Q2 and H1 2017 Interim Financial Statements

7 September, 2017

Atalaya Mining Plc. (AIM: ATYM; TSX: AYM) is pleased to announce its unaudited quarterly results for the three and six months ended 30 June 2017, together with the unaudited, condensed, interim consolidated financial statements.

Operational Highlights

Proyecto Riotinto

  • Copper production during Q2 2017 was 9,058 tonnes, 3% higher than copper production in the previous quarter of 8,805 tonnes. Copper production during H1 2017 was 17,863 tonnes compared with 8,489 tonnes during H1 2016.
  • Ore processed during the quarter was 2,154,907 tonnes in line with previous quarter when ore processed was 2,196,299 tonnes. During H1 2017 ore processed was 4,351,206 tonnes compared with 2,442,728 tonnes during H1 2016.
  • Copper recovery during the quarter was 85.16% slightly above the previous quarter of 84.63%. Copper recovery for H1 2017 averaged 84.90% representing an improvement over 82.20% during H1 2016.
  • The Company maintains its copper production guidance for Proyecto Riotinto of 34,000 to 40,000 tonnes for 2017.

 Expansion of Proyecto Riotinto

  • In June 2017, the Board of Directors of the Company approved the commencement of a study to demonstrate the feasibility of increasing mining and processing capacity beyond the current 9.5 Mtpa, to a maximum of 15.0 Mtpa at Proyecto Riotinto. If proven feasible, copper production would reach approximately 50,000 tonnes per year.

Proyecto Touro

  • In February of this year the Company announced the exercise of an option to acquire an initial 10% stake in Proyecto Touro. The agreement is based on a staged earn-in process to acquire up to 80% of the project. Proyecto Touro is located in Galicia, north-west Spain.
  • The Company has also signed an option agreement to acquire exploration concessions that cover 122.7 km2 immediately surrounding Proyecto Touro, where mineralised copper occurrences are documented.
  • Permitting of Proyecto Touro is progressing according to schedule. Metallurgical test-work has demonstrated that high grade clean concentrates and high recovery rates can be achieved.
  • A technical report is at an advanced stage of development and is expected to be at a pre-feasibility level. Completion is anticipated during Q4 2017.


Financial Highlights

  • Revenues of €53.4 million for Q2 2017 compared with €17.7 million in Q2 2016. Similarly, revenues for H1 2017 were €79.1 million compared with €22.6 million for the same period of 2016.
  • Cash costs during Q2 2017 were $2.07/lb of payable copper, increased from cash costs of $1.83/lb of payable copper in Q1 2017. The increase was due to the expensing of a higher proportion of stripping costs as well as one off maintenance costs in the milling area during the quarter. All-in sustaining costs (“AISC”) during Q2 2017 amounts to $2.30/lb of payable copper, also increased from $2.15/lb of payable copper during Q1 2017. Cash costs for H1 2017 were $1.97/lb payable copper versus $2.31/lb payable copper during H1 2016. AISC amounted to $2.22/lb payable copper during H1 2017 against $2.74/lb payable copper for H1 2016.
  • Positive Earnings Before Interest, Taxation, Depreciation and Amortisation (“EBITDA”) of €11.9 million in Q2 2017 compared with a negative EBITDA of €1.1 million in Q2 2016. The increase of €13.0 million in EBITDA was a result of the increase in the volume of copper concentrate sold, lower cash costs and higher realised copper prices. On acumulative basis EBITDA during H1 2017 was €24.5 million compared with a negative EBITDA of €3.6 million in H1 2016.
  • Q2 2017 profit after tax amounted to €5.7 million (or €4.8 cents per share on a fully diluted basis) compared with a loss for Q2 2016 of €3.2 million (or -€2.8 cents per share on a fully diluted basis). Profits after tax for H1 2017 were €10.9 million versus a loss of €6.5 million during H1 2016.
  • Inventories of concentrate at 30 June 2017 amounted to €1.6 million.
  • Working capital deficit has consistently improved over the last two quarters as a result of cash generated from operations. At the end of Q2 2017 working capital deficit was €14.1 million from €20.0 million at the end of Q1 2017 and €25.4 million at 31 December 2016. Unrestricted cash balances as at 30 June 2017 amounted to €1.6 million.
  • Cash flows from operating activities before changes in working capital were €11.7 million for Q2 2017 compared with a negative cash flow of €1.2 million during Q2 2016. Cumulative for H1 2017, cash flows from operating activities before changes in working capital were €24.0 million for H1 2017 compared with a negative cash flow of €3.7 million during H1 2016.
  • Net cash flows used in operating activities after changes in working capital were negative €4.3 million for Q2 2017 compared with a cash flow of €7.4 million during Q2 2016. Net cash flows from operating activities after changes in working capital were €10.0 million for H1 2017 compared with of €8.9 million during H1 2016.


Corporate Highlights

  • On 25 April 2017, Atalaya and Astor applied for permission to appeal to the Court of Appeal. On 11 August 2017, the Court of Appeal granted permission to both parties to appeal (although it rejected three of Astor’s seven grounds). The Appeal is anticipated to take place by July 2018.


 Alberto Lavandeira, CEO commented:

I am pleased to report on a successful six months for Atalaya. Proyecto Riotinto is performing well, having produced 9,058 tonnes of copper in concentrate in the quarter. Approved studies to assess the viability of an expansion of the mine are progressing as planned and we look forward to updating the market with the results in due course. Operational and financial performance at Proyecto Riotinto gives us the confidence to reiterate our full year production guidance of 34,000-40,000 tonnes copper. Progress at Proyecto Touro is promising and we look forward to the prospect of bringing this mine in to commercial production in the near future.”

 About Atalaya Mining Plc

Atalaya is an AIM and TSX listed operational and development company which produces copper concentrates and silver by-product at its fully owned Proyecto Riotinto site in southwest Spain. In addition, the Company 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.


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