7th Apr 2020 12:53
(Alliance News) - Atalaya Mining PLC on Tuesday reported a drop in profit for 2019 due to a decline in revenue as copper was sold at lower prices despite higher production.
For the year, pretax profit dropped by 11% to EUR36.9 million from EUR41.5 million the year before, on revenue that dipped by 0.8% to EUR187.9 million from EUR189.5 million.
Copper production from the Proyecto Riotinto open-pit mine in Spain was 44,950 tonnes, up 6.7% from 42,114 tonnes in 2018 and in line with guidance between 44,000 and 45,000 tonnes.
Copper concentrates produced rose by 8.0% to 195,072 tonnes from 180,661 tonnes the prior year, however they were sold at an average realised copper price of USD2.73 per pound from USD2.95 in 2018.
The all-in sustaining cost for the year averaged USD2.14 per pound, down from USD2.26 the year before.
Looking ahead, Atalaya has set its production guidance for 2020 within 55,000 tonnes to 58,000 tonnes of copper, with all-in sustaining costs guided in the range of USD2.20 to USD2.30 per pound.
In terms of Covid-19, operations at the Proyecto Riotinto mine were suspended at the end of March, following a Royal Decree suspending all operations not considered essential.
However in early April, further clarification was received on the Royal Decree, which re-included mining on the list of permitted activities, allowing Proyecto Riotinto operations to restart.
"The company's financial performance over 2019 withstood decreasing copper prices and minor operational interruptions caused by the integration of the expansion to deliver an improved Ebitda on the previous year. The impact of the Covid-19 virus necessitated a short-term shutdown at Proyecto Riotinto which we expect to make up over the coming months," said Chief Executive Officer Alberto Lavandeira.
"We shall continue to monitor the situation in line with Spanish government guidelines as the wellbeing of our employees is our primary concern. We will also continue to keep shareholders updated as to the effect of these guidelines may have on our operations," Lavandeira added.
Shares in Atalaya Mining were up 9.7% at 107.50 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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