22nd Nov 2018 12:53
LONDON (Alliance News) - Atalaya Mining PLC on Thursday raised its annual guidance after its sales and production improved in the third quarter of 2018.
The mining company said revenue in the three months to the end of September increased to EUR42.8 million from EUR35.7 million reported for the same period in 2017, on higher sales volumes and prices.
Realised copper price in the third quarter of 2018 was USD2.89 per pound compared with USD2.66 per pound a year ago.
Cash costs per pound of copper stood at USD1.88, in line with the prior quarter, but slightly higher compared with USD1.84 per pound in the third quarter of 2017.
Revenue for the nine-month period ended September 30 increased to EUR144.4 million from EUR114.8 million the year prior.
Copper production at Proyecto Riotinto, located in Andalucia, Spain, increased to 11,055 tonnes in the third quarter from 10,679 tonnes reported a year ago, and 10,446 tonnes reported in the second quarter of 2018.
As part of the company's continuous improvements programme, it installed an additional secondary cone crusher in the previous quarter, which is now fully operational.
Cash costs for the nine-month period were USD2.00 per pound of copper versus USD1.80 per pound of copper payable last year.
Looking forward, Atalaya Mining said it now expects copper production for the year to total between 39,000 tonnes and 41,000 tonnes, up from previously guided range of 37,000 tonnes to 40,000 tonnes.
Cash costs and all-in sustaining costs were also revised and are now expected to be within USD1.95 and USD2.10, and USD2.25 and USD2.40 per pound of copper, respectively. Atalaya Mining previously guided its all-in sustaining costs in the range of USD2.50 and USD2.60 per pound.
"We are pleased to have increased our production guidance for 2018 following a very positive nine months of 2018," said Chief Executive Alberto Lavandeira.
"We have achieved record production and recovery levels, operating costs within our stated guidance during a period where copper prices have also been robust," added Lavandeira.
Atalaya Mining shares were trading 4.3% higher on Thursday at 196.00 pence each.
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