REG - Atalaya Mining PLC - 2022 Annual General Meeting Statement

Atalaya MiningAnnouncement

22/06/2022 07:00

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RNS Number : 7082P  Atalaya Mining PLC  22 June 2022

22 June 2022

Atalaya Mining Plc.

("Atalaya" or "the Company")

2022 Annual General Meeting Statement

 

Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is hosting its 2022 Annual General
Meeting ("AGM") today at 11.00 a.m. BST at the offices of Fieldfisher LLP,
located at Riverbank House, 2 Swan Lane, London EC4R 3TT. At the AGM, Roger
Davey, non-executive Chairman of the Company, will make the following
statement:

"Dear Shareholder,

2021 was another year dominated by the Covid 19 pandemic with the Company
maintaining, as its primary focus, the continued safety, protection, and
well-being not only of our staff and contractors but also the community and
our suppliers.  Despite these external challenges, the operational and
financial health of the Company was not overlooked, and the Company continued
to build on its 2020 operational track record, culminating in a record annual
production for 2021 of just over 56,100 tonnes of contained copper.

The average process plant feed grade of 0.41% copper and the process recovery
rate of 86% were consistent with reserve estimates and budgeted figures.
Cash Costs and All-in Sustaining Costs for 2021 of $2.18/lb and $2.48/lb
respectively, were below the lower end of the revised 2021 cost guidance,
mainly due to the combination of the U.S. dollar strengthening against the
Euro and higher copper tonnes produced.  With process plant optimisation
initiatives expected to support copper production, output guidance has been
set at 54,000 to 56,000 tonnes of contained copper for 2022.

The executive team was able to capitalise not only on the continued high level
of operational performance but also the higher copper price scenario during
2021 with revenue increasing to €405.7 million from €253.8 million in
2020, and EBITDA for 2021 of €199.1 million, compared with €67.4 million
in 2020. The resulting free cash flow generated enabled the Company to reward
investors with an inaugural dividend pay-out of €47.3 million, equivalent to
$0.395 per share, in December. Despite the previously announced payment of the
deferred consideration to Astor, the Company finished the year with net cash
of €60.1 million and in a robust position, based on consensus copper
pricing, to maintain a future meaningful and sustainable dividend policy of
30% to 50% of Free Cash Flow.

The completion and implementation of flotation circuit improvements and the
installation of additional tailings thickening capacity to reduce fresh water
consumption, with consequent reduction in lime consumption, have combined to
reduce overall power consumption and carbon footprint. As well as being
economically advantageous, the completion of the permitting and the
integration of the planned 50 MW solar plant on site will be a significant
factor and major contributor to the attainment of corporate sustainability
objectives.

Mine site exploration and infill drilling continued with successful
replacement of mineable reserves and maintenance of mine life despite the
increased rate of mining depletion.

For additional growth prospects, the Company is currently focusing on four
main projects:

-      In the north of Spain, at Proyecto Touro, the Company is engaging
with local and regional stakeholders whilst progressing with, according to
internationally recognised best practice, the preparation and submission of
the Environmental Impact Evaluation for the revised project.

-      In the south, at Proyecto Masa Valverde, exploration work is
ongoing, with encouraging drilling results.

-      At Proyecto Riotinto East, an electromagnetic airborne geophysical
survey which started at the end of 2021 has now been completed, with several
anomalies having been identified by the survey for follow-up exploration
drilling.

-      In December, the Company announced the acquisition of a 51%
interest in Rio Narcea Nickel S.L., establishing a presence in the Ossa Morena
Metallogenic Belt in the southwest of Spain, an area that includes the
Alconchel copper-gold project.

In January of this year, the Company announced the start of construction of an
industrial-scale E-LIX plant at Proyecto Riotinto. The plant will utilise the
E-LIX System, an extraction process developed, patented and owned by Lain
Technologies Ltd, to produce copper and zinc metals from sulphide
concentrates. E-LIX has the potential to unlock significant value from the
Company's portfolio of polymetallic resources in the Proyecto Riotinto
district by materially increasing the recoveries of copper, zinc, lead and
precious metals from complex sulphide ores.  The plant will have the capacity
to produce up to 10,000 tonnes of metal annually, depending on the copper/zinc
mix, thus reducing transportation costs, treatment charges and penalties
associated with producing and delivering conventional concentrates.

I would like to take this opportunity to express our appreciation for the
continued dedication and commitment of the management and staff who have been
responsible for delivery of such excellent results in this difficult year.
At the same time, I would like to thank not only the board members for their
continued support, guidance and close involvement with Company's activities,
but also our valued shareholders for their continued and appreciated support.
Dr. Jose Sierra Lopez retired from the board during the year. In addition, Mr.
Damon Barber stepped down in April 2021.  On behalf of the Board, I would
like to take this opportunity to thank both for their efforts and assistance
over many years with the Company and wish Dr. Jose Sierra well in his
retirement.  At the same time it is my pleasure to welcome Neil Gregson to
the Board.

To date, 2022 is seeing considerable inflationary pressures, with increased
volatility in both costs and commodity markets as a result of the recent
geopolitical events in Ukraine. Nevertheless, commodity prices remain strong
and strengthened by the experience and improvements achieved over these last
two difficult years. We look forward with confidence to ongoing investment in
our portfolio of projects to continue the growth path, and increase the value
of your Company."

 

Contacts:

 SEC Newgate UK             Elisabeth Cowell / Axaule Shukanayeva / Max Richardson  + 44 20 3757 6882
 4C Communications          Carina Corbett                                          +44 20 3170 7973
 Canaccord Genuity          Henry Fitzgerald-O'Connor / James Asensio               +44 20 7523 8000

 (NOMAD and Joint Broker)
 BMO Capital Markets        Tom Rider / Andrew Cameron                              +44 20 7236 1010

 (Joint Broker)
 Peel Hunt LLP              Ross Allister / David McKeown                           +44 20 7418 8900

 (Joint Broker)

 

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces
copper concentrates and silver by-product at its wholly owned Proyecto
Riotinto site in southwest Spain. Atalaya's current operations include the
Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has
the potential to become a centralised processing hub for ore sourced from its
wholly owned regional projects around Riotinto that include Proyecto Masa
Valverde and Proyecto Riotinto East. In addition, the Group has a phased,
earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield
copper project in the northwest of Spain. For further information, visit
www.atalayamining.com (http://www.atalayamining.com)

 

 

 

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