Atalaya Mining hikes full-year production guidance
By Josh White
Date: Wednesday 13 Oct 2021
(Sharecast News) - Atalaya Mining updated the market on operations at Proyecto Riotinto in the third quarter on Monday, reporting strong copper production of 13,933 tonnes, as it increased its production guidance for the full year.
The AIM-traded firm said the plant processed 3.9 million tonnes of ore during the three months, equivalent to a throughput rate of almost 16 million tonnes per annum, which included a planned SAG mill maintenance shutdown in the period, which was previously scheduled for the fourth quarter.
Recoveries of 87.29% were better than budgeted, and helped to offset the impact of the mill shutdown and lower grades, resulting in a "modest decrease" in copper production compared with previous quarters.
Despite Covid-19 restrictions during the period, mining operations continued normally, with mining rates consistent with plant performance including the planned mill shutdown.
From 1 October, Proyecto Riotinto reviewed some of the Covid-19 safety measures as the number of cases and the severity decreased significantly during the third quarter
On-site copper concentrate inventories at the end of the period totalled 4,232 tonnes, with all concentrate in stock at the beginning of the period delivered to the port at Huelva.
Average spot copper prices moved to $4.25 per pound during the period, from $4.40 per pound in the second quarter.
Atalaya's average realised price increased to $4.31 per pound from $4.27 per pound in the previous quarter.
Cash operating costs for the period were expected to be below the full-year cost, due to the euro-dollar exchange rate as well as higher copper production and better recoveries.
As a result of the strong performance at Proyecto Riotinto for the year-to-date, the company said it was increasing its 2021 copper production guidance to between 54,000 and 56,000 tonnes, from a previous 52,000 to 54,000 tonnes.
"Another robust quarter with strong production figures and healthy copper prices has allowed the company to continue to strengthen its balance sheet despite Covid-19 related challenges," said chief executive officer Alberto Lavandeira.
"With the operations at Proyecto Riotinto working smoothly, and the new project design of Proyecto Touro having been completed for the final permitting phase, the company is well positioned to deliver near-term production growth and long-term extension of mine life.
"We will continue to focus on maintaining a steady production profile at Proyecto Riotinto while we unlock additional value from the mineral resources located in our prolific land package."
At 1628 BST, shares in Atalaya Mining were up 1.08% at 327.5p.
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