risks; water disposal, tailings and reclamation obligations; financing risks; risks associated with outstanding debt; global economic conditions; availability and costs of supplies; community relations; mineral reserve and mineral resource estimates; future production rates; labour relations; currency fluctuations; the Company may engage in hedging activities; infrastructure; exploration and development capital expenditures; social media and reputation; negative publicity; human rights; business objectives; concentrate sales risks; shortage of personnel; health and safety; pandemics, epidemics or infectious disease outbreak; physical security; conflicts of interest; claims and legal proceedings; information systems and cyber security; internal controls; violation of anti-bribery or corruption laws; competition; tax considerations; compliance with listing standards; enforcement of civil liabilities; financing requirement risks; market price volatility of Common Shares; and other risks and uncertainties related to the Company's business and the Offerings, including those described in the Company's public disclosure documents on SEDAR+ at Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ and may differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including but not limited to, (1) the successful completion of the Trafigura loan refinancing; (2) the Company's ability to generate positive cash flows from ongoing operations at the El Roble Mine, including the ability to sell its mineral concentrates in inventory; (3) that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of the Company's properties, (4) there being no significant disruptions affecting operations, whether due to labor disruptions, supply disruptions, power disruptions, damage to equipment, non-renewal of title to the Company's claims or otherwise, (5) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations, (6) currency exchange rates being approximately consistent with current levels, (7) certain price assumptions for copper, gold, zinc and silver, (8) prices for and availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels, (9) production forecasts meeting expectations, (10) the accuracy of the Company's current mineral resource and reserve estimates, (11) labor and materials costs increasing on a basis consistent with the Company's current expectations, (12) matters related to the ongoing dispute with the National Mining Agency in Colombia, and (13) general marketing, political, business and economic conditions. Forward-looking statements may be affected by known and unknown risks, uncertainties and other factors including without limitation, those referred to in the Offering Documents that may cause Atico's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a result of new information or future events or otherwise, except as may be required by law. If Atico does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
27-05-2025
- Business
- Yahoo
Atico Reports Consolidated Financial Results for First Quarter of 2025
(All amounts expressed in US dollars, unless otherwise stated) VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the 'Company' or 'Atico') (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the three months ended March 31, 2025, posting income from mining operations of $3.7 million and a net loss of $0.8 million for the quarter. Production for the quarter at Atico's El Roble mine totaled 2.2 million pounds ('lbs') of copper and 1,578 ounces ('oz') of gold in concentrate at a cash cost (1) of $3.00 per payable pound of copper (2). Fernando E. Ganoza, CEO and Director, commented, 'during this period, the mine's operational performance was below schedule due to unexpected challenging rock quality conditions resulting in slower than planned mine development. Nevertheless, we achieved financial results in line with budget, driven by strong metal prices and additional revenue from selling down a portion of our pledged concentrate inventory.' Mr. Ganoza continued, 'for the remainder of the year, we anticipate gradual improvements in the second and third quarters of this year to regain the planned development and preparation pace, which we expect will enable us to recover most of the lost production for the year. In parallel, we are progressing with the engineering and permitting for the La Plata project while conducting the near-mine drilling program at El Roble to replenish resources and extend the mine's life.'Sales for the quarter increased 11% to $19.9 million when compared with $17.8 million in Q1-2024. Copper ('Cu') and gold ('Au') accounted for 72% and 28% of the 8,468 (Q1-2024 – 9,383) dry metric tonnes ('DMT') sold during Q1-2025. The average realized price per metal was $4.44 (Q1-2024 - $3.97) per pound of copper and $2,987 (Q1-2024 - $2,180) per ounce of gold. Net loss for the quarter amounted to $0.8 million, compared with $0.4 million for the comparative quarter of last year, while cash flows from operations, before changes in working capital, was $5.3 million (Q1-2024 – $5.8 million). Cash used for investing activities amounted to $1.7 million (Q1-2024 – $3.2 million). Ending working capital deficit was $10.1 million (December 31, 2024 – $11.3 million), while the Company had $6.1 million (December 31, 2024 – $7.1 million) in long-term loans payable and $8.8 million (December 31, 2024 – $8.5 million) payable to the National Mining Agency that is due beyond one year. Cash costs (1) were $176.98 per tonne of processed ore and $3.00 per pound of payable copper produced (2), which was an increase of 11% and 17% over Q1-2024, respectively. The increase in cash cost per tonne was primarily driven by lower ore production in Q1-2025, which led to underutilization of capacity (as fixed costs were spread over fewer tonnes). The transition to the new zones in the El Roble mine experienced delayed by unforeseen rock quality challenges, which affected both tonnage and head grade as access to stopes was slowed down. Also, inflation, and the increase in ground support activities and stope preparation, impacted costs. Cash costs per pound of payable copper produced also increased due to lower copper output due to the lower grade. The Company anticipates a gradual improvement in tonnage and grade in the following quarters as planned development and preparation pace recovers. Cash margin was $1.44 per pound of payable copper produced(1), which was an increase of 2% over Q1-2024, due to the increase in realized copper price which more than offset the increase in cash cost per pound mentioned above. All-in sustaining cash cost per payable pound of copper produced(1) was $4.65, up from $3.41 in Q1-2024 (refer to non-GAAP Financial Measures). This increase was primarily due to lower copper output and higher sustaining capital expenditures on mine development, mine infrastructure, and ramp construction, necessary to maintain production capacity. On March 7, 2025, the arbitration tribunal at the Center for Arbitration and Conciliation of the Bogota Chamber of Commerce ruled in favor of the National Mining Agency regarding the royalties' dispute of Minera El Roble S.A. Q12025 Q12024 %Change Sales $ 19,855,914 $ 17,818,115 11 % Cost of sales (16,113,098 ) (15,016,252 ) 7 % Income from mining operations 3,742,816 2,801,863 34 % As a % of revenue 19 % 16 % General and administrative expenses (1,218,814 ) (1,331,172 ) (8 %) Income from operations 2,515,347 1,292,845 95 % As a % of revenue 13 % 7 % Income (loss) before income taxes 1,038,480 (257,271 ) (504 %) Net income (loss) (844,316 ) (365,933 ) 131 % As a % of revenue (4 %) (2 %) Operating cash flow before changes in non-cash operating working capital items(1) $ 5,327,944 $ 5,847,701 (9 %) In Q1-2025, the Company produced 2.2 million lbs of copper, 1,578 oz of gold, and 4,988 oz of silver. Copper production decreased by 34% and gold production by 28% for gold, when compared to Q1-2024, due to lower ore throughput and lower copper and gold head-grades. Q12025 Q12024 %Change Production (Contained metals)(3) Copper (000s lbs) 2,220 3,349 (34 %) Gold (oz) 1,578 2,185 (28 %) Silver (oz) 4,988 8,174 (39 %) Mine Tonnes of material mined 56,467 64,873 (13 %) Mill Tonnes processed 54,978 65,787 (16 %) Tonnes processed per day 773 811 (5 %) Copper grade (%) 1.96 2.52 (22 %) Gold grade (g/t) 1.44 1.67 (14 %) Silver grade (g/t) 10.26 8.49 21 % Q12025 Q12024 %Change Recoveries Copper (%) 93.3 91.8 2 % Gold (%) 62.0 61.7 1 % Silver (%) 39.3 46.3 (15 %) Concentrates Copper Concentrates (DMT) 5,763 8,274 (30 %) Copper (%) 17.5 18.4 (5 %) Gold (g/t) 8.5 8.2 4 % Silver (g/t) 38.5 30.7 25 % Payable copper produced (000s lbs) 2,080 3,148 (34 %) Cash cost per pound of payable copper ($/lbs)(1)(2) 3.00 2.57 17 % The financial statements and MD&A are available on SEDAR+ and have also been posted on the company's website at (1) Alternative performance measures; please refer to 'Non-GAAP Financial Measures' at the end of this release.(2) Net of by-product credits(3) Subject to adjustments on final settlementMr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company generates significant cash flow through the operation of the El Roble mine and is developing it's high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities. For more information, please visit ON BEHALF OF THE BOARD Fernando E. GanozaCEOAtico Mining Corporation Trading symbols: TSX.V: ATY | OTC: ATCMF Investor RelationsIgor DutinaTel: +1.604.633.9022 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. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ''U.S. Securities Act''), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. This announcement includes certain 'forward-looking statements' within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, including without limitation statements regarding improving cost efficiencies at El Roble, taking advantage of the favorable metal price environment, and possible outcomes of any pending arbitration, consultation, litigation, negotiation or regulatory investigation, and the timing and amount of the future construction of the La Plata project, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The assumptions upon which the forward-looking statements herein are based, include, but are not limited to, that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of its properties, there being no significant disruptions affecting operation, permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations, currency exchange rates being approximately consistent with current levels, certain price assumptions for copper, gold and silver, prices for and availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels, production forecasts meeting expectations, the accuracy of the Company's current mineral resource and reserves estimates, labor and materials costs increasing on a basis consistent with the Company's current expectations, assumptions made and judgments used in engineering and geological interpretation, the outcome of the Arbitration with the National Mining Agency in Colombia for the royalty dispute and that additional financing sources will be available on reasonable commercial terms in order for the Company to make scheduled repayments of principal, interest, and any applicable premiums on its outstanding indebtedness. Important risk factors that could cause actual results to differ materially from the Company's expectations include uncertainties as to the timing and process for renewal of title to the El Roble claims; risks associated with the Company's outstanding debt, including the Company's ability to successfully secure additional funds through debt or equity issuances to meet these obligations, including amounts due and payable to Trafigura PTE. LTD. on or before June 30, 2025, or successfully negotiate to amend or extend their terms uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs of the Company's projects; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company's mineral projects; uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading 'Risk Factors' in the Company's Management's Discussion and Analysis for the year ended December 31, 2024 and in the Company's Annual Information Form ('AIF') dated September 4, 2024, filed with the Canadian securities regulatory authorities on the SEDAR+ website at and as available on the Company's website for further details. Except as required by law, the Company does not assume the obligation to revise or update these forward-looking statements after the date of this announcement or to revise them to reflect the occurrence of future unanticipated items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company's Management's Discussion and Analysis for the year ended December 31, 2024, as filed on SEDAR+ and as available on the Company's website for further details.
