Atalaya earnings rise on back of lower operating costs

(Sharecast News) - Atalaya Mining reported a solid increase in copper production in its results for 2023 on Tuesday, reaching 51.7 thousand tonnes at cash costs of $2.79 per pound and an all-in sustaining cost of $3.09 per pound. The AIM-traded firm said its financial results improved on the back of reduced operational costs, with EBITDA jumping to €73.1m from €55.3m in 2022, while cash flows from operating activities increased to €64.7m from €38.5m.

Atalaya managed to maintain a robust balance sheet through the period, ending with €54.3m in net cash.

That stability came after significant investments in the E-LIX process, a 50 MW solar plant, and the distribution of €11.5m in dividend payments over the calendar year.

The company proposed a final dividend of four US cents per share, leading to a total full-year dividend of nine cents per share.

Looking forward to 2024, Atalaya said it had allocated a capital expenditure budget focusing mainly on the early works at the San Dionisio project, with €42m to €46m budgeted for continued stripping and road relocation.

Additional funds were earmarked for completing and ramping up operations at the E-LIX and the 50 MW solar plant.

The company issued guidance for copper production of between 51,000 and 53,000 tonnes at an all-in sustaining cost of $3.00 to $3.20 per pound, maintaining a consistent performance level with 2023.

"Atalaya made progress on several important strategic initiatives in 2023 and we are enthusiastic about the year ahead," said chief executive officer Alberto Lavandeira.

"We began 2023 by announcing the results of the Riotinto PEA, which set out our vision for the future of our flagship operation, including mining higher grade material from our existing deposits and leveraging our 15 million tonnes per annum processing plant.

"We were then granted approval to expand our tailings capacity and mine footprint, and also to begin waste stripping at San Dionisio, which is an important component of the PEA mine plan."

Lavandeira said that similarly, the company the environmental authorisation and exploitation permit at Proyecto Masa Valverde, which could become another source of higher grade material for Riotinto.

"We continue to be optimistic about the outlook for Proyecto Touro, which could become a new source of copper production in Europe.

"The energy transition is accelerating the demand for copper, however, uncertainty around supply is growing as production falls from mature mines and new projects become increasingly complex.

"With our strong balance sheet and experienced team of mine builders and operators, Atalaya is well positioned to benefit from improving copper market dynamics."

At 1108 GMT, shares in Atalaya Mining were down 0.85% at 350p.

Reporting by Josh White for Sharecast.com.