Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canadian copper miner Atico Mining faced challenges in Q2 2021, similar to Q1, due to severe weather conditions in Latin America that led to operational setbacks, a slight loss of production and an increase in cash cost.

 

The losses were partly mitigated by better achieved metal prices that led to 93pc increased cash margins of $3.23/lb of payable copper in Q2 2021 compared to $1.67/lb in Q2 2020. 

 

Atico expects to make up for lost production in H2 of 2021 to meet the yearly guidance targets and benefit from the rising metal prices. 

 

In spite of any setbacks, the company completed Q2, ended Jun 30, recording a solid cash position of $16.6mn and $5.5mn in trade receivables with about $8mn less in current liabilities versus Q1.

 

The company’s El Roble mine in Columbia produced 2,024mt of copper in Q2 2021, falling by 10pc compared to 2,248mt of copper produced in Q2 2020. The site mined 71,436mt of ore in Q2 2021, down 7pc versus 76,825mt in Q2 2020. 

 

The mill processed 5pc less ore at 68,238mt in Q2 2021 against 71,804mt in Q2 2020, which also led to the decrease in copper output.

 

Sales rose 5pc to $13.4mn in Q2 2021 compared to $12.8mn in Q2 2020. Copper accounted for 93pc of 7,812 dry metric tons (DMT) shipped in Q2 2021 compared to 9,014 DMT in Q2 2020. The average price achieved on invoicing was $4.50/lb of copper in Q2 2021 compared to $2.60/lb in Q2 2020.

 

Atico’s income from mining operations was up 20pc to $4.9mn in Q2 2021 compared to $4.1mn in Q2 2020. Net income was down 53pc to $571,306 in Q2 2021 against $1.2mn in Q2 2020. 

 

Net income was impacted by loss in foreign exchange, elevated production rates, and less concentrate sales, though partly offset by increased realized copper prices compared to Q2 2020.

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