Atalaya Mining PLC AGM Statement (6726S)
June 27 2018 - 1:00AM
UK Regulatory
TIDMATYM
RNS Number : 6726S
Atalaya Mining PLC
27 June 2018
27 June 2018
Atalaya Mining Plc
("Atalaya" or the "Company")
AGM Statement
At Atalaya Mining's AGM, to be held at 11.00 a.m. (UK) today at
Canaccord Genuity, 88 Wood Street, London EC2V 7QR, United Kingdom,
Roger Davey, non-executive Chairman, will make the following
statement:
"2017 has been a year of stabilisation and process improvements
at the RioTinto Project and was the first full year of commercial
production for your company. The ore processing throughput rate was
steadily increased to achieve a cumulative plant throughput of 8.8
Mtpa (against a nameplate capacity 9.5 Mtpa). Copper grade was
consistent with reserve estimates and the process recovery rate
improved over the year to 85.45%, producing a total of 37,164
tonnes of copper, an increase of 40% over the 2016 production, from
an average copper head grade of 0.49%.
This year, to date, copper grades, recoveries and operating cash
costs are within the forecast values and the estimated copper
production guidance for 2018 remains in the range of 37,000 to
40,000 tonnes.
An expansion project to 15 Mtpa throughput was formally approved
during Q4 2017 and launched at the beginning of December 2017.
Process flowsheet, basic design criteria and preliminary layouts
have been established. Financing to initiate the expansion was
raised through a GBP31m placing of new shares and this allowed
long-lead equipment to be identified and purchase orders issued
according to the schedule. The expansion is on track to deliver the
increased production by 2019.
To facilitate the assessment of potential additional mining
areas, the dewatering of the Atalaya pit continues as previously
reported. An infill drilling campaign for reserve definition was
initiated in the Cerro Colorado pit and is planned to last for most
of 2018. Near-mine exploration also continued with drilling of the
north-west extension of the Cerro Colorado pit. An updated
resources and reserves statement is being prepared as part of the
15 Mtpa expansion Project.
Mining operations continue to run well, with the mining fleet
fully operational and preparing to meet the increased requirements
of the expansion programme. As part of the Company's continuous
improvement programme, improvements to process and water supply
systems are under way, together with essential additions to the
tailings storage facilities. Whilst dust emission indicators remain
below legal requirements, as a precautionary measure, civil works
and structural fabrication are under way to install a dome covering
the coarse-ore stockpile.
The permitting of Proyecto Touro continues to progress according
to plan. The Company has already engaged a number of consultants to
address the recommendations received as part of the permitting
process. The pre-feasibility study for a proposed open pit copper
mine and concentrator was published and filed with the guidelines
set out in Canadian National Instrument 43-101.
In March 2017, judgment in the Astor Case was handed down in the
High Court of Justice in London. The High Court found that the
deferred consideration under the master agreement entered into
between the Group, Astor and others, did not start to become
payable when permit approval was granted for Proyecto Riotinto.
Accordingly, the first instalment of the deferred consideration had
not fallen due. While the Court confirmed that Atalaya was not in
breach of any of its obligations, the Master Agreement and its
provisions remain in place. In April 2017, Atalaya and Astor
applied for permission to appeal to the Court of Appeal. In August
2017, the Court of Appeal granted permission to both parties to
appeal with the Appeal taking place during May 2018.
All of our successful activities to date are due not only to the
continued commitment and efforts of our management, staff and
associates, but also to the continued support and contributions of
all the board members. For this, I offer my sincerest thanks to all
of them.
Last but not least, I extend my thanks to all of you, our valued
shareholders, for your continued support and look to the year ahead
with continued confidence and optimism."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Charles Chichester / James +44 20 7680
Newgate Communications Ash / James Browne 6550
+44 20 3170
4C Communications Carina Corbett 7973
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Henry Fitzgerald-O'Connor
Canaccord Genuity / Martin Davison / James +44 20 7523
(NOMAD and Joint Broker) Asensio 8000
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BMO Capital Markets Jeffrey Couch/Neil Haycock/Tom +44 20 7236
(Joint Broker) Rider 1010
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END
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