Atalaya Mining has announced an increase in copper production for the second quarter of this year compared to the previous quarter and the same period last year. The Iberia-focused mining company has also reaffirmed its full-year guidance.
Production Statistics
In the second quarter of 2023, copper production reached 14,212 metric tons, surpassing the 13,386 tons produced in the second quarter of 2022. This also represents an improvement from the 12,139 tons produced in the first quarter of 2023. The strong throughput and copper recoveries contributed to the production growth.
The on-site copper concentrate inventories as of June 30, 2023, amounted to approximately 7,291 tons, compared to 1,564 tons at the end of March 2023. All the concentrate from the beginning of the period was delivered to the port at Huelva.
In terms of concentrates sold, Atalaya Mining sold 12,858 tons of copper in the second quarter of 2023, down from 13,872 tons in the same period last year. However, this still represents an increase from the 12,501 tons sold in the first quarter of 2023.
Mining Activity
In terms of mining operations, Atalaya Mining mined 3.9 million tons of ore in the second quarter of 2023, up from 3.6 million tons mined in the second quarter of 2022. This is also higher than the 3.4 million tons mined in the first quarter of this year.
Additionally, waste mined during this period amounted to 8.6 million tons, compared to 6.7 million tons in the second quarter of 2022 and 6.5 million tons in the first quarter of this year. The waste mining activity aligns with the budget and includes increased waste stripping at Cerro Colorado in preparation for the potential start of mining activities at San Dionisio later in 2023.
Processing Operations
Overall, Atalaya Mining is making significant progress in copper production and remains confident in achieving its full-year targets.
Mining Operations Update
During the second quarter of 2023, the plant successfully processed a total of 4.1 million tons of ore (compared to 4.0 million tons in the same period of 2022), reflecting a significant increase from the 3.7 million tons processed in the first quarter of 2023. This achievement can be attributed to the robust performance of the mill, which benefited from the strategic rescheduling of plant maintenance activities.
The copper grade for the second quarter of 2023 reached 0.40%, indicating a slight improvement from the previous year (0.39% in 2Q 2022) and an increase from the first quarter of 2023 (0.38%).
Remarkably, copper recoveries in the second quarter of 2023 hit an impressive 87.18% (compared to 86.44% in 2Q 2022). This positive outcome can be attributed to the favorable characteristics of the ore during this period.
Realized Copper Price
Between April and June of 2023, the average realized copper price (excluding QPs closed during the period) stood at $3.81/lb, experiencing a decline compared to the same period in 2022 when it was $4.28/lb. Nonetheless, it's worth noting that the average spot copper price for this quarter was $3.85/lb.
2023 Guidance
We are pleased to confirm that our company is on track to achieve our full-year 2023 guidance. This includes our copper production target of 53,000 to 55,000 tons, with cash costs ranging from $2.80 to $3.00/lb copper payable and AISC (all-in sustaining costs) of $3.00 to $3.20/lb copper payable.
Share Performance
As of 0710 GMT, our shares have seen a modest increase of 1.0 pence or 0.3%, bringing them to 325.0 pence.
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