14th Jul 2022 13:18
(Alliance News) Atalaya Mining PLC shares tumbled on Thursday, after it lowered annual production guidance following disruption in the first quarter.
The Cyprus-based copper producer mined 3.8 million tonnes of ore in the second quarter of 2022, which reflects a 15% increase year-on-year from 3.3 million tonnes. It was a 5% dip from 4.0 million tonnes in the preceding quarter, however.
Shares in Atalaya Mining fell 13% to 247.00 pence each in London on Thursday.
Copper production came in lower at 13,386 tonnes, compared to 14,353 tonnes the previous year. Production improved from 11,461 tonnes in the first quarter, as the processing plant performance improved.
Processing rates managed to recover to same rates as a year before at 4.0 million tonnes for the period. This was after throughput had dropped to 3.5 million in the first quarter, due to the transport sector strike and maintenance stoppage.
Copper grades improved year-on-year to 0.39% from 0.37%, but decreased from the grades of 0.42% in the prior quarter.
Due to the double hit from from lower copper grades and the production shortfall from the first quarter, Atalaya has now lowered copper production guidance. It now expects to be between 52,000 and 54,000 tonnes, having previously guided 54,000 to 56,000 tonnes in late June.
"We are pleased with the performance of the plant in the second quarter, with strong recoveries and a return to processing rates above our 15 million tonnes per annum nameplate capacity. These contributed to a solid quarter of production and a material improvement from Q1. However, cost inflation remains very high and the prices of many key inputs are uncontrollable by nature," commented Chief Executive Officer
To mitigate cost pressures, the firm said it will focus on initiatives that will boost operational efficiencies, and stable, low cost electricity from 2023.
By Elizabeth Winter; [email protected]
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