TIDMATYM
RNS Number : 3677V
Atalaya Mining PLC
14 April 2021
14 April 2021
Atalaya Mining Plc.
("Atalaya" or the "Company")
First Quarter 2021 Operations Update
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the first quarter of 2021 ("Q1 2021" or
the "Period").
Proyecto Riotinto Operating Highlights
Q1 Q4 Full year
2021 2020 2020 2021 Guidance
------- ------- ------- ----------------
Ore mined (M tonnes) 3.3 3.0 3.5 15.1
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Waste mined (M tonnes) 7.4 5.1 6.7 25.9
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Ore milled (M tonnes) 4.0 3.4 3.9 15.0 - 15.5
------------ ------- ------- ------- ----------------
Cu grade (%) 0.41 0.47 0.43 0.42
------------ ------- ------- ------- ----------------
Cu recovery (%) 84.79 82.62 85.69 82 - 84
------------ ------- ------- ------- ----------------
Cu production (tonnes) 13,979 13,229 14,332 52,000 - 54,000
------------ ------- ------- ------- ----------------
-- Copper production in Q1 2021 was 13,979 tonnes, 5.7% higher
than Q1 2020 although slightly lower than Q4 2020 due to lower
copper grades and recoveries during the Period.
-- As a result of the robust copper price environment and strong
mill performance, the Company continues to supplement mill feed
with some stockpiled lower grade ore in order to maximise the
long-term value of the orebody.
-- The plant processed a record 4.0 million tonnes of ore during
Q1 2021 despite seven days of planned maintenance stoppage during
February, which were offset by a new monthly performance record in
March when 1.5 million tonnes were processed.
-- The increase in copper production, when compared with the
company's expectations, is mainly attributable to better
metallurgical recoveries and higher mill throughput.
-- Despite ongoing COVID-19 restrictions, mining operations have
continued normally with higher production levels compared with the
previous quarter. The lower quantity of ore mined from the pit, as
per the mine plan, was compensated for by the delivery of
stockpiles to the expanded plant.
-- On-site copper concentrate inventories at the end of Q1 2021
were approximately 9,683 tonnes. All concentrate in stock at the
beginning of the Period was delivered to the port at Huelva.
-- Copper prices increased during Q1 2021 compared with Q4 2020,
with an average realised price per pound of copper payable,
including the QPs closed in the Period, of $3.59/lb compared with
$2.99/lb in the previous quarter. The average copper spot price
during the Period was $3.85/lb. The realised price during Q1 2021
excluding QPs was approximately $3.84/lb.
-- Cash operating costs for the Period are expected to be below
full year 2021 cost guidance owing mainly to the Euro/U.S. dollar
exchange rate of 1.20 compared with 1.22 budgeted by the Company in
its 2021 guidance as well as higher copper production. Further
details on costs will be provided with the Q1 Financial Statements
that will be reported in May.
Proyecto Riotinto Optimisation
-- During Q1 2021, the Company continued executing on cost
reduction measures such as the reduction of fresh water and lime
consumption through the implementation of tailings thickening. All
of the equipment required for these programmes is in place and
expected to be commissioned during Q2 2021.
-- Other cost reduction and operational improvement initiatives
are being analysed and will be implemented in the coming months.
Among these are the reduction of power costs and the increase in
copper recoveries through the reconnection of redundant flotation
capacity.
-- The target of reducing power costs at the plant in an
environmentally conscious way is being addressed through the
installation of a 50 MW Solar Power Plant for self-consumption that
is anticipated to make a significant contribution to reducing
carbon emissions at Proyecto Riotinto. The Solar Plant is in the
final stages of permitting.
Reserves and Resources Updates at Proyecto Riotinto
-- An independent consultant is finalising the Cerro Colorado
open pit reserves and resources update taking into consideration
recent exploration results and current copper prices, operating
costs and geotechnical parameters. The Company will release results
in the coming weeks.
-- Evaluation of the historic polymetallic San Antonio/Planes
deposit has begun. This shallow polymetallic deposit would require
underground mining methods and is located immediately East of the
Cerro Colorado open pit.
-- Evaluation of the remaining resources at San Dionisio, west
of the Cerro Colorado pit, is also ongoing. The Company believes
there is potential for it to be mined with a combination of open
pit and underground methods. San Dionisio contains copper as well
as polymetallic mineralisation.
Regional Exploration Highlights
-- Local exploration at Proyecto Riotinto focused on the Filon
Sur area where the copper stockwork, north of the structure, could
add potentially mineable resources.
-- Geophysical assessments have commenced at the Proyecto Masa Valverde.
-- An initial 11-hole drilling programme will be completed at
the Majadales discovery, located south-east of Masa Valverde, as
soon as the drilling permits are granted.
Growth Projects
Proyecto Touro
-- The Company received the formal communication rejecting the
Company's plan to develop Proyecto Touro previously announced on 29
January 2020. The Company will follow its administrative options as
outlined in the formal communication.
-- Atalaya remains committed to the development of the Touro
copper project, and, in parallel to the administrative process, is
working with its best-in-class consultants to address and resolve
all of the concerns raised by the stakeholders during the
Environmental Impact Evaluation Assessment.
-- The Company continues to be confident that its approach to
Proyecto Touro is in line with international best practice, which
includes fully plastic lined tailings with zero discharge, and will
satisfy the most stringent environmental conditions that may be
imposed by the authorities prior to the development of the
project.
E-LIX Update
-- Engineering work has started to carry out a feasibility study
for an industrial plant using a third-party-patented E-LIX System
followed by conventional SX-EW to produce cathodes on site. Results
of the feasibility study are expected in Q3 2021.
-- The E-LIX pilot plant is fully operational and continues
gathering real data to be incorporated in the copper and zinc
concentrates leaching section of the feasibility studies.
Astor Update
-- As announced on 15 March 2021, Atalaya made the payment of
the Deferred Consideration to Astor Management, AG ("Astor") of
EUR53 million. The payment was funded by unsecured credit lines
with four major Spanish banks with a three-year tenure and average
annual interest rate of approximately two per cent.
Alberto Lavandeira, CEO commented:
" I am delighted to be able to report a quarter of strong
progress at Proyecto Riotinto with an increase in copper production
and record levels of ore processed through our newly expanded
plant. This strong performance means our annualised production rate
for the quarter is towards the upper end of the 2021 production
guidance range.
"We will continue to assess and implement further cost reduction
measures in addition to those already successfully carried out
during the quarter to drive mine efficiency and deliver increasing
value for shareholders. The anticipated commissioning of our new
solar power plant, once the permitting is completed, will bring
both cost savings and significant reductions in the Company's
carbon footprint. "
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam + 44 20 3757
Newgate Communications Lloyd / Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity Henry Fitzgerald-O'Connor +44 20 7523
(NOMAD and Joint Broker) / James Asensio 8000
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BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider 1010
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Peel Hunt LLP (Joint +44 20 7418
Broker) Ross Allister / David McKeown 8900
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. 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. For further information, visit
www.atalayamining.com .
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