Atalaya Mining Copper (ATYM) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 financial performance, driven by higher copper prices and effective cost control, despite lower copper grades and reduced production guidance.

• Q2 2024 copper production was 11.6 kt, with H1 2024 at 22.2 kt; improved grades and plant performance expected in H2.

• Interim dividend of $0.04/share declared for H1 2024, payable in September; robust balance sheet supports growth projects.

• Advanced key growth projects, including Touro, Masa Valverde, San Dionisio, E-LIX, and a 50 MW solar plant.

• Board changes implemented to enhance governance, including new chair and non-executive director appointments.

Financial highlights

• Q2 2024 revenue was €92.2M (up from €78.2M in Q2 2023); H1 2024 revenue was €162.1M (down from €169.4M in H1 2023).

• Q2 EBITDA reached €26.4M; H1 EBITDA totaled €36.7M; Q2 net profit was €14.5M; H1 net profit was €16.1M.

• Net cash position at June 2024 was €53.4M, with working capital surplus of €63.4M.

• Q2 2024 operating cash flow was €30.1M; free cash flow for H1 2024 was negative at €(6.5)M due to higher investment outflows.

• Average realised copper price was $4.54/lb in Q2 2024; $4.26/lb in H1 2024.

Outlook and guidance

• FY2024 copper production guidance maintained at 45,000–50,000 tonnes, with improved grades and strong plant performance expected in H2.

• All-in sustaining costs expected to remain at $3.00–3.20/lb; cash cost guidance unchanged at $2.80–3.00/lb.

• Non-sustaining capex guidance for 2024 remains €64–73M; exploration expenditure guidance unchanged at €5–7M.

• Ongoing investments in solar, E-LIX, San Dionisio, and tailings expansion.