(All amounts expressed in US dollars, unless otherwise stated)

Vancouver, May 17, 2022 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) today announced its financial results for the three months ended March 31, 2022, posting income from mining operations of $9.1 million and a net income of $3.9 million. Production for the period at Atico’s El Roble mine totaled 4.7 million pounds (“lbs”) of copper and 2,636 ounces (“oz”) of gold in concentrate at a cash cost(1) of $1.29 per payable pound of copper(2).

Fernando E. Ganoza, CEO and Director, commented, “We are pleased to report strong financial results despite selling only one concentrate shipment in the period. These results were underpinned by operations exceeding our copper and gold production targets while coming under budgeted cash costs for the quarter.” Mr. Ganoza continued," As we continue to benefit from strong financial results, our ability to carry out the planned growth programs at both El Roble and La Plata will be enhanced. At La Plata, the focus continues to be on the feasibility study and advancing the permitting process. At El Roble we will be putting an emphasis on mine vicinity drilling, looking for extensions of mineralization at depth and along strike.”

First Quarter Financial Highlights

Net income for the quarter amounted to $3.9 million, compared with $1.2 million for the same period last year. The increase in net income was primary due to higher income from operations in Q1-2022 and a $2.3M fair-value loss for metal hedging recorded in Q1-2021.
Sales for the quarter increased 7% to $20.6 million when compared with $19.3 million in Q1-2021. Copper (“Cu”) and gold (“Au”) accounted for 89% and 11% of the 9,568 dry metric tonnes (“DMT”) sold during Q1-2022.
Working capital was $30.0 million, while the Company had $15.5 million in long-term loans payable.
The Company entered into a secured definitive credit agreement with Trafigura PTE Ltd. for a facility with a term of 30 months. The total principal of $10 million withdrawn will bear interest at a rate of LIBOR plus 5% for the first 24 months and then at a rate of LIBOR plus 7.5% thereafter.
The average realized price per metal on provisional invoicing was $4.65 per pound of copper and $1,978 per ounce of gold.
Cash costs(1) were $125.21 per tonne of processed ore and $1.29 per pound of payable copper produced(2), which were decreases of Nil% and 25% over Q1-2021, respectively.
Cash margin(1)(2) was $3.36 per pound of payable copper produced, which was an increase of 44% over Q1-2021.
All-in sustaining cash cost per payable pound of copper produced(1)(2) was $2.04.
First Quarter Summary of Financial Results
Q1 2022 Q1 2021 % Change
Revenue $ 20,645,001 $ 19,303,903 7%
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