TIDMATYM
RNS Number : 0656A
Atalaya Mining PLC
18 January 2024
18 January 2024
Atalaya Mining Plc.
("Atalaya" or "the Company")
Q4 2023 Operations Update and 2024 Production Guidance
Steady performance and key project delivery expected in
FY2024
Atalaya Mining Plc (AIM: ATYM) is pleased to announce its
operations update for the fourth quarter of 2023 ("Q4 2023" or the
"Period").
Proyecto Riotinto Operating Highlights
Q4 Q3 Full Year
2023(1) 2022 2023 2023 2022 2024 Guidance
-------------------------- -------- ------- ------- ------- --------------
Ore mined M tonnes 3.7 3.5 3.8 14.9 14.9 19
---------- -------- ------- ------- ------- ------- --------------
Waste mined M tonnes 7.4 5.3 9.7 32.2 24.7 25
---------- -------- ------- ------- ------- ------- --------------
Ore milled M tonnes 4.1 4.0 3.9 15.8 15.4 15.3 - 15.8
---------- -------- ------- ------- ------- ------- --------------
Cu grade % 0.36 0.41 0.38 0.38 0.40 0.39 - 0.41
---------- -------- ------- ------- ------- ------- --------------
Cu recovery % 85.39 86.24 87.00 86.63 85.84 84 - 86
---------- -------- ------- ------- ------- ------- --------------
51,000 -
Cu production tonnes 12,775 13,969 12,541 51,667 52,269 53,000
---------- -------- ------- ------- ------- ------- --------------
(1) Figures for Q4 2023 are preliminary and final figures will
be released with 2023 Annual Results.
Mining
Ore mined was 3.7 million tonnes in Q4 2023 (Q4 2022: 3.5
million tonnes), compared with 3.8 million tonnes in Q3 2023. Ore
mined was 14.9 million tonnes in FY2023 (FY2022: 14.9 million
tonnes).
Waste mined was 7.4 million tonnes in Q4 2023 (Q4 2022: 5.3
million tonnes), compared with 9.7 million tonnes in Q3 2023. Waste
mined was 32.2 million tonnes in FY2023 (FY2022: 24.7 million
tonnes). Increased waste mining was completed at Cerro Colorado in
FY2023 to allow for the move of mining equipment to the San
Dionisio area.
Processing
The plant processed ore of 4.1 million tonnes during Q4 2023 (Q4
2022: 4.0 million tonnes), compared with 3.9 million tonnes in Q3
2023. Throughput was 15.8 million tonnes in FY2023 (FY2022: 15.4
million tonnes), again delivering plant performance above its 15
million tonne per annum nameplate capacity.
Copper grade was 0.36% in Q4 2023 (Q4 2022: 0.41%), compared
with 0.38% in Q3 2023. Copper grade was 0.38% in FY2023 (FY2022:
0.40%). The copper grade in Q4 2023 was impacted in part by intense
rainfall in November which prevented access to higher grade areas
of the Cerro Colorado pit and required the use of low grade
stockpiles to supplement plant feed.
Copper recovery in Q4 2023 was 85.39% (Q4 2022: 86.24%),
compared with 87.00% in Q3 2023, due to lower grades being
processed. Copper recovery in FY2023 was 86.63% (FY2022: 85.84%) as
a result of better plant performance.
Production
Copper production was 12,775 tonnes in Q4 2023 (Q4 2022: 13,969
tonnes), compared with 12,541 tonnes in Q3 2023. Copper production
was 51,667 tonnes in FY2023 (FY2022: 52,269 tonnes). Production for
FY2023 was slightly below guidance as a result of lower grades,
partly offset by higher ore throughput and recoveries.
On-site copper concentrate inventories at the end of Q4 2023
were approximately 6,722 tonnes.
Copper contained in concentrates sold was 12,928 tonnes in Q4
2023 (Q4 2022: 14,027 tonnes) and 50,808 tonnes in FY2023 (FY2022:
52,323 tonnes).
Select Financial Highlights
Realised Copper Price
The average realised copper price (excluding QPs closed during
the Period) was $3.78/lb in Q4 2023 (Q4 2022: $3.70/lb), compared
with $3.77/lb in Q3 2023. The average spot copper price was
$3.71/lb in Q4 2023.
Provisional Revenue Adjustments
For Q4 2023, settlement adjustments (for QPs closed during the
Period) and fair value adjustments (for open QPs based on copper
forward curve prices as at 31 December 2023) were negative EUR0.2
million.
Balance Sheet
The Company's balance sheet remains strong with consolidated
cash and cash equivalents of EUR119.7 million as at 31 December
2023.
Net of current and non-current borrowings of EUR64.0 million,
net cash was EUR55.7 million as at 31 December 2023, compared with
EUR53.1 million as at 31 December 2022.
Electricity Prices
Estimated Realised Prices
Market electricity prices in Q4 2023 were lower than the other
quarters of 2023, due to mild weather in much of Europe and a good
contribution from wind generation in Iberia. After including the
contribution from the Company's 10-year power purchase agreement
("PPA"), realised electricity prices in Q4 2023 and FY2023 were
approximately 60% lower than the Company's average realised
electricity price in 2022.
Renewable Energy Projects
Construction continues at the 50 MW solar plant at Riotinto. The
first section is scheduled to be connected in mid-February, with
the ramp-up of the remaining areas expected in the following
months.
When fully operational, the 50 MW solar plant is expected to
provide approximately 22% of Riotinto's current electricity needs.
Together, the 50 MW solar plant and long-term PPA will provide over
50% of the Company's current electricity requirements at a rate
well below historical prices in Spain.
The Company continues to evaluate the potential installation of
wind turbines at Riotinto, which could supply additional low cost
and carbon-free electricity. Final wind resource assessment and
wildlife impact reports are expected during 2024.
2024 Production Guidance
Copper production is expected to be 51,000 to 53,000 tonnes,
consistent with FY2023 production levels, with FY2024 production
weighted slightly towards H2 2024 as a result of the expected grade
profile.
The Company will provide 2024 operating cost and capital
expenditure guidance when it reports its 2023 Annual Results.
Asset Portfolio Update
Proyecto Riotinto
In April 2023, the Company was granted a substantial
modification to the existing Unified Environmental Authorisation
(or in Spanish, Autorización Ambiental Unificada ("AAU")) for
Proyecto Riotinto by the Junta de Andalucía. The AAU allows for the
expansion of tailings capacity and the mine footprint at Riotinto
and represents an important step towards developing regional
deposits such as San Dionisio and San Antonio.
The Company is continuing with permitting activities associated
with the San Dionisio final pit, which represents a key component
of the integrated mine plan that was outlined in the 2023 Riotinto
PEA. Initial stripping is underway in order to prepare the area for
future mining phases.
E-LIX Phase I Plant
Development progress continues at the E-LIX Phase I site.
Initial copper cathodes were produced in December 2023 during the
commissioning of portions of the plant. Full commissioning and
ramp-up of the facility are expected during H1 2024.
Once fully operational, the E-LIX plant is expected to produce
high-purity copper or zinc metals on site, allowing the Company to
potentially achieve higher metal recoveries from complex
polymetallic ores, lower transportation and concentrate treatment
charges and a reduced carbon footprint.
Riotinto District - Proyecto Masa Valverde ("PMV")
In March 2023, the Company announced that PMV was granted an AAU
by the Junta de Andalucía, following an application process that
was initiated by the Company in December 2021. The AAU is an
integrated process that combines the Environmental Impact
Assessment and other authorisations and specifies requirements to
avoid, prevent and minimise a project's impacts on the environment
and the cultural heritage of the area. In November 2023, the
exploitation permit for the Masa Valverde and Majadales deposits
was officially granted. Various optimisation workstreams
continue.
Two core rigs are active and focused on step-out drilling at the
Mojarra Trend and completing metallurgical and infill drilling at
the Masa Valverde deposit.
Proyecto Touro
Atalaya remains fully committed to the development of the Touro
copper project, which has the potential to provide substantial
benefits to Galicia and also support the European Union's critical
raw materials mandate.
Touro has the potential to become a new source of copper
production for Europe. As such, the project could also be granted
"Strategic Project" status by the EU, which can be awarded to
projects "based on their contribution to the security of supply of
strategic raw materials, their technical feasibility,
sustainability and social standards", as part of the Critical Raw
Materials Act. Copper was recently added to the list of "Strategic
Raw Materials" owing to its importance for strategic sectors and
technologies and due to the supply-demand imbalance that is
expected in the near future.
Running parallel with the ongoing Touro permitting process, the
Company continues to focus on numerous initiatives related to the
social licence, including engaging with the many stakeholders in
the region to provide detailed information on the new and improved
project design. Positive and favourable feedback from numerous
meetings with municipalities, farmers and fishermen associations
and other industries indicate meaningful support towards the
development of a new and modern mining project.
The Company continues to successfully restore the water quality
of the rivers around Touro and is operating its water treatment
plant, which is addressing the legacy issues associated with acid
water runoff from the historical mine, which closed in 1987. The
field-work carried out by Atalaya has resulted in an immediate and
visible improvement of the water systems surrounding the project,
with the progress being recognised by local stakeholders and the
media.
Atalaya continues to be confident that its approach to Touro,
which includes fully plastic lined thickened tailings with zero
discharge, is consistent with international best practice and will
satisfy the most stringent environmental conditions that may be
imposed by the authorities prior to the development of the
project.
Proyecto Ossa Morena
Drilling continued to progress with one rig at the
Guijarro-Chaparral gold-copper project and the La Hinchona
copper-gold project, both in the central part of the district. One
drill hole was completed at the flagship Alconchel-Pallares
copper-gold project.
Proyecto Riotinto East
Drill testing of selected coincident FLEM and AGG anomalies is
in progress with one rig.
Corporate Activities Update
Re-domiciliation
On 12 December 2023, the Company held an Extraordinary General
Meeting in relation to its intention to re-domicile the Company by
transferring its registered office from the Republic of Cyprus to
the Kingdom of Spain. All of the resolutions were approved by the
Company's shareholders.
As a result, various procedural and legal steps are underway.
Completion of the proposed re-domiciliation continues to be
expected before the end of May 2024.
Intention to Move to the Main Market
As announced on 21 December 2023, the Company continues to
progress its application process to the Financial Conduct Authority
("FCA") to admit its ordinary shares to the premium listing segment
of the Official List and to trading on the London Stock Exchange
plc's main market for listed securities.
Admission remains subject to a number of conditions including
the approval by the FCA of a prospectus, and will not take place
before the release of the Company's 2023 Annual Results.
Alberto Lavandeira, CEO, commented:
"We are pleased with the progress we achieved in 2023 across our
business. Although grades were slightly lower than expectation, 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.
We have 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."
This announcement contains information which, prior to its
publication constituted inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014.
Contacts:
Elisabeth Cowell / Tom
SEC Newgate UK Carnegie / Matthew Elliott + 44 20 3757 6882
Atalaya Mining Michael Rechsteiner +34 959 59 28 50
------------------------------- ------------------
Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor
Broker) / James Asensio +44 20 7523 8000
------------------------------- ------------------
BMO Capital Markets
(Joint Broker) Tom Rider / Andrew Cameron +44 20 7236 1010
------------------------------- ------------------
Peel Hunt LLP
(Joint Broker) Ross Allister / David McKeown +44 20 7418 8900
------------------------------- ------------------
About Atalaya Mining Plc
Atalaya is an AIM-listed mining and development group which
produces copper concentrates and silver by-product at its wholly
owned Proyecto Riotinto site in southwest Spain. Atalaya's current
operations include the Cerro Colorado open pit mine and a modern 15
Mtpa processing plant, which has the potential to become a central
processing hub for ore sourced from its wholly owned regional
projects around Riotinto that include Proyecto Masa Valverde and
Proyecto Riotinto East. In addition, the Group has a phased earn-in
agreement for up to 80% ownership of Proyecto Touro, a brownfield
copper project in the northwest of Spain, as well as a 99.9%
interest in Proyecto Ossa Morena. For further information, visit
www.atalayamining.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLDZGMMNNNGDZM
(END) Dow Jones Newswires
January 18, 2024 02:00 ET (07:00 GMT)
Grafico Azioni Atalaya Mining (LSE:ATYM)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Atalaya Mining (LSE:ATYM)
Storico
Da Apr 2023 a Apr 2024
