Atalaya Mining exceeds copper production budget in fourth quarter

Atalaya Mining said on Thursday that copper production in the fourth quarter exceeded its budget at 14,332 tonnes, which was an 8.5% increase year-on-year.

The AIM-traded firm said it was the second highest quarterly copper production it had recorded, and represented the fourth consecutive quarter where copper production exceeded 13,000 tonnes.

A new annual production record of 55,890 tonnes of copper was achieved in 2020, with the year’s guidance met despite the operating challenges and the mandatory stoppage in April as a result of Covid-19 restrictions.

Atalaya said 3.9 million tonnes of ore milled were processed in the fourth quarter, making for a consistent quarterly throughput, as the increase in copper production was mainly attributable to higher ore milled and better metallurgical recoveries.

It explained that despite Covid-19, mining operations had continued normally with enough equipment on site to maintain the higher production levels required for the full operation of the expanded plant.

On-site concentrate inventories at the end of the fourth quarter totalled 12,180 tonnes, with all concentrate in stock at the beginning of the period and produced during the quarter was delivered to the port at Huelva.

Copper prices increased during the fourth quarter when compared with the third, with an average realised price per pound of copper payable of $2.99, compared to $2.72 per pound in the previous three-month period.

The average copper spot price during the quarter was $3.25 per pound, and the realised price during the fourth quarter was approximately $3.24 per pound.

Cash operating costs for the period were expected to be towards the upper end of, or slightly above, the 2020 cost guidance provided, owing mainly to the euro strengthening against the dollar.

Atalaya said local exploration at Proyecto Riotinto had focused on results from core drilling confirming the presence of unmined sulphides around Filon Sur, and around San Dionisio, which was under the old Atalaya pit located west of the current operating pit.

At San Dionisio, mapping of old workings and full geological interpretation had been completed, and a mining consultant was finalising the evaluation of the existing resource to incorporate into future mine plans.

Mineralisation at San Dionisio consisted of copper stockwork and polymetallic massive sulphides.

Looking at 2021, Atalaya Mining said full-year copper production was expected to be in the range of 52,000 to 54,000 tonnes.

The grade mined during 2021 was expected to be slightly lower than in 2020, owing to pit sequencing and lower cut-off grades resulting from higher copper prices.

However, plant optimisation mentioned was expected to allow higher throughput to compensate for lower grades, and maintain copper production.

“Despite the challenges of Covid-19, Atalaya Mining achieved a new annual production record of 55,890 tonnes of copper in 2020,” said chief executive officer Alberto Lavandeira.

“This record production level was within our 2020 provided guidance and is testament to our growth and ability to deliver value for shareholders.”

Lavandeira said the year ahead would see the progression of optimisation and exploration initiatives designed to drive the company’s future growth.

At 1134 GMT, shares in Atalaya Mining were up 0.36% at 277p.