Atalaya Mining Expects Lower End Full-Year Copper Production

Atalaya Mining has announced that it anticipates its full-year copper production to be at the lower end of its projected range. This comes after a slight decline in third-quarter output, although there has been an improvement in cost metrics per unit.

Production Statistics

In the third quarter of 2023, Atalaya Mining mined 3.8 million metric tons of copper ore, which is consistent with the previous year. Year-to-date, they have mined 11.2 million tons in 2023, slightly below the 11.3 million tons mined during the same period in 2022.

The copper grade for the third quarter of 2023 was 0.38%, a decrease from the previous year's 0.41%. Similarly, the year-to-date copper grade for 2023 was 0.38%, slightly lower than the 0.39% recorded in 2022.

Copper recoveries in the third quarter of 2023 reached 87.00%, up from 84.62% in the same period last year. Year-to-date copper recoveries were at 87.03% in 2023, compared to 85.7% in 2022. This improvement is attributed to favorable ore characteristics during the 2023 period.

During the third quarter of 2023, Atalaya Mining produced 12,541 tons of copper, a decrease from the 13,453 tons produced in the same period last year. Year-to-date copper production for 2023 was 38,892 tons, slightly higher than the 38,300 tons produced in 2022.

Cost Analysis

Cash costs per pound of payable copper decreased to $2.82 in the third quarter of 2023, compared to $3.34 during the same period in 2022. Year-to-date cash costs for 2023 were $2.76 per pound of payable copper, down from $3.26 per pound in 2022. This reduction can be attributed to lower electricity and offsite costs, despite lower production volumes.

In terms of all-in sustaining costs (AISC), Atalaya Mining reported $3.24 per pound of payable copper in the third quarter of 2023, down from $3.49 per pound in 2022. Year-to-date AISC for 2023 amounted to $3.07 per pound, compared to $3.46 per pound in 2022. The decrease in AISC was driven by the same factors as the lower cash costs, albeit partially offset by higher capitalized stripping costs. It is important to note that one-off investments in the tailings dam are excluded from the calculation, consistent with prior reporting.

Copper Price

Atalaya Mining observed an increase in the average realized copper price during the third quarter of 2023. The price rose by 7.1%, from $3.52 per pound in 2022 to $3.77 per pound in 2023.

Full-Year Guidance

Although Atalaya Mining expects its full-year copper production to be at the lower end of its guidance range, they still aim to achieve between 53,000 and 54,000 tons. Furthermore, they forecast cash costs of $2.80 to $3.00 per pound of copper payable and AISC of $3.00 to $3.20 per pound of copper payable.

For more information, please visit Atalaya Mining's official website.