London-listed Pembridge Resources reports positive yearly output improvements at its Minto mine and has set the bar higher for 2022 guidance.
In the year ended December 31, 2021, Minto produced 26-million pounds of copper, 11 783 oz of gold and 135 354 oz of silver, which were year-on-year improvements of 46%, 54% and 101%, respectively.
Pembridge explains that output was boosted by particularly strong performances in November and December, when the processing plant achieved a throughput of 3 000 t/d.
The plan is to operate the mill at an average throughput capacity of 3 000 t/d for the first half of 2022 and up to 3 250 t/d during the second half of the year, as the ore production continues to ramp up towards the mill’s ultimate permitted capacity of 4 200 t/d.
Minto’s guidance for 2022 has been set at between 28-million and 31-million pounds of copper.
Meanwhile, Minto Metals Corporation – the subsidiary operating the mine that Pembridge acquired from Capstone Mining Corporation in 2019 – has reached an agreement with Capstone to defer paying part of the purchase price obligation and paid a further $10-million of that obligation in December 2021.
The remaining $5-million is deferred until 2023.
Pembridge CEO Gati Al-Jebouri comments that, with the copper price having been above $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 an ability to invest in the future development of the Minto mine."