Atalaya Mining quarterly copper production falls after heavy rainfall

(Alliance News) - Atalaya Mining Copper SA on Tuesday reported lower first-quarter earnings and copper production, as heavy rainfall in Spain disrupted mining operations earlier in the year.

Shares in Atalaya Mining were up 5.3% at 831.20 pence in London on Tuesday morning.

The owner and operator of Proyecto Riotinto copper mine in southwest Spain said revenue in the first quarter to March 31 fell 10% to EUR117.3 million from EUR130.7 million a year earlier.

Pretax profit fell 5.6% to EUR35.3 million from EUR37.5 million, while earnings before interest, tax, depreciation, and amortisation declined 8.5% to EUR48.0 million from EUR52.5 million.

Copper production dropped 30% to 9,939 tonnes from 14,291 tonnes, after unusually high rainfall in late January and early February restricted access to parts of the Cerro Colorado pit.

Cost of sales fell to EUR59.3 million from EUR72.3 million, helped by lower concentrate sales volumes and reduced electricity costs.

Cash costs rose to USD2.52 per pound payable copper from USD2.25, while all-in sustaining costs increased to USD3.20 from USD2.74, reflecting lower production and higher stripping costs.

Chief Executive Officer Alberto Lavandeira said: "We delivered solid financial performance in the first-quarter of 2026 despite our lower production during the quarter. Since April, we have recovered a portion of this shortfall and remain focused on making further progress throughout the year."

Atalaya said it remains on track to meet full-year production guidance of 50,000 to 54,000 tonnes of copper, although output is currently trending towards the low end of the range.

The company warned that ongoing conflicts in the Middle East have disrupted supply chains and driven up diesel and explosives prices, which could increase full-year cash costs and all-in sustaining costs by USD0.15 to USD0.20 per pound if current conditions persist.

Based on its 2025 annual guidance, this would imply cash costs rising above the guided USD2.60 to USD2.90 per pound range and AISC exceeding the projected USD3.10 to USD3.40 per pound payable copper range.

Atalaya ended March with net cash of EUR266.4 million, up from EUR122.0 million at the end of December, supported by a EUR150 million equity offering completed in January.

The company also said permitting progress at its Proyecto Touro copper project in Galicia remains positive, with the environmental impact statement expected to be finalised before the summer.

By Eva Castanedo, Alliance News reporter

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