Atico Reports Consolidated Financial Results for the First Quarter of 2018
(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
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Atico Reports Consolidated Financial Results for the First Quarter of 2018
(All amounts expressed in US dollars, unless otherwise stated)
Vancouver, May 24, 2018 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY
| OTC: ATCMF) today announced its financial results for the three months ended March 31, 2018,
posting a net income of $0.4 million.
Fernando E. Ganoza, CEO and Director, commented, "The strong production and all-in sustaining
cash cost of $1.85 achieved this quarter is not reflected in the financial results as a large concentrate
shipment was delayed to the second quarter, along with the revenue associated with those tonnes.
The shipping schedule is expected to stabilize during the second quarter, where we will then benefit
from the additional shipped concentrate and recognized revenue. We anticipate strong financial
results in the next quarter." Mr. Ganoza continued, "Our emphasis will continue to be on further
strengthening our balance sheet, improving production costs and most importantly regional and
underground exploration programs as our top priority."
First Quarter Financial Highlights
• Net income for the three months ended March 31, 2018 (“Q1-2018”) amounted to $0.4 million,
compared with $1.3 million for the same period last year (“Q1 -2017”). Net income for the
period was negatively affected by a delayed concentrate shipment, partially offset by higher
average realized copper and gold prices as compared to Q1-2017.
• Sales for the period decreased 57% to $7.3 million when compared with Q1 -2017. The
decrease was due to a delayed concentrate shipment, partially offset by higher average realized
copper and gold prices as compared to Q1 -2017. Copper (“Cu”) and gold (“Au”) accounted
for 92.9% and 7.1% of the total amount provisionally invoiced during Q1 -2018. The average
realized price per metal on provisional invoicing was $3.16 (Q1 -2017 - $2.63) per pound of
copper and $1,332.69 (Q1-2017 - $1,234.18) per ounce of gold.
• Working capital was $5.2 million (December 31, 2017 - $4.6 million), while the Company had
long-term loans payable with $1.9 million (December 31, 2017 - $2.7 million) outstanding at
the reporting date.
(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
Page 2 of 6
• Cash costs(1) were $127.25 per tonne of processed ore and $1.44 per pound of payable copper
produced(2), increases of 11% and 2% over the same period last year, respectively.
• Loss from operations was $0.2 million (Q1 -2017 - income of $2.8 million) while cash flow
from operations, before changes in working capital, was $1.9 million (Q1-2017 - $6.0 million).
Cash used for capital expenditures amounted to $2.2 million (Q1-2017 - $2.1 million).
• At the end of the quarter, 11,303 (December 31, 2017 - 7,366) wet metric tonnes (“WMT”) of
non-invoiced concentrate remained at the Company’s warehouses. As a planned concentrate
shipment was delayed to the second quarter, concentrate inventory increased significantly at
quarter end when compared to Q1-2017.
• All-in sustaining cash cost per payable pound of copper produced(1)(2) for Q1-2017 was $1.85
(Q1-2017 - $1.91).
First Quarter Summary of Financial Results
Q1
2018
Q1
2017
%
Change
Revenue
$ 7,349,124 $ 17,213,518 -57%
Cost of sales
(5,891,830) (12,682,270) -54%
Income from mining operations
1,457,294 4,531,248 -68%
As a % of revenue
20% 26% -25%
Selling, general and administrative expenses
1,608,443 1,592,501 1%
Income (loss) from operations
(208,910) 2,800,548 -107%
As a % of revenue
-3% 16% -117%
Income before income taxes
302,880 2,608,356 -88%
Net income
366,091 1,289,016 -72%
As a % of revenue
5% 7% -33%
Operating cash flow before changes in non-cash operating
working capital items(1)
$ 1,878,314 $ 5,956,901 -68%
First Quarter Operations Review
(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
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During the qu arter, the Company produced 5.5 million pounds (“lbs”) of copper, 2,825 ounces
(“oz”) of gold, and 10,606 oz of silver. When compared to Q1-2017, production increased 9% and
11% for copper and gold, respectively. The increase in copper produced is entirely explained by
6% more processed material and partially offset by a 2% decrease in head grade. In the case of
gold, the increase in processed material along with a 6% increase in head grade resulted in an 11%
increase in gold production over Q1-2017.
Cash costs (1) for the period were $1 27.25 per tonne of processed ore, and $ 1.44 per pound of
payable copper produced, increases of 11% and 2% over the same period last year, respectively.
The increase in the cash cost per pound of payable copper net of by products is mainly explained
by a higher cost per processed tonne, partially offset by a higher content and value of gold. A 22%
increase in direct mine cost explains most of the higher cost per processed tonne. All-in sustaining
cash cost per payable pound of copper produced(1)(2) was $1.85.
First Quarter Operational Details
Q1
2018
Q1
2017
%
Change
Production (Contained in Concentrate)(3)
Copper (000s lbs) 5,476 5,046 9%
Gold (oz) 2,825 2,550 11%
Silver (oz) 10,606 9,852 8%
Mine
Tonnes of material mined 67,022 63,468 6%
Mill
Tonnes processed 66,499 62,885 11%
Tonnes processed per day 812 810 0%
Copper grade (%) 3.80 3.89 -2%
Gold grade (g/t) 2.03 1.92 6%
Silver grade (g/t) 8.71 9.12 -4%
Recoveries
Copper (%) 94.0 93.5 1%
Gold (%) 62.8 65.8 -5%
Silver (%) 48.6 53.9 -10%
(1) Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.
(2) Net of by-product credits
(3) Subject to adjustments on final settlement
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Concentrates
Copper Concentrates (DMT) 11,474 10,566 9%
Copper (%) 21.7 21.7 0%
Gold (g/t) 7.7 7.5 3%
Silver (g/t) 28.8 29.0 1%
Payable copper produced (000s lbs) 5,202 4,790 9%
Cash cost per pound of payable copper ($/lbs) (1)(2) 1.44 1.41 2%
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
El Roble Mine
The El Roble mine is a high grade, underground copper and gold mine with nominal processing
plant capacity of 800 tonnes per day, located in the Department of Choco in Colombia. Its
commercial product is a copper-gold concentrate.
Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation from
a historical nominal capacity of 400 tonnes per day.
El Roble has a measured and indicated resource of 1.87 million tonnes grading 3.46% copper and
2.27 g/t gold, at a cut-off grade of 0.93% copper equivalent. Mineralization is open at depth and
along strike and the Company plans to further test the limits of the resource.
On the larger land package, the Company has identified a prospective stratigraphic cont act
between volcanic rocks and black and grey pelagic sediments and cherts that has been traced by
Atico geologists for ten kilometers. This contact has been determined to be an important control
on VMS mineralization on which Atico has identified numerous target areas prospective for VMS
type mineralization occurrence, which is the focus of the current surface drill program at El Roble.
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.
(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
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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 operates the El Roble mine and is pursuing
additional acquisition 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, without limitation the use of net
proceeds, 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.
Important factors that could cause actual results to differ materially from the Company’s expectations include
uncertainties relating to interpretation of drill results and the geology, continuity and g rade of mineral deposits;
uncertainty of estimates of capital and operating costs; 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 prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory
authorities on the SEDAR website at www.sedar.com
(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
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The Company has not based its production decisions and ongoing mine production on mineral reserve estimates,
preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty
and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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 three months ended March 31, 2018 as
filed on SEDAR and as available on the Company's website for further details.