Minto Q1 2022 Results

RNS Number : 9534M

Pembridge Resources plc

26 May 2022

 

This announcement replaces RNS 9277M as it now includes a link to the Minto release as indciated below.

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS AMENDED BY REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

26 May 2022

Minto Metals Delivers a Record First Quarter with 9.1 Million lbs of Copper Production and an Adjusted EBITDA¹ of C$19.2 Million

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that Minto Metals Corp ("Minto") has released its 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 totalled 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 totalled $1.8 million in Quarter 1 or 29% of Minto's 2021 Flow-Through Share commitment.

· Adjusted EBITDA¹ totalled $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.

1.  Refers to Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization "Alternative Performance Measures" on page 18 of Minto's Q1 2022 MD&A.

2.  Refers to Cash Costs and All-In Sustaining Costs "Alternative Performance Measures" on page 19 of Minto's Q1 2022 MD&A.

The full press release from Minto is available here: 

http://www.rns-pdf.londonstockexchange.com/rns/9534M_1-2022-5-26.pdf

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

"Operationally and financially strengthened Minto is delivering the results with the strongest quarter since restart of operations in 2019.  Like our company, Minto for the first time is showing positive net assets, positive net operating cash flow of C$15 million and fully diluted earnings of C$0.20 per share for three months of 2022.  These excellent results together with the continuing investment in exploration give me added confidence in the strong value of our investment."

Cautionary Statement

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company's ability to predict or counteract the potential impact of COVID-19 coronavirus on factors relevant to the Company's business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

ENDS

NOTES TO EDITORS

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Metals Corp, a British Columbia incorporated business listed on the TSX Venture Exchange under the symbol "MNTO" that operates the Minto mine in Yukon, Canada.

About Minto Metals Corp

Minto Metals Corp operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired the Minto mine from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.

Enquiries:

Pembridge Resources plc:   [phone]

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board

David James, Chief Financial Officer

Tavira Securities - United Kingdom:     [phone]

Jonathan Evans

 

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