LONDON (ShareCast) - (Sharecast News) - Atalaya Mining reported a "good" first quarter financial performance on Thursday, including cash flows from operating activities of €28.3m (£23.98m), down 23.1% year-on-year.
The AIM-traded firm said it achieved those cash flows despite "unprecedented" energy costs, inflationary pressures and a transport sector strike.

It said its balance sheet was strengthened further in the three months ended 31 March, with its net cash position growing 720.1% year-on-year to €86.8m.

The company maintained its full-year operational outlook, including copper production of 54,000 to 56,000 tonnes.

Operationally, the board also noted the advancement of its growth pipeline, after new mineral resource estimates were announced for higher-grade Riotinto District deposits at San Dionisio, San Antonio and Proyecto Masa Valverde.

"We are pleased to have generated over €20m in free cash flow during the quarter, despite the many external challenges we faced," said chief executive officer Alberto Lavandeira.

"The transport sector strike in March forced a temporary shutdown of our processing plant, electricity prices in Spain remain extremely high compared to historical and expected future rates, and cost inflation is affecting the prices of many key consumables.

"However, our team has been successful in reducing the impact of these external factors."

Lavandeira said during the transport strike, the company brought forward maintenance activities which should allow for higher throughput in the second quarter, as it also advanced the construction of our 50 MW solar plant and entered into a new long term power purchase agreement, and started implementing efficiency measures to help to offset cost inflation.

"We also look forward to the new regulations proposed by Spain, which would cap the gas price and significantly reduce spot electricity prices.

"Meanwhile, we continue to focus on advancing our project pipeline in the Riotinto District, which we believe can deliver significant production growth at low capital intensity as a result of the expected grades and synergies associated with utilising our existing plant as a central processing hub.

"In addition, stakeholder dialogue and the permitting process continue at Proyecto Touro, which could become a new source of safe and responsible copper production in Europe."

At 1157 BST, shares in Atalaya Mining were down 1.37% at 360.01p.

Reporting by Josh White at Sharecast.com.

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