Atalaya Mining Plc announced the unaudited management’s review and condensed interim consolidated financial statements 31 march 2017. Atalaya maintains its copper production guidance of 34,000 to 40,000 tonnes for 2017.
Copper production during Q1 2017 was 8,805 tonnes in concentrate, maintaining similar production levels of the previous quarter (Q4 2016: 8,938 tonnes). Q1 2016 copper in concentrate was 4,048 tonnes as commercial production was only declared in February 2016. 2.2 million tonnes of ore were processed during Q1 2017 (Q1 2016: 1.3 million tonnes). Ore processed during Q4 2016 was 2.0 million tonnes. Sustainable recovery rate during Q1 2017 at expanded throughput of 84.63% (Q1 2016: 82.93%), similar to Q4 2016 (84.47%).
Revenues was €25.6 million for Q1 2017 compared with €4.9 million in Q1 2016. Cash costs reduced during Q1 2017 to $1.83/lb of copper (Q1 2016: $2.28/lb), compared with a cash cost of $1.95/lb of copper in the previous quarter. All-in sustaining cost during Q1 2017 including capitalised stripping remain flat at $2.15/lb of copper payable. EBITDA increased to €12.6 million in Q1 2017 compared with a negative EBITDA of €2.5 million in Q1 2016. The growth of €15.1 million in EBITDA was the result of an increase in the volume of copper concentrate sold, lower cash costs and higher realised copper prices. Q1 2017 profit amounted to €5.2 million (or €4.5 cents per share) compared with a loss for Q1 2016 of €3.3 million (or €2.8 cents per share).
Inventories of concentrate at 31 March 2017 amounted to €12.4 million (31 December 2016: €nil million). Working capital deficit improved from €25.4 million as at 31 December 2016 to €20.0 million as at 31 March 2017. The Group achieved positive cash flows from operating activities for the three months ended 31 March 2017 amounting to €14.3 million (31 March 2016: €1.5 million). Cash used for investment activities was €5.4 million (31 March 2016: €8.3 million).
As previously announced, the Company exercised an option to acquire a 10% interest in Proyecto Touro located in northwest Spain. The acquisition of the brownfield copper project is based on a staged earn-in process increasing from 10% and up to an 80% interest once commercial production is declared. The permitting process was initiated during Q1 2017, with submission to the relevant authorities of the environmental impact study, exploitation plan and rehabilitation plan. Geological, hydrogeological and geotechnical studies have also been completed and incorporated into the project designs. In-fill and step-out drilling is ongoing across the property with two RC drilling rigs and one DDH rig for a campaign totalling 7,900 metres. Resource modelling is well advanced based on both historic and current knowledge of the deposit. Metallurgical test work at feasibility study level was completed during 2016 with modelling confirmed based on this latest information. Further details are expected to be released before the end of the second quarter. Basic engineering is progressing with a view to completing a capital and operating cost estimate as part of the NI 43-101 technical report. Long-lead items have been identified together with suppliers’ quotations.