ATY.V · 2025-05-27 12:00:00

Atico Reports Consolidated Financial Results for First Quarter of 2025

Financials

(All amounts expressed in US dollars, unless otherwise stated)

VANCOUVER, British Columbia, May 27, 2025 -- 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

2025

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.

2025

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%

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.

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