Peruvian Metals (TSXV:PER) processed 8,829 tonnes of mineralized material in the fourth quarter of 2020 at its 80 percent owned, fully permitted Aguila Norte processing plant. That is a 31 percent increase compared to the same period in 2020, in which the company recorded 6,732 tonnes of processed minerals.
Peruvian Metals CEO Jeffrey Reeder believes that the company will be able to process a lot more minerals from its own concessions in 2022.
“For years, we’ve been processing minerals from third parties and we have profitability,” Reeder said. “We did a small raise in 2020 after the COVID restrictions were lifted. We were generating our projects with internal cash flow. We’ve also sold some of our other projects to bring in cash flow because our focus is that the mineral going through our plant will eventually be our own mineral. That’s where we’re going to head into in the next couple of years, and we’re on that track right now.”
In November last year, the company processed 2,997 metric tonnes of material for third parties, a monthly record. 2021 was also a record year for the company; in just the first three quarters, the Aguila Norte processing plant had already processed 25,799 tonnes compared to full-year numbers of 18,510 tonnes in 2019 and about 13,185 tonnes in 2020.
“We have a processing plant that we control, and processing our own minerals will increase our margins significantly compared to what we’re doing with a third party right now. So our goal is to mine our own properties and improve our small-scale projects. We might get lucky if our smaller projects can turn into a significant cash flow producer for our company,” Reeder said.
He added, “Our revenues exceed our costs. And that’s what’s going to grow our company. We’re going to end 2022 with increased margins. We have a tremendous amount of deal flow coming through our company. The plant is already full of third parties, so let’s try to increase our margins by being associated with these small miners. And that’s what we’re doing.”
Watch the full interview of Peruvian Metals CEO Jeffrey Reeder above.
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