TIDMPERE
RNS Number : 7924X
Pembridge Resources plc
07 January 2022
7 January 2022
Minto Operations Update for Q4 and Partial Deferment of Capstone
Liability
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS AMENDED
BY REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT)
REGULATIONS 2019/310. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA
REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
London, United Kingdom - Pembridge Resources plc (LSE: PERE)
("Pembridge" or the "Company") is pleased to report operational
results of Minto Metals Corp ("Minto") for the full year of 2021,
and announce that Minto has reached an agreement with Capstone
Mining Corp ("Capstone") to defer paying part of the purchase price
obligation and paid a further $10 million of that obligation.
Highlights
-- Minto copper production of 2021 increased by 46% on prior year
-- Minto 2022 outlook guidance showing continued improvement in operations
-- $10 million of the remaining Minto purchase price payable to
Capstone paid in December 2021, the remaining $5 million deferred
until 2023
Operations update
Minto has announced metals production levels in 2021 that have
greatly improved on 2020, helped by strong performances in November
and December, when they achieved an average of 3,000 tonnes per day
of ore processed through the mill and 6.1 million pounds of payable
copper.
Year ended
Metal 31 Dec 2021 31 Dec 2020 % change
Payable copper (Mlbs) 26.0 17.8 46%
Gold (oz) 11,783 7,674 54%
Silver (oz) 135,354 67,490 101%
2022 outlook from Minto
Minto has released outlook guidance on production and cost for
2022. The plan is to operate the Mill at an average throughput of
3,000 tonnes/day for H1/2022 and 3,250 tonnes/day for H2/2022 as
the ore production continues to ramp up towards the Mill's ultimate
permitted capacity of 4,200 tonnes/day.
Production and cash costs
Copper production (million pounds) 28.0 - 31.0
C1 cash cost (USD/lb) $2.70 - $2.90
Capital expenditure (C AD millions , rounded)
- Mine development (new areas) $13 million
- Ve hicle Lease $7 million
- Sustaining $16 million
Exploration (CAD millions, rounded) $6 - $9 million
Capstone Liability
Under the Sale and Purchase Agreement of 3 June 2019, under
which Pembridge purchased the Minto mine from Capstone, the
purchase price for the mine is up to US$20 million (contingent on
production targets and copper prices), to be paid to Capstone. In
accordance with the Shareholders Agreement in place prior to Minto
becoming a publicly listed company and the Future Expenditures
Agreement between Pembridge and Minto announced on 1 December 2021,
payments to Capstone of the purchase price are to be made by Minto.
Of the total purchase price of $20 million, $5 million has been
paid by Minto on 30 March 2021 and the remaining $15 million (with
the contingent requirements having been met) was due to be paid in
December 2021. In accordance with a new Agreement reached with
Capstone, the amount to be paid to Capstone in December 2021 was
adjusted to USD $10 million, which was paid prior to 31 December
2021. The remaining USD $5 million is now payable on 15 January
2023.
http://www.rns-pdf.londonstockexchange.com/rns/7924X_1-2022-1-7.pdf
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board of Pembridge said:
"We thank Minto's leadership and all of the team who made the
improved performance of the Minto mine happen in 2021 and look
forward to further improvements in 2022. The Minto operation is now
on a sound path to continued increase of ore processing volumes as
well as delivering on life of mine extension once exploration is
completed and results delivered.
With the copper price having been above US$3.50/lb for more than
two consecutive quarters since the acquisition of Minto by
Pembridge, the contingent consideration for the Minto mine has now
become due. We are pleased that Minto has paid $15 million of the
total purchase price to Capstone in 2021 and we appreciate
Capstone's flexibility in agreeing to this partial deferment for
the remaining $5 million. Copper prices above $3.50/lb that have
triggered the contingent purchase price payment have also resulted
in higher revenues for Minto ensuring profitable operations and
ability to invest in the future development of the Minto mine."
Cautionary Statement
This News Release includes certain "forward-looking statements"
which are not comprised of historical facts. Forward-looking
statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company, or management, expects a stated condition
or result to occur. Forward-looking statements may be identified by
such terms as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will", or "plan". Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information.
Forward-looking information in this news release includes, but is
not limited to, the Company's intentions regarding its objectives,
goals or future plans and statements. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, the Company's ability
to predict or counteract the potential impact of COVID-19
coronavirus on factors relevant to the Company's business, failure
to identify additional mineral resources, failure to convert
estimated mineral resources to reserves with more advanced studies,
the inability to eventually complete a feasibility study which
could support a production decision, the preliminary nature of
metallurgical test results may not be representative of the deposit
as a whole, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, and those risks set out in the Company's public
documents. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
ENDS
NOTES TO EDITORS
Pembridge is a mining company that is listed on the standard
segment of the Official List of the FCA and trading on the main
market for listed securities of London Stock Exchange plc.
Pembridge has an investment in Minto Metals Corp, a British
Columbia incorporated business listed on the TSX Venture Exchange
under the symbol "MNTO" that operates the Minto mine in Yukon,
Canada.
About Minto Metals Corp
Minto Metals Corp operates the underground copper-gold-silver
mine located in central Yukon, approximately 240 kilometres north
of the capital Whitehorse along the Klondike Highway. In excess of
US$350 million of capital expenditure has been invested into Minto
operations since site construction began in 2006. The Minto mine
was in continuous production between 2007 and 2018, when the mine
was placed onto temporary care and maintenance. Pembridge acquired
the Minto mine from Capstone Mining Corporation in June 2019 and
restarted operations in October 2019.
Enquiries:
Pembridge Resources plc: +44 (0) 7905 125740
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board
David James, Chief Financial Officer
Brandon Hill Capital - United Kingdom: +44 (0)20 3463 5016
Jonathan Evans
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END
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