Altaley Mining Faces Problems During 1H22

Altaley Mining reported the 2Q22 operating and financial results from its Campo Morado mine in Guerrero and the Tahuehueto mine in Durango. Although the company gained lower profits in 1H22 due to lower ore grades, bad weather, inflationary pressures and equipment problems, it expects to see higher production and profits in the coming months.

In a press release, Altaley reported that during 2Q22, it produced 8,603 tons of zinc concentrate at Campo Morado with an average grade of 45 percent zinc, 1.73g/t gold, 404g/t silver. In addition, it sold 8,194 tons, which generated a revenue of US$9.02 million. The company highlighted that since the mine began producing copper concentrate in May 2022, 1,870 tons of it have been produced at an average grade of 14 percent copper, 6.3g/t gold and 650g/t silver. Moreover, 1,516 tons were sold, generating a revenue of US$ 2.1 million. Regarding lead concentrate, the company sold 2,262 tons, creating US$0.34 million in revenue.

Altaley explained that the production of copper concentrates has allowed the company to take advantage of its high prices. However, inflationary pressures, the near-depletion of the El Largo zone that affected concentrate recoveries and grades, as well as downtime due to equipment failure and maintenance caused Campo Morado's profits to decline during 1H22.

“The second quarter financial results reflect a challenging quarter for the Company. Campo Morado operations saw a decrease in profitability over 1H22 compared to 1H21,” said Ralph Shearing, CEO, Altaley Mining. However, the company emphasized that it is confident that these challenges are in the rearview mirror and will not affect future results at Campo Morado. Moreover, the company expects to mine higher-grade ore from the G9/Southwest, which will allow for better recoveries and concentrated grades in the coming months.

Meanwhile, at Tahuehueto, Altaley produced 256 tons of bulk concentrate with an average grade of 72 percent zinc, 71 percent copper, 74 percent lead, 1.73g/t gold and 404g/t silver. In addition, 64.3 tons were sold, generating a revenue of US$77,000. The company faced problems during the first half of 2022, as construction works were delayed due to an unusually heavy rainy season that reduced output and revenue. Bad weather has also delayed the development of the permanent crushing circuit, the water pumping station and the tailings deposit.

The permanent crushing circuit is expected to be completed in September, while the permanent water pumping station is to be connected to the grid in the coming months. Altaley envisages that once the system is commissioned and the weather improves, the project will have continuous production of up to 500t/d.

Altaley explained that the installation of the second 500t/d ball mill is temporarily postponed as construction of the permanent tailing facility must first be completed. Work on the second ball mill is expected to begin when the former mill is fully commissioned and generating steady revenue.