(Alliance News) - Atalaya Mining PLC on Monday said its quarterly profit slipped as costs increased, while revenue growth was held back by lower realised copper prices.
The Glasgow-based copper producer with a portfolio of assets in Spain said its pretax profit for the three months to March 31 was EUR13.6 million, down 37% from EUR21.5 million. Operating costs were EUR66.8 million in the first quarter of 2023, up 12% from EUR59.5 million in the previous year, resulting from higher input costs.
Revenue grew slightly, however, to EUR91.2 million, up 5.7% from EUR86.3 million a year prior. This attributed to the sale of higher copper concentrate volumes in the first three months of the year, offset by lower realised copper prices of USD4.00 per pound, a 13% drop from USD4.5 per pound last year.
Earnings before interest, tax, depreciation and amortisation were down by 8.6% to EUR24.4 million from EUR26.7 million in 2022.
Looking ahead, Atalaya is on track to achieve its full-year guidance of between 53,000 and 55,000 tonnes of copper produced at cash costs of around USD2.8 and USD3.0 per pound.
Chief Executive Officer Alberto Lavandeira said: "We are pleased to have begun 2023 with a positive first quarter. Our operational performance was consistent with expectations and significantly reduced electricity prices have helped to deliver lower all-in sustaining cost and solid Ebitda for the period.
"We remain conscious of the ongoing input cost inflation that is affecting the mining sector, but we believe these pressures will provide support to the copper price over the medium and longer term."
Shares in Atalaya were up 0.6% at 338.00 pence each in London on Monday morning.
By Sabrina Penty; Alliance News reporter
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Atalaya Mining (ATYM)