Minto Metals Corp. (TSX-V: MNTO) is pleased to announce the Company’s financial and operating results for the three months ended March 31, 2022 for the Minto Mine located within the Selkirk First Nation’s Territory in the central Yukon, Canada. Copper Production totaled 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 totaled $1.8 million in Quarter 1 or 29% of our 2021 Flow-Through Share commitment.
• Adjusted EBITDA¹ totaled $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 the Company’s Q1 2022 MD&A.
2. Refers to Cash Costs and All-In Sustaining Costs “Alternative Performance Measures” on page 19 of the Company’s Q1 2022 MD&A.

“Our excellent operating performance and cost containment in a higher copper price environment has surpassed our expectations. Our team has strong momentum and has delivered a positive performance for the second consecutive quarter”, said Chris Stewart, President & Chief Executive Officer of Minto Metals.

“Our Quarter 1, Adjusted EBITDA improved to $19.2 million dollars compared to a loss of $0.9 million dollars a year ago. These great results highlight the extraordinary performance and are a testament to the drive and passion to win shown by everyone who works here at Minto.” Stewart added.

Q1 2022 Financial Highlights

Adjusted EBITDA¹ Reconciliation to Net Income

1. Refers to Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization “Alternative Performance Measures” on page 18 of the Company’s Q1 2022 MD&A.

2022 Q1 Interim Consolidated Statements of Loss and Comprehensive Loss – Unaudited

2022 Q1 Interim Consolidated Statements of Financial Position – Unaudited

2022 Q1 Interim Consolidated Statements of Cash Flows – Unaudited

Operational Outlook

Minto is pleased to reconfirm the financial 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.

1. 100% amounts. Under the agreement with Wheaton Precious Metals, the Company receives 65% of the value of the gold shipments up to 11,000 ounces.  Silver receipts are the lesser of the prevailing market price and US $4.35/oz. 
2. Refers to Cash Costs, All-In Sustaining Costs and Sustaining Capital “Alternative Performance Measures” on pages 19 and 20 of the Company’s Q1 2022 MD&A.

The Yukon received between 150% and 400% of the normal annual snowfall during this past winter which generated a significant volume of water across the territory as it melted. With the warmer temperatures over the past couple of weeks, the Minto mine site saw daily water volume inflow exceed the mine’s discharge capacities which caused the storage pond water levels to rise.

Underground mining operations continued uninterrupted during this temporary mill shutdown with ore being stockpiled ahead of the milling facility restart.  The Mill is permitted to process an average of 4,200 tonnes/day of ore and underground production is currently averaging around 3,000 tonnes/day.  With the milling facility restart, the stockpiled ore will be processed at a higher rate which means that there will be no metal production impact on the original guidance in 2022.

The Company temporarily suspended its milling operations until Spring Freshet ended, ensuring all water arriving on the mine site was properly managed within our water management system and that the environment was protected.  The Company took full advantage of this temporary mill shutdown to complete future planned maintenance work in the mill thereby avoiding another shutdown in the coming months.

Once freshet ended, the company restarted its milling operations. The Mill is expected to run steadily for the balance of 2022.

“At the beginning of 2022 Minto committed to spending $8 million dollars to improve the mine water management system at the Minto Mine.  Our investment included an upgrade to our water treatment plant, the installation of a new microfiltration plant, and the purchase of evaporation units, all to support improved environmental stewardship.  As outlined in an article from the Yukon government, the snowpack levels are unusually high and above the normal level across the Yukon, and in areas in the vicinity of the mine. Minto Metals takes the protection of the environment seriously and the temporary mill shutdown highlights our commitment”, stated Chris Stewart, President & CEO of Minto Metals.

About Minto Metals Corp.

Minto operates the producing Minto mine located in the Minto Copper Belt, Yukon. The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Since 2007, approximately 500Mlbs of copper have been produced from the Minto mine. The current mine operations are based on underground mining, a process plant to produce high-grade copper, gold, and silver concentrate, and all supporting infrastructure associated with a remote location in Yukon. The Minto property is located west of the Yukon River, about 20 km WNW of Minto Landing, the latter on the east side of the river, and approximately 250 road-km north of the City of Whitehorse, the capital city of Yukon.