Atalaya Mining pleased with fourth quarter, full-year figures

Atalaya Mining said in an update on Tuesday that it mined 3.5 million tonnes of ore in the fourth quarter of 2022 - in line with the fourth quarter of 2021 and down from 3.8 million tonnes in the third quarter.

The AIM-traded firm said total ore mined was 14.9 million tonnes in the year, up from 13.5 million tonnes a year earlier.

Waste mined totalled 5.3 million tonnes in the fourth quarter, down from 7.3 million tonnes year-on-year and 5.8 million tonnes quarter-on-quarter.

Atalaya said total waste mined during the year was 24.7 million tonnes, down from 30.5 million tonnes in 2021.

The plant processed four million tonnes of ore in the fourth quarter, up from 3.9 million tonnes in the third quarter.

Throughput was 15.4 million tonnes in the year, down from 15.8 million tonnes in 2021, demonstrating “strong” plant performance despite the negative impact of the first quarter transport sector strike and related stoppage.

The company said the plant continued to highlight its ability to operate above its 15 million tonnes-per-annum nameplate capacity.

Its copper grade was 0.41% in the fourth quarter, in line with 0.41% in the third quarter, while for the year as a whole it slipped to 0.4% from 0.41%.

The board said the lower grades in 2022 were the result of blending with lower-grade stockpiles during the first half, due to pit sequencing.

Copper recoveries in the fourth quarter were 86.24%, down slightly from 84.62% in the third quarter, which Atalaya noted was negatively impacted by the characteristics of the ore processed.

The company said full-year copper recoveries slipped slightly to 85.85%, from 85.97% in 2021.

Looking at production, Atalaya said it produced 13,969 tonnes of copper in the fourth quarter, up from 13,453 tonnes in the third.

Copper production totalled 52,269 tonnes in 2022 as a whole, down from 56,097 tonnes a year earlier.

The board said the lower full-year production was the result of lower grades due to pit sequencing, and lower throughput including the impact of the first quarter plant maintenance stoppage.

On-site copper concentrate inventories at the end of the fourth quarter totalled around 3,529 tonnes, with all concentrate in stock at the beginning of the period was delivered to the port at Huelva.

Copper contained in concentrates sold totalled 14,027 tonnes in the fourth quarter, up from 13,568 tonnes year-on-year, and 52,323 tonnes for 2022, down from 61,662 tonnes in the prior year.

“We are pleased to have closed 2022 with a strong quarter, allowing the company to deliver solid production for the year despite the disruption during the first quarter,” said chief executive officer Alberto Lavandeira.

“The year was dominated by geopolitical and macroeconomic factors, including war, cost inflation and an unprecedented energy crisis in Europe, but for the most part, our operational performance was not impacted.

“We look forward to 2023 and expect the fourth quarter’s momentum to continue, both in terms of operations and also with respect to energy prices.”

Lavandeira said the combination of lower market electricity prices and the contribution from its long-term power purchase agreement and 50 MW solar plant were expected to reduce costs “materially” compared to 2022.

“Despite the cost headwinds we faced, our balance sheet remains strong and will allow Atalaya to continue to invest in growth and cost reduction initiatives, including E-LIX, higher-grade orebodies and exploration across our portfolio.

“In addition, our financial strength means we are well positioned to develop Touro should approvals be granted, which could become a new source of copper production in Europe.”

At 1628 GMT, shares in Atalaya Mining were up 0.29% at 369.05p.

Reporting by Josh White for Sharecast.com.