Atalaya describes positive first-quarter performance

15th May 2023 12:32

(Sharecast News) - Atalaya Mining reported a positive first-quarter financial performance on Monday, amid ongoing growth potential in the Riotinto District.

The AIM-traded company said EBITDA for the first quarter totalled €24.4m, down from €26.71m year-on-year.

Its board said that still indicated the firm;s efficient operational management and strong market position, however.

Despite the decision to advance plant maintenance activities into the first quarter, Atalaya said it still achieved a copper production volume of 12,100 tonnes at an all-in sustaining cost (AISC) of $3.12 per pound of copper.

The board said the company's growth potential in the Riotinto District was reinforced in the period by the publication of the new Riotinto preliminary economic assessment.

Additionally, it secured important environmental permits for the Masa Valverde project. Atalaya also continued to invest in growth initiatives, cost reductions, and decarbonisation efforts.

The company allocated resources to exploration activities, E-LIX Phase I, and the development of a 50 MW solar plant.

Atalaya Mining said it maintained a robust balance sheet, with net cash totalling €55.3m at the end of the period.

Due to steady operational performance and improved electricity prices, Atalaya said it remained on track to meet its full-year outlook for 2023.

"We are pleased to have begun 2023 with a positive first quarter," said chief executive officer Alberto Lavandeira.

"Our operational performance was consistent with expectations and significantly reduced electricity prices have helped to deliver lower all-in sustaining costs and solid EBITDA for the period.

"We remain conscious of the ongoing input cost inflation that is affecting the mining sector, but we believe these pressures will provide support to the copper price over the medium and longer term."

Lavandeira said Atalaya benefitted from a "diversified portfolio" of growth projects in Spain, including higher-grade orebodies such as San Dionisio and Masa Valverde, past-producing projects like Touro, and exploration ground in areas with established infrastructure and a long mining history.

"Together, these assets provide growth optionality at a time when high quality copper projects are becoming increasingly scarce."

At 1205 BST, shares in Atalaya Mining were up 1.79% at 342p.

Reporting by Josh White for Sharecast.com.