11 April 2024

Atalaya Mining Plc.

("Atalaya" or "the Company")

Q1 2024 Operations Update

Project activities continue to advance as copper fundamentals strengthen

Atalaya Mining Plc (AIM: ATYM) is pleased to announce its operations update for the first quarter of 2024 ("Q1 2024" or the "Period").

Proyecto Riotinto Operating Highlights

(1)   Figures for Q1 2024 are preliminary and final figures will be released with Q1 2024 financial results.

(2)   Represents the Cerro Colorado pit only.

Mining

Ore mined was 3.7 million tonnes in Q1 2024 (Q1 2023: 3.4 million tonnes), compared with 3.7 million tonnes in Q4 2023.

Waste mined was 5.5 million tonnes in Q1 2024 (Q1 2023: 6.5 million tonnes), compared with 7.4 million tonnes in Q4 2023. Separately, waste stripping activities advanced at the San Dionisio area. 

Processing

The plant processed ore of 3.7 million tonnes during Q1 2024 (Q1 2023: 3.7 million tonnes), compared with 4.1 million tonnes in Q4 2023. Throughput was impacted by the scheduling of two plant shutdowns, one for maintenance and the other for connecting the 50 MW solar plant to the substation.

Copper grade was 0.34% in Q1 2024 (Q1 2023: 0.38%), compared with 0.36% in Q4 2023. The lower copper grade in Q1 2024 was mainly the result of pit sequencing and also due to rainfall which prevented access to higher grade areas of the Cerro Colorado pit.

Copper recovery was 84.74% in Q1 2024 (Q1 2023: 86.88%), compared with 85.47% in Q4 2023, due to lower grades being processed.

Production

Copper production was 10,666 tonnes in Q1 2024 (Q1 2023: 12,139 tonnes), compared with 12,775 tonnes in Q4 2023. Lower production in Q1 2024 was mainly the result of lower grades and recoveries.

On-site copper concentrate inventories at the end of Q1 2024 were approximately 8,283 tonnes.

Copper contained in concentrates sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501 tonnes).

Select Financial Highlights

Realised Copper Price

The average realised copper price (excluding QPs closed during the Period) was $3.89/lb in Q1 2024 (Q1 2023: $4.00/lb), compared with $3.78/lb in Q4 2023. The average spot copper price was $3.83/lb in Q1 2024.

Provisional Revenue Adjustments

For Q1 2024, settlement adjustments (for QPs closed during the Period) and fair value adjustments (for open QPs based on copper forward curve prices as at 31 March 2024) were negative €3.8 million.

Balance Sheet

The Company's balance sheet remains strong with consolidated cash and cash equivalents of €86.2 million as at 31 March 2024.

Net of current and non-current borrowings of €50.1 million, net cash was €36.1 million as at 31 March 2024, compared with €54.3 million as at 31 December 2023 with the decrease in cash being the result of lower copper sales and higher investment in the Company's capital projects.

Outlook for 2024

Full year guidance is unchanged from the outlook announced as part of the Company's 2023 Annual Results. This includes copper production of 51,000 - 53,000 tonnes (weighted towards H2 2024) and cash costs and AISC of $2.80 - 3.00/lb and  $3.00 - 3.20/lb copper payable, respectively.

Asset Portfolio Update

Proyecto Riotinto

In 2023, the Company was granted a substantial modification to the existing Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) for Proyecto Riotinto by the Junta de Andalucía. The AAU allows for the expansion of tailings capacity and the mine footprint at Riotinto and represents an important step towards developing regional deposits such as San Dionisio and San Antonio.

The Company is advancing the permitting process associated with the San Dionisio final pit, which represents a key component of the integrated mine plan outlined in the 2023 Riotinto PEA. Waste stripping is underway in order to prepare the area for future mining phases, with 4.6 million tonnes of waste mined in Q1 2024. Additional mining equipment is expected to arrive on site in Q2 2024.

At San Antonio, preparations are underway to begin an infill and step-out drilling programme.

E-LIX Phase I Plant

Final construction activities are underway at the E-LIX Phase I plant. Following the production of initial copper cathodes in December 2023, commissioning and ramp-up continues, with first zinc recovered in recent weeks.

Once fully operational, the E-LIX plant is expected to produce high-purity copper or zinc metals on site, allowing the Company to potentially achieve higher metal recoveries from complex polymetallic ores, lower transportation and concentrate treatment charges and a reduced carbon footprint.

50 MW Solar Plant

Construction activities continue at the 50 MW solar plant at Riotinto, with initial power generation expected in Q2 2024.

Once fully operational, the 50 MW solar plant is expected to provide approximately 22% of Riotinto's current electricity needs. Together, the 50 MW solar plant and 10-year PPA will provide over 50% of the Company's current electricity requirements at a rate well below historical prices in Spain.

Riotinto District - Proyecto Masa Valverde ("PMV")

In 2023, the Company was granted the AAU and exploitation permit for PMV. As a result, various workstreams continue including geotechnical and sterilisation drilling to support design work associated with a future ramp and ventilation shaft.

Two core rigs are active and focused on step-out drilling at the Mojarra Trend and the Masa Valverde deposit.

Proyecto Touro

Atalaya remains fully committed to the development of the Touro copper project, which has the potential to provide substantial benefits to Galicia and also support the European Union's critical raw materials mandate.

Touro has the potential to become a new source of copper production for Europe. As such, the project could also be granted "Strategic Project" status by the EU, which can be awarded to projects "based on their contribution to the security of supply of strategic raw materials, their technical feasibility, sustainability and social standards", as part of the Critical Raw Materials Act. Copper was added to the list of "Strategic Raw Materials" owing to its importance for strategic sectors and technologies and due to the supply-demand imbalance that is expected in the near future.

Running parallel with the ongoing Touro permitting process, the Company continues to focus on numerous initiatives related to the social licence, including engaging with the many stakeholders in the region to provide detailed information on the new and improved project design. Positive and favourable feedback from numerous meetings with municipalities, farmers and fishermen associations and other industries indicate meaningful support towards the development of a new and modern mining project.

The Company continues to successfully restore the water quality of the rivers around Touro and is operating its water treatment plant, which is addressing the legacy issues associated with acid water runoff from the historical mine, which closed in 1987. The field-work carried out by Atalaya has resulted in an immediate and visible improvement of the water systems surrounding the project, with the progress being recognised by local stakeholders and the media.

Atalaya continues to be confident that its approach to Touro, which includes fully plastic lined thickened tailings with zero discharge, is consistent with international best practice and will satisfy the most stringent environmental conditions that may be imposed by the authorities prior to the development of the project.

Proyecto Ossa Morena

Drilling continued to progress with one rig at the Guijarro-Chaparral gold-copper project and the La Hinchona copper-gold project, both in the central part of the district. 

Proyecto Riotinto East

Preparation work is underway that would allow the Company to begin drilling priority anomalies identified via SkyTEM and AGG surveys.

Corporate Activities Update

Intention to Move to the Main Market

In November 2023, the Company announced its intention to apply for its ordinary shares to be admitted to the premium listing segment of the Official List maintained by the Financial Conduct Authority ("FCA") and to trading on the London Stock Exchange plc's main market for listed securities (together, "Admission").

On 21 December 2023, the Company announced the application process was ongoing, outlined that Admission remained subject to a number of conditions including the approval by the FCA of a prospectus and noted that Admission would not take place until after the announcement of the Company's 2023 Annual Results.  

The Company continues to progress the application process and will provide further update on the potential timing of Admission in due course.

Re-domiciliation

In November 2023, Atalaya announced its intention to re-domicile the Company by transferring its registered office from the Republic of Cyprus to the Kingdom of Spain and convened an Extraordinary General Meeting ("EGM") to seek approval for various related matters. On 12 December 2023, the Company held the EGM, at which all resolutions were approved by the Company's shareholders.

The re-domiciliation procedure is ongoing. Following a new law implementing Directive EU 2019/2121 (in respect of cross-border reorganisations) entering into force in Cyprus on 15 March 2024, the Company is assessing the potential impacts of the new law on the re-domiciliation process. As a result, there may be a delay in the completion of the re-domiciliation and a further update will be provided to the market in due course.

Alberto Lavandeira, CEO, commented:

"We have been active across our asset portfolio since the start of the year. Although production was lower than recent quarters, we expect improvement in grade and recoveries throughout the year and reiterate our full year production guidance.

At San Dionisio, waste stripping activity is making good progress and at San Antonio we are preparing plans for a drilling programme. Both deposits are expected to provide Riotinto with higher grade material in the coming years. We interrupted our operations to connect our 50 MW solar plant to the substation, which will allow for power generation to begin in Q2 2024.  At E-LIX, final construction and commissioning works continue and first zinc was recovered from our concentrates. At our Touro project, local engagement continues and the permitting process is advancing.

Finally, we are pleased to see the strengthening in copper market fundamentals. Ongoing supply challenges and growing demand from renewables and new technologies have supported the copper price in recent weeks. We continue to believe this is the right time to invest in our growth pipeline in order to capitalise on the expected copper deficits in the coming years."

This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

About Atalaya Mining Plc

Atalaya is an AIM-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. Atalaya's current operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a central processing hub for ore sourced from its wholly owned regional projects around Riotinto that include Proyecto Masa Valverde and Proyecto Riotinto East. In addition, the Group has a phased earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For further information, visit www.atalayamining.com