TIDMATYM
RNS Number : 0671N
Atalaya Mining PLC
15 January 2019
15 January 2019
Atalaya Mining Plc. ("Atalaya" or the "Company")
Fourth Quarter 2018 Operations Update and 2019 Guidance
New records established at Proyecto Riotinto
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM), the European mining and
development company, is pleased to announce its operations update
for the fourth quarter of 2018 and to provide guidance for
2019.
Notably, 2018 copper production at Proyecto Riotinto was 42,114
tonnes, up 13% from 37,164 tonnes produced in 2017 and in the upper
range of the revised and increased guidance provided to the market
on 22 November 2018. Copper production of 11,172 tonnes during Q4
2018 once again represents a new quarterly record.
Proyecto Riotinto
Q4 Q3 Full year
2018 2017 2018 2018 2017 2019 Guidance
------- ------ ------- ------- ------- --------------
Ore mined (M tonnes) 2.8 2.5 2.8 10.8 9.3 11.4
------------ ------- ------ ------- ------- ------- --------------
Waste mined (M tonnes) 4.3 5.7 3.2 17.7 19.8 17.8
------------ ------- ------ ------- ------- ------- --------------
Ore milled (M tonnes) 2.6 2.3 2.5 9.8 8.8 11.4
------------ ------- ------ ------- ------- ------- --------------
Cu grade (%) 0.48 0.44 0.50 0.49 0.49 0.47
------------ ------- ------ ------- ------- ------- --------------
Cu recovery (%) 88.99 86.11 88.40 88.30 85.45 85 - 87
------------ ------- ------ ------- ------- ------- --------------
45,000 -
Cu production (tonnes) 11,172 8,622 11,055 42,114 37,164 46,500
------------ ------- ------ ------- ------- ------- --------------
During 2018 the plant processed 9.8 Mt of ore with an average
copper head grade of 0.49% and a recovery rate of 88.30%. In
comparison to the rates for 2017, throughput and metallurgical
recoveries have increased as a result of continuous improvements.
Throughput has increased from 8.8 Mtpa in 2017 to 9.8 Mtpa in 2018
and recoveries have improved from 85.45% in 2017 to 88.30% in 2018.
Copper head grade was consistent with estimates. On a quarterly
basis, throughput, recoveries and copper grade have improved
compared with Q4 2017 and Q3 2018.
Guidance for copper production in 2019 is estimated to be in the
range of 45,000 to 46,500 tonnes. This year is anticipated to be a
transitional one given the commissioning of the plant expansion in
mid-2019, which will increase production within the range of 50,000
to 55,000 tonnes in 2020.
In terms of ore milled, 2.6 million tonnes were processed during
the quarter, reporting a slight increase from previous quarters.
Copper head grade was in line with plans. The increase in copper
production during the quarter is mainly attributable to the
increase in ore milled and improved metallurgical recoveries.
Mining operations are progressing according to plan and at
similar levels to previous quarters. On a combined basis, ore,
waste and marginal ore amounted to 2.5 million m(3) in Q4 2018
versus 2.2 million m(3) in Q3 2018. Additional mining equipment is
available on site in anticipation of the increase in production
scheduled for H2 2019.
On-site concentrate inventories at the end of the quarter were
approximately 4,667 tonnes. All concentrate in stock at the
beginning of the quarter and produced during the quarter was
delivered to the port at Huelva.
Copper prices slightly decreased during the quarter compared
with the previous quarter, with an average realised price per pound
of copper payable, including the QPs closed in the period, of
$2.85/lb compared with $2.89/lb in Q3 2018. The average copper spot
price during the quarter was $2.80/lb. The realised price during
the quarter, excluding QPs, was approximately $2.79/lb.
Cash operating costs for Q4 2018 are expected to be lower than
the 2018 cost guidance ranges previously provided of $2.15-2.30/lb.
Further details on costs will be provided with the 2018 Financial
Statements to be reported in March 2019.
Exploration is progressing well at the Atalaya pit where massive
sulphides and stockwork mineralisation are being targeted. The
first 2,900 m of a 19,000 m drilling campaign have already been
drilled with positive preliminary results received. Geological
modelling of the upper and lower sections of the orebody is in
progress. Drilling around the high-grade underground workings in
Filon Sur is also ongoing with 9,900 m drilled out of a programme
of 17,400 m.
Expansion to 15Mtpa at Proyecto Riotinto
The 15Mtpa expansion project is progressing according to
schedule. Engineering and procurement are now completed with
equipment delivered to site. All efforts are now concentrated
around site construction activities. Overall progress completion at
the end of December 2018 was over 80%. Earthworks are completed
while civil engineering works are being finalised. Installation of
mechanical equipment is completed in the flotation and concentrate
handling areas. Structural steel works have been finalised in the
flotation area with piping installation underway. Piping is
completed in the concentrate handling area with electrical
installation well advanced. The milling area is the critical path
of the expansion project that is scheduled for mechanical
completion at the end of Q2 2019.
Proyecto Touro
The environmental impact assessment process was completed during
the quarter. Since submission of the latest studies and reports
during the previous quarter, a number of queries have been
addressed and cleared as part of the consultation and permitting
process. The next step in the permitting process is the evaluation
of the project from a regulatory perspective.
Legal Update
On 26 September 2018, Atalaya released the receipt of ruling
from the Tribunal Superior de Justicia de la Junta de Andalucia
("Receipt of Ruling of EeA Claim"), where the Company announced
that the Court had ruled in favour of certain claims made by an
environmental group against the government of Andalucia and
Atalaya. Whilst the ruling invalidates the granting of the AAU
(Authorization Ambiental Unificada) on procedural grounds, it does
not suspend it and the ruling is still subject to appeal and
therefore not currently enforceable.
As noted in the Receipt of Ruling of EeA Claim, both the Junta
de Andalucia and Atalaya as co-defendant decided to and have filed
an appeal with the Supreme Court in Spain. The Company will update
the market with the result of the appeal in due course.
Alberto Lavandeira, CEO commented:
"2018 was characterised by continuous copper production
increases and we are delighted once again to announce new quarterly
and annual copper production records in this update. This confirms
the success of the ongoing improvement measures that have been
implemented by our operating teams at Proyecto Riotinto in recent
years, giving us full confidence that value creation for the
Company will continue as we expand and modernise operations at
Riotinto in 2019. This will be further aided by the development of
new projects like Touro in the near future."
About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group.
It produces copper concentrates and silver by-product at its wholly
owned Proyecto Riotinto site in southwest Spain, which is also
undergoing a brownfield expansion. In addition, the Group has a
phased, earn-in agreement for up to 80% ownership of Proyecto
Touro, a brownfield copper project in the northwest of Spain which
is currently in the permitting stage. For further information,
visit www.atalayamining.com
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam + 44 20 7680
Newgate Communications Lloyd / Tom Carnegie 6550
+44 20 3170
4C Communications Carina Corbett 7973
------------------------------ -------------
Martin Davison / Henry
Canaccord Genuity Fitzgerald-O'Connor / James +44 20 7523
(NOMAD and Joint Broker) Asensio 8000
------------------------------ -------------
BMO Capital Markets Jeffrey Couch / Tom Rider +44 20 7236
(Joint Broker) / Michael Rechsteiner 1010
------------------------------ -------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTSFUFWLFUSEIF
(END) Dow Jones Newswires
January 15, 2019 02:00 ET (07:00 GMT)
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From Apr 2024 to May 2024
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From May 2023 to May 2024