REG - Atalaya MiningCopper - Q1 2026 Operations Update

Atalaya Mining Copper SAAnnouncement

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RNS Number : 2808A  Atalaya Mining Copper, S.A.  14 April 2026

 

14 April 2026

Atalaya Mining Copper, S.A.

("Atalaya" or "the Company")

Q1 2026 Operations Update

Well positioned for future growth despite recent weather events

 

Atalaya Mining (LSE: ATYM) is pleased to announce its operations update for
the first quarter of 2026 ("Q1 2026" or the "Period").

Proyecto Riotinto Operating Highlights

                              Q1                 Q4      Full Year
                              2026((1))  2025    2025    2026 Guidance
 Ore mined          M tonnes  3.4        3.7     3.9     15.5 - 16.0
 Waste mined((2))   M tonnes  10.2       11.3    9.2     38 - 44((3))
 Ore processed      M tonnes  4.1        4.2     4.1     15.5 - 16.0
 Copper grade       %         0.30       0.42    0.33    0.38 - 0.41
 Copper recovery    %         81.54      80.98   83.87   79 - 83
 Copper production  tonnes    9,939      14,291  11,550  50,000 - 54,000

(1)   Figures for Q1 2026 are preliminary and final figures will be released
with Q1 2026 Financial Results.

(2)   Represents the Cerro Colorado pit only.

(3)   Waste guidance is 57 - 67 million tonnes when including the San
Dionisio pit.

Alberto Lavandeira, CEO, commented:

"Our production in Q1 2026 was impacted by unusually heavy rains, similar to
the operations of our peers in the Iberian Pyrite Belt. In the coming
quarters, we expect to recover a portion of the production shortfall.

Beyond the quarter, our focus remains firmly on growing and diversifying the
business. We are well-positioned to advance our pipeline across the Riotinto
District, including San Dionisio, San Antonio, Masa Valverde and the planned
polymetallic circuit, supported by a strong balance sheet, a high‑quality
asset base and an experienced operating team. At Touro, we are pleased with
the recent court ruling, which voids the January 2020 negative environmental
decision, and continue to work with the Xunta to complete the final steps of
the environmental review under the existing strategic project framework.
 

Looking further ahead, we believe the structural drivers for copper demand
remain compelling. As major economies accelerate investment in renewable
energy, electrification and distribution infrastructure, copper will play an
increasingly strategic role, reinforcing the long‑term value of our asset
portfolio."

Q1 2026 Operating Results

Mining

Ore mined was 3.4 million tonnes in Q1 2026 (Q1 2025: 3.7 million tonnes),
compared with 3.9 million tonnes in Q4 2025. As previously disclosed,
unusually high rainfall in late January and early February 2026 reduced access
to certain mining areas in the Cerro Colorado pit.

Waste mined was 10.2 million tonnes in Q1 2026 (Q1 2025: 11.3 million tonnes),
compared with 9.2 million tonnes in Q4 2025. In addition, waste stripping
activities continued at the San Dionisio area.

Processing

The plant processed ore of 4.1 million tonnes in Q1 2026 (Q1 2025: 4.2 million
tonnes), compared with 4.1 million tonnes in Q4 2025.

Copper grade was 0.30% in Q1 2026 (Q1 2025: 0.42%), compared with 0.33% in Q4
2025. During the Period, the plant feed was supplemented with low-grade ore
stockpiles in order to compensate for pit access limitations following the
heavy rainfall events.

Copper recovery was 81.54% in Q1 2026 (Q1 2025: 80.98%), compared with 83.87%
in Q4 2025.

Production

Copper production was 9,939 tonnes in Q1 2026 (Q1 2025: 14,291 tonnes),
compared with 11,550 tonnes in Q4 2025. In addition, silver contained in
copper concentrate was 0.20 million ounces in Q1 2026 (Q1 2025: 0.28 million
ounces).

On-site copper concentrate inventories were 5,083 tonnes at 31 March 2026 (31
December 2025: 4,050 tonnes).

Copper contained in concentrates sold was 9,767 tonnes in Q1 2026 (Q1 2025:
14,687 tonnes), compared with 11,823 tonnes in Q4 2025.

Select Financial Highlights

Realised Copper Price

The average realised copper price (excluding QPs closed during the Period) was
US$5.87/lb in Q1 2026 (Q1 2025: US$4.26/lb), compared with US$5.10/lb in Q4
2025. The average spot copper price was US$5.83/lb in Q1 2026.

Provisional Revenue Adjustments

For Q1 2026, settlement adjustments (for QPs closed during the Period) and
fair value adjustments (for open QPs based on copper forward curve prices as
of 31 March 2026) were negative €4.1 million.

Balance Sheet

Consolidated cash and cash equivalents were €279.3 million as of 31 March
2026 (31 December 2025: €166.3 million), which includes the net proceeds
from the January 2026 equity offering.

Current and non-current borrowings were €13.3 million, resulting in a net
cash position of €266.0 million as of 31 March 2026 (31 December 2025:
€122.0 million).

Outlook for 2026

Production

Following the impact of rainfall during the Period, the Company plans to
review its copper production guidance for FY2026 on an ongoing basis and will
provide further updates when the Company reports its Q1 2026 Financial Results
in May 2026.

Previously disclosed production guidance for FY2026 was 50,000 to 54,000
tonnes of copper (with H2 2026 production approximately 10% higher than H1
2026 production) plus silver contained in copper concentrate of 0.9 to 1.1
million ounces.

Operating Costs

With respect to operating costs, the ongoing events in the Middle East have
the potential to disrupt supply chains and increase energy prices, especially
if a prolonged conflict materialises. So far, Atalaya has not experienced any
challenges sourcing key consumables such as diesel or explosives, although
unit prices could be impacted in the coming months. For some consumables, the
Company will benefit from fixed price agreements that were entered into before
the conflict began.

Electricity prices in Spain have remained stable since the start of the Iran
conflict, thanks to Spain's diversified energy mix including significant solar
and wind capacity and hydroelectric facilities that have benefitted from
recent periods of high rainfall. Beyond the Company's long-term PPA, some
additional electricity hedges have been secured for 2026 and further
agreements are being evaluated.

Any updates to the Company's guidance for FY2026 Cash Costs (US$2.60 - 2.90/lb
copper payable) and AISC (US$3.10 - 3.40/lb copper payable) will be disclosed
with the Q1 2026 Financial Results.

Asset Portfolio Update

Proyecto Riotinto

Stripping activities at San Dionisio continued during the Period, with total
waste mined of 3.3 million tonnes in Q1 2026. San Dionisio represents a key
component of Atalaya's strategy to increase copper production by sourcing
higher-grade material from deposits throughout the Riotinto District to be
blended with ore from Cerro Colorado.

At San Antonio, the polymetallic deposit located immediately east of the Cerro
Colorado pit, infill and step-out drilling continued with the objective of
increasing resource confidence and confirming deposit limits.

Atalaya continues to advance engineering works associated with processing
plant modifications that would allow for the simultaneous treatment of
polymetallic and copper ores at Riotinto, including refining the layout of the
new circuits within the existing plant footprint in order to optimise capital
and operating costs.

E-LIX Phase I Plant

In Q1 2026, trials were completed at the E-LIX facility in order to test the
technology's suitability for processing ores with high silver content.

Riotinto District - Proyecto Masa Valverde ("PMV")

Infill drilling continued at the Masa Valverde deposit, where the focus
remains on copper-rich stockwork-style zones, which are expected to be
amenable for processing at the existing Riotinto facilities. Preparatory work
is ongoing ahead of a final Board decision regarding the access ramp.

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

Atalaya's local entity Cobre San Rafael ("CSR") continues to advance the
permitting process under the Galician legislation that awarded Touro with the
status of strategic industrial project (or in
Spanish, Proyecto Industrial Estratégico ("PIE")) in 2024.

Adding to the Company's confidence is a recent positive ruling by the High
Court of Justice of Galicia ("TSXG") that voids the January 2020 negative
environmental decision for the Touro project. Since then, the new project
design has incorporated numerous improvements including increased
environmental protection measures.

Independent of the court ruling, Atalaya and CSR will remain focused on
finalising the permitting steps for the new improved project according to the
PIE legislation. In preparation for the conclusion of the permitting process,
CSR is continuing with detailed engineering and procurement works, land
purchases and exploration drilling.

Proyecto Ossa Morena

Drilling is ongoing at the Guijarro gold project, where a total of 17 holes
are planned in the current drilling programme.

Proyecto Riotinto East

Drilling will begin at the Cerro Negro permit in the coming weeks.

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 2026 winter drilling campaign was completed in late March. While complete
assays remain pending and detailed geological interpretations are currently
underway, initial results have yielded several positive insights. The
programme successfully extended known mineralisation from previous drill holes
at both the Skellefte Belt and Rockliden projects. Furthermore, the campaign
confirmed the efficacy of ground FLEM (Fixed Loop Electromagnetic) geophysics
in refining airborne VTEM targets and successfully detecting sulphide
mineralisation.

In 2026, a total of 23 drill holes (6,930 metres) were completed at the
Skellefte Belt Project and 9 drill holes (1,812 metres) were completed at the
Rockliden Project. Since the commencement of the earn-in agreements,
cumulative drilling has totalled 43 holes (12,617 metres) at the Skellefte
Belt Project and 25 holes (4,593 metres) at the Rockliden Project.

Over the coming months, ground geophysics will continue across high-priority
target areas. This data will be used to define the next phase of drilling,
which will focus on testing numerous regional targets and further extending
known mineralisation zones.

Corporate Activities Update

Fundraise

In January 2026, the Company completed an equity offering that raised gross
proceeds of £130 million (or approximately €150 million) from new
institutional investors, existing shareholders and eligible retail investors.
The fundraise was significantly oversubscribed.

Proceeds from the fundraise will allow Atalaya to accelerate the development
of its copper growth projects in Spain in order to capitalise on strong
copper market fundamentals, and also be used to enhance financial flexibility
and for potential new acquisition opportunities and regional partnerships.

Investment in Lara Exploration Ltd. (Subsequent Event)

On 2 April 2026, Atalaya announced that it had acquired 4,500,000 shares of
Lara Exploration Ltd. (TSX-V: LRA) for C$13.5 million. The shares were
acquired via private placement at a price of C$3.00 per share and represent
approximately 7.3% of Lara's issued and outstanding shares following
completion of the private placements as announced by Lara on 1 April 2026.
Atalaya acquired the shares for investment purposes.

The person responsible for arranging release of this announcement on behalf of
the Company is César Sánchez (CFO).

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  Clotilde Gros / George Esmond / 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" and Atalaya is a FTSE 250
Index constituent.

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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