Atalaya Mining Reports Strong Q2 2024 Operations and Financial Update
Atalaya Mining has released its operations update for the second quarter of 2024, showing robust performance at its Proyecto Riotinto in Spain despite some challenges.
During Q2 2024, Atalaya mined 3.8 million tonnes of ore, slightly down from 3.9 million tonnes in Q2 2023, but up from 3.7 million tonnes in Q1 2024. Waste mined amounted to 7.5 million tonnes, a decrease from 8.6 million tonnes in Q2 2023, but an increase from 5.5 million tonnes in the previous quarter. Additionally, waste stripping continued in the San Dionisio area.
The processing plant performed well, processing 4.1 million tonnes of ore, consistent with Q2 2023 and higher than Q1 2024's 3.7 million tonnes. This output exceeded the plant's annual capacity of 15 million tonnes. Copper grades were slightly lower at 0.33% compared to 0.40% in Q2 2023 and 0.34% in Q1 2024 due to pit sequencing. However, improved grades are expected in the latter half of 2024 as mining returns to the Cerro Colorado pit's lower areas.
Copper recovery stood at 85.77% in Q2 2024, down from 87.18% in Q2 2023 but up from 84.74% in Q1 2024, aligning with budget expectations. Copper production reached 11,583 tonnes, a decrease from 14,212 tonnes in Q2 2023 but an increase from 10,666 tonnes in Q1 2024, attributed to higher plant throughput.
At the end of Q2 2024, on-site copper concentrate inventories were approximately 8,749 tonnes, with 11,397 tonnes of copper contained in concentrates sold during the period, compared to 12,858 tonnes in Q2 2023.
Financially, Atalaya realized an average copper price of $4.54/lb in Q2 2024, higher than $3.81/lb in Q2 2023 and $3.89/lb in Q1 2024. The average spot copper price was $4.42/lb. However, provisional revenue adjustments resulted in a negative impact of EUR4.3 million.
As of June 30, 2024, Atalaya's balance sheet showed consolidated cash and cash equivalents of EUR57.7 million, with net cash of EUR30.0 million after accounting for borrowings, down from EUR54.3 million at the end of December 2023. The decrease was mainly due to increased investments in capital projects.
Looking ahead, Atalaya has updated its FY2024 copper production guidance to 45,000 - 50,000 tonnes, down from the previous range of 51,000 - 53,000 tonnes, reflecting H1 2024 performance. The company expects improved copper grades and strong plant performance in H2 2024, with operating costs remaining consistent with expectations.
