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VANCOUVER, British Columbia, April 24, 2025 (GLOBE NEWSWIRE) — Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the year ended December 31, 2024, posting income from mining operations of $14 million and a net loss of $18.7 million. Production for the year at Atico’s El Roble mine totaled 13.7 million pounds (“lbs”) of copper and 9,106 ounces (“oz”) of gold in concentrate at a cash cost(1) of $2.07 per payable pound of copper(2).
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Fernando E. Ganoza, CEO and Director, commented, “the El Roble mine performed as expected in 2024 with significant improvement over the previous year. We achieved higher margins and sales, leading to a substantial increase in operating income over 2023. However, accounting for the arbitration ruling in Colombia, significantly impacted our bottom line.” Mr. Ganoza continued, “For the rest of the year, we will prioritize achieving production goals and improving cost efficiencies at El Roble. Looking to take advantage of the favorable metal price environment.”
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2024 Financial Highlights
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- Net loss for the year amounted to $18.7 million, compared to $5.8 million net loss for 2023. Net loss for 2024 was mainly attributed to a $24.5 million pre-tax loss recognized in the year due to the outcome of the arbitration concerning the El Roble’s royalty dispute with the National Mining Agency in Colombia.
- Sales for the year increased 19% to $68.5 million when compared with $57.5 million in 2023. Copper (“Cu”) and gold (“Au”) accounted for 83% and 17% of the 35,774 (2023 – 31,763) dry metric tonnes (“DMT”) sold during 2024.
- The average realized price per metal was $4.19 (2023 – $3.94) per pound of copper and $2,452 (2023 – $2,009) per ounce of gold.
- Ending working capital deficit (current liabilities – current assets) was $11.3 million (December 31, 2023 – $2.1 million deficit). At December 31, 2024, the Company had $7.0 million (December 31, 2023 – $6.0 million) in long-term loans payable and an $8.5 million non-current portion of the arbitration award payable (December 31, 2023 – $Nil).
- Cash costs(1) were $142.68 per tonne of processed ore and $2.07 per pound of payable copper produced, which were increases of 10% and 1% over 2023, respectively. The increase in cash costs per tonne was primarily driven by inflationary pressures on operating costs in 2024, as well as higher expenses related to tailings’ handling and disposal, and to higher infill drilling, stope preparation and backfilling activities at the mine. While cash costs per pound of payable copper increased only marginally, due to an offset by higher copper head grades.
- Cash margin was $2.12 per pound of payable copper produced(1), which was a increase of 12% over 2023, due to the increase in realized copper price as well as increased copper head grades for the year.
- All-in sustaining cash cost per payable pound of copper produced(1) was $3.00 (2023 – $2.87) impacted by an increase in sustaining capital expenditures, compared to the prior year, mainly related to mine development costs at El Roble.
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Subsequent Events to the Reporting Date:
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- 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, requiring the Company’s Colombian subsidiary, Minera El Roble, to back pay copper royalties since 1994.
- On April 8, 2025, the Company entered into an agreement with its lender Trafigura PTE. LTD. to amend the $10,000,000 credit agreement originally executed in February 2022 and previously amended in August 2024. Pursuant to the terms of this agreement, the principal repayment schedule has been revised as follows:
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1. $650,000 due on January 31, 2025 (PAID);
2. $650,000 due on April 30, 2025; and
3. $8,700,000 due on June 30, 2025
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2024 Summary of Consolidated Financial Results
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| 2024 | 2023 | Change | ||||||
| Revenue | $ | 68,455,363 | $ | 57,543,646 | 19 | % | ||
| Cost of sales | (54,413,545 | ) | (50,114,186 | ) | 9 | % | ||
| Income from mining operations | 14,041,818 | 7,429,460 | 89 | % | ||||
| As a % of revenue | 21 | % | 13 | % | ||||
| General and administrative expenses | (5,735,028 | ) | (5,815,475 | ) | (1 | %) | ||
| Income (loss) from operations | 7,946,046 | (4,412,460 | ) | (280 | %) | |||
| As a % of revenue | 12 | % | (8 | %) | ||||
| Loss before income taxes | (21,647,960 | ) | (6,474,276 | ) | 234 | % | ||
| Net loss | (18,675,541 | ) | (5,777,153 | ) | 223 | % | ||
| As a % of revenue | (27 | %) | (10 | %) | ||||
| Operating cash flow before changes in non-cash operating working capital items(1) | $ | 16,956,186 | $ | 9,710,641 | 75 | % | ||
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