Atalaya Mining PLC Approval of inaugural dividend (3544Q)
27 October 2021 - 5:00PM
UK Regulatory
TIDMATYM
RNS Number : 3544Q
Atalaya Mining PLC
27 October 2021
27 October 2021
Atalaya Mining Plc.
("Atalaya" or the "Company")
Approval of inaugural dividend and future dividend policy
Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce
that the Company's Board of Directors has approved its inaugural
dividend (the "Inaugural Dividend") as well as the adoption of a
future dividend policy ("Dividend Policy") that will take effect
from 2022.
Background
Following the expansion of Proyecto Riotinto's processing
capacity to 15 Mtpa, Atalaya has been generating robust cash flow
as a result of the plant consistently operating above nameplate
capacity, coupled with the strong copper price environment.
Accordingly, Atalaya is now in a position to reward its
shareholders by initiating a sustainable dividend policy while
still investing in its portfolio of low capital intensity growth
projects, such as the San Dionisio deposit, Proyecto Masa Valverde
and Proyecto Touro.
Dividend Policy
Consistent with its strategy to create and deliver shareholder
value, the Company has approved a Dividend Policy that will make an
annual payout of between 30% and 50% of free cash flow generated
during the applicable financial year ("Ordinary Dividend").
The Dividend Policy will take effect in financial year 2022. The
annual Ordinary Dividend will be paid in two half-yearly
instalments and announced in conjunction with future interim and
full year results.
The declaration and payment of all future dividends under the
new policy will remain subject to approval by the Board of
Directors.
Inaugural Dividend
The Board of Directors has elected to declare an Inaugural
Dividend of US$0.395 per ordinary share (approximately US$54.6
million), which is equivalent to approximately 29 pence per share.
The Inaugural Dividend is for the nine months ended 30 September
2021 and represents a yield of approximately 7.3% based on the
current share price.
The record date for the Inaugural Dividend will be 5 November
2021 and the shares will become ex-dividend on 4 November 2021.
The Inaugural Dividend will be paid on 1 December 2021 in US
Dollars, with an option for shareholders to elect to receive the
dividend in Sterling or Euros (the "Foreign Designated
Currencies"). Shareholders are requested to communicate their
currency election to the Company by no later than 11 November 2021.
The exchange rates for payments in Sterling and Euros will be fixed
by Atalaya on 15 November 2021 and subsequently announced.
Shareholders are also requested to complete the requisite tax
forms by no later than 11 November 2021, which are available on the
Company's website.
Inaugural Dividend Timetable:
Event Date
Ex-Dividend date 4 November 2021
-----------------
Record date 5 November 2021
-----------------
Last day for currency election 11 November 2021
-----------------
Last date for tax form 11 November 2021
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Date of exchange rate used for Foreign Designated 15 November 2021
Currencies
-----------------
Announcement of exchange rate in Foreign 16 November 2021
Designated Currencies
-----------------
Payment date 1 December 2021
-----------------
Alberto Lavandeira, CEO, commented:
"I am proud that Atalaya is announcing its inaugural dividend
for 2021 along with a future dividend policy. This represents a
major milestone for the Company and validates the strength and
sustainability of our business. Atalaya's shareholders will be
rewarded for having consistently supported the Company as it
restarted Proyecto Riotinto and expanded it into a world class
operation. Today, we are in a strong net cash position and continue
to grow our cash balance, allowing the Company to begin returning
capital to shareholders whilst continuing to advance our exciting
growth pipeline."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam Lloyd / + 44 20 3757
Newgate Communications Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
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BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider / Andrew Cameron 1010
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Peel Hunt LLP +44 20 7418
(Joint 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. 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 centralised 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. For
further information, visit www.atalayamining.com
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END
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