Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Atalaya Mining PLC (ATLMF, Financial) maintained a strong cash position and generated positive cash flow despite higher costs.
- The company achieved record levels of plant performance, processing nearly 12 million tonnes of material.
- Operating costs per tonne were reduced due to effective cost control measures, including lower diesel and energy prices.
- The solar plant is ready to connect, expected to provide 22% of electricity needs, reducing future costs.
- Progress in the E-LIX system shows potential for higher recovery rates of complex sulfides, which could enhance profitability.
Negative Points
- All-in costs increased to $3.26 per pound, slightly above guidance, due to lower production and grades.
- Sales and EBITDA were negatively impacted by lower copper prices and production levels.
- Permitting delays at San Dionisio affected the ability to blend higher-grade ores, impacting production targets.
- The E-LIX system, while promising, is still facing commissioning issues, affecting its operational efficiency.
- The Touro project is still awaiting final permits, with potential delays in its development timeline.
Q & A Highlights
Q: What is the current situation and future expectations for the E-LIX system?
A: The E-LIX system is currently treating copper-zinc concentrates and producing precipitates, which are later processed into copper and zinc cathodes. The plant is operating at half capacity due to commissioning issues. By next year, it is expected to be self-sufficient and produce positive cash flow with the right feed. (Alberto Lavandeira, CEO)
Q: Will the byproduct silver contribution to all-in costs be recurrent?
A: The positive contribution from silver byproducts will continue into next year but is not expected to be permanent. (Alberto Lavandeira, CEO)
Q: Have mining operations been affected by recent heavy rain and flooding in Spain?
A: No, the operations have not been adversely affected by weather events. While there was significant rain, it did not impact mining activities. (Alberto Lavandeira, CEO)
Q: What is the timeline for Touro permits and production?
A: The environmental impact declaration is expected by mid-2025, with full permits by mid-year. Production of concentrates is anticipated by the end of 2026 or early 2027. (Alberto Lavandeira, CEO)
Q: Why is profit and earnings per share lower this quarter despite only a slight decrease in EBITDA?
A: The decrease is primarily due to higher depreciation costs. (Cesar Sanchez, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
