Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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KingSuarez - Yes on both but EA (Environmental Approval) is definitely a must :-)
My understanding is that ELIX will eventually result in the production of copper completely onsite. I'm going to fire off an email to the company to check and I'll report back here.
It looks like they're starting with the processing of a small chunk of the full production. I think that's a sensible thing to do, in case there are problems in scaling it up.
Thanks Svend, so you think over time this would simply replace the current processing system for all production, but with lower cost and better recoveries?
Do ATYM currently have plans to increase production as well, or is this dependent on environmental authorisation for the other projects?
KingSuarez > I am reading this In layman terms, basically aiming to produce purer copper cathodes concentrate recovery rate rather than increased production thus eliminating 3rd party purification and transportation handling costs suggest reviewing the Q3 results as Alberto explained the rationale behind the E-Lix system in the November presentation.
I asked the same question before i guess noone realy knows because its new. If its 3000 tonnes this year its not going to make a huge defference
Please excuse my ignorance but struggling to understand what this E-LIX plant means for ATYM exactly.
The RNS states that:
"Phase I plant capacity has been designed to produce between 3,000 to 10,000 tonnes of copper or zinc metal per year depending on the ratio of copper to zinc in the concentrate feed.
The estimated capex for Phase I is €12 million and the design allows for unlimited capacity expansion through the addition of multiple lines in parallel. Atalaya will start the construction of the plant in the coming weeks and it is expected that the plant will be operational in 2022, including commissioning."
Does this mean:
1) 3k - 10k ADDITIONAL tonnes of copper/zinc production is possible, on top of current 56k steady state production? And if it can be upgraded with unlimited expansion capacity - is this not HUGE for ATYM growth prospects?
2) If so, with the plant to come online at some time during 2022, why is 2022 production guidance flat on 2021 production?
3) Or does E-LIX simply reduce costs, via processing on site, and getting an improved recovery rate out of the existing plant?
4) And/or does the RNS imply that E-LIX enables ATYM to process some of the other ore bodies, that are more complex and of a polymetallic nature - so giving extended mine life?
I guess I am struggling to quantify what potential the E-LIX plant has and what ATYM future growth plans are - they seem to have the cash in bank and the free cash flow to re-invest in the business (whilst also paying a nice dividend) but the latest RNS has highlighted the likely increase in costs, which may counter any expected increase in Copper price - so we may be relying on production growth for much more of a re-rate in share price from here?
A bit disappointed not to see a good rise with this wonderful news of an improving production system, which will reduce the cost and materially increasing the recoveries of copper, zinc, lead and other precious metals. Thought that this would be touching the £4.50 mark. Perhaps we'll see that next week. Well, let's hope so anyway.
The beauty of the E-LIX System, (I am expecting it to work :) ), is that when the Sun isn't shining much, there are no angry customers. Just as long there's enough Sun each year, and we are in southern Spain, after all.
It was why the Dutch were so successful pumping their country dry: and they aren't even in southern Europe.
I like the word`significant!`
ATB ff
Excellent news the building of this new plant to extract further value from ore, and although this seems to be a new process its looks as though ATYM have been involved as an interested party for some time.
If it turns out to be as successful as anticipated then further extensions can be added in parallel.
Alberto Lavandeira, CEO commented
"The E-LIX System offers Atalaya a unique opportunity to unlock significant value from its portfolio of deposits that contain complex polymetallic mineralisation. Atalaya has worked together with Lain Technologies for many years in order to test, refine and demonstrate the E-LIX process, providing the Company with confidence in its potential. In addition to enhancing recoveries, E-LIX will eliminate penalties associated with deleterious elements and reduce the costs of transportation and energy, thereby improving the Company's carbon footprint."