11th Apr 2024 11:41
(Alliance News) - Atalaya Mining PLC on Thursday maintained annual copper production guidance, and the firm could benefit as analysts anticipate a looming supply squeeze in supply of the commodity.
The miner, with operations in Spain, specialises in producing copper and other critical metals, leaving the company in a strong position to benefit from a forecast rise in copper demand as the world transitions towards sustainable energy.
According to UBS forecasts, global copper consumption will rise 3.3% in 2024 driven largely by grid investments, electrification, and greater demand for copper wiring and cables in China.
Atalaya said copper production fell 12% during the first quarter to 10,666 tonnes from 12,139 tonnes during the same period last year.
"Lower production in Q1 2024 was mainly the result of lower grades and recoveries," Atalaya said.
Last year, the company produced 51,667 tonnes. For this year, it expects production between 51,000 and 53,000 tonnes.
Copper rose as high as USD9,532 per tonne on Wednesday, its loftiest level since January 2023.
Analysts at ING attributed the price rally to the unexpected tightening in global supply, particularly following the closure of First Quantum's mine in Panama, which subsequently removed approximately 4.0 million tonnes from global annual supply.
Atalaya shares were down 0.4% to 425.00 pence each in London on Thursday morning. It is up 18% year-to-date, however.
By Elijah Dale, Alliance News reporter
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