Atalaya earnings more-than-triple on solid production, higher prices

Atalaya Mining reported year-to-date EBITDA of €148.2m (£124.74m) after its third quarter on Thursday, rising from €44.4m year-on-year, after it hiked its production guidance in October.

The AIM-traded firm said cash flows from operating activities totalled €129.2m at the end of the first nine months on 30 September, up from €41.8m year-on-year, as a result of “robust operational performance” at Proyecto Riotinto, and strong copper prices.

Following its increased production guidance on 13 October, the company also updated its cost guidance for the year, with cash costs now expected to be between $2.15 and $2.25 per pound.

Its all-in sustaining cost, meanwhile, was now expected to be at the lower end of its previous guidance range of $2.50 to $2.65 per pound.

Total cash as at 30 September was €140.9m, including restricted cash of €15.4m, up from €37.8m on 31 December.

Atalaya said it had maintained a “strong” balance sheet, with net cash of €88.9m at the end of the third quarter.

“Robust operational performance, combined with strong copper prices, has seen our EBITDA for the first nine months of 2021 more than triple from the amount generated during the same period of 2020,” said chief executive officer Alberto Lavandeira.

“This continued strong performance, underpinned by our solid balance sheet, makes us confident we will achieve our increased 2021 copper production guidance of between 54,000 and 56,000 tonnes.

“The announcement of our inaugural dividend in October also expresses the confidence the board has for Atalaya's future and allows us to reward our loyal shareholders for their continued support while at the same time growing the company.”

At 1255 GMT, shares in Atalaya Mining were down 0.43% at 406.25p.