Atalaya Mining reports lower Q1 copper production

(Sharecast News) - Atalaya Mining reported lower first-quarter copper production on Tuesday after heavy rainfall disrupted operations, although the group said it remained well positioned for growth and retained a strong balance sheet. Copper production at its Proyecto Riotinto operations fell to 9,939 tonnes in the first three months of 2026, down from 14,291 tonnes a year earlier and 11,550 tonnes in the previous quarter, as unusually high rainfall in late January and early February restricted access to parts of the Cerro Colorado pit.

Ore mined declined to 3.4 million tonnes from 3.7 million tonnes a year earlier, while waste mined fell to 10.2 million tonnes from 11.3 million tonnes.

The FTSE 250 company said the processing plant treated 4.1 million tonnes of ore, broadly stable quarter-on-quarter, but the copper grade dropped to 0.30% from 0.42% a year ago as lower-grade stockpiles were used to offset mining constraints.

"Our production in the first quarter of 2026 was impacted by unusually heavy rains, similar to the operations of our peers in the Iberian Pyrite Belt," said chief executive Alberto Lavandeira.

"In the coming quarters, we expect to recover a portion of the production shortfall."

Copper recovery improved slightly year-on-year to 81.54%, while silver contained in concentrate totalled 0.20 million ounces, down from 0.28 million ounces.

Copper sales amounted to 9,767 tonnes, compared with 14,687 tonnes a year earlier, and on-site concentrate inventories increased to 5,083 tonnes at the end of March.

Financially, the company benefited from stronger prices, with the average realised copper price rising to $5.87 per pound from $4.26 a year earlier and $5.10 in the fourth quarter, broadly in line with a $5.83 spot average.

However, provisional pricing adjustments resulted in a negative €4.1m impact for the period.

Atalaya said it ended the quarter with cash of €279.3m, up from €166.3m at the end of 2025 following its January equity raise, and reported a net cash position of €266m.

Looking ahead, the firm said it would keep its 2026 production guidance under review following the weather-related disruption.

Previous guidance stood at 50,000 to 54,000 tonnes of copper, with second-half output expected to be around 10% higher than the first half.

Atalaya added that geopolitical tensions in the Middle East could increase input costs, particularly energy, although it has not yet experienced supply disruptions and benefits from fixed-price contracts and electricity hedging.

Lavandeira said the group remained focused on expanding its asset base.

"Beyond the quarter, our focus remains firmly on growing and diversifying the business.

"We are well-positioned to advance our pipeline across the Riotinto District ... supported by a strong balance sheet, a high-quality asset base and an experienced operating team."

He added that longer-term fundamentals remain supportive.

"As major economies accelerate investment in renewable energy, electrification and distribution infrastructure, copper will play an increasingly strategic role, reinforcing the long-term value of our asset portfolio."

Operationally, Atalaya continued to advance development across its portfolio, including waste stripping at San Dionisio, drilling at San Antonio and Masa Valverde, and engineering work on a polymetallic processing circuit at Riotinto.

The company also reported progress at its Touro project in Spain following a court ruling that voided a previous negative environmental decision, while ongoing drilling in Sweden and Spain is yielding encouraging early indications of mineralisation.

In January, Atalaya raised £130m in an oversubscribed equity offering to fund growth projects, and in April acquired a 7.3% stake in Lara Exploration for CAD 13.5m as part of its broader expansion strategy.

At 1109 BST, shares in Atalaya Mining Copper were down 0.81% at 799p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate