Three Valley Copper (TSXV:TVC)Reports Q2 2021 Results: Copper Cathode Production up 15%

Close up detail of Copper Cathodes.

Three Valley Copper Corporation (“TVC” or the “Company”, formerly SRHI Inc.) announced today its financial and operating results from the second quarter of 2021, which is the three and six months that ended June 30th, 2021. 

The Company is focused on growing copper production from, and further exploration of, its primary asset, Minera Tres Valles SpA (“MTV”). Located in Salamanca, Chile, MTV is 91.1% owned by the Company and MTV’s main assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploratory lands. The Company’s financial statements and management’s discussion and analysis (“MD&A”) are available at www.threevalleycopper.com and www.sedar.com.

Highlights

Corporate

  • Successfully closed a bought deal offering (“Offering”) including the full exercise of the over-allotment option for net proceeds of approximately $8.3 million.
  • The Company, through its indirectly held subsidiary (SRH Chile SpA), subscribed for additional common shares of MTV for approximately $6.8 million, resulting in the Company’s indirect holding of MTV increasing from 70% to 90.3% effective June 3, 2021. Effective August 16, 2021, a further subscription was executed resulting in the Company’s indirect holding of MTV increasing to 91.1%.
  • On June 22, 2021, the Company formally changed its name to Three Valley Copper Corp. and began trading on the TSXV under the symbol TVC. In conjunction with the name change, the Company launched a new website (www.threevalleycopper.com).

Operations

  • Retained Dr. John Mortimer as the Company’s independent exploration geologist to lead the renewed exploration program that commenced in the second quarter of 2021.
  • Successfully settled union strike without disruption leaving monthly wages unaffected in a new 3 year agreement.
  • Copper cathode production was 1,035 tonnes at an average grade of 0.53%, increasing 15% from 900 tonnes at an average grade of 0.57% for the three months ended March 31, 2021 as the restart and scaling up of operations continued during the second quarter of 2021.
  • For the six months ended June 30, 2021, capital expenditures of $6.1 million were incurred related to the construction and development of the incline block caving mine at the Papomono Masivo deposit, consistent with annual guidance of $12 – $15 million total capex. Construction continues and is approximately 50% complete, targeting production commencing early 2022.
  • Effective August 1, 2021, an amendment to the offtake agreement was executed deferring the remaining 12 months of contracted delivery amounts of the fixed price sales component (at $2.89/lb) until May 1, 2022. All sales of copper cathodes commencing August 1, 2021 until April 30, 2022 will be sold at the prevailing spot price for copper cathode, less a nominal amount.

Financial

  • Reported gross loss of $4.3 million (including a write-down of inventory of $4.2 million primarily on long-term inventory) on a realized copper price1 of $3.37 compared to $2.42 in Q2 2020.
  • Adjusted EBITDA from continuing operations1 of $0.1 million compared to $(1.8) million in Q2 2020.
  • Net loss per share attributable to owners of the Company of $(0.12) compared to $(0.10) in Q2 2020.
Source: Three Valley Copper Corp.

Three Valley Copper Corp or “TVC” is located in the Cretaceous belt of Chile and has over 46,000 hectares of land to explore and mine. TVC already has over 100 copper occurrences and 70 “artisanal exploitation points” registered with geological features similar to those of its “identified orebodies.” They are currently producing 99.999% pure copper from its mineral reserves, with up to 18,500 tonnes of pure copper cathodes annually, which are the highest quality cathodes available on the market. TVC has also completed 170,000 meters of diamond drilling, and has a handful of other successful Chilean copper mines. TVC has great potential in the copper mining industry as only roughly less than 10% of their 46,000 hectares has been explored, leaving thousands of hectares yet to be investigated. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

By Matthew Evanoff

I cover the mining industry and the best mining stocks around the world. I write about industry news, individual companies, projects, management, and profiles on industry leaders.

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