Atalaya Mining Reports Significant Drop in Q1 Profit Amid Production Decline
Atalaya Mining reported a substantial decrease in profit for the first quarter ended March 31, following a decline in production. The Spain-focused sustainable copper producer saw pretax profit fall 84% to EUR 2.1 million from EUR 13.6 million a year earlier. Revenue also decreased by 23% to EUR 69.9 million from EUR 91.2 million.
During the quarter, copper production dropped by 12% to 10,666 tonnes from 12,139 tonnes. Copper prices were also lower, averaging USD 3.89 per pound compared to USD 4.00 in the same period last year. Despite these challenges, Atalaya reaffirmed its guidance for full-year copper production to be between 51,000 to 53,000 tonnes, aligning closely with the 51,667 tonnes produced last year.
CEO Alberto Lavandeira noted that recent positive trends in copper prices have been encouraging, driven by strong global demand, economic activity, and investment in renewables and new technologies. The company anticipates that improving copper grades in the coming quarters will support its production targets.
Looking forward, Atalaya expects to benefit from supply shortages faced by competitors due to permitting and execution challenges in major copper-producing regions. With operations in areas known for their long mining histories and robust infrastructure, Atalaya believes it is well-positioned to capitalize on these market dynamics.
Key projects, including Touro and Riotinto, are expected to have lower capital intensities and potentially quicker development timelines compared to larger projects pursued by other companies.
