REG - Atalaya MiningCopper - Q1 2025 Operations Update

Atalaya Mining Copper SAAnnouncement

15/04/2025 07:02

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RNS Number : 9715E  Atalaya Mining Copper, S.A.  15 April 2025

 

15 April 2025

Atalaya Mining Copper, S.A.

("Atalaya" or "the Company")

Q1 2025 Operations Update

Strong start to 2025 with best quarter of production since Q2 2021

 

Atalaya Mining (LSE: ATYM) is pleased to announce its operations update for
the first quarter of 2025 ("Q1 2025" or the "Period").

Proyecto Riotinto Operating Highlights

                              Q1                 Q4      Full Year
                              2025((1))  2024    2024    2025 Guidance
 Ore mined          M tonnes  3.7        3.7     3.5     15 - 16
 Waste mined((2))   M tonnes  11.3       5.5     10.2    37 - 43
 Ore processed      M tonnes  4.2        3.7     3.8     15.5 - 15.8
 Copper grade       %         0.42       0.34    0.41    0.38 - 0.42
 Copper recovery    %         80.98      84.74   78.15   78 - 82
 Copper production  tonnes    14,291     10,666  12,078  48,000 - 52,000

(1)   Figures for Q1 2025 are preliminary and final figures will be released
with Q1 2025 Financial Results.

(2)   Represents the Cerro Colorado pit only.

Alberto Lavandeira, CEO, commented:

"We are pleased to begin 2025 with a strong quarter of production, which
represents our best quarter in over three years. Production was 34% higher
than the comparative period last year and 18% above the prior quarter thanks
to higher grades and good plant performance.

We continue to be excited about the fiscal year ahead. Our operations are
performing well, physical copper market strength persists and we are
optimistic on several pending catalysts across our asset portfolio.

Thanks to a strong balance sheet and our project development and operating
capabilities, we are well-positioned to execute on our near-term growth
strategy, including in the Riotinto District and at Proyecto Touro, where we
are advancing plant engineering work. Touro is an attractive project that
could deliver substantial new investment to Galicia while also contributing to
European Union objectives in relation to boosting domestic supply of strategic
raw materials like copper."

Q1 2025 Operating Results

Mining

Ore mined was 3.7 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes),
compared with 3.5 million tonnes in Q4 2024.

Waste mined was 11.3 million tonnes in Q1 2025 (Q1 2024: 5.5 million tonnes),
compared with 10.2 million tonnes in Q4 2024. In addition, waste stripping
activities continued at the San Dionisio area.

Recent periods of significant rainfall have impacted access to certain areas
at the bottom of the Cerro Colorado pit, but overall mining rates remain
consistent with budget.

Processing

The plant processed ore of 4.2 million tonnes in Q1 2025 (Q1 2024: 3.7 million
tonnes), compared with 3.8 million tonnes in Q4 2024, which represents strong
performance due to minimal downtime. In Q2 2025, the Company expects to
complete a SAG mill liner change which will result in lower quarterly
throughput.

Copper grade was 0.42% in Q1 2025 (Q1 2024: 0.34%), compared with 0.41% in Q4
2024.

Copper recovery was 80.98% in Q1 2025 (Q1 2024: 84.74%), compared with 78.15%
in Q4 2024, which is consistent with 2025 guidance.

Production

Copper production was 14,291 tonnes in Q1 2025 (Q1 2024: 10,666 tonnes),
compared with 12,078 tonnes in Q4 2024, as a result of strong throughput and
higher copper grade.

On-site copper concentrate inventories were 19,031 tonnes at 31 March 2025 (31
December 2024: 21,815 tonnes). Nearly all of the concentrate inventories as at
31 December 2024 were sold during Q1 2025 and the Company expects to reduce
the current concentrate inventory balance to normalised levels during Q2 2025.

Copper contained in concentrates sold was 14,687 tonnes in Q1 2025 (Q1 2024:
10,286 tonnes).

Select Financial Highlights

Realised Copper Price

The average realised copper price (excluding QPs closed during the Period) was
$4.26/lb in Q1 2025 (Q1 2024: $3.89/lb), compared with $4.10/lb in Q4 2024.
The average spot copper price was $4.24/lb in Q1 2025.

Provisional Revenue Adjustments

For Q1 2025, settlement adjustments (for QPs closed during the Period) and
fair value adjustments (for open QPs based on copper forward curve prices as
at 31 March 2025) were positive €1.5 million.

Balance Sheet

The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €69.7 million as at 31 March 2025 (31 December 2024: €52.9
million).

Current and non-current borrowings were €31.5 million, resulting in a net
cash position of €38.2 million as at 31 March 2025 (31 December 2024:
€35.1 million).

Subsequent to Period end, a payment for a shipment made on 31 March 2025 was
received on 4 April 2025, increasing the Company's net cash position to
€49.4 million.

Outlook for 2025

Full year 2025 guidance is unchanged from the outlook announced as part of the
Company's 2024 Annual Results. This includes copper production of 48,000 -
52,000 tonnes (weighted slightly towards H1 2025) and Cash Cost and AISC of
$2.70 - 2.90/lb and $3.20 - 3.40/lb copper payable, respectively.

Asset Portfolio Update

Proyecto Riotinto

Waste stripping activities continued at San Dionisio in order to prepare the
area for future mining phases, with total material mined of 1.4 million tonnes
in Q1 2025. The permitting process associated with the San Dionisio final pit
is in its final stages.

Construction progress continued in relation to the planned relocation of the
A-461 road that currently runs between Cerro Colorado and San Dionisio.

At San Antonio, the polymetallic deposit located immediately east of the
Cerro Colorado pit, an infill and step-out drilling program is expected to
begin in the coming months.

E-LIX Phase I Plant

Commissioning and ramp-up activities continued at the E-LIX Phase I plant.
During Q1 2025, further progress was made in relation to optimising and
debottlenecking the circuits to increase capacity, with the novel leaching
section continuing to perform well. Focus remains on leaching the zinc
contained within Atalaya's copper concentrates due to the low copper treatment
charge environment.

Once fully operational, the E-LIX plant is expected to produce high-purity
copper or zinc metals on site, allowing the Company to potentially achieve
higher metal recoveries from complex polymetallic ores, lower transportation
charges and a reduced carbon footprint.

Riotinto District - Proyecto Masa Valverde ("PMV")

At present, four rigs are infill drilling the veining stockwork and massive
sulphide type mineralisation at the Masa Valverde deposit.

The Company expects to start preparatory works related to the access ramp in
the coming months once it has completed the purchase of certain surface
rights.

PMV has been granted the two key permits required for development - the
Unified Environmental Authorisation (or in Spanish, Autorización Ambiental
Unificada ("AAU")) and the exploitation permit.

Proyecto Touro

On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity
Cobre San Rafael, was declared a strategic industrial project by the Council
of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous
Community of Galicia, the status of strategic industrial project (or in
Spanish, Proyecto Industrial Estratégico ("PIE")) acts to simplify the
administrative procedures associated with the development of industrial
projects and intends to substantially reduce permitting timelines.

This declaration highlights the XdG's commitment to promoting new investment
that will benefit the region and also support the objectives of the European
Union. Copper is considered a strategic raw material by the EU and this
project has the potential to become a new source of sustainable European
copper production.

The XdG is continuing its review according to the simplified procedures
afforded to projects with PIE status. The public information period, which
serves to inform the surrounding communities and organisations about the
proposed project, concluded on 31 January 2025. Cobre San Rafael continues to
analyse and respond to the feedback submitted during the public information
period. Likewise, numerous sectoral reports issued by the various departments
of the XdG have already been collected, duly assessed, and where necessary,
the corresponding clarifications have been prepared.

The Company continues to engage with the many stakeholders in the region and
is restoring the water quality of the rivers around Touro by operating its
water treatment plant. The Company has also intensified its recruitment
initiatives in relation to its potential future workforce.

Plant engineering is ongoing including the definition of final flowsheets and
detailed process layout, in order to shorten the timeline to construction
start once permits are obtained. Finally, infill and step-out drilling
programmes continue, with a focus on areas captured in the initial mine plan
and where mineralisation remains open.

Proyecto Ossa Morena

Once new permits are approved, drilling will be prioritised at the flagship
Alconchel-Pallares copper-gold project and the Guijarro-Chaparral gold-copper
project.

Proyecto Riotinto East

Gravimetric ground surveys are being carried out over selected areas to better
define future drill targets on the East belt extension.

Skellefte Belt and Rockliden (Sweden)

In November 2024, Atalaya announced that it had entered into two binding
agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which
Atalaya can earn an initial 75% interest in two separate land packages
in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the
Rockliden land package ("Rockliden Project") are located in two notable
districts that host many large-scale volcanogenic massive sulphide ("VMS")
deposits and mines owned by Boliden AB. Both regions are underexplored and
could increase Atalaya's exposure to critical minerals in Europe.

The winter drilling programmes commenced in January 2025 and ended on 18 March
2025, completing 2,445 metres (9 diamond drill holes) at the Skellefte Belt
Project and 2,781 metres (16 diamond drill holes) at the Rockliden Project.
The drilling season was shorter than expected due to unusually warm weather
creating poor ground conditions, but significant progress was made in terms of
extending mineralisation at the Bjurtraskgruvan (Skellefte Belt) and "Target
1" (Rockliden) prospects, as well as initial testing of several regional
targets. Assays from the drill samples are expected by the end of Q2 2025 and
geological interpretation is progressing.

In addition, various geophysical surveys commenced in Q1 2025 and will
continue during Q2 2025 at both projects. Results will be processed and
interpreted in order to refine the drill targets for the next drilling season.

Corporate Activities Update

Re-domiciliation

On 10 January 2025, the Company announced the completion of its
re-domiciliation from the Republic of Cyprus to the Kingdom of Spain. As a
result, trading in Atalaya's shares under the new registered name of Atalaya
Mining Copper, S.A. became effective on the same date.

The re-domiciliation to Spain, along with Atalaya's move to the Main Market in
April 2024, opened the possibility for Atalaya to be included in the FTSE UK
Index Series.

Indexation

Atalaya's shares were added to the FTSE All-Share and FTSE SmallCap indices
effective 24 March 2025, as a result of FTSE Russell's March 2025 Quarterly
Review for the FTSE UK Index Series. This milestone is expected to enhance the
Company's visibility to institutional investors.

This announcement contains information which, prior to its publication
constituted inside information for the purposes of Article 7 of Regulation
(EU) No 596/2014.

Contacts:

 SEC Newgate UK  Elisabeth Cowell / Tom Carnegie / Gwen Samuel  +44 20 3757 6882
 Atalaya Mining  Michael Rechsteiner                            +34 959 59 28 50

About Atalaya Mining Copper, S.A.

Atalaya is a European copper producer that owns and operates the Proyecto
Riotinto complex in southwest Spain. Atalaya's shares trade on the London
Stock Exchange's Main Market under the symbol "ATYM".

Atalaya's operations include the Cerro Colorado open pit mine and a modern 15
Mtpa processing plant, which has the potential to become a central processing
hub for ore sourced from its wholly owned regional projects around Riotinto,
such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition,
Atalaya has a phased earn-in agreement for up to 80% ownership of Cobre San
Rafael S.L., which fully owns the Proyecto Touro brownfield copper project in
the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena.
For further information, please visit www.atalayamining.com
(http://www.atalayamining.com)

 

 

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