23rd May 2019 11:25
LONDON (Alliance News) - Atalaya Mining PLC said Thursday its profit rose in the first quarter of 2019 on lower costs, despite a slight revenue decline on lower copper prices.
For the three months to the end of March, the copper producer reported a pretax profit of EUR16.8 million from EUR11.1 million the year before, as operating costs and mine site expenses dropped to EUR30.0 million from EUR36.4 million.
Revenue however, edged down to EUR51.7 million from EUR52.7 million the prior year.
Although copper production from the Proyecto Riotinto mine in Spain rose by 8.2% to 10,219 tonnes from 9,441 tonnes, the average realised copper price fell by 7.6% to USD2.80 per pound from USD3.03 the year before.
Looking ahead, Atalaya has maintained its copper production guidance from Proyecto Riotinto of 45,000 to 46,500 tonnes.
The company has continued with its expansion of the project to 15 million tonnes per annum, with mechanical completion set to be completed by the end of the second quarter.
"We are delighted with Atalaya's financial performance for the first quarter of 2019, in which reduced operating costs have led to a substantial increase in profits of over 60%. Progress with our expansion to 15Mtpa at Proyecto Riotinto is proceeding to plan with mechanical completion on track for the end of the second quarter of 2019. Once completed, we will enjoy improved operational efficiencies and reduced cash costs compared with 2018," said Chief Executive Officer Alberto Lavandeira.
Shares in Atalaya Mining were up 0.3% at 202.00 pence on Thursday.
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