Additional Revenue Stream Established
Altiplano Metals (WKN A2JNFG / TSXV APN) operates the El Penon processing plant in Chile, where they are currently processing stockpiled dump material (mineralized with copper and iron), which will soon be supplemented with material from the nearby historic Santa Beatriz iron, copper, and gold mine. The processing yields both a copper-gold concentrate and an iron concentrate. Altiplano has now found a buyer for the latter!
As the company has just announced, they have concluded an offtake agreement with a private Chilean company. This company intends to purchase the iron material from the El Penon plant, which is located 30 kilometers south of the city of La Serena.
High-Quality Product Specifically for the Chilean Market
According to Altiplano CEO Alastair McIntyre, this has opened up an additional revenue stream to complement the income from the sale of copper-gold concentrate. Mr. McIntyre further stated that it has paid off to focus on producing a high-quality product, primarily intended for use in the local Chilean market. According to Mr. McIntyre, the revenue from this source should be sufficient to cover a significant portion of the company’s overhead costs.
According to Altiplano, the plan is to produce 1,800 tons of the product per month, based on a 40% magnetite content of the processed, mineralized material. This is typical for iron oxide-copper-gold vein structures, it was further stated. The company reports that the iron oxide produced at El Penon has an iron content between 65 and 71%. As we have previously reported, 2,500 tons of this iron oxide product are already stored at the plant site.
Although Altiplano is initially keeping the financial details of the agreement with its Chilean partner to itself, we view it as positive that a buyer has now been found for the iron oxide produced at El Penon – and that it apparently covers a large part of the general and administrative expenses (G&A). Simultaneously, the company continues to deliver the produced copper-gold concentrate to Ocean Partners Chile.
