Peruvian earns $471,769 in Q2
2022-09-12 18:18 ET – News Release
Mr. Jeffrey Reeder reports
PERUVIAN METALS ACHIEVES RECORD THROUGHPUT AT AGUILA NORTE AND ACHIEVES POSITIVE ADJUSTED EBITDA DURING THE FIRST HALF OF 2022
Peruvian Metals Corp. has provided a financial and production update from mineral processing at its 80-per-cent-owned Aguila Norte processing 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 per cent during the first six months of the year, and current liabilities (not including reclaiming costs) decreased 27.6 per cent from the same period in 2021.
During the first eight months of 2022, the plant processed a record 19,697 tonnes of mineral in 28 mineral campaigns compared with 16,920 tonnes processed in 2021. The year-to-date 2022 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 SAC generating $179,877 (U.S.) in revenues. The mineral purchase, processing and freight costs of the concentrates totalled $134,475 (U.S.), 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 19.85 tonnes of a lead-silver concentrate grading 163.67 ounces silver per metric tonne, 39.56 per cent lead and 20.64 per cent zinc, and 40.54 tonnes of a zinc concentrate grading 47.7 per cent zinc and 7.78 oz Ag per mt. The sale generated revenues of $109,435 (U.S.), in which mineral purchase, processing and freight costs totalled $74,133 (U.S.).
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Jeffrey Reeder, chief executive officer of Peruvian, 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 third 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 under way during the current third 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-per-cent-owned Au-Ag-Cu Palta Dorada property and have started the permitting process on additional 100-per-cent-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, PGeo, 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.
Peruvian is a Canadian resource company listed on the TSX Venture Exchange under the symbol PER.
We seek Safe Harbor.
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