Ore totalling 3.6 million tonnes was mined during Q3 2022, compared with 3.6 million tonnes in Q2 2022 and 3.4 million tonnes in Q3 2021.
Waste mined during Q3 2022 was 5.8 million tonnes, below the 6.7 million tonnes mined in Q2 2022 and also below Q3 2021 levels. Waste stripping year-to-date has been higher than budget as waste mining was prioritised during the temporary plant maintenance stoppage in Q1 2022.
Processing
The plant processed 3.9 million tonnes of ore during Q3 2022, which was near Q2 2022 throughput and above processing rates in Q1 2022, which was impacted by the transport sector strike and maintenance stoppage. The results demonstrate the plant's ability to operate above its 15 million tonne per annum nameplate capacity.
Copper grade was 0.41% in Q3 2022, representing an increase from 0.39% in Q2 2022 and also above the comparative period in Q3 2021 of 0.40%. Lower grades earlier in 2022 were the result of blending with lower grade stockpiles due to pit sequencing.
Copper recoveries in Q3 2022 were 84.62%, below Q2 2022 and Q3 2021 levels respectively, due to the characteristics of the ore processed during the quarter; however, performance was consistent with expectations.
Production
Copper production in Q3 2022 was consistent at 13,453 tonnes, above Q2 2022 production of 13,386 tonnes. This performance was the result of higher copper grades and consistent throughput rates.
On-site copper concentrate inventories at the end of Q3 2022 were approximately 4,349 tonnes. All concentrate in stock at the beginning of the Period was delivered to the port at
Select Financial Highlights
Realised Copper Price
The average realised price per pound of copper payable, including the QPs closed in the Period, was
Provisional Pricing Adjustments
For Q3 2022, provisional pricing adjustments were negative
Asset Portfolio Update
The Company is advancing a preliminary economic assessment ('PEA') which will include the evaluation of a scenario that combines
Subsequent to the end of the Period, a NI 43-101 Technical Report for Proyecto Riotinto, including the San Dionisio open pit and the San Dionisio and
Atalaya continues to advance its exploration programme at PMV. At present, there are three drill rigs on site - the first is devoted to resource definition at the Campanario Trend, the second is completing infill and step out drilling at the Masa Valverde ('MV') deposit, while the third has commenced first drill testing of Fix Loop Electromagnetic ('FLEM') anomalies at the Mojarra Trend, located 1km north and parallel to the Campanario Trend.
Initial drilling results from Campanario were announced in
Atalaya is currently progressing a PEA which will consider operating PMV as a satellite deposit by processing mined material at Riotinto's 15 Mtpa plant. The permitting process for PMV is ongoing.
Proyecto Touro
Atalaya remains fully committed to the development of the Touro copper project in Galicia, which could become a new source of copper production for
The Company is now operating a new water treatment plant at Touro, which is addressing the legacy issues associated with acid water runoff from the historical mine, which closed in 1987. The construction of the treatment plant was contemplated in the original project proposal, but Atalaya volunteered to fix the historical acid water issues prior to the new Environmental Impact Assessment ('EIA') in order to demonstrate its operating philosophy and the benefits of modern operating systems. The field work carried out by Atalaya has resulted in an immediate and visible improvement of the water systems surrounding the project.
Atalaya continues to be confident that its approach to Touro, which includes fully plastic lined thickened tailings with zero discharge, is consistent with international best practice and will satisfy the most stringent environmental conditions that may be imposed by the authorities prior to the development of the project.
Other Regional Exploration
At Riotinto East, the Penas Blancas investigation permit was granted. Drill target definition is in progress and the first drill testing of selected anomalies is expected by year end.
At Proyecto Ossa Morena, the first drilling campaign is now underway at the Hinchona copper-gold target. Two holes have been completed and the third hole is in progress. Drilling at the flagship Alconchel-Pallares copper-gold project is now expected to commence during Q4 2022.
E-LIX Phase I Plant
Construction of the E-LIX Phase I plant continues to advance, including the assembly of metal structures and the delivery of equipment to site. The Company now expects the plant to be ready for commissioning by Q1 2023.
Once operational, the E-LIX plant is expected to produce high purity copper and zinc metals on site, allowing the Company to potentially achieve higher metal recoveries from complex ore, lower transportation and concentrate treatment charges and a reduced carbon footprint.
50 MW Solar Plant
Construction of Atalaya's 50 MW solar plant at Proyecto Riotinto is underway, with equipment for the solar plant starting to arrive on site at the end of October.
Electricity Market in
Situation Update
The ongoing conflict in
In response, the governments of
Following a period of curtailed gas deliveries via
As a result of high gas prices and the 'adjustment' mechanism, the Company's estimated realised electricity price for Q3 2022 is expected to be around
Electricity Procurement Strategy
Atalaya's 50 MW solar plant is expected to become a reliable source of low cost and carbon-free energy for Proyecto Riotinto, and, combined with the Company's previously announced long-term power purchase agreement ('PPA'), will guarantee that over 50% of the electricity requirements at Proyecto Riotinto are sourced at an average final cost of less than
As previously disclosed, an increase or decrease in realised electricity prices of
The Company continues to evaluate additional renewable power initiatives, including the installation of wind turbines at Riotinto dedicated to self-consumption. In
Production Guidance for 2022
Atalaya reiterates its 2022 guidance of 52,000 - 54,000 tonnes of copper production. The Company will continue to monitor the volatile electricity markets in
'We are pleased to report consistent copper production for the quarter and reiterate our guidance for the full year despite the many uncertainties in
Regardless of current challenges, we remain excited about many growth opportunities within Atalaya's asset portfolio and confident on the outlook for copper. It is evident that more copper supply will be required to fuel the global energy transition, and that high quality assets in safe jurisdictions will become increasingly scarce. These views are clearly shared by the diversified majors, who have been active in pursuing copper growth in recent months.'
Contact:
T: +34 959 59 28 50
E: comunicacion@atalayamining.com
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