TIDMATYM
RNS Number : 6268L
Atalaya Mining PLC
14 January 2021
14 January 2021
Atalaya Mining Plc. ("Atalaya" or the "Company")
Fourth Quarter 2020 Operations Update and 2021 Guidance
New annual production record confirmed
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the fourth quarter of 2020 ("Q4 2020" or
the "Period") and to provide guidance for 2021.
Proyecto Riotinto Operating Highlights
Q4 Q3 Full year
2020 2019 2020 2020 2019 2021 Guidance
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Ore mined (M tonnes) 3.5 2.3 3.8 13.6 10.4 15.1
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Waste mined (M tonnes) 6.7 6.0 6.6 24.1 17.9 25.9
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Ore milled (M tonnes) 3.9 2.9 4.0 14.8 10.5 15.0 - 15.5
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Cu grade (%) 0.43 0.55 0.44 0.45 0.49 0.42
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Cu recovery (%) 85.69 83.36 83.78 84.53 87.09 82 - 84
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52,000 -
Cu production (tonnes) 14,332 13,211 14,695 55,890 44,950 54,000
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-- Copper production in Q4 2020 exceeded budget with 14,332
tonnes, an 8.5% increase on Q4 2019.
o This is the second highest quarterly copper production and
represents the fourth consecutive quarter where copper production
exceeded 13,000 tonnes.
-- A new annual production record of 55,890 tonnes of copper was
achieved in 2020, with the 2020 guidance met notwithstanding the
operating challenges and the mandatory stoppage in April 2020 as a
result of COVID-19 restrictions.
-- 3.9 million tonnes of ore milled were processed in Q4 2020,
reporting a consistent quarterly throughput.
-- The increase in copper production, when compared with Q4
2019, is mainly attributable to higher ore milled and better
metallurgical recoveries
-- Despite COVID-19, mining operations have continued normally
with enough equipment on site to maintain the higher production
levels required for the full operation of the expanded plant.
-- On-site concentrate inventories at the end of Q4 2020 were
approximately 12,180 tonnes. All concentrate in stock at the
beginning of the Period and produced during the Period was
delivered to the port at Huelva.
-- Copper prices increased during Q4 2020 compared with Q3 2020,
with an average realised price per pound of copper payable,
including the QPs closed in the Period, of $2.99/lb compared with
$2.72/lb in the previous quarter. The average copper spot price
during the quarter was $3.25/lb. The realised price during Q4 2020
excluding QPs was approximately $3.24/lb.
-- Cash operating costs for the Period are expected to be
towards the upper end or slightly above the 2020 cost guidance
provided owing mainly to the Euro strengthening against the U.S.
dollar. Further details on costs will be provided with the 2020
Financial Statements to be reported in early April.
-- Local exploration at Proyecto Riotinto has focused on results
from core drilling confirming the presence of unmined sulphides
around Filon Sur, and around San Dionisio which is under the old
Atalaya pit located west of the current operating pit.
-- At San Dionisio, mapping of old workings and full geological
interpretation has been completed. A mining consultant is
finalising the evaluation of the existing resource to incorporate
into future mine plans. Mineralisation at San Dionisio consists of
copper stockwork and polymetallic massive sulphides.
2021 Guidance
-- Full year 2021 copper production is estimated to be in the
range of 52,000 to 54,000 tonnes.
-- Grade mined during 2021 is expected to be slightly lower than
in 2020 owing to pit sequencing and lower cut-off grades resulting
from higher copper prices. However, the plant optimisation
mentioned below is expected to allow higher throughput to
compensate for lower grades and maintain copper production.
Proyecto Riotinto optimisation
-- Atalaya is continuing to focus on implementing cost reduction
programmes to reduce fresh water and lime consumption now that the
15Mtpa expanded plant is producing at nameplate capacity.
-- Initiatives to improve copper recoveries, by using some of
the extra installed flotation capacity, are also ongoing.
-- The target of reducing the power cost at the plant in an
environmentally conscious way is being addressed through the
initiation of the permitting process to install a 50 MW solar power
plant. The full capacity of the solar power plant will be used for
self-consumption and is anticipated to make a significant
contribution to reducing carbon emissions at Proyecto Riotinto.
Reserves and resources updates at Proyecto Riotinto
-- An independent consultant is finalising the Cerro Colorado
open pit reserve and resources update taking into consideration the
exploration results with current copper prices, operating costs and
geotechnical parameters.
-- An independent evaluation of the historic polymetallic San
Antonio/Planes deposit has begun. This shallow deposit is located
East of the open pit Cerro Colorado, which is currently being
mined, and would require underground mining methods.
-- The independent evaluation of the resources at San Dionisio,
West of the Cerro Colorado pit, is ongoing. Current indications
show there is good potential for it to be mined with a combination
of open pit and underground methods. San Dionisio contains copper
as well as polymetallic mineralisation.
Growth projects
Proyecto Touro
-- Atalaya has yet to receive formal communication from the
local government in Galicia rejecting the plan to develop Proyecto
Touro. The Company is expecting the communication during Q1 2021.
Once received, Atalaya will evaluate its options to address the
feedback from the Xunta de Galicia.
-- The Company continues to be confident that its world class
approach to Proyecto Touro, which includes fully plastic lined
tailings with zero discharge, will satisfy the most stringent
environmental conditions that may be imposed by the authorities
prior to the development of the project.
Masa Valverde
-- Work has started, and will continue through 2021, on general
permitting and new geophysical surveys. Additional drilling will
continue and first scoping studies are also planned during the
year.
ELIX update
-- An engineering company has been engaged to carry out a
feasibility study for an industrial plant using a
third-party-patented ELIX System followed by conventional
SX-EW.
-- The ELIX pilot plant is fully operational and is gathering
real data to be incorporated in the leaching section of copper and
zinc concentrates.
Astor update
-- The Company continues to go through a court process to
determine the mechanism and timing for the payment of the deferred
consideration to Astor. Following the hearing on 30 October 2020,
the following stages have been fixed by the Court: (i) Atalaya's
application for permission to amend its statement of case will be
heard in February 2021; (ii) a summary judgment hearing will be
heard in June 2021; and (iii) if Astor's application is
unsuccessful, a trial will take place in February 2022 for six
days.
Alberto Lavandeira, CEO commented:
"Despite the challenges of COVID-19, Atalaya Mining achieved a
new annual production record of 55,890 tonnes of copper in 2020.
This record production level was within our 2020 provided guidance
and is testament to our growth and ability to deliver value for
shareholders.
"The year ahead will see the progression of optimisation and
exploration initiatives designed to drive our future growth. A key
priority continues to be to protect our workforce and the local
communities surrounding our projects and we would like to thank our
entire team for their contribution and adherence to our exceptional
requirements, designed to prevent the spread of COVID-19, over the
past 12 months."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam + 44 20 3757
Newgate Communications Lloyd / Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity Henry Fitzgerald-O'Connor +44 20 7523
(NOMAD and Joint Broker) / James Asensio 8000
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BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider / Neil Elliot 1010
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Peel Hunt LLP (Joint +44 20 7418
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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