LONDON (ShareCast) - (Sharecast News) - Atalaya Mining updated the market on its second quarter operations at Proyecto Riotinto on Thursday, reporting that 3.8 million tonnes of ore was mined in the period, down from four million tonnes in the first quarter, but up from 3.3 million tonnes a year earlier.
The AIM-traded firm said waste mined in the quarter totalled 6.7 million tonnes, in line with the 6.8 million tonnes mined in the first quarter, but below second quarter levels last year.

Waste stripping in the first half was higher than budget, as waste mining was prioritised during the temporary plant maintenance stoppage.

The company said the plant processed four million tonnes of ore during the period, as it returned to normalised throughput rates following the first quarter transport sector strike and maintenance stoppage, which lowered throughput then to 3.5 million tonnes.

Processing rates in the period were consistent with throughput a year ago, which the board said highlighted the plant's ability to operate above its 15 million tonne per annum nameplate capacity.

Copper grade was 0.39% in the quarter, representing an increase from 0.37% in the first quarter, but below the 0.42% it recorded at the same time last year.

Lower grades so far in 2022 were the result of blending with lower grade stockpiles, the company explained, due to pit sequencing.

Copper recoveries were strong, meanwhile, at 86.44%, which was above the first quarter's 86.07% and, despite lower grades, higher than the second quarter of 2021.

Looking at copper production, Atalaya reported a second quarter total of 13,386 tonnes, representing an increase of 16.8% over the first quarter.

The increase was said to be due to "good performance" of the processing plant, the return to a normalised period following the temporary plant maintenance stoppage in the first quarter, as well as higher copper grades and improved copper recoveries.

On-site copper concentrate inventories at the end of the first quarter was about 7,169 tonnes.

All concentrate in stock at the beginning of the period was delivered to the port at Huelva.

Atalaya said its average realised price per pound of copper payable was $4.32, below the $4.42 it recorded for the first quarter, but above the $4.27 realised price a year earlier.

"We are pleased with the performance of the plant in the second quarter, with strong recoveries and a return to processing rates above our 15 million tonnes per annum nameplate capacity," said chief executive officer Alberto Lavandeira.

"These contributed to a solid quarter of production and a material improvement from the first quarter.

"However, cost inflation remains very high and the prices of many key inputs are uncontrollable by nature."

Lavandeira said as a result, the company was focussing on several key initiatives that would deliver operational efficiencies, stable and low-cost electricity from 2023, and higher-grade material to its processing plant.

"Our balance sheet remains strong and we are well placed to navigate the ongoing uncertainties."

At 1127 BST, shares in Atalaya Mining were down 11.62% at 251p.

Reporting by Josh White at Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE