Peruvian Metals Achieves Record Throughput at Aguila Norte and Achieves Positive Adjusted EBITDA During the First Half of 2022
Peruvian Metals Achieves Record Throughput
at Aguila Norte and Achieves Positive
Adjusted EBITDA During the First Half of 2022
Edmonton, Alberta--(Newsfile Corp. - September 12, 2022) - Peruvian Metals Corp. (TSXV: PER)
(OTCQB: DUVNF)
("Peruvian Metals" or the "Company") is pleased to provide a financial and
production update from mineral processing at its 80% owned Aguila Norte Processing Plant ("Aguila
Norte" or the "Plant") located in Northern Peru.
During the first half of 2022, the Company reported record revenue and a positive adjusted EBITDA
(earnings before interest, taxes, depreciation, and amortization) of $281,737. Mineral processing
revenue increased 32.4 % during the first six months of the year and current liabilities (not including
reclaiming costs) decreased 27.6% from the same period in 2021.
During the first eight months of 2022, the Plant processed a record 19,697 tonnes of mineral in twenty-
eight mineral campaigns compared with 16,920 tonnes processed in 2021. The 2022 year-to-date
production represents an increase of 16 per cent, compared with the same period for 2021.
The Company is also pleased to announce that during the month of July it completed the sale of the
concentrates announced in the news release dated June 13, 2022. These concentrates amounting to
22.66 tonnes of Lead-Silver-concentrate, 50.57 tonnes of Zinc concentrate, and 52.98 tonnes of Copper
concentrate were sold to Trading Partners Peru S.A.C generating $179,877 US in revenues. The
mineral purchase, processing, and freight costs of the concentrates totaled $134,475 US, resulting in a
favourable profit margin.
During the month of July, the Company purchased 295 tonnes of Lead-Zinc-Silver mineral, then
generated and sold to Trading Partners Peru S.A.C 19.85 tonnes of a Lead-Silver concentrate grading
163.67 oz Ag/MT, 39.56 % lead and 20.64% zinc and 40.54 tonnes of a Zinc concentrate grading 47.7%
zinc and 7.78 oz Ag/MT. The sale generated revenues of $109,435 US in which mineral purchase,
processing, and freight costs totaled $74,133 US.
Table 1
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Table 2
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Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, commented: "We are excited with the overall
progress as we remain well on track to achieve a record mineral processing year in 2022 at our Aguila
Norte production plant.
We generated excellent operating profits in the first half of the year, despite the
fact that the plant primarily processed 3
rd
party mineral for a fee, an activity which represents the lowest
level of potential profits.
This is particularly encouraging given our move toward processing purchased
material (an activity already underway during the current 3
rd
quarter) as well as eventually processing ore
from our own joint or wholly owned mineral claims. Profit margins per tonne of material processed from
purchased material and especially from our own claims are expected to be much higher compared to
treating third party material. As such, the Company is focused on increasing revenues and operating
profits by purchasing mineral for processing and to process mineral from our own properties. With
respect to company-owned claims, we are initially focused on processing mineral from the 50% owned
Au-Ag-Cu Palta Dorada property and have started the permitting process on additional 100% controlled
concessions.
With our improved operating performance, the Company is also continuing to improve its
balance sheet without needing to cut any project generative work.
In summary, we believe we remain well
positioned as a junior mining company with a very unique approach and foundation by having our own
production facility generating revenue and profits as well as owning valuable claims that we can develop
to further leverage our key assets to drive increasing profitability and shareholder value."
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-tonne-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.
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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