Atico Mining Navigates Supply Chain Hurdles & Ecuador Development

NEW YORK, NY – November 18, 2025

Q3 Losses Reflect Logistical Challenges

Atico Mining Corporation reported a net loss of $4.1 million for the third quarter of 2025, a sharp contrast to the $1.2 million net income reported in the same period last year. The primary driver of this decline was a delay in the shipment of copper concentrate from its El Roble mine in Colombia. This logistical snag resulted in the deferral of revenue recognition until the fourth quarter, significantly impacting the company’s financial performance. Despite continued production levels, the delayed shipment showcased the vulnerabilities inherent in global supply chains, a growing concern for mining companies worldwide. Copper production for the quarter totaled 2.3 million pounds, while gold production reached 1,847 ounces.

“The shipping delays were frustrating, but not entirely unexpected given the global logistical pressures we’re seeing,” noted one industry analyst. “Many companies are facing similar issues. The key is how quickly they can adapt and mitigate the impact.” While the company managed cash costs of $2.74 per payable pound of copper, the inability to recognize revenue promptly placed significant strain on its balance sheet.

Balancing Operations & Ecuador's La Plata Project

The company has been actively pursuing financing to support both ongoing operations and the development of its key project, La Plata VMS, located in Ecuador. Atico recently completed a dual financing initiative, including a rights offering and a concurrent Listed Issuer Financing Exemption (LIFE) Offering, aiming to raise approximately $8.5 million. The proceeds will be allocated towards the advancement of La Plata, continued drilling at El Roble, and general corporate purposes. This funding is critical for the successful execution of the La Plata project, which holds significant potential for future growth.

The La Plata VMS project has undergone a Definitive Feasibility Study (DFS), demonstrating promising economics, including an after-tax Net Present Value (NPV) of US$93 million and an Internal Rate of Return (IRR) of 25.1%. The DFS projects a mine life of 8.1 years, with average annual production of 9.71 million pounds of copper, 15,929 ounces of gold, 226,299 ounces of silver, and 13.25 million pounds of zinc. “La Plata represents a significant opportunity for Atico,” explained a source familiar with the project. “It’s a well-defined deposit with strong economics, and Ecuador is becoming increasingly receptive to mining investment.” However, bringing a project of this scale to fruition in Ecuador comes with its own set of challenges.

Ecuador's Mining Landscape & Community Engagement

Ecuador is actively seeking to attract foreign investment in its mining sector to boost economic growth. The government has implemented policies to streamline permitting processes and create a more favorable investment climate. However, mining projects in Ecuador have historically faced opposition from local communities concerned about environmental impacts and social disruptions.

“Community engagement is absolutely crucial for success in Ecuador,” said an expert on mining in Latin America. “Companies need to build strong relationships with local stakeholders, address their concerns, and ensure that projects deliver tangible benefits to communities.” Atico’s La Plata project has incorporated filtered tailings technology to minimize environmental impact and address community concerns. Furthermore, the company is committed to operating responsibly and engaging in open dialogue with local communities.

The country is becoming more receptive to mining investment, but it's a delicate balance. The government is pushing to grow the sector, but it must also manage social and environmental risks effectively. Several other projects are slated for construction decisions in the coming years, representing significant potential investment. “Ecuador is open for business, but companies need to demonstrate a commitment to responsible mining practices,” added the expert.

Navigating Volatile Metal Markets and Cost Pressures

Beyond the logistical challenges and Ecuador development, Atico Mining, like other smaller mining companies, faces the constant pressure of volatile metal markets and rising operating costs. The price of copper and gold significantly influences the company’s profitability. While metal prices have remained relatively strong in 2025, the outlook remains uncertain.

“Small-cap mining companies are particularly vulnerable to price fluctuations,” explained an industry analyst. “They often lack the scale and diversification of larger players, making them more susceptible to market downturns.” Atico's cash cost per pound of copper is comparable to some larger producers, but the company must continue to focus on cost control and operational efficiency to maintain profitability.

The company's recent financing efforts will provide some breathing room, but sustained success depends on effectively managing costs, navigating market volatility, and successfully bringing the La Plata project online. The company also managed to reduce its debts with Trafigura and the National Mining Agency, signaling a proactive approach to financial stability.

Despite the Q3 losses and ongoing challenges, Atico Mining remains focused on its long-term growth strategy, which centers on developing the La Plata project and optimizing operations at the El Roble mine.