Minto Metals Corp (TSX-V:MNTO) has announced its financial and production results for the second quarter ended June 30, 2022, including record EBITDA (earnings before interest, taxes, depreciation, and amortization), 45% growth in production, and a 131% rise in adjusted EBITDA compared to the same period in 2021.
"Global inflationary pressures and difficult environmental conditions during the Yukon's record spring freshet this year presented Minto's operations team with particular challenges during Quarter 2. In spite of that, Quarter 2 represents the third consecutive quarter (versus the prior year) of positive momentum and we are poised for the positive trend to continue for the second half of 2022. Our team will remain extremely focused for the balance of 2022 on our strategy of FIX, FILL and OPTIMIZE along with continuing our targeted exploration to provide viable mine life expansion," Chris Stewart, president and CEO of Minto Metals said in a statement.
"We have a lot of great people on Minto's team and their dedication and hard work continues to improve the business. I want to thank everyone for their efforts during a challenging second quarter. I am excited about the future at Minto and look forward to continuing to build stronger relationships within the Selkirk First Nation and the various Yukon regulatory agencies," he added.
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Second quarter highlights:
- Copper sales increased 16% to 5.37 million pounds compared to 4.62 million pounds in 2Q 2021, however as a result of spring freshet sales are down from 9.1 million pounds in 1Q 2022.
- 2Q 2022 revenue declined 9.6% from the same period in 2021 Revenue totaled $32.0 million, a $3.4 million decrease from $35.4 million compared to 2Q 2021, as a result of lower copper prices and lower volumes due to the mill suspensions.
The Yukon experienced an unusually high spring freshet, and as a result, milling operation was temporarily suspended on two separate occasions for a total duration of four one-half weeks, resulting in a production decrease quarter-over-quarter. Operations underground continued as scheduled during the mill's downtime.
Yukon government security update
On January 4, 2022, the Yukon Government determined that the security for the Minto Mine site should be increased from $72 million to $104 million but on August 19, 2022, the company received a letter from the Yukon Government revising the required security due by September 1, 2022 to $93 million.
Minto said it has been in ongoing discussions with the Selkirk First Nation and the Yukon Government to finalize a solution that is acceptable to all parties. Various solutions are being discussed while the company continues carrying out progressive reclamation activities thereby potentially decreasing the required security increase.
Further updates will be provided in the coming weeks as the company works with the Selkirk First Nation and the Yukon Government. Although the company currently believes it will be able to secure the required $93 million security by the September 1, 2022 deadline, there can be no assurance it will be able to do so by such time, or at all.
"At the beginning of 2022, Minto committed to investing $8 million dollars in improvements to the mine water management system at the Minto Mine. Year to date, we have spent over $5 million including upgrades to our water treatment plant, the installation of a new microfiltration plant, and the purchase of evaporation units, all to support improved environmental stewardship. Minto Metals takes the protection of the environment extremely seriously as is demonstrated by the investments we are making," concluded Minto CEO Stewart.
Minto Metals 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.
Contact the author at jon.hopkins@proactiveinvestors.com