12th Sep 2018 13:53
LONDON (Alliance News) - Atalaya Mining PLC on Wednesday said its profit rose in the second quarter and first half of 2018, helped by improved higher copper prices.
The mining company said copper production during the three months ended June 30 was 10,446 tonnes, 15% higher compared with 9,058 tonnes produced during the same period in 2017.
The company said it processed 2.5 million tonnes of ore, up from 2.2 million tonnes a year prior.
Revenue of EUR48.9 million was generated in the second quarter of 2018 compared with EUR53.4 million in the same period in 2017 due to the lower sales volume, as the timing of sales offset higher copper price. Pretax profit more than doubled, however, to EUR18.0 million from EUR7.4 million.
During the second quarter, the company said it sold 46,172 tonnes of copper concentrate versus 55,574 tonnes sold in same quarter last year. Realised prices of USD3.12 per pound of copper was up from USD2.61 per pound of copper a year earlier.
For the six months to the end of June, copper production totalled 19,887 tonnes versus 17,863 tonnes a year ago, representing an 11% increase. Ore production stood at 4.7 million tonnes, up from 4.4 million processed in the year before.
Realised copper prices for the first half of 2018 were USD3.08 per pound of copper, compared with USD2.55 per pound of copper in the same period of 2017.
Revenue for the first-half increased significantly to EUR101.5 million from EUR79.1 million a year ago, due to higher volumes and copper prices. As a result, pretax profit jumped to EUR29.1 million from EUR15.0 million.
Operating costs for the six-month period amounted to EUR64.3 million, compared with EUR52.5 million a year prior. Higher costs were directly attributable to higher copper production, Atalaya Mining said.
Corporate costs for the first six month of 2018 were EUR2.1 million, up from EUR1.6 million year-on-year, mainly due to the company's overhead expenses.
"The first half of 2018 has been very positive with record production levels, robust copper prices and operating costs within our stated guidance," said Chief Executive Alberto Lavandeira.
"We are optimistic that the second half will continue to deliver results in line with our expectations," added Lavandeira.
Shares in Atalaya Mining were up 1.2% on Wednesday at 213.50 pence each.
Related Shares:
Atalaya Mining