(Alliance News) - Atalaya Mining PLC on Thursday reported a dip in quarterly profit and revenue amid higher costs and lower realised copper prices.
Atalaya Mining is a Europe-focused copper producer. Shares in the firm were up 2.4% at 334.90 pence on Thursday morning in London.
The company reported a pretax profit of EUR11.1 million in the three months ended June 30, down 14% from EUR12.8 million the year prior. Revenue fell 15% to EUR79.1 million from EUR93.4 million, mainly due to lower realised copper prices in the period.
The drop in profit came as the Atalaya's administrative an other expenses multiplied to EUR3.6 million from just EUR868,000 the previous year. Its exploration expenses also surged to EUR2.1 million from just EUR88,000.
Atalaya mined 3.9 million tonnes of ore in the second quarter of the year, down from 3.6 million tonnes the year prior. Meanwhile, copper production totalled 14,212 tonnes, up from 13,386 tonnes the year prior.
Chief Executive Alberto Lavandeira said the performance was "strong", with production on-track to achieve the company's full-year guidance which expects copper production between 53,000 tonnes and 55,000 tonnes.
"Copper fundamentals continue to improve, with many large miners having recently downgraded their production guidance for 2023 as a result of operational challenges and project delays. Over the medium term, few large new projects are expected to be sanctioned due to uncertainties related to permitting and cost inflation," Lavandeira said.
"In addition, more governments around the world are now classifying copper as a strategic metal. Recently, the US Department of Energy released its 2023 Critical Materials Assessment, which included copper on its list of materials with high risk of supply disruption that are integral to clean energy technologies. Atalaya is well placed to benefit from the improving market dynamics of copper," he added.
By Heather Rydings, Alliance News senior economics reporter
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Atalaya Mining (ATYM)