These half-year numbers from Atalaya Mining (ATYM) are arguably the copper miner's most important financial results since its predecessor EMED Mining acquired the Riotinto project in 2008. That's because the period saw the completion of the expansion project, which should take the company to annual production of 9.5m tonnes of ore (Mtpa) by the end of 2016. Early results suggest the ramp-up is progressing as planned, although an increase in second-quarter cash costs to $2.36 (£1.77) per pound was ahead of market expectations, and above the average selling price of $2.16 in the first six months of the year.
According to management, this was due to under-utilisation of the expanded plant, interruptions required to connect the expansion facility to the project, and a temporary suspension linked to a tailings discharge issue. However, the company said that unit costs would drop with a second-half jump in production, and that capital expenditure - which totalled €17.1m (£14.4m) in the period - will also drop. Prior to these results, Atalaya also announced a $14m offtake agreement that should cover the expansion project's remaining capital requirements.
Prior to these results, analysts at Canaccord Genuity were forecasting a full-year adjusted loss per share of 11¢, rising to a positive EPS reading of 14¢ in 2017.
ATALAYA MINING (ATYM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 85p | MARKET VALUE: | £98.6m | |
| TOUCH: | 83-86p | 12-MONTH HIGH: | 128p | LOW: 59p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 146¢ | NET CASH: | €10.5m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | nil | -15.8 | -31.7 | nil |
| 2016 | 22.6 | -6.5 | -5.5 | nil |
| % change | - | - | - | - |
£1=€1.19 | ||||
