WHITEHORSE, YT, May 26, 2022
/CNW/ - Minto Metals Corp. (TSXV: MNTO) ("Minto" or the
"Company") is pleased to announce the Company's financial and
operating results for the three months ended March 31, 2022 ("QTR 1 2022") for the Minto Mine
located within the Selkirk First Nation's Territory in the central
Yukon, Canada. Copper Production
totaled 9.1 million pounds of copper, a 70.7% increase over Quarter
1, 2021, at a consolidated cash cost of USD $2.44 per payable pound produced.
First Quarter Highlights:
- Copper sales increased 70.7% to 9.1 million pounds compared to
5.3 million pounds in Quarter 1 2021.
- Revenue grew 109.0% to $53.3 million, a $27.8 million increase from $25.5 million in Quarter 1, 2021.
- Net Operating Cash flow generated was $15.0 million, an increase of $8.0 from $7.0M in
Quarter 1, 2021
- Improved operating results
-
- Mill Feed for Quarter 1 was 237,239 dry metric tonnes
(dmt), an 11.7% increase from 212,329 dry metric tonnes (dmt) in
Quarter 1 2021.
- Operating cash costs per pound sold2
averaged USD $2.44/lb, a 31.3%
decrease from USD $3.55/lb in Quarter
1 2021.
- All-In Sustaining Costs ("AISC")2 per pound
sold1 averaged USD $3.44/lb, a 15.9% decrease from USD $4.09/lb in Quarter 1 2021.
- Qualified exploration investment totaled $1.8 million in Quarter 1 or 29% of our 2021
Flow-Through Share commitment.
- Adjusted EBITDA1 totaled $19.2 million, a $20.1
million increase from a loss of $0.9
million in Quarter 1 2021.
- Fully diluted Earnings per Share total $0.20 cents, a $0.24 increase from a loss of ($0.04) in Quarter 1 2021.
- Minto reiterates the previous 2022 forecasted guidance.
- Refers to Adjusted Earnings before Interest, Taxes,
Depreciation, and Amortization "Alternative Performance Measures"
on page 18 of the Company's Q1 2022 MD&A.
- Refers to Cash Costs and All-In Sustaining Costs
"Alternative Performance Measures" on page 19 of the Company's Q1
2022 MD&A.
"Our excellent operating performance and cost containment in a
higher copper price environment has surpassed our expectations. Our
team has strong momentum and has delivered a positive performance
for the second consecutive quarter", said Chris Stewart, President & Chief Executive
Officer of Minto Metals.
"Our Quarter 1, Adjusted EBITDA improved to $19.2 million dollars compared to a loss of
$0.9 million dollars a year ago.
These great results highlight the extraordinary performance and are
a testament to the drive and passion to win shown by everyone who
works here at Minto." Stewart added.
Q1 2022 Financial Highlights
Adjusted EBITDA1 Reconciliation to Net
Income
|
|
|
|
|
|
|
|
Q1
2022
|
Q1
2021
|
|
Net income (loss) and
comprehensive
income (loss)
|
|
|
$
14,536
|
$
(2,765)
|
|
Finance
costs
|
|
|
2,064
|
1,106
|
|
Depletion and
amortization
|
|
|
3,166
|
2,386
|
|
Income tax expense
(recovery)
|
|
|
258
|
(250)
|
|
EBITDA
|
|
|
$
20,024
|
$ 477
|
|
Share-based
compensation expense
|
|
|
90
|
-
|
|
Unrealized foregin
exchange loss (gain)
|
|
|
538
|
(627)
|
|
Mark-to-market revenue
adjustments
|
|
|
(960)
|
(908)
|
|
Amortization of flow
thru shares benefit
|
|
|
(485)
|
-
|
|
Loss on lease
termination
|
|
|
-
|
192
|
|
Adjusted
EBITDA
|
|
|
$
19,207
|
$ (866)
|
- Refers to Adjusted Earnings before Interest, Taxes,
Depreciation, and Amortization "Alternative Performance Measures"
on page 18 of the Company's Q1 2022 MD&A.
2022 Q1 Interim Consolidated Statements of Loss and
Comprehensive Loss – Unaudited
|
|
Three months
ended
|
|
|
March 31,
2022
|
March 31,
2021
|
|
Revenue
|
|
$
53,282
|
$
25,469
|
|
Production
costs
|
|
(33,133)
|
(25,200)
|
|
Royalty
expense
|
|
(1,190)
|
(762)
|
|
Depletion and
amortization
|
|
(3,166)
|
(2,386)
|
|
Income (loss) from
mine operations
|
|
15,793
|
(2,879)
|
|
Expenses
|
|
|
|
|
Related party
management fees
|
|
-
|
(125)
|
|
Stock-based
compensation expense
|
|
(90)
|
-
|
|
Other
expenses
|
|
(38)
|
(263)
|
|
Income (loss) from
operations
|
|
15,665
|
(3,267)
|
|
Other
income
|
|
1,193
|
1,358
|
|
Finance
costs
|
|
(2,064)
|
(1,106)
|
|
Income (loss) before
income taxes
|
|
14,794
|
(3,015)
|
|
Income tax (expense)
recovery
|
|
(258)
|
250
|
|
Net Income (loss)
and comprehensive income (loss)
|
|
$
14,536
|
$
(2,765)
|
|
|
|
|
|
Per share
amounts
|
|
|
|
|
Basic and
diluted
|
|
$
0.20
|
$
(0.04)
|
|
Weighted Average Number
of Common Shares Outstanding
|
|
72,709,253
|
60,228,864
|
2022 Q1 Interim Consolidated Statements of Financial Position
– Unaudited
|
|
|
|
|
|
As at
|
|
March 31,
2022
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
11,872
|
$
|
9,979
|
|
Accounts
Receivable
|
|
25,617
|
|
20,762
|
|
Inventories
|
|
8,858
|
|
6,212
|
|
Prepaid
expenses
|
|
3,857
|
|
2,855
|
|
|
50,204
|
|
39,808
|
|
Non-current
assets
|
|
|
|
|
|
Mineral properties,
plant and equipment
|
|
56,281
|
|
53,702
|
|
Right-of-use
assets
|
|
12,557
|
|
9,245
|
|
Long-term
deposits
|
|
13,250
|
|
13,399
|
|
Total assets
|
$
|
132,292
|
$
|
116,154
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
40,688
|
$
|
36,370
|
|
Current portion of
Sumitomo loan
|
|
6,595
|
|
10,221
|
|
Current portion of Note
payable to Pembridge
|
|
6,248
|
|
-
|
|
Current portion of Due
to Pembridge
|
|
4,246
|
|
4,000
|
|
Current portion of
lease liability
|
|
6,169
|
|
5,436
|
|
|
63,946
|
|
56,027
|
|
Non-current
liabilities
|
|
|
|
|
|
Lease
liabilities
|
|
5,715
|
|
3,895
|
|
Due to
Pembridge
|
|
-
|
|
1,174
|
|
Note payable to
Pembridge
|
|
-
|
|
6,368
|
|
Long-term
debt
|
|
11,631
|
|
11,702
|
|
Deferred
revenue
|
|
13,947
|
|
14,463
|
|
Deferred income tax
liabilities
|
|
3,367
|
|
3,109
|
|
Asset retirement
obligation
|
|
33,621
|
|
35,288
|
|
Total
liabilities
|
|
132,227
|
|
132,026
|
|
Shareholders' equity
(deficiency)
|
|
|
|
|
|
Share
capital
|
|
223,241
|
|
221,840
|
|
Deficit
|
|
(223,176)
|
|
(237,712)
|
|
Total shareholders'
equity (deficiency)
|
|
65
|
$
|
(15,872)
|
|
Total liabilities
and shareholders' equity (deficiency)
|
$
|
132,292
|
$
|
116,154
|
2022 Q1 Interim Consolidated Statements of Cash Flows –
Unaudited
|
Three months
ended
|
|
March 31,
2022
|
March 31,
2021
|
|
Operating
activities
|
|
|
|
Net income (loss) for
the period
|
$
14,536
|
$
(2,765)
|
|
Adjustments for the
following items:
|
|
|
|
Depletion, depreciation
and accretion
|
3,166
|
2,386
|
|
Finance
costs
|
2,064
|
401
|
|
Other income (loss),
net
|
(1,193)
|
2
|
|
Stock-based
compensation expense
|
90
|
-
|
|
Amortization of
deferred revenue
|
(786)
|
311
|
|
Income tax expense
(recovery)
|
258
|
(250)
|
|
Change in non-cash
working capital
|
(2,751)
|
7,351
|
|
15,384
|
7,436
|
|
Interest
paid
|
(384)
|
(483)
|
|
Net cash provided by
operating activities
|
15,000
|
6,953
|
|
|
|
|
Investing
activities
|
|
|
|
Additions to mineral
properties, plant and equipment
|
(5,897)
|
(1,147)
|
|
Right-of-use asset
additions
|
(768)
|
-
|
|
Net cash used in
investing activities
|
(6,665)
|
(1,147)
|
|
|
|
|
Financing
activities
|
|
|
|
Advances from
Sumitomo
|
-
|
3,784
|
|
Repayments on Sumitomo
loan
|
(3,525)
|
(585)
|
|
Payment of lease
liabilities
|
(1,917)
|
(1,482)
|
|
Repayment of Due to
Pembridge
|
(1,000)
|
-
|
|
Long-term
deposits
|
-
|
(946)
|
|
Return of
capital
|
-
|
(6,306)
|
|
Net cash provided by
(used in) financing activities
|
(6,442)
|
(5,535)
|
|
Change in
cash
|
1,893
|
271
|
|
Cash, beginning of
period
|
9,979
|
507
|
|
Cash, end of
period
|
$
11,872
|
$
778
|
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
|
|
|
Dec 31,
2022
|
|
Payable Copper
(million pounds)
|
|
|
27.0 - 31.0
|
|
Gold (ounces)
(1)
|
|
|
11,000 -
12,100
|
|
Silver (ounces)
(1)
|
|
|
140,000 -
150,000
|
|
|
|
|
|
|
Production
Costs
|
|
|
Dec 31,
2022
|
|
Cash Costs ($USD/lb)
(2)
|
|
|
$2.70 -$2.90
|
|
AISC ($USD/lb)
(2)
|
|
|
$3.85 -$4.00
|
|
Exploration ($
millions)
|
|
|
$9.2
|
|
Sustaining Capital
(2)
|
|
|
$27.0-
$31.0
|
- 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 $4.35/oz.
- Refers to Cash Costs, All-In Sustaining Costs and Sustaining
Capital "Alternative Performance Measures" on pages 19 and 20 of
the Company's Q1 2022 MD&A.
The Yukon received between 150%
and 400% of the normal annual snowfall during this past winter
which generated a significant volume of water across the territory
as it melted. With the warmer temperatures over the past couple of
weeks, the Minto mine site saw daily water volume inflow
exceed the mine's discharge capacities which caused the storage
pond water levels to rise.
Underground mining operations continued uninterrupted during
this temporary mill shutdown with ore being stockpiled ahead of the
milling facility restart. The Mill is permitted to process an
average of 4,200 tonnes/day of ore and underground production is
currently averaging around 3,000 tonnes/day. With the milling
facility restart, the stockpiled ore will be processed at a higher
rate which means that there will be no metal production impact on
the original guidance in 2022.
The Company temporarily suspended its milling operations until
Spring Freshet ended, ensuring all water arriving on the mine site
was properly managed within our water management system and that
the environment was protected. The Company took full
advantage of this temporary mill shutdown to complete future
planned maintenance work in the mill thereby avoiding another
shutdown in the coming months.
Once freshet ended, the company restarted its milling
operations. The Mill is expected to run steadily for the balance of
2022.
"At the beginning of 2022 Minto committed to spending
$8 million dollars to improve the
mine water management system at the Minto Mine. Our
investment included an upgrade to our water treatment plant, the
installation of a new microfiltration plant, and the purchase of
evaporation units, all to support improved environmental
stewardship. As outlined in an article from the Yukon government, the snowpack levels are
unusually high and above the normal level across the Yukon, and in areas in the vicinity of the
mine. Minto Metals takes the protection of the environment
seriously and the temporary mill shutdown highlights our
commitment", stated Chris Stewart,
President & CEO of Minto Metals.
About Minto Metals Corp.
Minto operates the producing Minto mine located in the Minto
Copper Belt, Yukon. The Minto mine
has been in operation since 2007 with underground mining commencing
in 2014. Since 2007, approximately 500Mlbs of copper have been
produced from the Minto mine. The current mine operations are based
on underground mining, a process plant to produce high-grade
copper, gold, and silver concentrate, and all supporting
infrastructure associated with a remote location in Yukon. The Minto property is located west of
the Yukon River, about 20 km WNW of Minto
Landing, the latter on the east side of the river, and
approximately 250 road-km north of the City of Whitehorse, the capital city of
Yukon.
Forward-Looking Information
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements"), within the meaning of applicable Canadian securities
laws and "forward-looking information" within the meaning of
applicable U.S. securities laws, which we refer to collectively as
"forward-looking statements". Forward-looking statements are
statements and information regarding possible events, conditions,
or results of operations that are based upon assumptions about
future conditions and courses of action. All statements and
information other than statements of historical fact may be
forward-looking statements. In some cases, forward-looking
statements can be identified by the use of words such as "seek",
"expect", "anticipate", "budget", "plan", "estimate", "continue",
"forecast", "intend", "believe", "predict", "potential", "target",
"may", "could", "would", "might", "will" and similar words or
phrases (including negative variations) suggesting future outcomes
or statements regarding an outlook. Forward-looking statements or
assumptions in this press release include, but are not limited to:
statements with respect to when milling operations will restart,
ore will be processed at a higher rate, and no metal production is
expected to be lost in 2022 as a result of the temporary Mill
shutdown.
Such forward-looking statements are based on a number of
material factors and assumptions, including, but not limited to:
that required financing and permits will be obtained; general
economic conditions; no labour disputes or disruptions, no
flooding, ground instability, geotechnical failure, fire, failure
of the plant; that equipment and processes continue to
operate as anticipated and other risks of the mining industry will
not be encountered; that contracted parties provide goods or
services in a timely manner; that there is no material adverse
change in the price of copper, gold or other metals; competitive
conditions in the mining industry; title to mineral properties;
costs; taxes; the retention of the Company's key personnel; no
changes in-laws, and no material worsening of the direct and
indirect impact of COVID-19 including rules and regulations
applicable to Minto.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause actual results,
performance, or achievements to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein. Some of the risks and other factors which could cause
actual performance and results to differ materially from those
expressed in the forward-looking statements contained in this news
release, include, but are not limited to: changes in commodity
prices, general economic conditions, mineral reserve and mineral
resource estimates may change and may prove to be inaccurate; Minto
has a limited operating history and is subject to risks associated
with establishing new mining operations; sustained increases in
costs, or decreases in the availability, of commodities consumed or
otherwise used by the Company may adversely affect the Company;
adverse geotechnical and geological conditions (including
geotechnical failures) may result in operating delays and lower
throughput or recovery, closures or damage to mine infrastructure;
the Company's operations may encounter delays in or losses of
production due to equipment delays or the availability of
equipment; the Company's operations are subject to continuously
evolving legislation, compliance with which may be difficult,
uneconomic or require significant expenditures; the Company may be
unsuccessful in attracting and retaining key personnel; labour
disruptions could adversely affect the Company's operations; risks
related to the Company's use of contractors; 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 operations and workforce are
exposed to health and safety risks; the Company's title to
exploration, development and mining interests can be uncertain and
may be contested; the Company's properties may be subject to claims
by various community stakeholders; risks related to limited access
to infrastructure and water; the Company may not be able to secure
additional financing when needed or on acceptable terms; the
Company may be subject to litigation; and those risk factors set
out in the Company's annual information form dated March 31, 2022 for the year ended December 21, 2021 as filed on SEDAR. Although the
Company has attempted to identify important factors that could
cause actual performance, results, or events to differ materially
from those described in the forward-looking statements, you are
cautioned that this list is not exhaustive and there may be other
factors that the Company has not identified. Furthermore, the
Company undertakes no obligation to update or revise any
forward-looking statements included in or incorporated by reference
in, this news release if these beliefs, estimates, and opinions or
other circumstances should change, except as otherwise required by
applicable law.
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.
Contact Information:
For further information:
David J. Birch,
Chief Financial Officer
(416) 895-4824
E-mail: info@mintomine.com
Chris A. Stewart,
President & Chief Operating Officer
(647) 523-6618
SOURCE Minto Metals Corp.