- Atico Mining (ATY | ATCMF) reported a net loss of $18.7 million for 2024 despite a revenue increase of 19%.
- Production at El Roble mine increased by 4% for copper but decreased by 10% for gold.
- The company recognized a significant $24.5 million pre-tax loss due to an arbitration ruling in favor of Colombia's National Mining Agency.
Atico Mining Corporation (TSX.V: ATY | OTC: ATCMF) has announced its financial results for the year ending December 31, 2024. The company reported income from mining operations of $14 million. However, a net loss of $18.7 million was recorded, primarily due to a $24.5 million pre-tax loss resulting from an arbitration ruling. This ruling required the company to make back payments for copper royalties to Colombia's National Mining Agency dating back to 1994.
The El Roble mine showed a solid performance with copper production reaching 13.7 million pounds, marking a 4% increase from the previous year. However, gold production saw a decline of 10%, totaling 9,106 ounces. The increase in copper production contributed to a 19% rise in revenue, reaching $68.5 million, with copper accounting for 83% of sales and gold for 17%.
Cash costs for mining operations rose marginally by 1% to $2.07 per pound of payable copper, while all-in sustaining cash costs were $3.00 per pound. These figures were mainly driven by inflationary pressures and increased operational expenses. Furthermore, the company faces a working capital deficit of $11.3 million, with $7.0 million in long-term loans and an $8.5 million non-current arbitration award payable.
Atico Mining is working to renew the contract for the El Roble property, as its 30-year contract has expired. The company plans to focus on improving cost efficiencies and achieving production goals to capitalize on favorable metal prices. Further developments include permitting and environmental licensing for its La Plata project in Ecuador.
