Interim Financial Statements for the three and nine month period ended 30 September 2018 Unaudited, Condensed, Interim, Consolidated Financial Statements

22 November, 2018

Atalaya Mining Plc (AIM: ATYM; TSX: AYM), the European mining and development company, is pleased to announce its unaudited quarterly results for the three and nine months ended 30 September 2018, together with the unaudited, condensed, interim consolidated financial statements.

In particular, the Group has increased its 2018 guidance due to the operating improvements delivered during the nine months ended 30 September 2018, outlined in detail below.

Contained copper production is expected to be between 39,000 tonnes and 41,000 tonnes (previous guidance of 37,000 to 40,000 tonnes) owing to a combination of improved recoveries, ore grade and throughput. Cash costs and All-in sustaining costs (“AISC”) are also revised and are now expected to be within $1.95-$2.10 and $2.25-$2.40 per pound of copper, respectively (previously estimated to be in the range of $2.50/lb – $2.60/lb).

Operating Highlights

Proyecto Riotinto

  • Copper production during the three months ended 30 September 2018 (“Q3 2018”) was 11,055 tonnes, 4% higher than the 10,679 tonnes produced during the three months ended 30 September 2017 (“Q3 2017”). Copper production at Proyecto Riotinto during Q3 2018 replaces Q2 2018 as the highest quarterly production on record. During the nine month period ended 30 September 2018 copper production was 30,942 tonnes compared with 28,542 tonnes during the same period in 2017, an 8% increase.
  • Ore processed during Q3 2018 was 2,491,403 tonnes compared with 2,173,826 tonnes in Q3 2017. During the nine month period ended 30 September 2018 ore processed was 7,188,747 tonnes compared with 6,525,032 tonnes processed in the same period last year.
  • Copper recovery during the Q3 2018 was 88.40% (Q3 2017: 85.95%). Copper recovery for the nine month period ended 30 September 2018 averaged 88.06% representing an improvement over 85.22% during the same period in 2017.

 

Expansion to 15Mtpa at Proyecto Riotinto

  • The 15Mtpa expansion project is progressing according to schedule with engineering essentially complete and site construction activities picking up. Overall progress completion at the end of the reporting quarter was 65%. Procurement has progressed to 64% completed. Earthworks are almost completed with only minor final activities pending. Civil engineering works are progressing with main activities now concentrated on completion of the new SAG area and the crusher and coarse stockpile buildings. Structural steel works are well advanced in the flotation area. Piping is also close to completion in the concentrate handling area with electrical installation commencing. Installation of mechanical equipment is progressing in the concentrate handling area. The milling area is the critical path to completion. The expansion project is scheduled for mechanical completion at the end of Q2 2019.

 

Proyecto Touro

  • At the end of the reporting quarter, additional studies and detailed reports addressing certain project improvements and recommendations from the public hearing process were formally submitted to the authorities. This is the last step to complete the public hearing process initiated in August 2017.

 

Financial Highlights

  • Revenues of €42.8 million for Q3 2018 compared with €35.7 million in Q3 2017 on higher sales volumes owing to timing of sales plus higher realised prices. Revenues for the nine month period ended 30 September 2018 increased significantly to €144.4 million compared with €114.8 million for the same period in 2017, as a result of increased volumes sold and higher copper prices. Realised copper price for Q3 2018 was $2.89/lb compared with $2.66/lb in Q3 2017.

 

  • Cash costs during Q3 2018 were the same as previously quarter at US$1.88/lb of payable copper, slightly higher than Q3 2017 (US$1.84/lb). AISC during Q3 2018 amounted to US$2.13/lb of payable copper representing a lower cost than US$2.34/lb of payable copper during Q2 2018. Lower costs per pound were mainly the result of the effect of higher payable copper production, together with lower sustaining capex during Q3 2018.

 

  • Cash costs for the nine month period ended 30 September 2018 were US$2.00/lb payable copper versus US$1.80/lb payable copper during the same period last year. AISC amounted to US$2.35/lb payable copper during the nine month period ended 30 September 2018 compared with US$2.12/lb payable copper for the nine month period ended 30 September 2017.

 

  • EBITDA of €7.7 million in Q3 2018 compared with €9.3 million delivered in Q3 2017. The decrease in EBITDA was mainly the result of higher operating costs over sales volumes. On an accumulative basis, EBITDA during the nine month period ended 30 September 2018 was €42.0 million compared with €33.8 million in the same period last year.

 

  • Year-on-year increase in profit after tax in Q3 2018 to €3.1 million (Q3 2017: €2.7 million). Profits after tax for the nine months ended 30 September 2018 were significantly higher at €27.6 million compared with €14.5 million during the same period in 2017.

 

  • Fully diluted earnings per share (“EPS”) for Q3 2018 of 2.2 cents per share compared with 2.3 cents per share in Q3 2017. Fully diluted earnings per share for the nine month period ended 30 September 2018 were 20.2 cents per share compared with 12.3 cents for the same period last year.

 

  • Inventories of concentrate at 30 September 2018 amounted to €2.0 million (€4.8 million at 31 December 2017).

 

  • Working capital surplus has decreased during Q3 2018 as a result of capital expenditures mainly related to the expansion project. At the end of Q3 2018, working capital was €19.1 million, representing a €13.6 million decrease from Q2 2018 (€32.7 million). Unrestricted cash balances as at 30 September 2018 amounted to €45.6 million.

 

  • Cash flow from operating activities before changes in working capital was €7.7 million for Q3 2018 compared with €8.0 million during Q3 2017. Cash flows from operating activities before changes in working capital during the nine month period ended 30 September 2018 were €43.3 million compared with €32.0 million during the same period last year.

 

  • Net cash flow from operating activities after changes in working capital was €14.9 million for Q3 2018 compared with €12.9 million during Q3 2017. Net cash flows from operating activities after changes in working capital were €44.2 million for the nine month period ended 30 September 2018 compared with €22.9 million during the same period in 2017.

 

Commenting on 2018’s Q3 and year to date results, Alberto Lavandeira, CEO said:

We are pleased to have increased our production guidance for 2018 following a very positive nine months of 2018. We have achieved record production and recovery levels, operating costs within our stated guidance during a period where copper prices have also been robust. The Riotinto plant is operating well and our expansion plans are well on track. Once complete, we will see an improvement in operational efficiencies and a reduction in maintenance requirements and operating cash costs.

About Atalaya Mining Plc

Atalaya is an AIM and TSX listed mining and development group. It produces copper concentrates and silver by-product at its fully owned Proyecto Riotinto site in southwest Spain, which is also undergoing a brownfield expansion. 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 which is currently at the permitting stage. For further information, visit www.atalayamining.com

This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

Newgate Communications (Financial PR) Elisabeth Cowell / Adam Lloyd / Tom Carnegie +44 20 7680 6550
4C Communications Carina Corbett +44 20 3170 7973
Canaccord Genuity (NOMAD and Joint Broker) Martin Davison / Henry Fitzgerald-O’Connor/ James Asensio +44 20 7523 8000
BMO Capital Markets (Joint Broker) Jeffrey Couch / Tom Rider / Michael Rechsteiner +44 20 7236 1010

 

Download “Interim Financial Statements for the three and nine month period ended 30 September 2018” (886KB pdf)