Atalaya pleased with performance amid external challenges

Atalaya Mining reported a good operational performance and decent financial results for 2022 on Wednesday, despite facing some external challenges.

The AIM-traded company noted an improved performance in the fourth quarter, providing a strong basis for a better outlook in 2023.

Copper production in the fourth quarter totalled 14,000 tonnes at an all-in sustaining cost (AISC) of $3.12 per pound, resulting in EBITDA of €18.2m, despite elevated input costs.

The copper production figure for the full year was 52,300 tonnes, partially impacted by the logistics strike in the first quarter.

Despite a €64m increase in annual electricity costs, the firm’s EBITDA for 2022 totalled €55.3m.

The net cash for the company remained strong at €53.1m, after what the board said were significant investments.

Atalaya Mining proposed a final dividend of 3.85 US cents per share, bringing the full-year dividend to 7.45 cents per share, consistent with its dividend policy.

The board said it was planning to invest in growth, cost reductions, and decarbonisation in 2023, including exploration, the first phase of E-LIX, and the 50 MW solar plant.

It highlighted that lower forecast electricity prices were expected to result in an improved performance in the year ahead.

Atalaya’s guidance for 2023 indicated copper production of 53,000 to 55,000 tonnes, at an AISC of $3.00 to $3.20 per pound.

“There were many external headwinds in 2022, but our team effectively navigated these challenges and delivered good operating results for much of the year,” said chief executive officer Alberto Lavandeira.

“We enter 2023 with a strong balance sheet and positive outlook for the year ahead.

“We remain committed to developing Proyecto Touro into a modern and sustainable mine that can provide Europe with a new source of domestic copper production.”

Lavandeira said the company was “pleased” that copper was declared a strategic raw material by the EU in its recent Critical Raw Materials Act, given its importance to the energy transition.

“As a proven Spanish copper producer with a track record of delivery, we are well placed to meet Europe's increasing demand for locally produced copper.”

At 1422 GMT, shares in Atalaya Mining were down 3.11% at 327.5p.

Reporting by Josh White for Sharecast.com.