Atico Reports Consolidated Financial Results for First Quarter of 2025

Rhea-AI Summary

Atico Mining reported its Q1 2025 financial results, posting income from mining operations of $3.7M but a net loss of $0.8M. The El Roble mine produced 2.2M pounds of copper and 1,578 ounces of gold at a cash cost of $3.00 per payable pound. Sales increased 11% to $19.9M compared to Q1 2024. Production was below schedule due to challenging rock quality conditions, with copper production down 34% and gold production down 28% year-over-year. The company faced a working capital deficit of $10.1M and had $6.1M in long-term loans. Despite operational challenges, strong metal prices and concentrate inventory sales helped maintain financial results in line with budget. Management expects gradual improvements in Q2 and Q3 to recover most of the lost production.

Positive

• Sales increased 11% to $19.9M compared to Q1 2024
• Strong metal prices with copper at $4.44/lb (up from $3.97) and gold at $2,987/oz (up from $2,180)
• Cash margin improved 2% to $1.44 per pound of payable copper
• Improved copper recovery rate of 93.3% (up from 91.8%)

Negative

• Net loss increased to $0.8M from $0.4M in Q1 2024
• Working capital deficit of $10.1M
• Copper production decreased 34% to 2.2M lbs
• Gold production fell 28% to 1,578 oz
• Cash costs increased 17% to $3.00 per pound of payable copper
• All-in sustaining costs increased to $4.65 from $3.41 per pound

(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.”

First Quarter Financial Highlights

• 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.
  

First Quarter Summary of Financial Results

		Q1 2025			Q1 2024				% 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	%)

First Quarter Consolidated Operational Details

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.

			Q1 2025			Q1 2024		% 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	%

			Q1 2025			Q1 2024		% 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 http://www.aticomining.com/s/FinancialStatements.asp

⁽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 settlement

Qualified Person

Mr. 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 Atico.

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 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 www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza
CEO
Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTC: ATCMF

Investor Relations
Igor Dutina
Tel: +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.

Cautionary Note Regarding Forward Looking Statements
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 www.sedarplus.com 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 events.

Non-GAAP Financial Measures

The 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.

FAQ

What were Atico Mining's (ATCMF) Q1 2025 financial results?

Atico Mining reported Q1 2025 sales of $19.9M (up 11% YoY), income from mining operations of $3.7M, and a net loss of $0.8M. The company faced operational challenges but maintained results through strong metal prices.

How much copper and gold did ATCMF produce in Q1 2025?

In Q1 2025, Atico Mining produced 2.2 million pounds of copper (down 34% YoY) and 1,578 ounces of gold (down 28% YoY) at its El Roble mine.

What caused the production decline at Atico Mining's El Roble mine in Q1 2025?

Production declined due to unexpected challenging rock quality conditions, which resulted in slower mine development, lower ore throughput, and reduced copper and gold head-grades.

What is Atico Mining's outlook for the remainder of 2025?

Management expects gradual improvements in Q2 and Q3 2025 to regain planned development pace and recover most of the lost production, while progressing with the La Plata project engineering and permitting.

What were ATCMF's metal prices and cash costs in Q1 2025?

Average realized prices were $4.44 per pound of copper and $2,987 per ounce of gold. Cash costs were $3.00 per pound of payable copper, up 17% from Q1 2024.