Interim Financial Statements for the three months ended 31 March 2018

24 May, 2018

Atalaya Mining Plc (AIM: ATYM; TSX: AYM) is pleased to announce its unaudited quarterly results for the three months ended 31 March 2018, together with the unaudited, condensed, interim consolidated financial statements.

 

Operational Highlights

Proyecto Riotinto

  • Copper production during the three months ended 31 March 2018 (“Q1 2018”) was 9,441 tonnes, an increase of 7.2% compared with 8,805 tonnes produced during the three months ended 31 March 2017 (“Q1 2017”).
  • Ore processed during Q1 2018 was 2,206,861 tonnes in line with Q1 2017 when ore processed was 2,196,299 tonnes.
  • Copper recovery during the quarter was 88.47% significantly above Q1 2017 which was 84.63%.
  • The Company maintains its previously stated copper production guidance for 2018 of 37,000 – 40,000 tonnes.

Expansion to 15Mtpa at Proyecto Riotinto

  • The expansion project to 15Mtpa is moving ahead according to schedule. Overall progress completion is 27% with procurement reporting 26% and engineering 60% completed. Civil engineering works at the new concentrate handling area are well advanced and earthworks at the flotation area are progressing according to internal expectations. The milling area is the critical path to completion.
  • The expansion project is scheduled for mechanical completion for Q2 2019.

Proyecto Touro

  • Key highlights of the pre-feasibility study completed in April 2018 for a proposed open pit copper mine and concentrator:
  • Average yearly production of 30,000 tonnes of copper and 70,000 ounces of silver in concentrate.
  • NPV post-tax at 8% discount rate of $180 million using long term copper price of US3.00/lb.
  • Estimated average C1 cash cost of US$1.73/lb of payable Cu and AISC of US$1.85/lb of payable Cu net of silver credits.
  • Pre-production capital expenditure of US$165 million with an additional expansion capital estimate of US$30 million in year eight.
  • LOM sustaining capital expenditure of US$55 million.
  • 2 years of development and 12 years of operation, with very clean high-grade copper concentrates.

 

Financial Highlights

  • Revenues of €52.7 million for Q1 2018 compared with €25.6 million in Q1 2017.
  • Cash costs during Q1 2018 were $2.27/lb of payable copper, a decrease from cash costs of $2.35/lb of payable copper in Q4 2017 but higher than Q1 2017 ($1.64/lb). The decrease was mainly to the result of lower processing costs and higher volume of copper concentrate sold. All-in sustaining costs (“AISC”) during Q1 2018 amounted to $2.65/lb of payable copper, a decrease from $2.94/lb of payable copper during Q4 2017 but higher than Q1 2017 ($2.01/lb).
  • Management expects cash costs for the year to remain within the guidance range provided of $2.15/lb to $2.30/lb and AISC from $2.50/lb to $2.60/lb.

 

Financial Highlights (continued)

  • Positive Earnings Before Interest, Taxation, Depreciation and Amortisation (“EBITDA”) of €15.0 million in Q1 2018 compared with €12.6 million in Q1 2017. The increase in EBITDA was mainly a result of the increase in the volume of copper concentrate sold and higher realised copper prices, partly offset by higher operating costs.
  • Q1 2018 profit after tax amounted to €8.8 million (or 6.5 cents per share on a fully diluted basis) compared with a profit for Q1 2017 of €5.7 million (or 4.8 cents per share on a fully diluted basis).
  • Inventories of concentrate at 31 March 2018 amounted to €0.7 million (€4.8 million at 31 December 2017).
  • Working capital surplus has positively increased over the quarter as a result of cash generated from operations. At the end of Q1 2018 working capital was €26.8 million, a €4.7 million increase from €22.1 million at the end of Q4 2017. Unrestricted cash balances as at 31 March 2018 amounted to €52.3 million.
  • Cash flow from operating activities before changes in working capital was €15.2 million for Q1 2018 compared with a cash flow of €12.3 million during Q1 2017.
  • Net cash flow from operating activities after changes in working capital was €18.4 million for Q1 2018 compared with a cash flow of €14.3 million during Q1 2017.

 

Corporate Highlights

  • As previously announced, on 13 February 2018, Atalaya agreed to issue 192,540 new ordinary shares to satisfy the first two instalments of the Rumbo royalty. On 5 April 2018, it agreed to issue a further 1,600,907 new ordinary shares to purchase the remaining royalty. There are now no ongoing obligations in relation to the Rumbo royalty.
  • On 9 and 10 May 2018, the appeal hearing for the Astor case took place in the Court of Appeal in London. The Company expects the ruling to be issued in the coming months.

 

Alberto Lavandeira, CEO commented:

This quarter’s financial results continue to reflect the steady improvement in performance of the Riotinto plant. This gives us confidence that the expansion project, which is well advanced, together with Proyecto Touro, will provide Atalaya with the growth it needs to establish itself as a mid-tier copper producer in Europe.

About Atalaya Mining Plc

Atalaya is an AIM and TSX listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. 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 in 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) Charlie Chichester / James Ash / James Browne +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 / Neil Haycock / Tom Rider +44 20 7236 1010

 

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