RNS24 Nov 2016 07:18
Operating Highlights
· 97% increase quarter on quarter in production of tonnes of copper in concentrate (Q3 2016: 8,752 tonnes, Q2 2016: 4,442 tonnes).
· Increase in recoveries to 83.60% during Q3 2016 (Q2 2016: 80.46%). Plant performing very well and achieving a recovery rate of 87.09% during October 2016.
· Copper concentrate grades of over 21% remained consistent with the previous quarter and penalties are now well below the maximum levels stipulated by some smelters.
· 8,752 metric tonnes of copper metal produced during the quarter, with accumulated production of 17,241 metric tons for the nine months period, including January pre-commissioning production.
· 50% more tonnes of ore processed during Q3 2016 (2.0 million tonnes) compared to Q2 2016 (1.3 million tonnes).
· Following mechanical completion of the expansion project in May 2016, ramp-up is progressing according to plan. Minimal additional capex required until the end of the year.
· Updated NI 43-101 technical report for Proyecto Riotinto filed in September 2016, reporting a 12% increase in open pit reserves and extending the life of mine to 16.5 years.
· Water treatment plant now fully operational after successful commissioning during Q3 2016. De-watering of Cerro Colorado open pit progressing according to plan.
· Atalaya maintains its copper production guidance of 23,500 to 27,000 metric tons for 2016, with a bias towards the higher end of the scale.
Financial Highlights
As commercial production was declared in February 2016, no comparative operational data is available for 2015.
· Working capital position improvement of €4.2 million from Q2 2016.
· Revenues of €27.2 million and €49.9 million for the three and nine month periods, respectively.
· Cash cost reductions during Q3 2016 to $1.97/lb of payable copper (Q2 2016: $2.36/lb), with further reductions targeted in coming months as production levels get closer to the nominal plant capacity of 9.5Mtpa.
· EBITDA improved significantly in Q3 2016 compared with H1 2016 (negative €3.6 million) as a result of an increase in volume of copper concentrate sold, lower cash costs and higher realised copper prices. Positive EBITDA of €1.9 million for the period compared with a negative EBITDA of €1.6 million for the year to date.
· Loss of €1.5 million (or 1.3 cents per share) and €8.0 million (or 6.8 cents per share) for the three and nine month period respectively.
· Inventories of concentrate at 30 September 2016 amounted to approximately €9.3 million.
· Completion of US$14 million copper concentrate prepayment funding agreement with Transamine Trading S.A. to improve working capital position.
· Positive cash flows from operating activities for the nine months
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