Atico Mining Corporation (TSX-V: ATY) (OTC: ATCMF) announced its financial results for the three months ended March 31, 2025, posting income from mining operations of $3.7 million and a net loss of $0.8 million for the quarter. Production for the quarter at Atico’s El Roble mine totaled 2.2 million pounds of copper and 1,578 ounces of gold in concentrate at a cash cost ⁽¹⁾ of $3.00 per payable pound of copper ⁽²⁾.

Fernando E. Ganoza, CEO and Director, commented, “during this period, the mine’s operational performance was below schedule due to unexpected challenging rock quality conditions resulting in slower than planned mine development. Nevertheless, we achieved financial results in line with budget, driven by strong metal prices and additional revenue from selling down a portion of our pledged concentrate inventory.” Mr. Ganoza continued, “for the remainder of the year, we anticipate gradual improvements in the second and third quarters of this year to regain the planned development and preparation pace, which we expect will enable us to recover most of the lost production for the year. In parallel, we are progressing with the engineering and permitting for the La Plata project while conducting the near-mine drilling program at El Roble to replenish resources and extend the mine’s life.”

First Quarter Financial Highlights

• Sales for the quarter increased 11% to $19.9 million when compared with $17.8 million in Q1-2024. Copper and gold accounted for 72% and 28% of the 8,468 (Q1-2024 – 9,383) dry metric tonnes sold during Q1-2025.
• The average realized price per metal was $4.44 (Q1-2024 – $3.97) per pound of copper and $2,987 (Q1-2024 – $2,180) per ounce of gold.
• Net loss for the quarter amounted to $0.8 million, compared with $0.4 million for the comparative quarter of last year, while cash flows from operations, before changes in working capital, was $5.3 million (Q1-2024 – $5.8 million). Cash used for investing activities amounted to $1.7 million (Q1-2024 – $3.2 million).
• Ending working capital deficit was $10.1 million (December 31, 2024 – $11.3 million), while the Company had $6.1 million (December 31, 2024 – $7.1 million) in long-term loans payable and $8.8 million (December 31, 2024 – $8.5 million) payable to the National Mining Agency that is due beyond one year.
• Cash costs ⁽¹⁾ were $176.98 per tonne of processed ore and $3.00 per pound of payable copper produced ⁽²⁾, which was an increase of 11% and 17% over Q1-2024, respectively. The increase in cash cost per tonne was primarily driven by lower ore production in Q1-2025, which led to underutilization of capacity (as fixed costs were spread over fewer tonnes). The transition to the new zones in the El Roble mine experienced delayed by unforeseen rock quality challenges, which affected both tonnage and head grade as access to stopes was slowed down. Also, inflation, and the increase in ground support activities and stope preparation, impacted costs. Cash costs per pound of payable copper produced also increased due to lower copper output due to the lower grade. The Company anticipates a gradual improvement in tonnage and grade in the following quarters as planned development and preparation pace recovers.
• Cash margin was $1.44 per pound of payable copper produced⁽¹⁾, which was an increase of 2% over Q1-2024, due to the increase in realized copper price which more than offset the increase in cash cost per pound mentioned above.
• All-in sustaining cash cost per payable pound of copper produced⁽¹⁾ was $4.65, up from $3.41 in Q1-2024 (refer to non-GAAP Financial Measures). This increase was primarily due to lower copper output and higher sustaining capital expenditures on mine development, mine infrastructure, and ramp construction, necessary to maintain production capacity.
• On March 7, 2025, the arbitration tribunal at the Center for Arbitration and Conciliation of the Bogota Chamber of Commerce ruled in favor of the National Mining Agency regarding the royalties’ dispute of Minera El Roble S.A.

First Quarter Summary of Financial Results

First Quarter Consolidated Operational Details

In Q1-2025, the Company produced 2.2 million lbs of copper, 1,578 oz of gold, and 4,988 oz of silver. Copper production decreased by 34% and gold production by 28% for gold, when compared to Q1-2024, due to lower ore throughput and lower copper and gold head-grades.

The financial statements and MD&A are available on SEDAR+ and have also been posted on the company’s website at http://www.aticomining.com/s/FinancialStatements.asp

⁽¹⁾ Alternative performance measures; please refer to “Non-GAAP Financial Measures” at the end of this release.
⁽²⁾ Net of by-product credits
⁽³⁾ Subject to adjustments on final settlement

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

About Atico Mining Corporation

Atico is a growth-oriented Company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company generates significant cash flow through the operation of the El Roble mine and is developing it’s high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities.