Atalaya Mining posts solid Q1 performance

(Sharecast News) - Atalaya Mining reported a solid first-quarter financial performance on Tuesday, despite lower copper production caused by heavy rainfall at its Proyecto Riotinto operations in Spain.

The FTSE 250 company said copper production fell to 9,939 tonnes in the three months ended 31 March, from 14,291 tonnes a year earlier, after unusually high rainfall in late January and early February reduced access to parts of the Cerro Colorado pit.

Copper concentrate production declined to 60,310 tonnes from 80,170 tonnes.

Revenue fell to €117.3m from €130.7m, as lower production was partly offset by higher copper prices, stronger silver credits and lower offsite costs.

The average realised copper price rose to $5.87 per pound from $4.26.

EBITDA declined to €48.0m from €52.5m, while profit after tax fell to €28.3m from €30.5m.

Basic earnings per share were 19.0 euro cents, compared with 21.6 cents a year earlier.

Cash costs increased to $2.52 per pound of payable copper from $2.25, while all-in sustaining costs rose to $3.20 per pound from $2.74.

Atalaya said the increase reflected lower production and a stronger euro-dollar exchange rate, partly offset by strong silver credits and lower treatment charges.

AISC was also affected by higher capitalised stripping costs at Cerro Colorado.

Ore processed was 4.1m tonnes, down slightly from 4.2m tonnes, with the company describing plant performance as strong.

Copper grades fell to 0.30% from 0.42%, as lower-grade stockpiles were used to compensate for restricted pit access.

Copper recovery improved to 81.54% from 80.98%.

Atalaya said its balance sheet remained robust, with cash and cash equivalents of €279.7m at the end of March and net cash of €266.4m, compared with €122.0m at the end of December.

The increase reflected the proceeds of a January equity offering, which raised gross proceeds of £130m, or about €150m.

Operating cash flow after working capital movements rose to €29.8m from €26.0m.

Cash used in investing activities increased to €29.5m from €22.4m, including spending on Cerro Colorado stripping, San Dionisio, the tailings dam expansion, Proyecto Touro and Proyecto Masa Valverde, as well as the acquisition of shares in Lara Exploration.

Atalaya reiterated its full-year production guidance of 50,000 to 54,000 tonnes of copper and 0.9m to 1.1m ounces of silver contained in concentrate, although it said output was currently trending towards the low end of the ranges.

Since the end of the quarter, production had exceeded plan and recovered part of the first-quarter shortfall.

The company said recent conflicts in the Middle East had disrupted supply chains and raised fossil fuel prices, particularly diesel.

If diesel and explosives prices remained at current levels for the rest of the year, Atalaya said cash costs and AISC could be $0.15 to $0.20 per pound higher than the guidance given with its 2025 annual results.

Atalaya said progress continued across its Spanish growth pipeline.

At San Dionisio, stripping continued during the quarter, while infill and step-out drilling advanced at San Antonio.

The company was also progressing engineering work to allow the Riotinto plant to process polymetallic and copper ores simultaneously.

At Proyecto Touro, Atalaya said permitting feedback had been positive and the environmental impact statement was expected to be finalised before the summer.

The company said its local subsidiary was continuing early works, including detailed engineering, procurement, documentation, limited land purchases and exploration drilling.

Chief executive Alberto Lavandeira said Atalaya had delivered a solid financial performance despite lower production in the quarter.

"Since April, we have recovered a portion of this shortfall and remain focused on making further progress throughout the year," he said.

Lavandeira said Atalaya's strong balance sheet, supported by cash generation and the recent equity raise, gave it a platform to advance its near- and medium-term copper growth projects in Spain.

"Looking ahead, we are increasingly confident in the outlook for both our business and the copper market," he said.

"Despite ongoing geopolitical uncertainty, copper demand remains robust, while the industry's supply response continues to face challenges from operational issues at major copper mines globally."

At 0849 BST, shares in Atalaya Mining Copper were up 5.45% at 832.5p.

Reporting by Josh White for Sharecast.com.

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