Atalaya Mining Copper (ATYM) H2 2023 earnings summary

Executive summary

• FY2023 copper output was 51.7 kt vs. 52.3 kt in FY2022; lower costs supported EBITDA of €73.1m and operating cash flow of €64.7m.

• Net cash was €54.3m at year-end after €11.5m of dividend payments; growth spending is focused on E-LIX, San Dionisio and the 50 MW solar plant.

Financial highlights

• Revenue was €340.3m vs. €361.8m in FY2022; operating costs were €267.2m vs. €306.5m, while EBITDA rose to €73.1m from €55.3m.

• Reported profits were €36.7m vs. €30.9m; operating cash flow was €64.7m vs. €38.5m and free cash flow was €14.3m vs. negative €15.0m.

• Year-end cash was €121.0m, borrowings €66.7m and net cash €54.3m; working-capital surplus was €68.6m.

• Q4 revenue was €85.6m, EBITDA €13.9m and profits €5.2m, all below Q4 2022; lower concentrate sales weighed on EBITDA.

Outlook and guidance

• FY2024 copper contained in concentrate guidance is 51–53 kt; processed ore 15.3–15.8 Mt, ore grade 0.39–0.41% and recovery 84–86%.

• FY2024 cash cost guidance is $2.80–3.00/lb payable Cu and AISC $3.00–3.20/lb; operations are expected to remain steady, with output weighted slightly to H2.

• Planned non-sustaining investment is €64–73m, including €42–46m for San Dionisio stripping and road relocation, €13–15m for tailings expansion, and €5–7m each for E-LIX and solar.

• E-LIX ramp-up is expected during H1 2024 and initial solar power generation in Q2; 2024 priorities also include San Dionisio works, Touro permitting and exploration.