
Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCPK: GPPRF) (FRA: N8HP) is pleased to announce selected second quarter 2023 financial and operating results. All currency is in U.S. dollars, unless otherwise stated. The Company’s Financial Statements and Management’s Discussion & Analysis are available at www.pascoresources.com and www.sedar.com.
Selected Q2 2023 financial and operating results
Guy Goulet, CDPR’s CEO commented, “CDPR delivered a solid quarter despite inflationary pressures that impacted the global mining industry. Production has nearly doubled since Q2 2022 and average mill production was just under nameplate capacity. Aggressive cost reduction plans saved nearly 35% on unit costs. Revenues for Q2 2023 were severely impacted due to a negative revision in final settlements of Q1 2023 sales further exacerbated by the significant drop in zinc prices. As a result, we have announced and implemented a new curtailed operating plan to sustain the Santander operation while we continue advancing the Pipe project.”
Guy Goulet, CDPR’s CEO further commented “The large imbalance in working capital is expected to be temporary due to an increase in accounts payable, primarily caused by the decision to pursue the development of the Santander Pipe in advance of support funding. According to the projections supported by a third-party NI 43-101 preliminary economic assessment, the Santander Pipe’s Consolidated Plan will produce a positive cashflow for a period of 10+ years. Once the previously announced financing packages are closed, the Santander mine will be on track to quickly begin the period of positive cashflow and naturally address the imbalance in working capital.”
Summary of Operating Results at Santander
Q2 23 | Q2 22 | Var | 1H 23 | 1H 22 | ||
Production | ||||||
Zn Price | ($/t) | 2,539 | 3,925 | -35 % | 18,964 | 14,879 |
Ore Mined | t | 185,050 | 94,207 | 96 % | 363,285 | 189,125 |
Ore Milled | t | 185,210 | 94,207 | 97 % | 361,694 | 189,125 |
Zn Head Grade | %/t | 3.14 | 3.30 | -5 % | 3.20 | 3.82 |
Pb Head Grade | %/t | 0.31 | 0.30 | 3 % | 0.29 | 0.22 |
Ag Head Grade | oz/t | 0.71 | 0.50 | 42 % | 0.67 | 0.50 |
Zn Recovery | % | 93.64 | 94.80 | -1 % | 94.32 | 95.10 |
Pb Recovery | % | 68.61 | 71.10 | -4 % | 68.21 | 72.78 |
Ag recovery | % | 50.38 | 47.30 | 7 % | 48.27 | 48.35 |
Zn Concentrate | t | 11,508 | 6,129 | 88 % | 23,060 | 14,172 |
Pb Concentrate | t | 773 | 372 | 108 % | 1,339 | 666 |
Ag ounces | Oz | 69,862 | 22,405 | 212 % | 117,660 | 41,959 |
Zn Payable Production | Mlbs | 10.0 | 5.5 | 83 % | 20,035 | 32,709 |
Pb Payable Production | Mlbs | 0.82 | 0.39 | 112 % | 1,471 | 1,656 |
Ag Payable Production | Oz | 66,369 | 19,639 | 238 % | 111,777 | 108,634 |
Sales | ||||||
Zn Payable sold | Mlbs | 8.5 | 4.1 | 109 % | 8.6 | 6.7 |
Pb Payable sold | Mlbs | 0.5 | 0.3 | 110 % | 0.5 | 0.3 |
Ag Payable sold | Oz | 20,616 | 7,468 | 176 % | 17,514 | 9,197 |
C1 Cash Cost 1 | $/lb | 1.34 | 2.28 | -41 % | 1.50 | 1.95 |
AISC 1 | $/lb | 1.60 | 2.46 | -35 % | 1.78 | 2.09 |
Development meters | 1,593 | 1,213 | 4 % | 3,435 | 1,987 | |
Finance | ||||||
Revenues, net | (000)s $ | 4,515 | 6,891 | -34 % | 16,820 | 21,472 |
Cost of Goods Sold | (000)s $ | -11,893 | -8,249 | -44 % | -26,499 | -17,979 |
Gross Profit | (000)s $ | -7,378 | -1,436 | -413 % | -9,679 | 3,493 |
Sales and Admin Expenses | (000s) $ | -760 | -689 | -10 % | -1,411 | -1,273 |
Adjusted EBIT | (000)s $ | -8,138 | -2,047 | -297 % | -11,090 | 2,220 |
Other income (expense) | -599 | -61 | -882 % | -1,462 | -79 | |
EBITDA 1 | (000)s $ | -8,737 | -2,108 | 314 % | -12,551 | 2,141 |
Depreciation | (000)s $ | 1,603 | 265 | 504 % | 3,011 | 527 |
EBIT 1 | (000)s $ | -7,134 | -1,843 | 287 % | -9,541 | 2,668 |
AISC Total Costs | Q2 23 | Q2 22 | Var | 1H 23 | 1H 22 | |
Mine Operating Expenses | (000)s $ | 10,644 | 10,963 | -3 % | 24,007 | 21,216 |
Smelting and refining | (000)s $ | 4,385 | 1,990 | 120 % | 8,749 | 4,449 |
Distribution | (000)s $ | 312 | 180 | 74 % | 614 | 396 |
Royalties | (000)s $ | 22 | 25 | -14 % | 71 | 53 |
Less: By-product revenues | (000)s $ | (1,984) | (717) | 177 % | (3,339) | (1,395) |
C1 total costs | (000)s $ | 13,378 | 12,441 | 8 % | 30,102 | 24,719 |
Sustaining CAPEX | (000)s $ | 2,628 | 1,011 | 160 % | 5,506 | 1,813 |
Lease Payments | (000)s $ | |||||
AISC total costs | (000)s $ | 16,006 | 13,451 | 19 % | 35,608 | 26,532 |
Pounds of zinc payable produced | Mlbs | 10.0 | 5.5 | 83 % | 20.0 | 12.7 |
C1 Cash Cost per pound | $US | 1.34 | 2.28 | -41 % | 1.50 | 1.95 |
All-in Sustaining Cost per pound | $US | 1.60 | 2.46 | -35 % | 1.78 | 2.09 |
Q2 2023 business development highlights
Private Placement Financings Completed in Q2 2023
Quiulacocha Easement Update
In order to fulfill the requirements to obtain the authorization to start exploration activities from the General Mining Bureau of Mining of the Ministry of Energy and Mines (DGM, for its acronym in Spanish), on August 25th, 2022, CDPR requested the DGM to impose an easement for 2 years over a part of the plot called Parcel “K”, owned by Activos Mineros S.A.C.
The following phases of the process have been completed:
The following milestones are expected to be obtained in September 2023:
Technical Information
Mr. Jorge Lozano, MMSAQP and Chief Operating Officer for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a Qualified Person for the purposes of reporting in compliance with NI 43-101.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru. CDPR is currently engaged in mining, developing and exploring our wholly owned 6,000 hectare Santander Mine in the highly prospective Antamina-Yauricocha Skarn Corridor, located 215 km from Lima. CDPR is also focused on the development of its principal 100% owned assest, El Metallurgista mining concession comprising mineral tailings and stockpiles extracted from the Cerro de Pasco open-pit mine in central Peru. The company’s approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste and the creation of numerous opportunities in a circular economy. CDPR founded on clear the objectives, to engender long-term economic sustainability and benefit for the local population, from an economic, social and health point of view.
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