Atico Reports Consolidated Financial Results for the First Quarter of 2026

Most recent release (2026‑05‑26): - Q1 2026 net income of $2.8 M, swinging from a $0.8 M loss in Q1 2025. - Revenue jumped 54 % YoY to $30.6 M on higher metal prices ($5.58/lb Cu, $4,722/oz Au) and increased sales volumes. - Cash cost per pound of payable copper collapsed to $1.39 (Q1 2025: $3.00); all‑in sustaining cost fell to $3.83/lb from $4.65. - Working‑capital deficit was cut to $9.6 M from $20.2 M at year‑end 2025. - CEO Fernando Ganoza highlighted “record revenue” and a clear path to deleveraging.

Context from preceding weeks (chronological 2025‑2026): - 2026‑04‑28: Q1 production of 2.09 Mlb Cu (–6 % YoY) and 2,108 oz Au (+36 %), slightly below plan but “back on track” for full‑year guidance. - 2026‑02‑09: La Plata project received key environmental permits; construction decision targeted for Q2‑Q3 2026. - 2026‑01‑28: Drill results at El Roble included 10.20 m @ 6.26 % Cu, 8.50 g/t Au, extending the orebody. - 2026‑01‑22: Q4 2025 production (2.6 Mlb Cu, 2,203 oz Au) and FY 2025 production of 9.23 Mlb Cu, 8,013 oz Au – declines of 32 % and 12 % respectively. 2026 guidance set at 11.5‑12.5 Mlb Cu and 9‑10 koz Au with C1 cash cost $1.50‑1.60/lb. - 2025‑12‑16: Dundee debenture amended – maturity extended to Dec 2027, interest 12 %, 1 M warrants issued at 30 % premium. - 2025‑11‑18: Q3 2025 net loss $4.1 M due to a shipping delay; production 2.3 Mlb Cu, 1,847 oz Au; cash cost $2.74/lb. - Earlier: multiple high‑grade drill results, water permit for La Plata, investment protection agreement, and rights offering raising $6.49 M.

The Q1 2026 earnings mark a material positive shift for Atico. After three quarters of operational and financial stress – declining production, rising costs, a near‑$20 M working‑capital deficit, and a net loss – the company delivered: - A swing to profitability on 54 % revenue growth. - Cash cost of $1.39/lb, well below the 2026 guided range of $1.50‑1.60 and dramatically lower than the $3.00 paid a year earlier. - A meaningful reduction in the working‑capital deficit, from $20.2 M to $9.6 M in a single quarter, largely through operational cash flow. - The result validates management’s promise of a gradual recovery, helped by high metal prices and the release of previously pledged concentrate.

While production remains slightly below the 2026 guidance run‑rate (Q1 Cu annualises to ~8.4 Mlb), the company affirmed it is on track to meet the full year. The combination of sharply lower costs, strong realised prices, and a shrinking deficit materially improves the balance‑sheet risk profile. The news is not a “game changer” because it is an expected improvement, but the magnitude is larger than suggested by earlier quarterly updates and gives concrete evidence of deleveraging. For a small‑cap miner with a working‑capital deficit and heavy debt, this result directly addresses the biggest near‑term risk.

Atico Mining is a Latin‑American focused copper‑gold producer/developer.
Flagship asset – El Roble Mine (Colombia):
- Underground VMS mine with a standard milling/flotation circuit.
- Reserves (March 2024): 828 kt at 3.47 % CuEq (2.49 % Cu, 2.20 g/t Au), life‑of‑mine to Q1‑2027.
- Production is sold 100 % to Trafigura under an offtake agreement (minimum 32 k dmt concentrate per year).
- 2026 guidance: 11.5‑12.5 Mlb Cu, 9‑10 koz Au, C1 cash cost $1.50‑1.60/lb.

Development project – La Plata (Ecuador):
- VMS deposit with a completed feasibility study; final permitting stage (environmental licence received, auxiliary permits in progress).
- Planned 850 tpd underground mine producing Cu, Zn, Au, Ag.
- Reserves: 2.51 Mt @ 3.51 % CuEq; LOM AISC $1.68/lb Cu‑eq.
- Construction decision expected Q2‑Q3 2026; would create 600+ direct construction jobs.

Both assets sit on large underexplored land packages with additional VMS potential.