Atico Reports Consolidated Financial Results for Second Quarter of 2025
(All amounts expressed in US dollars, unless otherwise stated)
VANCOUVER, British Columbia, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the "Company" or "Atico") ((TSX.V: ATY, OTC:ATCMF) today announced its financial results for the three months ended June 30, 2025, posting income from mining operations of $4.5 million and a net income of $2.7 million for the quarter. Production for the quarter at Atico's El Roble mine totaled 2.2 million pounds ("lbs") of copper and 2,385 ounces ("oz") of gold in concentrate at a cash cost (1) of $1.73 per payable pound of copper (2).
Fernando E. Ganoza, CEO and Director, commented, "During the period, production results, increased concentrate sales and strong metal prices led to improved financial performance. We anticipate gradual operational improvements will continue through the remainder of the year which should drive financial results." Mr. Ganoza continued, "For the second half of the year, we will continue the planned development and preparation pace into the upper higher-grade zones at El Roble. In parallel, we are conducting a 6,000 meter near-mine drill program at El Roble to replenish resources and extend the mine's life."
Second Quarter Financial Highlights
Sales for the quarter increased 94% to $21.1 million when compared with $10.9 million in Q2-2024. Copper ("Cu") and gold ("Au") accounted for 55% and 45% of the 7,842 (Q2-2024, 5,603) dry metric tonnes ("DMT") sold during Q2-2025.
The average realized price per metal was $4.47 (Q2-2024 - $4.34) per pound of copper and $3,406 (Q2-2024 - $2,303) per ounce of gold.
Net income for the quarter amounted to $2.7 million, compared with $0.4 million net loss for the comparative quarter of last year, while cash flows from operations, before changes in working capital, was $4.9 million (Q2-2024, $2.5 million). Cash used for investing activities amounted to $5.4 million (Q2-2024, $5.1 million).
Ending working capital deficit was $13.7 million (December 31, 2024, $11.3 million), while the Company had $6.0 million (December 31, 2024, $7.1 million) in long-term loans payable and $4.6 million (December 31, 2024, $8.5 million) payable to the National Mining Agency that is due beyond one year.
Cash costs (1) were $164.26 per tonne of processed ore and $1.73 per pound of payable copper produced (2), which was an increase of 25% and 17% over Q2-2024, respectively. The increase in cash cost per tonne was primarily driven by lower ore production in Q2-2025, which led to underutilization of capacity. The transition to the new upper zones in the El Roble mine require more costs in terms of preparations and ground support. Cash costs per pound of payable copper produced (net of by-product credits) also increased due to lower copper output due to the lower grade. The Company expects a gradual improvement in tonnage and grade towards the second half of the year as planned development and preparation pace recovers and more ore is mined from these new zones which contain higher grades.
Cash margin was $2.74 per pound of payable copper produced(1), which was a decrease of 4% over Q2-2024, due to an increase in cash cost per pound (net of by-product credits), partially offset by an increase in realized copper price.
All-in sustaining cash cost per payable pound of copper produced(1) was $3.91, up from $2.32 in Q2-2024 (refer to non-GAAP Financial Measures). This increase was primarily due to lower copper output due to lower grade and higher sustaining capital expenditures on mine development, mine infrastructure, and ramp construction, to increase ore extraction from the new upper zones which contain higher grade.
On May 23, 2025, the Company and the National Mining Agency of Colombia executed a new 30-year mining agreement and related title for the El Roble mine. Additionally, the metal concentrate inventory previously pledged as security in favor of the National Mining Agency of Colombia was released from the pledge and sold by the Company in June 2025.
On June 30, 2025, the Company amended the credit agreement, pursuant to the term sheet, which the Principal Amount will be repaid in two instalments of $2,700,000 on July 25, 2025 (PAID) and $6,000,000 on December 30, 2026.
Second Quarter Summary of Financial Results
Q22025
Q22024
%Change
Sales
$21,108,812
$10,860,467
94%
Cost of sales
(16,620,250)
(8,308,719)
100%
Income from mining operations
4,488,562
2,551,748
76%
As a % of revenue
21%
23%
General and administrative expenses
(2,042,495)
(1,585,615)
29%
Income from operations
2,318,744
891,086
160%
As a % of revenue
11%
8%
Income (loss) before income taxes
2,039,888
