After having a disastrous start to ring in the New Year, the metals and mining sector is making a comeback as 2016 rolls along. Indeed, in the last month shares of major miners have bounced back sharply.
BHP Billiton (NYSE:BHP), one of the biggest iron ore miners in the world, has gained almost 12% in the last three trading sessions alone. In the last five trading sessions, BHP has gained almost 20%.
Shares of rival Australian mining company Rio Tinto (NYSE:RIO) have gained more than 10% in the last three trading sessions and more than 13% in the last five trading sessions.
Junior mining companies have also rebounded sharply in recent weeks. One junior mining company that is gaining momentum in trading today is Atico Mining Corp. (TSX-Venture:ATY).
Based in Vancouver, Atico is focused on exploring, developing and mining copper and gold projects in Latin America. At last check, ATY shares were trading 6.25% higher at $0.34.
ATY shares are gaining momentum in trading today after the company announced its financial results for the year ended December 31, 2015. ATY posted income from mining operations of $11.16 million for the year ended December 31, 2015. The company’s net income for the year was $0.29 million.
Atico’s production for the fiscal year 2015 at its El Roble mine totaled 12 million pounds of copper and 10,994 ounces of gold in concentrates at a cash cost of $1 per payable pound of copper produced.
In 2014, Atico had registered a loss of $3.23 million. The loss though was mainly due to higher deferred income tax expense as a result of the devaluation of the Colombian peso.
The company’s income from mining operations increased significantly this year due to a sharp increase in concentrate shipped and provisionally invoiced, partially offset by lower realized prices and lower metal content in the concentrate as compared to 2014.
Fernando E. Ganoza, CEO at Atico Mining, said that the company had a very strong 2015 with significant operational accomplishments while showing financial resiliency in a very challenging metal price environment.
Ganoza said that the year concluded with the mill reaching a nominal capacity of 800 tpd, a 25% increase over the 650-tpd target, and a reduction of 33% of the long-term debt facilities.
Ganoza added that in 2016, the company will continue optimizing the El Roble mill and strengthening the balance sheet, while focusing on organic growth opportunities and maintaining an opportunistic approach in its search for a second asset.
