Atalaya copper grade, recovery rate slips in fourth quarter

The AIM-traded firm said it mined 7.4 million tonnes of waste, rising from 5.3 million tonnes in the fourth quarter of 2022, while its plant processed 4.1 million tonnes of ore in the period, exceeding its 15 million tonnes-per-annum capacity.

Its copper grade in the period was 0.36%, impacted by heavy rainfall in November, while copper recovery slipped to 85.39% from 86.24% year-on-year.

Copper production was slightly down on the year at 12,775 tonnes, while the average realised copper price was $3.78 per pound.

On-site copper concentrate inventories at the end of the fourth quarter totalled about 6,722 tonnes.

Atalaya said construction was continuing on the 50 MW solar plant at Riotinto, set to cover 22% of its electricity needs, while copper production for 2024 was expected to range from 51,000 to 53,000 tonnes.

On the corporate front, Atalaya said it was progressing its re-domiciliation to Spain, expected to be completed by May.

It was also working towards moving to the main market of the London Stock Exchange, contingent on regulatory approvals and the release of its 2023 annual results.

“We are pleased with the progress we achieved in 2023 across our business,” said chief executive officer Alberto Lavandeira.

“Although grades were slightly lower than expected, our processing plant performed well once again.

“We initiated stripping activities at the San Dionisio area, advanced construction at our 50 MW solar plant, and produced the first copper cathodes at the new E-LIX Phase 1 plant.”

Lavandeira said the company had “many reasons to be excited” about 2024.

“We look forward to demonstrating the significant potential of the E-LIX System, expect to reduce our costs and carbon footprint via the ramp-up of the 50 MW solar plant, and are optimistic about the prospects of Proyecto Touro.

“In terms of copper, recent events from across the industry continue to highlight the strategic value of producing assets located in safe geographies and the many challenges associated with increasing supply.

“We believe Atalaya is uniquely positioned thanks to its strong balance sheet, demonstrated development and operating expertise, and pipeline of growth projects located in Spain.”

At 1418 GMT, shares in Atalaya Mining were down 3.11% at 312p.

Reporting by Josh White for Sharecast.com.