The share price of Atalaya Mining (LSE: ATYM) was flat on Monday after the firm released an update regarding its operations in the first quarter of this year. In the announcement, Atalaya reiterated its copper production guidance at 45,000-46,500 tonnes for 2019, with production up 8pc compared with the same period last year. However, copper output decreased 9pc quarter-on-quarter, although it’s worth noting Q4 2018 was a record quarter and production for Q1 2019 is still in line with expectations.
The company is looking to ramp up production up to 55,000 tonnes of copper in 2020 as it expands its plant at Proyecto Riotinto to process 15 Million tonnes per annum (Mtpa). The company reports the expansion project has ‘progressed materially’ in the first quarter and expects mechanical completion by the end of Q2 2019. The firm has two ongoing drilling programmes at Proyecto Riotinto underway. The first is targeting massive sulphides and stockwork mineralisation under the Atalaya pit, while lateral extenstions of massive sulphides and stockwork are being drilled at Filon Sur.
Meanwhile, at Proyecto Touro - a copper project in Spain – feedback regarding environmental impact studies has been received from the relevant authorities. Atalaya has an earn-in agreement to own up to 80pc of the Proyecto Touro project.
Alberto Lavandeira, CEO commented: "During the first quarter of 2019 our operations at the Riotinto mine continued to deliver strong operating results. Simultaneously the construction activities for the modernisation and expansion of the plant are expected to meet our self-imposed tight schedule of mechanical completion by the end of the second quarter. Based on the excellent expertise of the teams on site we are confident that the project will be concluded on time and on budget and that we will achieve our full year production guidance."
Author: Stuart Langelaan
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