SRHI Investor Update on 2021 Guidance
FOR IMMEDIATE RELEASE
SRHI Investor Update on 2021 Guidance
TORONTO, June 3, 2021 (TSXV: SRHI) - SRHI Inc. ("SRH I" or the " Company”) today announces an update to the
annual operational and capital guidance provided in its press release of February 4, 2021.
“In our first quarter results press release on May 13, 2021, we highlighted that we were assessing the
developments at Don Gabriel and Papomono Masivo to determine if any adjustments may be required to our prior
guidance for the remainder of 2021 ,” stated Michael Staresinic , CEO of the Company. “A number of factors have
led us to adjust our assumptions while also instituting additional measures to both mitigate some of these effects
while also improving the mine profile for 2022. Despite the impacts of restarting the operations, disruptions to
supply chains and managing the impacts of CO VID, we continue to expect that our operating and capital
expenditures will be within the range previously forecasted, with production being at the low end of the estimate
and capital expenditures to be at the high end, as shown below.”
“The success of MTV is driven by the successful construction and development of Papomono Masivo, and we still
expect this to be completed before the end of the year ,” said Joe Phillips, COO of the Company. “However, to be
prudent, we have budgeted for a possible six to ei ght week delay in its completion date as the competitive labor
market in Chile coupled with COVID restrictions are delaying our underground contractor’s ability to consistently
staff and keep the necessary equipment operating during the construction period. This potential delay would push
some expected production of late 2021 into early 2022.”
“We have been observing the performance of the Don Gabriel resource model since the restart of the mine and
decided to take a more conservative approach to ore grade for the remainder of 2021. While the grade is projected
to be lower than our previous budget, it is expected to be higher than that realized in recent months. We have
decided to expand production by approximately 20% for the remainder of the year and extend production into the
second quarter of 2022 to help offset the projected reduction in grade” , continued Mr. Phillips. “Historically, the
Don Gabriel resource model has performed well and we therefore expect that the coming months will show a
better reconciliation between the mine and model. We also expect to see higher grades in the mine in the next few
months.”
“COVID has partially disrupted the last couple of months of operations including those of the third -party small
miners we rely on to help utilize capacity,” added Mr. Staresinic. “As a result, we have lowered our expectations for
their contribution to our production but believe that as Chile reopens over the next couple of months , that our
assumptions are conservative.”
“Our annual guidance issued on February 4, 2021 reflected the best information available at the time as well as our
best estimates about the impacts of COVID ,” continued Mr. Staresinic. “The health and well -being of every person
who helps in our business is our priority and much of what we are encountering is temporary in nature. We
reiterate our 2021 operating and capital guidance but do expect copper production to be at the low end of this
guidance and capital expenditures to be at the high end of this guidance,” concluded Mr. Staresinic.
Outlook for 2021 is as follows:
Operating information Year ended
Copper (MTV Operations) Dec. 31, 2021
Cu Production (tonnes) 6,000 – 7,000
Cu Production (millions of pounds) 13.2 – 15.4
Cash Cost per Pound Produced (2) $2.60 - $2.90
Capital Expenditures ($ millions) $12 - $15
1. Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and
continuity of interpreted geological formations and metallurgical performance. Please refer to the revised and amended technical
report prepared by Wood PLC, in respect of the Project filed on May 27, 20 21 (the “ Technical Report”) and to the Company’s
SEDAR filings for complete risk factors.
2. Cash Cost is a non -IFRS measure – Cash costs of production include all costs absorbed into inventory less non -cash items such as
depreciation and non-site charges such as trucking charges capitalized to inventory. Cash costs per pound produced are calculated
by dividing the aggregate of the applicable costs by copper pounds produced.
About SRHI Inc.
SRHI, headquartered in Toronto, Ontario, Canada is focused on growing copper production fro m, and further
exploration of, its primary asset, MTV. Located in Salamanca, Chile, MTV is 7 0% owned by the Company and MTV's
main assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploratory lands . For more
information about SRHI, please, please visit www.srhi.ca.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release contain forward -looking information (collectively referred to herein as the
"Forward-Looking Statements") within the meaning of applicable Canadian securities laws. The use of any of the
words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without
limiting the foregoing, this news release contains Forward-Looking Statements pertaining to: the expectations that
the Papomono Masivo construction will be completed by the end of 2021 and the proposed timing of completion ,
different expected grades f rom mining Don Gabriel , the expected size and timing of expanded operations at Don
Gabriel, impacts to the Company as a result of COVID on third -party small miner operations and changes to
operating and financial guidance for the remainder of 2021.
Although SRHI believes that the Forward -Looking Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or assumptions have been used to develop the
Forward-Looking Statements, including: there being no further disruptions affecting the development ,
construction and operation of MTV ; the availability of certain consumables and services and the prices for power
and other key supplies being approximately consistent with assumptions in the Technica l Report; labour and
materials costs being approximately consistent with assumptions in the Technical Report; fixed operating costs
being approximately consistent with assumptions in the Technical Report; permitting and arrangements with
stakeholders being consistent with current expectations as outlined in the Technical Report; certain tax rates,
including the allocation of certain tax attributes, being applicable to the MTV project ; the availability of support
capital for MTV’s planned development activit ies, if needed; assumptions made in mineral resource and mineral
reserve estimates in the Technical Report and the financial analysis based on the mineral reserve estimate,
including (as applicable), but not limited to, geological interpretation, grades, c ommodity price assumptions,
extraction and mining recovery rates, hydrological and hydrogeological assumptions, capital and operating cost
estimates, and general marketing, political, business , labour and economic conditions. Although the Company
believes that the expectations and assumptions on which such Forward-Looking Statements and information are
based are reasonable, undue reliance should not be placed on the Forward-Looking Statements and information as
the Company cannot give any assurance that the y will prove to be correct. Since Forward-Looking Statements and
information address future events and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results, performance or achievements could vary materially from those expressed or implied
by the Forward -Looking Statements should assumptions underlying the Forward -Looking Statements prove
incorrect or should one or more risks or other factors materialize . Readers are cautioned that the foregoing lis t of
risks and uncertainties is not exhaustive. Other risk factors that could affect the Company's operations or financial
results are included in the Company's Annual Information Form dated March 3, 2021 and may be accessed through
the SEDAR website ( www.sedar.com). The forward -looking statements and information contained in this news
release are made as of the date hereof and the Company does not undertake any obligation to update publicly or
revise any forward -looking statements or information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
You should not place undue importance on forward-looking information and should not rely upon t his information
as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake
to update this information at any particular time, except as required by law.
For further information:
Michael Staresinic
Chief Executive Officer
T: (416) 943-7107
Renmark Financial Communications Inc.
Joshua Lavers: [email protected]
T: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com
Source: SRHI Inc.