TIDMATYM
RNS Number : 9964Q
Atalaya Mining PLC
25 June 2020
25 June 2020
Atalaya Mining Plc.
("Atalaya" or "the Company")
2020 AGM Statement
At Atalaya Mining's AGM, to be held at 11.00 a.m. (UK) today at
the offices of Fieldfisher LLP, Riverbank House, 2 Swan Lane,
London EC4R 3TT, Roger Davey, non-executive Chairman, will make the
following statement:
"Dear Shareholder,
The agenda for today will include the formal business of the
meeting, followed by a brief Q&A session at the end of the
meeting on these formal matters only, during which Shareholders
will have the opportunity to speak and to ask questions. Questions
should be directed through a moderator and the moderator will
explain how to ask a question on the call before the Q&A
process begins.
I am both pleased and proud to report that 2019 was another year
of improvements at your operating mine, Proyecto Riotinto, with
increases in both ore processing rates and copper output.
The ore processing throughput rate increased steadily during
2019 to achieve a cumulative plant throughput of 9.9Mtpa, with
copper production of 45,000 tonnes, an increase of around 7% from
the 42,100 tonnes produced in 2018, reaching the upper range of the
updated guidance provided by the Company towards the end of
2019.
This record production was even more remarkable as it was
achieved while the Company was completing and integrating a 50%
Expansion Project at Riotinto, whilst maintaining the existing
operations. The Expansion Project was completed in January 2020 and
the new processing plant was fully commissioned to operate at the
increased annualised rate of 15Mtpa together with a corresponding
increase in mining rates.
The average process plant feed grade of 0.49% copper was
consistent with reserve estimates and 2018 feed grade. The process
recovery rate reduced slightly in 2019 to an average of 87.09%,
from 88.3% in 2018, driven by lower recovery rates achieved during
the ramp-up of the new mill. Cash Costs and All-in Sustaining Costs
for 2019 of $1.80/lb and $2.14/lb respectively, were well below the
budgeted figures of $2.10/lb and $2.32/lb respectively.
Health and safety continue to be of paramount importance to the
Company. We aim to provide a safe working environment not only for
our employees and consultants working on site, but also to ensure a
safe environment for the neighbouring communities. This has been a
key priority during the outbreak of the current global COVID-19
pandemic. The Company has been fully supportive of all the
requirements and recommendations issued by the Government of Spain
and the regional and local health authorities to manage the risk of
the COVID-19 exposure to our employees, customers, communities and
suppliers.
At the end of March, in response to a Royal Decree, the mine was
placed on care and maintenance for a period that was expected to
last 10 days, but following clarifications from the Spanish
Government, Proyecto Riotinto recommenced on 3 April after only
five days of shutdown. The Company currently maintains its
production guidance for 2020 in the range of 55,000 to 58,000
tonnes. We must, however, be conscious of the need to protect our
employees from the rapid evolution of the COVID-19 virus, the
potential for increased measures being imposed by the Spanish
Central Government to reduce its spread, and any potential future
impact of these restrictions. The Company will therefore update the
market as necessary.
Exploration and infill drilling continued throughout 2019 in the
Atalaya and Cerro Colorado pits to maintain the life-of-mine
reserve position based on the increased processing rate. Initial
indicative results from ongoing exploration activities to date have
been positive, with drilling taking place at San Dionisio in the
Atalaya pit and at Filon Sur in the Cerro Colorado pit. The new
drill data continues to define and validate historical data of the
copper stockwork in the area.
In January 2020, the Junta de Andalucía issued a favourable
report in relation to the procedural error in the original issuance
of the Unified Environmental Authorisation (the "AAU") of Proyecto
Riotinto. In May 2020, the Junta de Andalucia issued a favourable
resolution which validated the AAU, with the mining permits being
fully validate earlier this month . The validation of the mining
permits ended all the legal processes previously announced by the
Company in relation to claims made by interested parties in
connection with the approval process of Proyecto Riotinto .
During 2019 no consideration was paid to Astor as, according to
our assessment, Proyecto Riotinto did not generate any "Excess
Cash". With the desire to clarify any uncertainty on this issue, in
March 2020 the Company filed an application in the High Court to
seek clarity on the definition of "Excess Cash". The Company
expects that this process will bring clarity to the definition of
"Excess Cash" and thus the payment schedule of the Deferred
Consideration and the Loan Assignment.
The Company remains focused on growth opportunities. Having
successfully completed the expansion of Proyecto Riotinto, the
Company is also continuing with the technical review and assessment
of other opportunities for growth.
Finally, I would like to thank our management and staff for
their continued commitment and efforts, the board members for their
continued support and contribution and, last but not least, our
valued shareholders for their continued support.
We look forward to the year ahead with continued confidence and
optimism."
Contacts:
Elisabeth Cowell / Adam Lloyd / + 44 20 3757
Newgate Communications Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
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BMO Capital Markets Tom Rider / Michael Rechsteiner +44 20 7236
(Joint Broker) / Neil Elliot 1010
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Peel Hunt LLP +44 20 7418
(Joint Broker) Ross Allister / David McKeown 8900
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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. For further information, visit
www.atalayamining.com
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END
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