Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atalaya Mining PLC (ATLMF, Financial) reported a strong EBITDA of EUR26.4 million for the quarter, accumulating to EUR36.7 million for the first half of 2024.
- The company maintained a robust balance sheet with over EUR50 million in net cash, allowing for an interim dividend of $0.04 per share.
- The transition to the Main Market and relocation from Cyprus to Spain is expected to improve liquidity and trading of shares.
- The company's projects have been declared strategic by the Xunta de Galicia, streamlining the permitting process.
- Atalaya Mining PLC (ATLMF) is highly leveraged to copper prices, which has positively impacted revenues and cash flow despite lower production.
Negative Points
- The production guidance has been reduced due to lower grades and production loss in the first half of the year.
- The E-LIX plant commissioning is facing delays due to teething issues, impacting the expected ramp-up timeline.
- The San Dionisio permitting process has been more complex than anticipated, requiring a substantial modification route.
- Recent uptrends in electricity prices could slightly impact costs, although the effect is not expected to be material.
- The company faces challenges in the E-LIX process, particularly with commissioning and operational teething issues.
Q & A Highlights
Q: What are the next steps in the permitting process in Touro? Is the process moving consistent with expectations?
A: Yes, the process is moving according to expectations. The company has submitted a comprehensive project proposal, and the next step involves making this information available to the public and undergoing sector evaluations by administrative bodies. The environmental tax statement is expected to be positive, as previous shortcomings have been addressed. - Alberto Lavandeira, CEO
Q: If you start the ramp at Masa Valverde at the end of 2024, when can it reach production? Is E-LIX required for the economic viability?
A: Masa Valverde consists of several deposits, and for copper-only stockwork, no plant modifications are needed. E-LIX is an option for polymetallic ores but will only be used once proven effective. Production can commence without E-LIX for copper-only deposits. - Alberto Lavandeira, CEO
Q: At what stage are you in developing the modified recovery circuit for processing polymetallic ore? What CapEx is expected and when will it be incurred?
A: We have completed flotation tests and are evaluating different processing alternatives. CapEx for modifications is expected in two years, as initial production will focus on copper-only ore. - Alberto Lavandeira, CEO
Q: Could you provide more detail on the San Dionisio permitting process? What is the timeline and steps required to be granted the permits?
A: Initially, a non-substantial modification was expected, but a substantial modification is now required due to a minor footprint extension. We are currently in the public consultation phase, with interim permits allowing ongoing work. Final permits are expected by the end of the year. - Alberto Lavandeira, CEO
Q: How do you forecast the grade quality of the material yet to be mined?
A: The deposit has been extensively drilled, and production guidance has been consistent over the years. While there may be minor variations, the model has proven reliable, and we do not anticipate significant deviations in the future. - Alberto Lavandeira, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
