SRHI Inc. Business Update and Reports 2020 Annual Results
TORONTO, March 04, 2021 (GLOBE NEWSWIRE) -- SRHI Inc. ("SRHI" or the "Company" - formerly Sprott Resource Holdings Inc.) today announced its operating and financial results for the year ended December 31, 2020. The Company's principal operating business is its 70% owned producing copper mine Minera Tres Valles SpA ("MTV") in Salamanca, Chile. The Company's financial statements and management's discussion and analysis ("MD&A") are available at www.srhi.ca and www.sedar.com.
- MTV restarts operations at its open pit, Don Gabriel
- Construction and development of its incline block caving mine at its Papomono Masivo deposit ("Papomono Masivo") remains on schedule and on budget to be in commercial production by early 2022
- The new chloride leaching ("Salt Leach") process provides early indications of success
"Since the emergence of the global COVID-19 pandemic, the Company reacted quickly and decisively during a fluid and fast-moving environment," said Terry Lyons, Interim CEO of SRHI. "The Company adjusted its business procedures and processes while ensuring the safety of its employees, contractors and host communities. Fortunately, the number of COVID-19 cases in the Company has been very limited. The Company continues its preventative, mitigating and containment measures to actively minimize the spread of COVID-19 and has restricted travel, and instructed employees to remote work wherever possible, including at corporate offices."
"This past year was a difficult one for the Company but we have renewed optimism going forward as we look to advance the operations of MTV in a way we were unable to in 2020," stated Michael Staresinic, President and Chief Financial Officer. "Successfully exiting the restructuring process late in the year allowed the Company and its employees to begin executing its plan to profitability. The successful construction and development of the Papomono Masivo incline block caving project will be critical to accomplishing this and is the most important part of MTV's future success."
"The current copper price is above our planned expectations and is welcomed," added Mr. Staresinic. "We continue to operate well below our operating capacity due to fewer available areas to mine and this will result in temporarily high unit costs throughout 2021. Looking into 2022 and as Papomono Masivo ramps up and delivers sustained production, we expect to see these high unit costs reduce as production increases and higher grade ores are accessed. Our view on copper remains positive and we believe Chile, in terms of prospectivity and business climate, is one of the best jurisdictions in the world to build a copper business. As mentioned in our guidance press release, our focus for production this year will come from our recently restarted operations at our Don Gabriel open pit and our current inventory, together with ore expected from third-party miners as well as from ENAMI, Chile’s National Mining Enterprise."
“This coming year will be an exciting year on many fronts – worldwide vaccine deployment with the hope of returning to normality, the construction and development of Papomono Masivo leading to a path to profitability, a robust copper price environment and the continued increase in demand for electric vehicles," continued Mr. Staresinic. "We believe we are well positioned and invite shareholders, interested parties and potential investors to explore our website at www.srhi.ca together with our corporate presentation for more information.”