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@Alanadale: "We seem to be holding well"
I agree. I thought it would pullback more than this. I'm becoming more impressed with this stock by the day.
We seem to be holding well- be great to get over £4 though copper yo yoing a bit
My god this planning application for the solar panels is taking an age. Maybe the bats objected
Well someones buying somewhere!!
Morning - watch the Copper price closely chaps IMO.
Just an educated hunch.
GL
David where are your calculations to support your theory please still not received them!!!
Yes Stocko rates ATYM the most highly among the mining stocks. Will follow up your comments with interest.
When is the solar coming online; will it be adequate to requirements?
Yep but the energy crisis is very recent.
A little profit taking today at 389p. With a buy order set for 330p in case it falls back to where it was a week ago. Nicely in profit with what I have left, always worth de-risking a bit when the opportunity arises.
Didn't ATYM signal in its last RNS that "-- Cash operating costs for the Period are expected to be below full year 2021 cost guidance owing mainly to the Euro/U.S. dollar exchange rate together with higher copper production and better recoveries. Further details on costs will be provided with the Q3 Financial Statements due to be reported in mid-November."
Further benefits as outlined below should continue to help, the material level of copper price increase and Touro "icing" and exploration IMO should enable ATYM as a materially IMO undervalued on an EV/EBITDA basis miner, continue to be re-rated.....DYOR etc.
@jimmy00: good point re: the solar.
With the solar panels coming online, I expect there will be no long-term hit due to increasing power costs. It's all looking good here. It's impressive how the management were ahead of the curve with the solar power plans.
They are also weeks away from getting the final permits for the 50MW solar panel plant. Construction starts immediately after and power generated will be used to power the mine.
@David: "This implies that the AISC is rising and profits, probably not at all. Sorry to rain on your parade"
It's worth comparing ATYM to CAML in Stockopedia:
=======================
Company: ATYM, CAML
=======================
Mkt Cap (£/m): 496.2, 435.7
EV (£/m): 465.6, 442.7
Net Profit (£/m): 77.2, 41.0
Sales (£/m): 280.2, 138.3
=======================
In summary, ATYM is more profitable than CAML and is much cheaper. ATYM is signalled as the 'winner' by Stockopedia.
Atalaya is currently valued on a P/E (12m Forecast Rolling) of 4.7, while Central Asia Metals (CAML) is 7.5. Granted, CAML pays a nice dividend.
Atalaya has been profitable for the past 6 years, with profits increasing significantly over that time.
Operating Profits for 2019, 2020 and TTM were (EUR/m): 36.6, 35.7 and 111
Net Profits were: 37.3, 31.5 and 91.5
Production guidance was raised on 13 Oct and copper has risen another 10% since then, so it's a reasonable expectation that the next years's profits could be even higher.
Would love to see your calculation to support your theory
Prior to this recent rise in the copper price ATYM was undervalued and my calculations show fair value of at least £6. The sp surge today is being driven by the copper price but what is driving that? Over the last year the price of copper has been much higher than in previous years due to demand and ATYM with its high AISC is a geared play on that. Now however we are probably seeing the copper price rising due to very high power costs i.e. it's coming from the supply side. This implies that the AISC is rising and profits, probably not at all. Sorry to rain on your parade :-)