15 July 2024
Atalaya Mining
Plc.
("Atalaya" or "the Company")
Q2 2024 Operations
Update
Improved grades and continued
progress at San Dionisio are expected in H2 2024
Atalaya Mining Plc (LSE: ATYM) is
pleased to announce its operations update for the second quarter of
2024 ("Q2 2024" or the "Period").
Proyecto Riotinto Operating Highlights
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|
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Q2
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Q1
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Full Year
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|
|
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2024(1)
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2023
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2024
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2024
Guidance
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Ore mined
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M tonnes
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3.8
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3.9
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3.7
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16(3)
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Waste mined(2)
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M tonnes
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7.5
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8.6
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5.5
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~25
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Ore milled
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M tonnes
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4.1
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4.1
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3.7
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15.3 -
15.8
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Cu grade
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%
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0.33
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0.40
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0.34
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0.34 -
0.38(3)
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Cu recovery
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%
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85.77
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87.18
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84.74
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84 -
86
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Cu
production
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tonnes
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11,583
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14,212
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10,666
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45,000 -
50,000(3)
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(1) Figures for Q2 2024 are preliminary and final
figures will be released with Q2 2024 financial
results.
(2) Represents the Cerro Colorado pit
only.
(3) Represents updated guidance.
Mining
Ore mined was 3.8 million tonnes in
Q2 2024 (Q2 2023: 3.9 million tonnes), compared with 3.7 million
tonnes in Q1 2024.
Waste mined was 7.5 million tonnes
in Q2 2024 (Q2 2023: 8.6 million tonnes), compared with 5.5 million
tonnes in Q1 2024. In addition, waste stripping activities
continued at the San Dionisio area.
Processing
The plant processed ore of 4.1
million tonnes in Q2 2024 (Q2 2023: 4.1 million tonnes), compared
with 3.7 million tonnes in Q1 2024, which represents plant
performance above its 15 million tonne per annum
nameplate capacity.
Copper grade was 0.33% in Q2
2024 (Q2 2023: 0.40%), compared with 0.34% in Q1 2024, as a result
of pit sequencing. Improved grades are expected in H2 2024 as
mining returns to the bottom of the Cerro Colorado pit.
Copper recovery was 85.77% in Q2
2024 (Q2 2023: 87.18%), compared with 84.74% in Q1 2024, which was
consistent with budget despite lower grades.
Production
Copper production was 11,583 tonnes
in Q2 2024 (Q2 2023: 14,212 tonnes), compared with 10,666 tonnes in
Q1 2024, mainly due to stronger plant throughput.
On-site copper concentrate
inventories at the end of Q2 2024 were approximately 8,749
tonnes.
Copper contained in concentrates
sold was 11,397 tonnes in Q2 2024 (Q2 2023: 12,858
tonnes).
Select Financial Highlights
Realised Copper Price
The average realised copper price
(excluding QPs closed during the Period) was $4.54/lb in Q2 2024
(Q2 2023: $3.81/lb), compared with $3.89/lb in Q1 2024. The average
spot copper price was $4.42/lb in Q2 2024.
Provisional Revenue Adjustments
For Q2 2024, settlement adjustments
(for QPs closed during the Period) and fair value adjustments (for
open QPs based on copper forward curve prices as at 30 June 2024)
were negative €4.3 million.
Balance Sheet
The Company's balance sheet remains
strong with unaudited consolidated cash and cash equivalents of
€57.7 million as at 30 June 2024.
Net of current and non-current
borrowings of €27.7 million, net cash was €30.0 million as at 30
June 2024, compared with €54.3 million as at 31 December 2023. The
decrease in net cash is mainly the result of higher investments in
the Company's capital projects.
Outlook for 2024
The Company is updating its FY2024
copper production guidance range to 45,000 - 50,000 tonnes (from
51,000 - 53,000 tonnes) in order to reflect H1 2024 performance.
The Company continues to expect improved grades in H2 2024 as well
as strong plant performance.
Operating costs have been broadly
consistent with expectations and the Company will provide further
updates in its Q2 2024 financial results.
Asset Portfolio Update
Proyecto Riotinto
Waste stripping continues at San
Dionisio in order to prepare the area for future mining phases.
Waste mined was 3.4 million tonnes in Q2 2024, compared with 4.6
million tonnes in Q1 2024.
The Company continues to advance the
permitting process associated with the San Dionisio final pit,
which represents a key component of the integrated mine plan
outlined in the 2023 Riotinto PEA.
At San Antonio, preparations are
underway to begin an infill and step-out drilling
programme.
E-LIX Phase I Plant
Final construction, commissioning
and ramp-up activities continue at the E-LIX Phase I plant. The
successful leaching of copper and zinc concentrates has resulted in
the production of zinc and copper precipitates and further progress
is expected during H2 2024.
Once fully operational, the E-LIX
plant is expected to produce high-purity copper or zinc metals on
site, allowing the Company to potentially achieve higher metal
recoveries from complex polymetallic ores, lower transportation and
concentrate treatment charges and a reduced carbon
footprint.
50
MW Solar Plant
Start-up of the 50 MW solar plant
continues to be expected in late 2024. The Company is working
closely with its contractor in order to avoid further delays in the
project's schedule. Market electricity prices in 2024 have been
below long-term averages in Spain.
Once fully operational, the 50 MW
solar plant is expected to provide approximately 22% of Riotinto's
current electricity needs. Together, the 50 MW solar plant and
10-year PPA will provide over 50% of the Company's current
electricity requirements at a rate well below historical prices
in Spain.
Riotinto District - Proyecto Masa Valverde
("PMV")
In 2023, the Company was granted the
AAU and exploitation permit for PMV. Various workstreams are
ongoing including infill, geotechnical and sterilisation drilling
to support design work associated with a future ramp and
ventilation shaft. The Company expects to start construction of the
access ramp in late 2024 or early 2025.
Two core rigs are active and focused
on step-out drilling at the Mojarra Trend and the Masa Valverde
deposit.
Proyecto Touro
On 24 June 2024, Atalaya announced
that Proyecto Touro, via its local entity Cobre San Rafael, was
declared a strategic industrial project by the Council of the Xunta
de Galicia ("XdG"). Under legislation of the Autonomous
Community of Galicia, the status of strategic industrial
project (or in
Spanish, Proyecto Industrial Estratégico ("PIE"))
acts to simplify the administrative procedures associated with the
development of industrial projects and intends to substantially
reduce permitting timelines.
This declaration highlights the
XdG's commitment to promoting new investment that will benefit the
region and also support the objectives of the European Union.
Copper is considered a strategic raw material by the EU
and this project has the potential to become a new source
of sustainable European copper production.
In the coming months, the XdG
will be reviewing the various aspects of the project according to
the simplified procedures afforded to projects with PIE status. The
XdG will also begin the public information period, which serves to
inform the surrounding communities and organisations about the
proposed project.
In addition, the Company will
continue to engage with the many stakeholders in the region and
restore the water quality of the rivers around Touro by operating
its water treatment plant.
Proyecto Ossa Morena
Drilling continued to progress with
one rig at the Guijarro-Chaparral gold-copper project where the
first phase of the resource definition program was completed.
Subsequently, the rig was moved to the flagship Alconchel-Pallares
copper-gold project where the first hole of the 2024 campaign is in
progress.
Proyecto Riotinto East
Drill testing priority coincident
SkyTEM and AGG anomalies resumed during the quarter. The first hole
of the 2024 campaign was completed and a second hole is in
progress.
Corporate Activities Update
Move to the Main Market
On 29 April 2024, the Company
announced the admission of its ordinary shares to the premium
listing segment of the Official List maintained by the FCA and to
trading on London Stock Exchange's main market for listed
securities, along with the cancellation of trading on
AIM.
The move up marks a significant
corporate milestone for Atalaya and reflects the Company's desire
to expand its investor base and continue its growth
trajectory.
Re-domiciliation
On 27 June 2024, the Company held
its 2024 Annual General Meeting where shareholders approved the new
procedures required to implement the re-domiciliation of the
Company's registered office from the Republic of Cyprus to the
Kingdom of Spain.
The Company expects the
re-domiciliation to be completed in Q4 2024.
Alberto Lavandeira, CEO, commented:
"During the quarter, our production was affected by grades
that were lower than expectation and as a result, we have adjusted
our full-year production guidance. While this is disappointing, we
anticipate improved grades and strong plant performance in the
second half of 2024. We also continue to make progress at San
Dionisio, which is expected to deliver higher grade material in the
coming years.
We
achieved an important milestone during the quarter when the Xunta
de Galicia awarded Proyecto Touro the status of strategic
industrial project. This designation aims to significantly reduce
administrative and permitting timelines, positioning Proyecto Touro
to become a new source of sustainable European copper
production.
Across our portfolio, we are focused on enhancing our
production and optionality. Given copper's critical role in the
energy transition and the increasing challenges the industry faces
in delivering new supply, we remain confident in the outlook for
copper."
This announcement contains information which, prior to its
publication constituted inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014.
Contacts:
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SEC Newgate UK
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Elisabeth Cowell / Tom Carnegie /
Matthew Elliott
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+44 20
3757 6882
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Atalaya Mining
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Michael Rechsteiner
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+34 959 59
28 50
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About Atalaya Mining Plc
Atalaya is a European copper
producer that owns and operates the Proyecto Riotinto complex in
southwest Spain. Atalaya's shares trade on the London Stock
Exchange's Main Market (Premium Segment) under the symbol
"ATYM".
Atalaya's operations include the
Cerro Colorado open pit mine and a modern 15 Mtpa processing plant,
which has the potential to become a central processing hub for ore
sourced from its wholly owned regional projects around Riotinto,
such as Proyecto Masa Valverde and Proyecto Riotinto East. In
addition, Atalaya has a phased earn-in agreement for up to 80%
ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain, as well as a 99.9% interest in Proyecto Ossa
Morena. For further information, please visit
www.atalayamining.com