(Alliance News) - Atalaya Mining PLC on Tuesday reported a considerable fall in profit after a slump in production.
The Spain-focused producer of sustainable copper said in the first quarter ended March 31, pretax profit fell 84% to EUR2.1 million from EUR13.6 million the year prior.
Revenue was down 23% to EUR69.9 million from EUR91.2 million.
In the quarter, copper production declined 12% to 10,666 tonnes from 12,139 tonnes.
Compared to last year, copper prices fell 3% in the quarter to approximately USD3.89 per pound from USD4.00.
Nonetheless, the company reaffirmed guidance expecting full year copper production between 51,000 to 53,000 tonnes, tracking with the 51,667 tonnes produced last year.
Whilst production fell, impacting revenue and profit, the company anticipates copper grades to improve in the coming quarters.
Chief Executive Officer Alberto Lavandeira commented: "The positive developments in the copper price have been pleasing to observe in recent weeks. Global demand remains supported by solid economic activity and strong investment in renewables, new technologies and domestic supply chains."
Looking ahead, the company believes it will likely benefit as competitors contend with supply shortages in major copper producing regions as a result of permitting and execution challenges.
Established in areas with long mining histories and high quality infrastructure, Atalaya is confident the company is in strong position.
Furthermore, management expects key projects including Touro and Riotinto to have lower capital intensities and suggested they could come on stream quicker than larger projects being pursued other companies.
Atalaya shares were down 0.6% to 482.50 pence each in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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Atalaya Mining (ATYM)