Altaley posts loss in first quarter, says operational issues impacted its Campo Morado mine
The company said it sold approximately 9,781 tonnes of zinc concentrate generating quarterly revenue from zinc concentrate of US$12.34 million.
Additionally, the company produced 2,379 tonnes of lead concentrate grading an average of 19% lead, 2.37% copper, 4.66 g/t gold, 647 g/t silver and sold 2,626 tonnes generating Q1 2022 revenue from lead concentrate of US$1.84 million.
According to the company's statement, production and concentrate sales in Q1 2022 were negatively affected compared to all quarters of 2021 mainly due to lost production days largely related to mechanical issues, increase in maintenance costs for both plants, lower average head grades and recoveries, and approximately 75% increase in offtake charges.
The company also reported it generated Q1 2022 gross revenues of $21.5 million (Q1 2021: $21.2 million) and posted a loss of $0.16 million compared to income of $3.8 million a year ago.
Importantly, the company said that at Campo Morado, mechanical issues have been resolved and the mine plan is producing increased grade mill feed with recoveries of zinc back on track.
CEO Ralph Shearing noted that in addition, the mine started copper concentrate production during mid-May which, as expected, will add an additional revenue source to the project.
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"We anticipate a much improved second quarter," he added.
Altaley Mining is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects. At its Tahuehueto mining project is in north-western Durango State, Mexico, construction has been advanced to near completion. The company is targeting initial pre-production in May 2022 and ramping up to full production capacity late 2022.
In addition, the company owns Campo Morado, which is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,200 tonnes per day and is currently estimated to be Mexico's 6th largest zinc producer.