The Earnings before interest, taxes, depreciation and amortisation (Ebitda) of Aim – and TSX-listed Atalaya Mining has increased to €148.2-million for the year-to-date, with cash flows from operating activities having increased to €129.9-million for the same period owing to robust operational performance at the miner’s Proyecto Riotinto, in Spain, and strong copper prices.

Following the increase in its full-yearproduction guidance in October this year, Atalaya has also updated its cost guidance, with cash costs now expected to be in the range of between $2.15/lb and $2.25/lb, and all-in sustaining costs (AISC) at the low end of the previous guidance range of between $2.50/lb and $2.65/lb.

Total cash as at September 30 was €140.9-million (including restricted cash of €15.4-million), up from €37.8-million as at December 31, 2020.

Atalaya maintains a strong balance sheet with net cash of €88.9-million as at the end of the period.

Revenues for the third quarter, meanwhile, increased to €107.2-million compared with €65.8-million for the three months, and the higher revenues were the result of increased realised copper prices and slightly larger volumes of concentrate sold, the miner said on November 19.

Operating costs during the quarter were €58.4-million, compared with €43.6-million in the third quarter of 2020. This increase mainly reflects the higher volumes of waste mined at greater unit costs at Proyecto Riotinto.

Despite the increase in operating costs, Ebitda for the quarter increased to €48.8-million, and was driven by the larger volume of concentrate sold and higher copper prices.

Cash costs for the third quarter were $2.19/lb of payable copper, and was mainly the result of higher volumes of waste mined plus higher freight rates.

AISC for the quarter amounted to $2.48/lb of payable copper, and was mainly driven by the same impacts as those for cash costs. Reported AISC excludes one-off investments in the tailings dam, which amounted to €2.8-million for the quarter.

Inventories of concentrate as at the end of the period amounted to €3.6-million.

Total cash balances comprised unrestricted cash balances of €125.4-million and restricted cash balances of €15.4-million, while net cash flow from operating activities was €58.2-million for the quarter.

Cash flows from operating activities were €129.2-million for the year-to-date. 

OPERATIONAL HIGHLIGHTS

At the group’s Proyecto Riotinto, copper production was 13 893 t, a decrease from the third quarter in 2020, owing to planned maintenance stoppages.

Copper production for the year-to-date was 42 225 t compared with 41 559 t during year-to-date in 2020.

Ore processed during the quarter was 3.9-million tonnes, in line with the same period last year when ore processed amounted to four-million tonnes. Total ore processed in the year-to-date was 12-million tonnes.

During the quarter, some cost reduction initiatives were implemented including an expert system to control the semiautogenous grinding mill operation that resulted in lower energy consumption, as well as an associated reduction of carbon dioxide emissions.

Atalaya further said the permitting of a 50 MW solar plant for self-consumption has “advanced significantly” and that the final permits are expected in the coming weeks, with construction to start immediately after.

The selection of a construction contractor for the solar plant is ongoing.

Flotation improvements are being investigated with the use of new reagents focused on increased recoveries.

At Proyecto Touro, also in Spain, all of the documents and reports required for the environmental evaluation of the new project design for Touro have been reviewed and prepared for filing.

The new project design includes initiatives to eliminate the water over the thickened tailings that will be stored in a plastic-lined basin with zero water discharge. Initiatives to treat the water runoff from the historic mine will be implemented with the new project.

The company continues to be confident that its approach to Proyecto Touro is in line with international best practice and has been engaging in recent months with local and regional stakeholders prior to the public consultation period that will commence once the environmental-impact evaluation starts for the new project.

Meanwhile, at Proyecto Masa Valverde, exploration work continues, and includes the Masa Valverde polymetallic deposit, the Majadales discovery and the unexplored Campanario-Descamisada area.

Following positive drilling results, including high-grade intercepts within broad intervals of massive and stockwork type polymetallic sulphide mineralisation at both Masa Valverde and Majadales, the company has decided to expand its drilling campaign beyond the 8 000 m originally planned.

These drilling results will be incorporated into the National Instrument 43-101 compliant report for Proyecto Masa Valverde that is currently being prepared by CSA Global and expected during the first quarter of 2022.

Investigation permits were granted at Proyecto Riotinto Este during 2021 and Atalaya now has access to two of the three investigation permits at Riotinto Este: Cerro Negro and Los Herreros.

The third investigation permit, Peñas Blancas, continues to progress and is expected to be granted in the coming months.

Additionally, an electromagnetic airborne geophysical survey has started, and will cover the investigation permits area located immediately east of Proyecto Riotinto and along the same structural and stratigraphic setting.

The E-LIX pilot plant, meanwhile, continues to operate and gather data as planned, demonstrating the potential range of applications for this technology, which enables the processing of copper and zinc concentrates to produce cathodes on site.

The feasibility study for the construction of an industrial plant has shown encouraging initial results and a process of iterative optimisation review is ongoing.

The company is currently evaluating development options with the inventor and owner of the ELIX System, LAIN Technologies, with the aim of building a phased industrial plant.

The miner’s full-year copper production guidance remains at between 54 000 t and 56 000 t.