MINTO METALS CORP. 
Minto completed 2021 with consolidated production totaling 26 million pounds of payable copper, a 46% increase versus the prior year. The full-year results were highlighted with a strong finish in November and December during which the Company delivered an average of 3,000 tonnes per day of ore processed through the mill and 6.1 million pounds of payable copper.
Twelve months ended | |||
Metal | % Change | ||
Payable Copper (million pounds) | 26.0 | 17.8 | 46% |
Gold (oz) | 11,783 | 7,674 | 54% |
Silver (oz) | 135,354 | 67,490 | 101% |
Calendar 2021 | |||
H1 | H2 | Total | |
Payable Copper (million pounds) | 11.8 | 14.0 | 26.0 |
Calendar 2020 | |||
H1 | H2 | Total | |
Payable Copper (million pounds) | 10.0 | 7.8 | 17.8 |
% Increase 2021 vs 2020 | 18% | 81% | 46% |
"Our operation is showing positive momentum thanks to the efforts of our employees and contractors at our Minto mine located in the central
"From the mine's performance to the enhancements we have seen in our milling operation, we are pleased with the production growth in 2021. I joined Minto in mid-January of 2021, and we are now starting to see the benefits of the many changes we have made which will benefit our employees as well as all our stakeholders. I am optimistic about the future at Minto and look forward to building stronger relationships with the Selkirk First Nation and the various
Outlook Guidance -2022
Minto is pleased to announce 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. Capital investment is required for the development of our assets and we are working closely with our partners at the Selkirk First Nation and the Yukon Government to facilitate the permits needed for this. Our goal is to deliver a high-quality product while protecting the Selkirk First Nation's land that we operate on.
The following table summarises the production, cost and capital expenditure outlook for 2022. The plan is to operate the mill at an average throughput of 3,000 tonnes/day for H1/2022 and 3,250 tonnes/day for H2/2022 as the ore production continues to ramp up towards our mill's ultimate permitted capacity of 4,200 tonnes/day.
Production and Cash Costs | Minto | ||||
Copper Production (million pounds) | 28.0 - 31.0 | ||||
C1 cash cost (USD /lb)1 | |||||
Capital Expenditure (CAD millions, rounded) | |||||
$13M | |||||
Vehicle Lease | $7M | ||||
Sustaining | $16M | ||||
Exploration (CAD millions, rounded) | $6M - $9M | ||||
Note: Foreign Exchange used CDN:USD = 0.81 | |||||
1)This is a non-GAAP measure. Please see "Non GAAP" at the end of this release | |||||
Permitting
Our previously communicated ore production ramp-up target of 4,000 tonnes/day in 2022 has been delayed as we await the necessary permits to expand our underground mine operations. As a result, our production rate has been adjusted down as outlined above in this release. Executing our "Fill the Mill" strategy is now expected to occur in 2023.
Other Highlights:
Investment in People
Minto is proud to announce the transition from contractor mining to Minto-managed mining. On
Purchase Price Deferral
Minto is also pleased to announce it has reached an agreement with Capstone Mining Corp ("Capstone") to defer paying part of Minto's purchase price obligation. In accordance with the Future Expenditures Agreement between Pembridge and Minto announced on December 1st, 2021, payments to Capstone of the purchase price are to be made by Minto. Of the total purchase price of USD
Qualified Person
The technical contents of this news release have been reviewed and approved by
Non-GAAP Financial Measure
C1 Cash Costs
C1 cash costs consist of production and selling costs net of by-product credits and is provided in this news release as it is a key measure that management uses to monitor and evaluate the performance of the Company's mining operation. This measure does not have a standard meaning within GAAP and, therefore amounts presented may not be comparable to similar data presented by other mining companies. This performance measure should not be considered in isolation as a substitute for measures of performance in accordance with GAAP.
Cash Cost Calculation |
Production Costs (Cost of Production) |
Less: Exploration costs |
Less: Corporate Costs |
Less: By-product credits |
Total Cash Costs |
Cash Costs CAD/lbs |
Cash Costs USD/lbs (CAD/USD FX RATE) |
About
Minto owns and operates the producing Minto mine located in the Minto Copper Belt of the
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
Such forward looking statements are based on a number of material factors and assumptions, including, but not limited to: the accuracy of mineral reserves and mineral resources, grade, mine life, cash cost, net present value, internal rate of return and production and processing estimates, and other assumptions, projections and estimates made, such as the successful completion of development and exploration projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; that mineral resources can be developed as planned; interest and exchange rates; that required financing and permits will be obtained; general economic conditions; that labour disputes or disruptions, flooding, ground instability, geotechnical failure, fire, failure of plant, equipment or processes to operate are 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; and changes in laws, risks related to 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 results to differ materially from those expressed in the forward-looking statements contained in this news release, include, but are not limited to: mineral reserve and mineral resource estimates may change and may prove to be inaccurate; life of mine estimates are based on a number of factors and assumptions and may prove to be incorrect; 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; actual production, costs, returns and other economic and financial performance may vary from the Company's estimates in response to a variety of factors, many of which are not within the Company's control; 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 ability of the Company to treat the number of tonnes planned, recover valuable materials, remove deleterious materials and process ore, concentrate and tailings as planned is dependent on a number of factors and assumptions which may not be present or occur as expected; 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; unexpected costs and delays related to, or the failure of the Company to obtain, necessary permits could impede the Company's operations; 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's exploration programs may not successfully expand its current mineral reserves or replace them with new reserves; the Company's common shares may experience price and trading volume volatility; the Company's revenues are dependent on the market prices for copper, which have experienced significant recent fluctuations; the Company may not be able to secure additional financing when needed or on acceptable terms; Company shareholders may be subject to future dilution; risks related to changes in interest rates and foreign currency exchange rates; changes to taxation laws applicable to the Company may affect the Company's profitability; the risks related to the Company's internal controls over financial reporting and compliance with applicable accounting regulations and securities laws; the carrying value of the Company's assets may change and these assets may be subject to impairment charges; the Company may be liable for uninsured or partially insured losses; the Company may be subject to litigation; the Company may be unsuccessful in identifying targets for acquisition or completing suitable corporate transactions, and any such transactions may not be beneficial to the Company or its shareholders; the Company must compete with other mining companies and individuals for mining interests; and risks related to information systems security threats; and those risk factors set out in the Company's listing application dated
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in the forward-looking statements, including those risk factors, 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
SOURCE
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