Minto Metals Corp (TSX-V:MNTO) has announced production results for the 12-month period ended December 31, 2022, from the Minto Mine, located within the Selkirk First Nation's Territory in central Yukon, Canada, which saw payable copper production of 28.9 million pounds
The company noted that was in line with expected production of between 28.0-31.0 million pounds, as announced in the company's press release dated January 7, 2022.
"I am pleased to report we completed 2022 achieving both our safety and production targets. Minto delivered within our market guidance by producing 28.9 million pounds of copper, a 13% increase over the previous year. 2022 presented challenges to all copper producers as our metal had a bit of a wild ride. Copper went from a high of US$4.92/lb in Q1 and then quickly declined through Q2 to end up at a low of US$3.23/lb early in Q3. In addition, there were and still are many challenges related to the ongoing supply chain impacts of COVID which is seen across all businesses in the world today," commented Chris Stewart, president and chief executive officer of Minto in a statement.
READ: Minto Metals hits high-grade copper in follow-up drilling at Minto North in the Yukon
"In addition, and specific to our area of the Yukon, we had a record snow survey measuring 417% above normal coming out of the 2021/2022 winter which resulted in a record spring freshet event. This forced us to temporarily suspend our milling operations several times, for a total of 8 weeks, to allow us time to treat the significant volume of incoming water as we needed to ensure we discharged safely to the environment. The dedication and commitment of our employees, contractors and consultants allowed us to safely reach our production goal despite all these challenges. I would like to thank everyone for their hard work throughout this past year,” he added.
"In 2023 we will be investing in our Water Treatment Plant to double its capacity so that we can avoid temporarily shutting down our milling operations due to water issues going forward. We will also be continuing our exploration program, building on the positive results of our 2022 and 2021 drill programs where new mining lenses and potential extensions to known ore lenses were identified. Minto also plans for more robust investor relations initiatives in 2023 and more engagement within the investment community throughout the year. We look forward to communicating our activities to the market regularly, and engaging with current and potential investors, as well as the analyst community," concluded Stewart.
2022 Full Year Highlights:
- Minto completed 2022 with consolidated production totaling 28.9 million pounds of copper, a 12.6% increase over 2021.
- Copper sales increased in the first, second and third quarters of 2022, compared to the same periods in 2021.
- The company navigated through a significant water event during spring freshet, which was caused by a snow pack that was 417% above normal, with no environmental impact. More than 1,400,000 cubic metres of water was discharged from site, which was more than double the volume discharged over the last seven years combined.
- Water Treatment Plant enhancements were made, creating the ability to discharge water through the winter months for the first time in Minto's history; and
- Operations at the mill were suspended for a total of eight weeks due to this water event, and tonnes milled were lower than expected as a result.
- New tele-remote scooptram (controlled from surface) began operating underground in between shift changes moving ore/waste.
- Equipment condition monitoring was operational and communicates in real-time using new fiber network installed underground, key operating data/information from onboard the equipment.
- Two new ore lenses were identified, with plans to build on these in 2023.
2023 Outlook Guidance
Minto also announced guidance for 2023, targeting copper production of 31.0-34.0 million pounds at a C1 cash cost of US$2.80-US$3.00 per pounds, with Exploration expenditure seen at around C$7.0- C$9.0 million.
The company said it anticipates that 2023 will be a transformational year at its operations, as it continues to ramp up ore production. It is committed to a cost control strategy while improving its mine and milling operations, and capital investment is required for the development of the assets.
Minto noted that it is working closely with its partners at the Selkirk First Nation and the Yukon Government to facilitate the permits needed for this.
Changes to board
Minto also announced that Edie Hofmeister will be stepping down as a director, and Greg McKnight will be stepping down as a director and chairman of its board of directors. Hofmeister's departure is effective February 28, 2023, and McKnight's departure is effective March 15, 2023.
Replacing McKnight as chairman is Joe Phillips who has served as a director on Minto's board since December 2021. Phillips has over 45 years of experience in the construction, commissioning and operation of mining projects in 13 countries in five continents. Over his career he has directed the construction, commissioning and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities.
Minto said it thanked McKnight and Hofmeister for their service and commitment. An executive search is underway, and a notice of appointment will be announced as soon as qualified replacements are secured, it added.
Minto operates the producing Minto mine located within the traditional territory of the Selkirk First Nation in the Minto Copper Belt of the Yukon. The Minto mine has been in operation since 2007 with underground mining commencing in 2014. Since 2007, approximately 500 million pounds (Mlbs) 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 kilometers (km) West-Northwest 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.
Contact the author at jon.hopkins@proactiveinvestors.com