Atalaya Mining board declares inaugural dividend

Atalaya Mining announced on Wednesday that its board has approved its inaugural dividend, as well as the adoption of a future dividend policy that would take effect from 2022.

The AIM-traded firm said that following the expansion of Proyecto Riotinto's processing capacity to 15 Mtpa, the company had been generating “robust” cash flow as a result of the plant consistently operating above nameplate capacity, coupled with a strong copper price environment.

As a result, Atalaya was now in a position to reward 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.

The board declared an inaugural dividend of 39.5 US cents per ordinary share, or a total of around $54.6m, making for an equivalent of 29p per share.

Atalaya said the dividend was for the nine month period ended 30 September, and represented a yield of about 7.3% based on the current share price.

The firm said the record date for the dividend would be 5 November, and the shares would become ex-dividend on 4 November, before the inaugural dividend was paid on 1 December in dollars, with an option for shareholders to choose to receive it in sterling or euros.

Atalaya’s board also said that, consistent with its strategy to create and deliver shareholder value, it had approved a Dividend Policy that would make an annual payout of between 30% and 50% of free cash flow generated during the applicable financial year.

The dividend policy would take effect in the 2022 financial year, and would be paid in two half-yearly instalments, announced in conjunction with future interim and full-year results.

“I am proud that Atalaya is announcing its inaugural dividend for 2021 along with a future dividend policy,” said chief executive officer Alberto Lavandeira.

“This represents a major milestone for the Company and validates the strength and sustainability of our business.”

Lavandeira said Atalaya's shareholders would 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.”

At 0903 BST, shares in Atalaya Mining were up 1.28% at 395p.