Second Quarter Highlights:
- Copper sales increased 16% to 5.37 million pounds compared to 4.62 million pounds in Quarter 2 2021, however as a result of spring freshet we are down from 9.1 million pounds in Quarter 1 2022.
- Quarter 2 2022 revenue declined 9.6% from the same period in 2021: Revenue totaled $32.0 million, a
$3.4 million decrease from$35.4 million compared to Quarter 2 2021, as a result of lower copper prices and lower volumes due to the mill suspensions. - The
Yukon experienced an unusually high spring freshet which resulted in 3 times the amount of water being received on theMinto Mine property and as a result, the milling operation was temporarily suspended on two separate occasions for a total duration of 4 ½ weeks resulting in the above mentioned production decrease quarter over quarter. Operations underground continued as scheduled during the mill's downtime. - Operating results:
Mill Feed for Quarter 2 was 176,169 dry metric tonnes ("dmt"), a 23.9% decrease from 231,334 dmt in Quarter 2 2021.- Production costs increased 22.5% to $31.5 million compared to
$25.7 million in Quarter 2 2021, consistent with operational ramp-up. - Operating cash costs per pound sold1 averaged USD
$3.30 /lb, a 17.9% decrease from USD$4.02 /lb in Quarter 2 2021. - All-In Sustaining Costs ("AISC") per pound sold1 averaged USD
$4.75 /lb, a 5.2% decrease from USD$5.01 /lb in Quarter 2 2021. - At the end of Quarter 2, there was a stockpile of 77,300 tonnes of ore on surface, representing 23 days of production, therefore allowing Minto to remain on track to meet its previously announced production guidance.
Half Year Highlights:
- Copper sales for H1/2022 increased by 45.4% to 14.47 million pounds compared to 9.95 million pounds for the same period in 2021.
- H1/2022 Revenue of
$85.3 million , a growth of$24.4 million or 40.1%, compared to$60.9 million for the same period in 2021. - Operating cash flow increased 70.0% from the same period in 2021: Net cash provided by operating activities of $15.1 million, a
$6.2 million increase from$8.9 million in 2021 - Improved operating results
- Production costs increased 27.0% to $64.7 million compared to
$50.9 million for the same period in 2021, consistent with operational ramp-up. - Operating cash costs per pound sold1 averaged USD
$2.76 /lb, a 26.8% decrease from USD$3.77 /lb in 2021, the result of improved operational performance. - AISC per pound sold1 averaged USD
$3.89 /lb, a 13.6% decrease from USD$4.50 /lb in 2021. - Adjusted EBITDA totaled
$18.7 million , a$10.6 million dollar increase from$8.1M for the same period in 2021. - Total year-to-date Net Income of
$5.1 million , a$4.8 million improvement from the$0.3 million net income for the same period in 2021.
1. Refers to Cash Costs & All-In Sustaining Costs "Non-IFRS Measures" on page 20 of the Company's Quarter 2 2022 MD&A. | |
2. Refers to Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization on page 20 of the Company's Quarter 2 2022 MD&A. |
"Global inflationary pressures and difficult environmental conditions during the
"We have a lot of great people on Minto's team and their dedication and hard work continues to improve the business. I want to thank everyone for their efforts during a challenging second quarter. I am excited about the future at Minto and look forward to continuing to build stronger relationships within the Selkirk First Nation and the various
Minto Mine Milling Operations and Spring Freshet
The
Underground mining operations continued uninterrupted during Quarter 2, 2022 with ore being stockpiled ahead of the milling facility. The Mill is permitted to process an average of 4,200 tonnes/day of ore and underground production is currently averaging approximately 3,000 tonnes/day. The stockpiled ore will be processed at a higher rate during H2/2022 and as a result, Minto anticipates the original production guidance provided for 2022 will not be impacted.
"Since the launch of
Yukon Government Security Update
On
On
Minto has been in ongoing discussions with the Selkirk First Nation and the Yukon Government to finalize a solution that is acceptable to all parties. Various solutions are being discussed while the Company continues carrying out progressive reclamation activities thereby potentially decreasing the required security increase. Further updates will be provided in the coming weeks as the Company works with the Selkirk First Nation and the Yukon Government. But if Minto does not furnish the required
"At the beginning of 2022 Minto committed to investing
Q2 2022 Financial Highlights
Adjusted EBITDA1 Reconciliation to Net Income
Three months ended | Six months ended | |||
Net (loss) income and comprehensive (loss) income | $ (9,458) | $ 3,052 | $ 5,078 | $ 288 |
Finance costs | 1,229 | 1,151 | 3,293 | 2,257 |
Depletion and amortization | 3,647 | 2,433 | 6,813 | 4,819 |
Income tax expense (recovery) | 780 | (26) | 1,038 | (276) |
EBITDA | $ (3,802) | $ 6,610 | $ 16,222 | $ 7,088 |
Share-based compensation expense | - | - | 90 | - |
Unrealized foregin exchange (gain) loss | (115) | 705 | 423 | 78 |
Mark-to-market revenue adjustments | 3,904 | 1,053 | 2,944 | 145 |
Amortization of flow-through shares benefit | (478) | - | (963) | - |
Loss on lease termination | - | - | - | 192 |
RTO Financing expenses | - | 350 | - | 613 |
Adjusted EBITDA | $ (491) | $ 8,718 | $ 18,716 | $ 8,116 |
1. | Refers to Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization "Alternative Performance Measures" on page 19 of the Company's Q2 2022 MD&A. |
2022 Q2 Interim Consolidated Statements of Loss and Comprehensive Loss – Unaudited
Three months ended | Six months ended | |||
Revenue | $ 32,023 | $ 35,414 | $ 85,305 | $ 60,883 |
Production costs | (31,510) | (25,718) | (64,681) | (50,917) |
Royalty expense | (991) | (853) | (2,181) | (1,615) |
Depletion and amortization | (3,647) | (2,433) | (6,813) | (4,819) |
(Loss) income from mine operations | (4,125) | 6,410 | 11,630 | 3,532 |
Expenses | ||||
Related party management fees | - | (125) | - | (250) |
Stock-based compensation expense | - | - | (90) | - |
Other expenses | - | (350) | - | (613) |
(Loss) income from operations | (4,125) | 5,935 | 11,540 | 2,669 |
Other income (loss), net | (3,324) | (1,758) | (2,131) | (400) |
Finance items | ||||
Finance costs | (1,229) | (1,151) | (3,293) | (2,257) |
(Loss) income before income taxes | (8,678) | 3,026 | 6,116 | 12 |
Income tax (expense) recovery | (780) | 26 | (1,038) | 276 |
Net (loss) income and comprehensive (loss) income | $ (9,458) | $ 3,052 | $ 5,078 | $ 288 |
Per share amounts | ||||
Basic and diluted | $ (0.13) | $ 0.00 | $ 0.07 | $ 0.00 |
Weighted Average Number of Common Shares Outstanding | 72,917,202 | 722,746,364 | 72,917,202 | 722,746,364 |
2022 Q2 Interim Consolidated Statements of Financial Position – Unaudited
As at | ||||
Assets | ||||
Current assets | ||||
Cash | $ | 1,183 | $ | 9,979 |
Accounts Receivable | 14,525 | 20,762 | ||
Foreign Exchange Forward Contracts Due from Broker | 18,942 | - | ||
Inventories | 10,297 | 6,212 | ||
Prepaid expenses | 2,977 | 2,855 | ||
47,924 | 39,808 | |||
Non-current assets | ||||
Mineral properties, plant and equipment | 59,893 | 53,702 | ||
Right-of-use assets | 11,332 | 9,245 | ||
Long-term deposits | 13,585 | 13,399 | ||
Total assets | $ | 132,734 | $ | 116,154 |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ | 34,795 | $ | 36,370 |
Foreign Exchange Forward Contracts Due to Broker | 18,942 | - | ||
Current portion of Sumitomo loan | 1,020 | 10,221 | ||
Current portion of Note payable to Pembridge | 6,443 | - | ||
Current portion of Due to Pembridge | 3,299 | 4,000 | ||
Current portion of lease liability | 7,013 | 5,436 | ||
71,512 | 56,027 | |||
Non-current liabilities | ||||
Lease liabilities | 3,586 | 3,895 | ||
Due to Pembridge | - | 1,174 | ||
Note payable to Pembridge | - | 6,368 | ||
Due to Sumitomo | 4,829 | - | ||
Long-term debt | 12,096 | 11,702 | ||
Deferred revenue | 13,634 | 14,463 | ||
Deferred income tax liabilities | 4,144 | 3,109 | ||
Asset retirement obligation | 32,329 | 35,288 | ||
Total liabilities | 142,130 | 132,026 | ||
Shareholders' equity (deficiency) | ||||
Share capital | 223,238 | 221,840 | ||
Deficit | (232,634) | (237,712) | ||
Total shareholders' deficiency | (9,396) | (15,872) | ||
Total liabilities and shareholders' deficiency | $ | 132,734 | $ | 116,154 |
2022 Q2 Interim Consolidated Statements of Cash Flows – Unaudited
Three months ended | Six months ended | |||
Operating activities | ||||
Net (loss) income for the period | $ (9,458) | $ 3,052 | $ 5,078 | $ 288 |
Adjustments for the following items: | ||||
Depletion, depreciation and accretion | 3,647 | 2,433 | 6,813 | 4,819 |
Finance costs | 1,229 | 1,054 | 3,293 | 1,455 |
Other income (loss), net | 3,324 | (293) | 2,131 | (291) |
Stock-based compensation expense | - | - | 90 | - |
Amortization of deferred revenue | (603) | (888) | (1,389) | (577) |
Income tax expense (recovery) | 780 | (26) | 1,038 | (276) |
Change in non-cash working capital | 1,467 | (3,400) | (1,284) | 3,467 |
386 | 1,932 | 15,770 | 8,885 | |
Interest paid | (283) | - | (667) | - |
Net cash provided by operating activities | 103 | 1,932 | 15,103 | 8,885 |
Investing activities | ||||
Additions to mineral properties, plant and equipment | (6,769) | (1,058) | (12,666) | (2,205) |
Right-of-use asset additions | - | - | (768) | - |
Net cash used in investing activities | (6,769) | (1,058) | (13,434) | (2,205) |
Financing activities | ||||
Advances from Sumitomo | - | 2,515 | - | 6,299 |
Repayments on Sumitomo loan | (887) | (937) | (4,412) | (1,522) |
Payment of lease liabilities | (2,136) | (1,796) | (4,053) | (3,278) |
Repayment of Due to Pembridge | (1,000) | - | (2,000) | - |
Return of capital | - | - | - | (6,306) |
Long-term deposits | - | (905) | - | (1,851) |
Net cash used in financing activities | (4,023) | (1,123) | (10,465) | (6,658) |
Change in cash | (10,689) | (249) | (8,796) | 22 |
Cash, beginning of period | 11,872 | 778 | 9,979 | 507 |
Cash, end of period | $ 1,183 | $ 529 | $ 1,183 | $ 529 |
Operational Outlook
Minto is pleased to reconfirm the financial guidance for 2022 as we continue to ramp up our ore production throughout the year. We are committed to a cost control strategy while improving our mine and milling operations.
Production Volumes | Six Months Ended | |||||
Payable Copper (million pounds) | 27.0 - 31.0 | 14.5 | ||||
Gold (ounces) (1) | 11,000 - 12,100 | 5,898 | ||||
Silver (ounces) (1) | 140,000 - 150,000 | 69,577 | ||||
Production Costs | Six Months Ended | |||||
Cash Costs ($USD/lb) (2) | ||||||
AISC ($USD/lb) (2) | ||||||
Exploration ($ millions) | ||||||
Sustaining Capital (2) | $27.0- |
1. | 100% amounts. Under the agreement with Wheaton Precious Metals, the Company receives 65% of the value of the gold shipments up to 11,000 ounces. Silver receipts are the lesser of the prevailing market price and US |
2. | Refers to Cash Costs, |
Minto operates the producing Minto mine located in the Minto Copper Belt,
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as of the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "anticipated" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might " or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: (a) ore will be processed at a higher rate during H2/2022, and no anticipated metal production impact on the original guidance provided for 2022 as a result of the temporary Mill shutdown; (b) the Company's ability to obtain the Yukon Government required security by the
Forward-looking statements are necessarily based upon a number of material factors and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such material factors and assumptions include, but are not limited to: that required financing and the increased reclamation costs security will be obtained as and when required or on acceptable terms, general business, economic, competitive, political and social uncertainties; the delay or failure to receive board, shareholder, court, regulatory or other third party approvals; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws; risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions; the hazards and risks normally encountered in the exploration, development and production of copper, gold and silver, the Company's operations are subject to environmental hazards and compliance with applicable environmental laws and regulations, the Company's properties may be subject to claims by various community stakeholders; and other risk factors as detailed from time to time including those those risk factors set out in the Company's annual information form dated
Neither the
Contact Information:
For further information:
Director, Investor Relations
info@mintometals.com
604.759.4666
SOURCE
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