Atalaya Mining PLC Third Quarter 2019 Operations Update (1364Q)
17 Ottobre 2019 - 8:00AM
UK Regulatory
TIDMATYM
RNS Number : 1364Q
Atalaya Mining PLC
17 October 2019
17 October 2019
Atalaya Mining Plc. ("Atalaya" or "the Company")
Third Quarter 2019 Operations Update
Atalaya Mining Plc (AIM:ATYM, TSX:AYM), is pleased to announce
its operational update for the third quarter of 2019.
Proyecto Riotinto
Q3 Q2 Year-to-date Updated full
year
2019 2018 2019 2019 2019 Guidance
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Ore mined (M tonnes) 2.7 2.8 2.8 8.0 11.4
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Waste mined (M tonnes) 4.4 3.2 3.6 11.8 17.8
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Ore milled (M tonnes) 2.6 2.5 2.6 7.6 10.6
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Cu grade (%) 0.47 0.50 0.48 0.47 0.48
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Cu recovery (%) 87.38 88.40 88.72 88.77 85 - 87
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Cu production (tonnes) 10,568 11,055 10,888 31,675 44,000 - 45,000
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Q3 2019 copper production was 10,568 tonnes, in line with
expectations but slightly lower than Q2 2019 due to lower recovery
levels and copper head grade. An average copper head grade of 0.47%
and a recovery rate of 87.38% for the 2.6 Mt of ore processed have
resulted in copper production being 2.9% lower than Q2 2019.
On 19 August 2019, the Company reached full mechanical
completion of its 15Mtpa expansion ("Expansion Project") and
commenced ramping up. As explained in the mechanical completion
announcement of 19 August 2019, the increase in throughput capacity
and full completion relied on additional electricity supply to be
provided by power supplier, Endesa. While Endesa has begun the
necessary work to provide the additional electricity supply, it has
not yet completed it and consequently the ramp-up of the Expansion
Project is slightly delayed. As a result, the Company has reviewed
its existing production guidance and now expects ore processed in
2019 to be 10.6Mt with copper produced expected to be in the range
of 44,000 to 45,000 tonnes compared to the 45,000 to 46,500 tonnes
previously reported. All other key production metrics remain as
previously guided. The Company remains confident that the Expansion
Project will reach nameplate capacity by the end of 2019 with
production in 2020 expected to be in the range of 55,000 to 58,000
tonnes.
Mining operations are progressing according to plan and up from
previous quarters. On a combined basis, ore and waste increased to
2.6 million m3 in Q3 2019 versus 2.3 million m3 in Q2 2019.
On-site concentrate inventories at the end of the quarter were
approximately 2,186 tonnes. All concentrate in stock at the
beginning of the quarter and produced during the quarter was
delivered to the port at Huelva.
The realised copper price during Q3 2019 was lower than the
previous quarter, with an average realised price per pound of
copper payable, including the QPs closed in the period, of $2.76/lb
compared with $2.81/lb in Q2 2019. The average copper spot price
during the quarter was $2.61/lb. The realised price during the
quarter excluding QPs, was approximately $2.74/lb, well above the
spot price but we anticipate lower realised prices in coming
months.
Cash operating costs and AISC for Q3 2019 are expected to be
below budget. Further details on costs will be provided with the Q3
Financial Statements to be reported in November 2019.
Exploration and infill drilling continue to progress with two
rigs at Filón Sur-Cerro Colorado. One deep hole is being drilled in
Cerro Colorado in order to explore a rich Cu stockwork zone that
occurs under the Salomon zone. The RC drilling continues the infill
drilling programme in order to better define the occurrence of
penalty elements in the mining pit.
Expansion to 15Mtpa at Proyecto Riotinto
The Expansion Project has completed the cold mechanical
commissioning of all sections and the last new installation (Sag
Mill and auxiliary mills installation) has now begun processing
ore. The delay in the availability of electrical energy is
currently being addressed by the power provider and the Company
continues to plan for an expanded throughput rate of 15Mtpa by the
end of 2019. To achieve full commissioning, three stages of
production ramp-up are expected - the first in October reaching 65%
of 15Mtpa, a second in November up to 85% and one final stage
during December up to 100%.
The new primary crusher has been steadily working during the
quarter with waste material for testing and commissioning. The new
flotation and concentrate handling areas are finished and running
as expected.
Proyecto Touro
During the quarter, the Company continued addressing additional
information requests from administrative bodies. Atalaya addressed
comments from Aguas de Galicia, Natural Heritage and the General
Directorate of Mines.
Alberto Lavandeira, CEO, commented:
"The Expansion Project is ramping up towards full production
and, despite delays to the increased electricity supply, the
Company expects the new plant to achieve its full 15Mtpa capacity
by December 2019. Despite a slight reduction in production this
quarter, we remain confident that our guidance levels for the
remainder of the year will be met."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam + 44 20 3757
Newgate Communications Lloyd / Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity (NOMAD Henry Fitzgerald-O'Connor +44 20 7523
and Joint Broker) / James Asensio 8000
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Jeffrey Couch / Tom Rider
BMO Capital Markets (Joint / Michael Rechsteiner / +44 20 7236
Broker) Neil Elliot 1010
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+44 20 7418
Peel Hunt LLP (Joint Broker) Ross Allister / David McKeown 8900
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. 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 which is currently in the permitting stage. For
further information, visit www.atalayamining.com
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END
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