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Atalaya Mining plc (LSE:ATYM), the mining company specializing in copper production, has announced its unaudited interim results for the six months ended 30 June 2024 (“H1 2024”) and for the second quarter of 2024 (“Q2 2024”). The company’s performance highlights robust production figures, solid cost control, and a dividend declaration, reflecting its commitment to shareholder returns and growth initiatives.
Operational Highlights
In Q2 2024, Atalaya achieved copper production of 11.6 kilotonnes (kt), contributing to a total of 22.2 kt for H1 2024. The company expects continued improvements in copper grades and plant performance in the second half of 2024 (H2 2024), which should support its production targets.
Despite facing lower copper grades, Atalaya maintained an all-in sustaining cost (AISC) of $3.20 per pound of copper in Q2 2024 and $3.19 per pound in H1 2024. This cost control was achieved through strong operational performance and effective management of expenditures.
Financial Performance
The company reported an EBITDA of €26.4 million for Q2 2024 and €36.7 million for H1 2024. The strong EBITDA performance benefited from higher copper prices and effective cost control measures during the period. These results underscore Atalaya’s ability to navigate market fluctuations and maintain profitability.
Balance Sheet and Growth Projects
Atalaya’s balance sheet remains robust, supporting the advancement of key growth projects, including San Dionisio, Proyecto Touro, and Proyecto Masa Valverde. The company’s strong financial position positions it well to continue investing in these low capital intensity projects, which are expected to drive future growth.
Dividend Declaration
In line with its dividend policy, Atalaya has declared an interim dividend of US$0.04 per ordinary share for 2024. The payment is a continuation of the company’s strategy to provide returns to shareholders while maintaining investment in its growth projects. The dividend reflects the company’s ongoing commitment to delivering value to its investors.
The 2023 final dividend of US$0.04 per ordinary share was completed on 9 August 2024, further demonstrating Atalaya’s dedication to shareholder returns.
Re-domiciliation and Market Presence
Atalaya continues to progress with its re-domiciliation to Spain, which is anticipated to be completed by Q4 2024. This move follows the company’s transition to the Main Market in April 2024 and is expected to enhance its market presence and operational efficiency.
2024 Outlook
For the remainder of 2024, Atalaya maintains its copper production guidance of 45,000 to 50,000 tonnes. The company anticipates improved grades and strong plant performance in H2 2024. Cash cost and AISC guidance are maintained at $2.80 - 3.00 per pound and $3.00 - 3.20 per pound of copper payable, respectively. This guidance excludes one-off investments related to the tailings dam and ongoing waste stripping at San Dionisio.
The guidance for total non-sustaining capital expenditures remains at €64 - 73 million, with exploration expenditure expected to be between €5 - 7 million.
