11
April 2024
Atalaya Mining
Plc.
("Atalaya" or "the Company")
Q1 2024 Operations
Update
Project activities continue
to advance as copper fundamentals strengthen
Atalaya Mining Plc (AIM: ATYM) is
pleased to announce its operations update for the first quarter of
2024 ("Q1 2024" or the "Period").
Proyecto Riotinto Operating Highlights
|
|
Q1
|
Q4
|
Full Year
|
|
|
2024(1)
|
2023
|
2023
|
2024
Guidance
|
Ore mined
|
M tonnes
|
3.7
|
3.4
|
3.7
|
~19
|
Waste mined(2)
|
M tonnes
|
5.5
|
6.5
|
7.4
|
~25
|
Ore milled
|
M tonnes
|
3.7
|
3.7
|
4.1
|
15.3 -
15.8
|
Cu grade
|
%
|
0.34
|
0.38
|
0.36
|
0.39 -
0.41
|
Cu recovery
|
%
|
84.74
|
86.88
|
85.47
|
84 -
86
|
Cu
production
|
tonnes
|
10,666
|
12,139
|
12,775
|
51,000 -
53,000
|
(1) Figures for Q1 2024 are preliminary and final
figures will be released with Q1 2024 financial
results.
(2) Represents the Cerro Colorado pit
only.
Mining
Ore mined was 3.7 million tonnes in
Q1 2024 (Q1 2023: 3.4 million tonnes), compared with 3.7 million
tonnes in Q4 2023.
Waste mined was 5.5 million
tonnes in Q1 2024 (Q1 2023: 6.5 million tonnes), compared with 7.4
million tonnes in Q4 2023. Separately, waste stripping activities
advanced at the San Dionisio area.
Processing
The plant processed ore
of 3.7 million tonnes during Q1 2024 (Q1 2023: 3.7
million tonnes), compared with 4.1 million tonnes in Q4 2023.
Throughput was impacted by the scheduling of two plant shutdowns,
one for maintenance and the other for connecting the 50 MW solar
plant to the substation.
Copper grade was 0.34% in Q1
2024 (Q1 2023: 0.38%), compared with 0.36% in Q4 2023. The
lower copper grade in Q1 2024 was mainly the result of pit
sequencing and also due to rainfall which prevented access to
higher grade areas of the Cerro Colorado pit.
Copper recovery was 84.74% in Q1
2024 (Q1 2023: 86.88%), compared with 85.47% in Q4 2023, due to
lower grades being processed.
Production
Copper production was
10,666 tonnes in Q1 2024 (Q1 2023: 12,139 tonnes), compared
with 12,775 tonnes in Q4 2023. Lower production in Q1 2024 was
mainly the result of lower grades and recoveries.
On-site copper concentrate
inventories at the end of Q1 2024 were approximately 8,283
tonnes.
Copper contained in concentrates
sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501
tonnes).
Select Financial Highlights
Realised Copper Price
The average realised copper price
(excluding QPs closed during the Period) was $3.89/lb in Q1 2024
(Q1 2023: $4.00/lb), compared with $3.78/lb in Q4 2023. The average
spot copper price was $3.83/lb in Q1 2024.
Provisional Revenue Adjustments
For Q1 2024, settlement adjustments
(for QPs closed during the Period) and fair value adjustments (for
open QPs based on copper forward curve prices as at 31 March 2024)
were negative €3.8 million.
Balance Sheet
The Company's balance sheet remains
strong with consolidated cash and cash equivalents of €86.2 million
as at 31 March 2024.
Net of current and non-current
borrowings of €50.1 million, net cash was €36.1 million as at 31
March 2024, compared with €54.3 million as at 31 December 2023 with
the decrease in cash being the result of lower copper sales and
higher investment in the Company's capital projects.
Outlook for 2024
Full year guidance is unchanged from
the outlook announced as part of the Company's 2023 Annual Results.
This includes copper production of 51,000 - 53,000 tonnes (weighted
towards H2 2024) and cash costs and AISC of $2.80 - 3.00/lb and
$3.00 - 3.20/lb copper payable, respectively.
Asset Portfolio Update
Proyecto Riotinto
In 2023, the Company was granted a
substantial modification to the existing Unified Environmental
Authorisation (or in Spanish, Autorización Ambiental Unificada
("AAU")) for Proyecto Riotinto by the Junta de Andalucía. The AAU
allows for the expansion of tailings capacity and the mine
footprint at Riotinto and represents an important step towards
developing regional deposits such as San Dionisio and San
Antonio.
The Company is advancing 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. Waste stripping is underway in
order to prepare the area for future mining phases, with
4.6 million tonnes of waste mined in Q1 2024. Additional
mining equipment is expected to arrive on site in Q2
2024.
At San Antonio, preparations are
underway to begin an infill and step-out drilling
programme.
E-LIX Phase I Plant
Final construction activities are
underway at the E-LIX Phase I plant. Following the production of
initial copper cathodes in December 2023, commissioning and ramp-up
continues, with first zinc recovered in recent weeks.
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
Construction activities continue at
the 50 MW solar plant at Riotinto, with initial power generation
expected in Q2 2024.
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. As a result,
various workstreams continue including geotechnical and
sterilisation drilling to support design work associated with a
future ramp and ventilation shaft.
Two core rigs are active and focused
on step-out drilling at the Mojarra Trend and the Masa Valverde
deposit.
Proyecto Touro
Atalaya remains fully committed to
the development of the Touro copper project, which has the
potential to provide substantial benefits to Galicia and also
support the European Union's critical raw materials
mandate.
Touro has the potential to become a
new source of copper production for Europe. As such, the
project could also be granted "Strategic Project" status by the EU,
which can be awarded to projects "based on their contribution to
the security of supply of strategic raw materials, their technical
feasibility, sustainability and social standards", as part of the
Critical Raw Materials Act. Copper was added to the list of
"Strategic Raw Materials" owing to its importance for strategic
sectors and technologies and due to the supply-demand imbalance
that is expected in the near future.
Running parallel with the ongoing
Touro permitting process, the Company continues to focus on
numerous initiatives related to the social licence, including
engaging with the many stakeholders in the region to provide
detailed information on the new and improved project design.
Positive and favourable feedback from numerous meetings with
municipalities, farmers and fishermen associations and other
industries indicate meaningful support towards the development of a
new and modern mining project.
The Company continues to
successfully restore the water quality of the rivers around Touro
and is operating its water treatment plant, which is addressing the
legacy issues associated with acid water runoff from the historical
mine, which closed in 1987. The field-work carried out by Atalaya
has resulted in an immediate and visible improvement of the water
systems surrounding the project, with the progress being recognised
by local stakeholders and the media.
Atalaya continues to be confident
that its approach to Touro, which includes fully plastic lined
thickened tailings with zero discharge, is consistent with
international best practice and will satisfy the most stringent
environmental conditions that may be imposed by the authorities
prior to the development of the project.
Proyecto Ossa Morena
Drilling continued to progress with
one rig at the Guijarro-Chaparral gold-copper project and the La
Hinchona copper-gold project, both in the central part of the
district.
Proyecto Riotinto East
Preparation work is underway that
would allow the Company to begin drilling priority anomalies
identified via SkyTEM and AGG surveys.
Corporate Activities Update
Intention to Move to the Main Market
In November 2023, the Company
announced its intention to apply for its ordinary shares to be
admitted to the premium listing segment of the Official List
maintained by the Financial Conduct Authority ("FCA") and
to trading on the London Stock Exchange plc's main market for
listed securities (together, "Admission").
On 21 December 2023, the
Company announced the application process was ongoing, outlined
that Admission remained subject to a number of conditions including
the approval by the FCA of a prospectus and noted that
Admission would not take place until after the announcement of the
Company's 2023 Annual Results.
The Company continues to progress
the application process and will provide further update on the
potential timing of Admission in due course.
Re-domiciliation
In November 2023, Atalaya announced
its intention to re-domicile the Company by transferring its
registered office from the Republic of Cyprus to the
Kingdom of Spain and convened an Extraordinary General
Meeting ("EGM") to seek approval for various related matters.
On 12 December 2023, the Company held the EGM, at which all
resolutions were approved by the Company's shareholders.
The re-domiciliation procedure is
ongoing. Following a new law implementing Directive EU 2019/2121
(in respect of cross-border reorganisations) entering into force in
Cyprus on 15 March 2024, the Company is assessing the potential
impacts of the new law on the re-domiciliation process. As a
result, there may be a delay in the completion of the
re-domiciliation and a further update will be provided to the
market in due course.
Alberto Lavandeira, CEO, commented:
"We have been active across our asset portfolio since the
start of the year. Although production was lower than recent
quarters, we expect improvement in grade and recoveries throughout
the year and reiterate our full year production
guidance.
At
San Dionisio, waste stripping activity is making good progress and
at San Antonio we are preparing plans for a drilling programme.
Both deposits are expected to provide Riotinto with higher grade
material in the coming years. We interrupted our operations to
connect our 50 MW solar plant to the substation, which will allow
for power generation to begin in Q2 2024. At E-LIX, final
construction and commissioning works continue and first zinc was
recovered from our concentrates. At our Touro project, local
engagement continues and the permitting process is
advancing.
Finally, we are pleased to see the strengthening in copper
market fundamentals. Ongoing supply challenges and growing demand
from renewables and new technologies have supported the copper
price in recent weeks. We continue to believe this is the right
time to invest in our growth pipeline in order to capitalise on the
expected copper deficits in the coming years."
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:
SEC Newgate UK
|
Elisabeth Cowell / Tom Carnegie /
Matthew Elliott
|
+44 20
3757 6882
|
Atalaya Mining
|
Michael Rechsteiner
|
+34 959 59
28 50
|
Canaccord Genuity
(NOMAD and Joint Broker)
|
Henry Fitzgerald-O'Connor / James
Asensio
|
+44 20
7523 8000
|
BMO Capital Markets
(Joint Broker)
|
Tom Rider / Andrew
Cameron
|
+44 20
7236 1010
|
Peel Hunt LLP
(Joint Broker)
|
Ross Allister / David
McKeown
|
+44 20
7418 8900
|
About Atalaya Mining Plc
Atalaya is an AIM-listed mining and
development group which produces copper concentrates and silver
by-product at its wholly owned Proyecto Riotinto site in southwest
Spain. Atalaya's current 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 that include
Proyecto Masa Valverde and Proyecto Riotinto East. 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, as well as a 99.9% interest in Proyecto Ossa Morena. For
further information, visit www.atalayamining.com