Peruvian Metals Achieves Positive Adjusted- EBITDA During the First Half of 2021 and Restarts Exploration at Minas Maria Norte
Peruvian Metals Achieves Positive Adjusted-
EBITDA During the First Half of 2021 and
Restarts Exploration at Minas Maria Norte
Edmonton, Alberta--(Newsfile Corp. - September 16, 2021) -
Peruvian Metals Corp. (TSXV: PER)
(OTC: DUVNF)
("Peruvian Metals" or the "Company") is pleased to provide an update regarding the
mineral processing at its 80-per-cent-owned fully permitted Aguila Norte processing plant ("Aguila
Norte" or the "Plant") located in Northern Peru.
During the second quarter of 2021, the Company is also pleased to report second quarterly positive
adjusted-EBITDA (
see table below
), representing a second quarterly positive EBITDA in 2021. During
the second quarter, the Company invested $85,675 US into the Palta Dorada Au-Ag-Cu project
completing our 50% earn-in with Rio Silver Inc.
Furthermore, the yearly holding costs due June 30
th
of
$53,180 US were paid to keep many of the Company's concessions in good standing. Due to the
complicated social conditions in the Mansa Musa project area the Company and its partner GEXEG
S.A.C decided not to renew the concessions. Third quarter EBITDA performance is expected to reflect
similar performance with continued investments into the Company's wholly owned projects.
During the month of August, Peruvian Metals processed 2,190 metric tonnes ("mt") of material for third
parties. As of August 31st, the Plant has processed 16,560 tonnes in 2021 exceeding total tonnes
processed in 2020 of 13,185 tonnes. The Company expects a record year for 2021 and is on track to
exceed 2019's total processing record of 18,510 tonnes.
Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, commented: "We are pleased that we are on
track for a record processing year in 2021 at Aguila Norte. We are continuing to report positive adjusted-
EBITDA and we have started to deploy our income to advance our other projects in Northern Peru.
Investment in our properties is intended to provide further feed for the Plant which will result in
increased
profit margins on each tonne processed at Aguila Norte."
The Company also intends to re-start exploration at Minas Maria Norte located in the Huachocolpa
Mining District. New recent developments on Silver X Mining's prospective Tangana property have
created a renewed interest in the area. The Minas Maria Norte project is located less than three
kilometres from Tangana. Previous sampling and mapping showed a gold rich polymetallic vein system
and is summarized in the Company's press release dated July 21
st
, 2020. A field crew is scheduled to
be mobilized to the area at the end of the month to conduct further sampling and commence community
introductions.
The Aguila Norte processing plant has an environmental permit ("IGAC") from the Peruvian government
which provides the Plant with the ability to expand operations past the current 100 tonnes per day level.
Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared,
supervised the preparation, or approved the scientific and technical disclosure contained in this news
release.
Adjusted EBITDA - UNAUDITED
Three Months Ended June 30,
2021
2020
2019
Net (loss) income
$
(267,582)
$
(191,515)
$
(142,758)
Add
Interest expense
$
3,782
$
3,838
$
6,706
Share-based compensation
$
-
$
-
$
-
Non-operating loss (gain) on investments
$
220,573
$
2,370
$
21,100
Gain on disposal of exploration subsidiary
$
-
$
-
$
-
Non-operating property impairment charge
$
-
$
-
$
-
Amortization
$
59,574
$
58,118
$
57,885
Accretion expense
$
3,093
$
2,945
$
2,058
Adjusted EBITDA*
$
19,440
$
(124,244)
$
(55,009)
Six Months Ended June 30,
2021
2020
2019
Net (loss) income
$
(330,759)
$
577,598
$
(917,000)
Add
Interest expense
$
7,495
$
7,765
$
13,338
Share-based compensation
$
28,541
$
28,961
$
-
Non-operating loss (gain) on investments
$
303,982
$
-
$
37,630
Gain on disposal of exploration subsidiary
$
-
$
(1,033,689)
$
-
Non-operating property impairment charge
$
-
$
-
$
582,051
Amortization
$
118,374
$
116,236
$
117,106
Accretion expense
$
6,186
$
5,890
$
4,116
Adjusted EBITDA*
$
133,819
$
(297,239)
$
(162,759)
* adjusted to also include non-cash share-based compensation and non-cash loss/(gain) on investments and exploration subsidiary
About Peruvian Metals Corp.
Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business
model is to provide toll milling services for clients and to produce high grade concentrates from mineral
purchases. The Company continues to acquire and develop precious and base metal properties in Peru.
For further information on Peruvian Metals Corp. please visit
www.peruvianmetals.com
.
Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange : Symbol "PER"
For additional information, contact:
Jeffrey Reeder Tel: (647) 302-3290
Website:
www.peruvianmetals.com
Email:
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.
Disclosure Regarding Forward-Looking Statements:
This press release contains certain "Forward-
Looking Statements" within the meaning of applicable securities legislation. We use words such as
"might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar
terminology to identify forward looking statements and forward-looking information. Such statements and
information are based on assumptions, estimates, opinions and analysis made by management in light
of its experience, current conditions and its expectations of future developments as well as other factors
which it believes to be reasonable and relevant. Forward-looking statements and information involve
known and unknown risks, uncertainties and other factors that may cause our actual results to differ
materially from those expressed or implied in the forward-looking statements and information and
accordingly, readers should not place undue reliance on such statements and information. Risks and
uncertainties are more fully described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities regulatory authorities and available at
www.sedar.com
.While the Company believes that the expectations expressed by such forward-looking
statements and forward-looking information and the assumptions, estimates, opinions and analysis
underlying such expectations are reasonable, there can be no assurance that they will prove to be
correct. In evaluating forward-looking statements and information, readers should carefully consider the
various factors which could cause actual results or events to differ materially from those expressed or
implied in the forward-looking statements and forward-looking information.
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