REG - Atalaya MiningCopper - Q2 2025 Operations Update

Atalaya Mining Copper SAAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250715:nRSO0075Ra&default-theme=true

RNS Number : 0075R  Atalaya Mining Copper, S.A.  15 July 2025

 

15 July 2025

Atalaya Mining Copper, S.A.

("Atalaya" or "the Company")

Q2 2025 Operations Update

Consistent performance continues, resulting in a growing cash position

 

Atalaya Mining (LSE: ATYM) is pleased to announce its operations update for
the second quarter of 2025 ("Q2 2025" or the "Period").

Proyecto Riotinto Operating Highlights

                              Q2                 Q1      Full Year
                              2025((1))  2024    2025    2025 Guidance
 Ore mined          M tonnes  3.5        3.8     3.7     15 - 16
 Waste mined((2))   M tonnes  12.6       7.5     11.3    37 - 43
 Ore processed      M tonnes  4.0        4.1     4.2     15.5 - 15.8
 Copper grade       %         0.43       0.33    0.42    0.38 - 0.42
 Copper recovery    %         76.75      85.81   80.98   78 - 82
 Copper production  tonnes    13,175     11,583  14,291  48,000 - 52,000

(1)      Figures for Q2 2025 are preliminary and final figures will be
released with Q2 2025 Financial Results.

(2)      Represents the Cerro Colorado pit only.

Alberto Lavandeira, CEO, commented:

"We are pleased to announce another quarter of consistent performance at
Riotinto, which provides confidence in our full year outlook.

With the regulatory approval of the San Dionisio area, the start of drilling
at San Antonio and the confirmation of high-grade copper zones at Masa
Valverde, we continue to advance our strategy of delivering higher grades to
our plant at Riotinto while optimising the use of our existing infrastructure.

The review of documents related to the environmental permit at Proyecto Touro
continued to advance, and we remain confident that we will achieve a positive
outcome for this potential new source of copper in Europe.

With our growing cash position, we are well-placed to deliver on our organic
copper growth pipeline. Copper is increasingly being viewed as a strategic
commodity, as highlighted by recent legislation in the U.S. and the
competitive environment for copper assets."

Q2 2025 Operating Results

Mining

Ore mined was 3.5 million tonnes in Q2 2025 (Q2 2024: 3.8 million tonnes),
compared with 3.7 million tonnes in Q1 2025.

Waste mined was 12.6 million tonnes in Q2 2025 (Q2 2024: 7.5 million tonnes),
compared with 11.3 million tonnes in Q1 2025. In addition, waste stripping
activities continued at the San Dionisio area.

Processing

The plant processed ore of 4.0 million tonnes in Q2 2025 (Q2 2024: 4.1 million
tonnes), compared with 4.2 million tonnes in Q1 2025. The next SAG mill liner
change will be completed in Q3 2025.

Copper grade was 0.43% in Q2 2025 (Q2 2024: 0.33%), compared with 0.42% in Q1
2025.

Copper recovery was 76.75% in Q2 2025 (Q2 2024: 85.81%), compared with 80.98%
in Q1 2025. Recoveries in Q2 2025 were impacted by the characteristics of
certain ores, however, this material contributed much higher grades than the
average plant feed during the Period.

Production

Copper production was 13,175 tonnes in Q2 2025 (Q2 2024: 11,583 tonnes),
compared with 14,291 tonnes in Q1 2025, mainly as a result of higher copper
grades but partly offset by lower recoveries.

On-site copper concentrate inventories were 10,368 tonnes at 30 June 2025 (31
March 2025: 19,031 tonnes).

Copper contained in concentrates sold was 14,024 tonnes in Q2 2025 (Q2 2024:
11,397 tonnes), compared with 14,687 tonnes in Q1 2025.

Select Financial Highlights

Realised Copper Price

The average realised copper price (excluding QPs closed during the Period) was
$4.27/lb in Q2 2025 (Q2 2024: $4.54/lb), compared with $4.26/lb in Q1 2025.
The average spot copper price was $4.32/lb in Q2 2025.

Provisional Revenue Adjustments

For Q2 2025, settlement adjustments (for QPs closed during the Period) and
fair value adjustments (for open QPs based on copper forward curve prices as
of 30 June 2025) were positive €2.2 million.

Balance Sheet

The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €103.0 million as of 30 June 2025 (31 December 2024: €52.9
million).

Current and non-current borrowings were €32.9 million, resulting in a net
cash position of €70.1 million as of 30 June 2025 (31 December 2024: €35.1
million).

Outlook for 2025

Atalaya is pleased with Riotinto's performance in H1 2025, which puts the
Company in a strong position to deliver on its full-year targets.

Guidance for 2025 remains unchanged, including 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

On 15 May 2025, San Dionisio was granted the Unified Environmental
Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) by
the Junta de Andalucía ("JdA"), which allows for the expansion of mining
activities. During Q2 2025, waste stripping activities continued at San
Dionisio with total material mined of 1.0 million tonnes, and in H2 2025,
mining activities are expected to accelerate. 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.

With respect to the planned relocation of the A-461 road that currently runs
between Cerro Colorado and San Dionisio, the project is progressing well and
major works are expected during H2 2025.

At San Antonio, the polymetallic deposit located immediately east of the
Cerro Colorado pit, an infill and step-out drilling programme began in June.

E-LIX Phase I Plant

Ramp-up activities continued at the E-LIX Phase I plant. During Q2 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,
thereby producing upgraded copper concentrates and zinc precipitates.

Once fully operational, the E-LIX plant is expected to produce high-purity
copper or zinc metals and intermediate products (such as metal precipitates)
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")

On 10 July 2025, the Company announced results from its ongoing drilling
programme at PMV, where two rigs are active and are focused on infill and
extensional drilling at the Masa Valverde deposit.

Notable high-grade copper zone drilling results included 25 metres at 2.93% Cu
(MJ65), 46 metres at 2.11% Cu (MJ76) and 26 metres at 2.78% Cu (MJ79),
including 10 metres at 4.39% Cu. The results are primarily associated with
stockwork-style mineralisation, which is expected to be amenable for
processing at the existing Riotinto facilities. Recent drilling supports
Atalaya's initial focus on the Masa Valverde copper zones, which are expected
to be mined via the planned access ramp. Development of the access ramp is
expected to begin once the purchase of certain surface rights is completed,
subject to final Board approval.

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 has
addressed the feedback from the public information period, and most sectoral
reports from the Xunta de Galicia have been finalised, with only three reports
still pending. The company has also responded to requests for additional
information and is awaiting the corresponding replies. Progress on the
planned power transmission line continues, with agreements already secured
with a significant number of landowners.

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 progressing, focused on cost optimisation. Additionally,
the search for contractors has started. Finally, infill and step-out drilling
programmes continue, with the objective of determining the limits of mineral
orebodies both at depth and laterally.

Proyecto Ossa Morena

A step-out drilling programme is underway at the flagship Alconchel-Pallares
copper-gold project.

Proyecto Riotinto East

Gravimetric ground surveys have been completed in order to better define
future drill targets on the East Belt extension, and soil geochemistry works
are nearing completion at two targets.

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.

Following the winter drilling programmes, complete assays are still pending.
At Bjurtraskgruvan, encouraging results from step-out drilling have been
received, including:

·      25SBJK015:

‒      From 299.50m, 8.65m at 0.42% Cu, 1.49% Zn, 4.94g/t Ag, 0.12g/t
Au (including 2.45m at 0.25% Cu, 4.78% Zn, 5.99g/t Ag, 0.19g/t Au)

·      25SBJK016:

‒      From 263.35m, 4.25m at 0.16% Cu, 7.93% Zn, 4.80g/t Ag, 0.23g/t
Au (including 1.70m at 0.06% Cu, 18.51% Zn, 5.24g/t Ag, 0.38g/t Au)

‒      From 275.65m, 8.65m at 0.61% Cu, 2.66% Zn, 12.21g/t Ag, 0.47g/t
Au (including 3.85 m at 0.67% Cu, 4.25% Zn, 14.65g/t Ag, 0.82 g/t Au)

·      25SBJK017:

‒      From 98.20m, 4.50m at 1.84% Cu, 0.12% Zn, 14.36g/t Ag, 0.14g/t
Au (including 1.20m at 5.14% Cu, 0.30% Zn, 39.6g/t Ag, 0.40g/t Au)

‒      From 163.75m, 10.65m at 2.21% Cu, 0.29% Zn, 10.89g/t Ag, 0.18g/t
Au (including 2.95m at 6.35% Cu, 0.70% Zn, 31.79g/t Ag, 0.39g/t Au)

Additionally, results from a geophysical Borehole TEM (BHEM) survey in the new
Bjurtraskgruvan drill holes indicate that the "plates" are more extensive than
originally thought, potentially increasing the size of the deposit. Further
testing will be completed in the winter 2025-2026 drilling season.

An airborne electromagnetic survey (VTEM) is underway in order to provide
detailed coverage of the Mid-Skellefte Belt, with results and preliminary
interpretation expected in late 2025.

Corporate Activities Update

Indexation

Effective from 7 May 2025, Atalaya's shares were added to the FTSE 250
Index. This milestone is expected to enhance the Company's visibility to
institutional investors.

2025 Annual General Meeting ("AGM")

All resolutions put to the Company's 2025 AGM were passed by the requisite
majorities, including the approval of the 2024 Final Dividend of US$0.03
(€0.0275) per share, which will be paid on 23 July 2025.

Board of Directors

Following the conclusion of the Company's 2025 AGM, Hussein Barma stepped down
as an independent non-executive director and Hennie Faul was appointed as an
independent non-executive director of the Company. As a result, several
changes were made in relation to the composition of the Board's various
committees.

Technical Information

The technical information in this announcement that relates to Proyecto Masa
Valverde and the Skellefte Belt Project has been compiled by Juan Manuel Pons
Pérez, senior geologist and employee of the Company. Juan Manuel Pons Pérez
has over 35 years' experience, is a member of good standing with the College
of Geologists of Andalucía and has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person. Juan Manuel Pons
Pérez consents to the inclusion in this release of the matters based on his
information in the form and context in which it appears.

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" 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)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDDZLFFEDLFBBB