14
October 2024
Atalaya Mining
Plc.
("Atalaya" or "the Company")
Q3 2024 Operations
Update
Continued progress at growth
assets including San Dionisio and Touro
Atalaya Mining Plc (LSE: ATYM) is
pleased to announce its operations update for the third quarter of
2024 ("Q3 2024" or the "Period").
Proyecto Riotinto Operating Highlights
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|
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Q3
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Q2
|
Full Year
|
|
|
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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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4.2
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3.8
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3.8
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16
|
|
Waste mined(2)
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M tonnes
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9.6
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9.7
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7.5
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25 -
30(3)
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Ore processed
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M tonnes
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4.3
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3.9
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4.1
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15.7 - 16.0(3)
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Copper grade
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%
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0.32
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0.38
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0.33
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0.34 -
0.38
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Copper recovery
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%
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84.35
|
87.00
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85.81
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84 -
86
|
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Copper production
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tonnes
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11,897
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12,541
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11,583
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45,000 -
50,000
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(1) Figures for Q3 2024 are preliminary and final
figures will be released with Q3 2024 financial
results.
(2) Represents the Cerro Colorado pit
only.
(3) Represents updated
guidance.
Mining
Ore mined was 4.2 million tonnes in
Q3 2024 (Q3 2023: 3.8 million tonnes), compared with 3.8 million
tonnes in Q2 2024.
Waste mined was 9.6 million tonnes
in Q3 2024 (Q3 2023: 9.7 million tonnes), compared with 7.5 million
tonnes in Q2 2024. In addition, waste stripping activities
continued at the San Dionisio area.
Processing
The plant processed ore of 4.3
million tonnes in Q3 2024 (Q3 2023: 3.9 million tonnes), compared
with 4.1 million tonnes in Q2 2024, which represents strong
plant performance above nameplate capacity
of 15 million tonnes per annum.
Copper grade was 0.32% in Q3 2024
(Q3 2023: 0.38%), compared with 0.33% in Q2 2024, as a result of
pit sequencing.
Copper recovery was 84.35% in Q3
2024 (Q3 2023: 87.00%), compared with 85.81% in Q2 2024, mainly due
to lower grades and the characteristics of certain transitional
ores.
Production
Copper production was 11,897 tonnes
in Q3 2024 (Q3 2023: 12,541 tonnes), compared with 11,583 tonnes in
Q2 2024, mainly due to strong plant throughput.
On-site copper concentrate
inventories at the end of Q3 2024 were approximately 12,577
tonnes.
Copper contained in concentrates
sold was 12,569 tonnes in Q3 2024 (Q3 2023: 12,521
tonnes).
Select Financial Highlights
Realised Copper Price
The average realised copper price
(excluding QPs closed during the Period) was $4.13/lb in Q3 2024
(Q3 2023: $3.77/lb), compared with $4.54/lb in Q2 2024. The average
spot copper price was $4.13/lb in Q3 2024.
Provisional Revenue Adjustments
For Q3 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 September
2024) were negative €2.9 million.
Balance Sheet
The Company's balance sheet remains
strong with unaudited consolidated cash and cash equivalents of
€76.3 million as at 30 September 2024.
Current and non-current borrowings
were €35.7 million, resulting in a net cash position of €40.6
million as at 30 September 2024, compared with €54.3 million as at
31 December 2023. The decrease in net cash is mainly the result of
ongoing capital investments and two dividend payments during the
quarter.
Outlook for 2024
Copper production for FY2024 is
expected to be at the lower end of
the 45,000 - 50,000 tonne guidance range.
Operating costs have been within
expectations and the Company will provide further updates in its Q3
2024 financial results.
Asset Portfolio Update
Proyecto Riotinto
Waste stripping continues at San
Dionisio in order to prepare the area for future mining phases.
Total material mined was 3.1 million tonnes in Q3 2024.
The permitting process associated
with the San Dionisio final pit continues to advance according to
expectations, including the completion of
the public information period in September
2024.
At San Antonio, an infill and
step-out drilling programme is expected to begin in late
2024.
E-LIX Phase I Plant
Commissioning and ramp-up activities
continue at the E-LIX Phase I plant. The plant demonstrated consistent
performance during much of September 2024, successfully producing copper
cathodes and zinc metal from Riotinto copper concentrates. Further progress is
expected in Q4 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
charges and a reduced carbon footprint.
50
MW Solar Plant
The Company's contractor has made
positive progress in recent months. The 50 MW solar plant is to be
connected at the end of October 2024 during a planned maintenance
stop. So far in 2024, market electricity prices have been
consistent with 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, thereby reducing the Company's carbon
footprint. 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. The
Company expects to start construction of the access ramp in early
2025.
At present, three drill rigs are
testing the north extension of the stockwork-type copper
mineralisation at the Masa Valverde deposit and one rig has started
an infill and step-out drilling program at Campanario.
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.
The XdG is continuing its review
according to the simplified procedures afforded to projects with
PIE status. A key next step will be the start of the public
information period, which is expected to
begin shortly, and serves to inform the
surrounding communities and organisations about the proposed
project.
In addition, the Company continues
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.
The Company has also initiated a
step-out drilling programme focused on areas where mineralisation
remains open.
Proyecto Ossa Morena
Once new permits are approved,
drilling will be prioritised at the flagship Alconchel-Pallares
copper-gold project and the Guijarro-Chaparral gold-copper
project.
Proyecto Riotinto East
Further drill testing of priority
coincident SkyTEM and AGG anomalies will continue once new drilling
permits are received.
Corporate Activities Update
Re-domiciliation
The Company continues to make
progress on its planned re-domiciliation from the Republic of
Cyprus to the Kingdom of Spain. Key workstreams are
complete and the Company now awaits the release of the tax
clearance certificate by the Cyprus Tax Department, after which the
formal court process can begin.
Alberto Lavandeira, CEO, commented:
"We continue to make progress across our asset portfolio,
which has the potential to deliver significant production growth in
the coming years. Waste stripping and permitting activities at San
Dionisio are advancing as expected, and work continues at Masa
Valverde ahead of the expected sanction of the access ramp. Both of
these projects represent potential sources of higher grade material
to feed our plant, which has been performing
well.
At
Touro, the permitting process is advancing well following the
awarding of strategic industrial project status. The public
information period is expected to begin soon, and we continue to
receive strong support from the many stakeholders in the
region.
The outlook for copper continues to be robust. Positive
developments in key economies like the U.S. and China are providing
support for copper demand, while on the supply side, very few large
growth projects are in the execution stages."
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 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 Cobre San Rafael S.L., which fully owns the Proyecto
Touro 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
