TIDMATYM
RNS Number : 1043E
Atalaya Mining PLC
28 June 2023
Atalaya Mining Plc
1 Lampousas Street
1095 Nicosia, Cyprus
Tel: +357 22442705
Fax: +357 22442708
www.atalayamining.com
28 June 2023
Atalaya Mining Plc.
("Atalaya" or "the Company")
2023 Annual General Meeting Statement
Atalaya Mining plc ("Atalaya" or the "Company") (AIM: ATYM) is
hosting its 2023 Annual General Meeting ("AGM") today at 11.00 a.m.
BST at Hamilton House, 1 Temple Avenue, London, England EC4Y 0HA.
At the AGM, Roger Davey, non-executive Chairman of the Company,
will make the following statement:
"Dear Shareholder,
The year of 2022 presented a number of external challenges,
although these were very different from those experienced in 2020
and 2021, where Covid-19 affected everyone. We started 2022 with a
positive outlook, with the pandemic in rapid decline and economies
all over the world picking up speed. This feeling of euphoria
quickly subsided with the events in the Ukraine in late February
2022, which immediately impacted the European and global energy
markets. Severe spikes in natural gas prices in Europe pushed
electricity prices in Spain to over EUR500/MWh in March 2022 and
similar levels in late August and early September 2022, with
average realised prices for Q3 2022 reaching around EUR290/MWh.
The year was dominated by geopolitical and macroeconomic
factors, but for the most part, our operations performed well. The
Company continued its good track record, with copper production
totalling 52,300 tonnes in 2022, compared to 56,100 in 2021. The
slight reduction in production was a result of lower grades and
lower throughput. The plant performed solidly throughout the year
despite the negative impact of the Q1 2022 transport sector strike
and related stoppage.
The average process plant feed grade of 0.40% copper and the
process recovery rate of approximately 86% were consistent with
reserve estimates and budgeted figures. Cash Costs and All-in
Sustaining Costs for 2022 of $3.16/lb and $3.37/lb respectively,
were on the upper end of the guidance provided for the year. This
was mainly due to the increase in electricity costs and other
supplies and lower production volumes, partially offset by the
weaker Euro. The strong operating performance shown in the latter
part of 2022 has continued into 2023, with the plant maintaining
throughput above nameplate capacity. Accordingly, copper production
guidance for 2023 remains as previously announced, in the range of
53,000 to 55,000 tonnes.
Despite the solid operational performance during 2022, revenues
for 2022 were EUR361.8 million, compared to EUR405.7 million in
2021. The reduction was due to lower production volumes and a lower
average realised copper price. EBITDA for 2022 was EUR55.3 million,
compared to EUR199.1 million in 2021. The EBITDA was significantly
affected by the inflationary environment globally and mainly due to
the increase in electricity costs during 2022 of around EUR64
million. On a more positive note, as a result of the electricity
price so far in 2023 and the benefits from two key company specific
electricity procurement initiatives, we are optimistic on the
outlook for overall electricity costs for 2023 and beyond, with the
relevant knock-on positive effect on the profitability. The
long-term power purchase agreement ("PPA") took effect at the start
of 2023. The 10-year agreement will provide the Company with
approximately 31% of its current electricity requirements at a
fixed rate that is over 75% lower than the estimated average
realised electricity price in 2022, and also below the rates
realised in 2021. The Company continues to advance construction of
its 50 MW solar plant at Riotinto, which is expected to provide
approximately 22% of its current electricity needs when fully
operational in late 2023. Combined, the 50 MW solar plant and
long-term PPA will provide over 50% of the Company's current
electricity requirements at a rate below historical prices in
Spain. The Company continues to evaluate additional renewable power
initiatives that could deliver further low cost and carbon-free
electricity for its operations at Riotinto, including wind
turbines.
For additional growth prospects the Company is currently
focusing on five main projects. The Company remains fully committed
to the development of the Touro copper project in Galicia, in the
north of Spain. Running parallel with the permitting process, the
Company is focused on a number of initiatives relating to securing
the social licence, including engaging with the many stakeholders
in the region in advance of its plans to submit a new improved
project design. In the south, at Proyecto Masa Valverde,
exploration work is ongoing, with three core rigs continuing to be
active, with encouraging drilling results. Drill target definition
continues to progress and the first drill testing is planned at
Riotinto East. Two short drilling programmes were completed at the
Hinchona and Chaparral copper-gold projects at Proyecto Ossa
Morena. Finally, in February 2023, the Company announced the
completion of a new preliminary economic assessment for Proyecto
Riotinto that contemplates a new integrated mine plan for Cerro
Colorado, San Dionisio and San Antonio, which has the potential to
increase copper production by increasing the blended head grade
processed at Riotinto's 15 Mtpa plant.
The Company continues to advance construction of the E-LIX Phase
I plant. In recent weeks, activities have included the completion
of most civil and structural work, with equipment now being
assembled. Commissioning of the plant is expected in H2 2023. Once
operational, the E-LIX plant is expected to produce high purity
copper or zinc metals on site, allowing the Company to potentially
achieve higher metal recoveries from complex polymetallic ores,
lower transportation and concentrate treatment charges and a
reduced carbon footprint.
Our balance sheet remains strong and this allows the Company to
continue to invest in growth and cost reduction initiatives,
including E-LIX, higher-grade orebodies and exploration across our
portfolio. In addition, our financial strength means we are well
positioned to develop Touro should approvals be granted, which
could become a new source of copper production in Europe.
I would like to thank Harry Liu, who stepped down from our board
following a long period of service, and also welcome Kate Harcourt
to the Company's board. Kate has immense expertise in
sustainability and we look forward to publishing our second
sustainability report for 2022.
I would like to take this opportunity to express our
appreciation for the continued dedication and commitment of the
management and staff. At the same time, I would like to thank not
only the board members for their continued support, guidance, and
close involvement with the Company activities, but also our valued
shareholders for their continued and appreciated support. "
Contacts:
Elisabeth Cowell / Matthew
SEC Newgate UK Elliott + 44 20 3757 6882
4C Communications Carina Corbett +44 20 3170 7973
------------------------------- ------------------
Canaccord Genuity Henry Fitzgerald-O'Connor
(NOMAD and Joint / James Asensio / Thomas
Broker) Diehl +44 20 7523 8000
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BMO Capital Markets
(Joint Broker) Tom Rider / Andrew Cameron +44 20 7236 1010
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Peel Hunt LLP
(Joint Broker) Ross Allister / David McKeown +44 20 7418 8900
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About Atalaya Mining Plc
Atalaya is an AIM-listed mining and development group which
produces copper concentrates and silver by-product at its wholly
owned Proyecto Riotinto site in southwest Spain. Atalaya's current
operations include the Cerro Colorado open pit mine and a modern 15
Mtpa processing plant, which has the potential to become a
centralised processing hub for ore sourced from its wholly owned
regional projects around Riotinto that include Proyecto Masa
Valverde and Proyecto Riotinto East. In addition, the Group has a
phased earn-in agreement for up to 80% ownership of Proyecto Touro,
a brownfield copper project in the northwest of Spain, as well as a
99.9% interest in Proyecto Ossa Morena. For further information,
visit www.atalayamining.com
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END
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