Atalaya Mining (ATYM) does not have to pay lump sum or catch-up payments to counterparty Astor, the High Court has ruled, lifting a significant weight from the Spanish copper producer's future costs.
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The news follows Atalaya's exercise of an option to acquire 10 per cent of the Touro copper project near Santiago de Compostela. If progressed to commercial production, the company stands to own a total of 80 per cent of the project through an earn-in agreement.
While Atalaya must still make deferred payments to Astor, Canaccord Genuity has sharply reduced its net present value estimate of the liability to around €35m (£30.4m), and now expects adjusted EPS of 26¢ this year.
