Atalaya confident despite some first-quarter weakness

Atalaya Mining updated the market on its operations in the first quarter on Thursday, reporting that ore mined reached 3.7 million tonnes, marking a slight increase from the prior year.

The AIM-traded firm said there there was a notable decrease in waste mined, however, to 5.5 million tonnes, attributed to specific activities at the San Dionisio area.

Regarding processing, the plant processed 3.7 million tonnes of ore, comparable to 2023 figures, although throughput was affected by scheduled shutdowns for maintenance and solar plant integration.

The copper grade experienced a decrease in the quarter, primarily due to pit sequencing and weather conditions impacting access to higher-grade areas.

Production-wise, copper production for the first quarter totalled 10,666 tonnes, reflecting a decline from 2023, primarily influenced by lower grades and recoveries.

Notably, on-site copper concentrate inventories stood at around 8,283 tonnes by the end of the period.

On the financial front, the average realised copper price in the quarter was $3.89 per pound, slightly lower than the prior year.

Additionally, settlement adjustments and fair value adjustments resulted in -€3.8m for the period.

Despite those challenges, Atalaya said it maintained a robust balance sheet with consolidated cash and cash equivalents of €86.2m as of 31 March.

The company's net cash position decreased slightly compared to the prior quarter due to lower copper sales and increased investment in capital projects.

Looking ahead, Atalaya reaffirmed its full-year guidance for 2024 for copper production and costs.

Notably, the company said it was continuing to advance its asset portfolio, with significant developments at projects such as Proyecto Riotinto, the E-LIX phase one plant, and the 50MW solar plant.

“We have been active across our asset portfolio since the start of the year,” said chief executive officer Alberto Lavandeira.

“Although production was lower than recent quarters, we expect improvement in grade and recoveries throughout the year and reiterate our full year production guidance.”

Lavandeira added that the company was pleased to see strengthening 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.”

At 1027 BST, shares in Atalaya Mining were down 1.52% at 420p.

Reporting by Josh White for Sharecast.com.