Atalaya (LSE:ATYM, Financial) (5.0%), owner of the millennial Riotinto copper mine (Huelva), succeeded in being listed at the beginning of the quarter at less than the investment made in the last two years to expand its production (from 9.5 to 15 Mtpa). Something totally out of place in our opinion. We had the value of the mine free before the expansion, the probable success of extending its useful life following the investments in exploration and the optionality of the mining project in Touro, among other options. Even undeveloped copper mining projects with a comparable capacity were trading at more expensive prices. We took advantage to buy more shares and since then their price has doubled, backed by the sound performance of the price of copper. Despite this, it continues to be very cheap and we feel very comfortable with its management team, which has the habit of achieving what it promises and often more.
From Francisco Garcia Parames (Trades, Portfolio)' Cobas Asset Management's second-quarter 2020 shareholder letter.
