Operational review and release of Q3 2016 Financial Statements

24 November, 2016

Atalaya Mining plc (AIM:ATYM, TSX:AYM), the European mining and development company, announces its unaudited quarterly and interim results for the three and nine months to 30 September 2016, together with the unaudited, condensed interim consolidated financial statements.

These results are also available on the Company’s website at www.atalayamining.com

Operating Highlights

– 97% increase quarter on quarter in production of tonnes of copper in concentrate (Q3 2016: 8,752 tonnes, Q2 2016: 4,442 tonnes).

– Increase in recoveries to 83.60% during Q3 2016 (Q2 2016: 80.46%). Plant performing very well and achieving a recovery rate of 87.09% during October 2016.

– Copper concentrate grades of over 21% remained consistent with the previous quarter and penalties are now well below the maximum levels stipulated by some smelters.

– 8,752 metric tonnes of copper metal produced during the quarter, with accumulated production of 17,241 metric tons for the nine months period, including January pre-commissioning production.

– 50% more tonnes of ore processed during Q3 2016 (2.0 million tonnes) compared to Q2 2016 (1.3 million tonnes).

– Following mechanical completion of the expansion project in May 2016, ramp-up is progressing according to plan. Minimal additional capex required until the end of the year.

– Updated NI 43-101 technical report for Proyecto Riotinto filed in September 2016, reporting a 12% increase in open pit reserves and extending the life of mine to 16.5 years.

– Water treatment plant now fully operational after successful commissioning during Q3 2016. De-watering of Cerro Colorado open pit progressing according to plan.

– Atalaya maintains its copper production guidance of 23,500 to 27,000 metric tons for 2016, with a bias towards the higher end of the scale.

Financial Highlights

As commercial production was declared in February 2016, no comparative operational data is available for 2015.

– Working capital position improvement of €4.2 million from Q2 2016.

– Revenues of €27.2 million and €49.9 million for the three and nine month periods, respectively.

– Cash cost reductions during Q3 2016 to $1.97/lb of payable copper (Q2 2016: $2.36/lb), with further reductions targeted in coming months as production levels get closer to the nominal plant capacity of 9.5Mtpa.

– EBITDA improved significantly in Q3 2016 compared with H1 2016 (negative €3.6 million) as a result of an increase in volume of copper concentrate sold, lower cash costs and higher realised copper prices. Positive EBITDA of €1.9 million for the period compared with a negative EBITDA of €1.6 million for the year to date.

– Loss of €1.5 million (or 1.3 cents per share) and €8.0 million (or 6.8 cents per share) for the three and nine month period respectively.

– Inventories of concentrate at 30 September 2016 amounted to approximately €9.3 million.

– Completion of US$14 million copper concentrate prepayment funding agreement with Transamine Trading S.A. to improve working capital position.

– Positive cash flows from operating activities for the nine months ended 30 September 2016 amounted to €5.5 million. Cash used for investment activities was €19.8 million.

– The average market prices of copper for the three and nine months ended 30 September 2016 were US$2.17/lb for the third quarter and US$2.14/lb for the nine months. The Company’s realised copper prices for the same periods were US$2.18/lb and US$2.16/lb respectively.

Corporate Highlights

– Astor case – There has been no update to the Astor case since the release of the Q2 2016 financials. Atalaya continues to work closely with its legal advisors in preparing for trial at the High Court of Justice in London on 30 January 2017. Atalaya remains confident of a positive outcome of the upcoming trial and will update shareholders following the trial, or if there are any material developments in the meantime.

Alberto Lavandeira, CEO commented:
“We are gradually beginning to see the fruits of our efforts with positive cash flows from our operations. The combination of falling operating costs and improved levels of recovery and production reflect the increasing on-site efficiencies. The effect of the recent increase in the copper price on our share price demonstrates our leverage to copper. With the plant working now almost at nameplate capacity we are well placed to benefit from any future improvements in the copper price.”

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.


Atalaya Mining plc                                                           Roger Davey / Alberto Lavandeira                          +34 959 59 28 50
Canaccord Genuity (NOMAD and Joint Broker)       Henry Fitzgerald-O’Connor / Martin Davison     +44 20 7523 8000
BMO Capital Markets (Joint Broker)                            Jeffrey Couch/Neil Haycock/Tom Rider              +44 20 7236 1010

Download “Condensed Interim Consolidated Financial Statements 30 September 2016” (149KB pdf).