Shares 

The Aim 100 2018: 70 to 61

The Aim 100 2018: 70 to 61

70. Atalaya Mining

In 2018, the prospects for Atalaya Mining's (ATYM) shares rest on many factors. To name but four: the smooth execution of a planned upgrade to existing capacity at Projecto Riotinto, the outcome of a long-running legal battle, the economic viability of Projecto Touro, and management’s ability to convince protesters that this second project meets environmental standards. But without a dividend to speak of, and with a relatively high-cost profile in tow, Atalaya is very much geared to the copper price.

With the red metal at $3 per pound, the company is in a comfortable position – despite a fall in copper futures prices in the three months to March, the first such quarterly dip since 2015. Of course, mounting trade fears will always put a dent in a commodity widely viewed as a barometer of global economic growth, so too concerns that 2017 usage fell below forecasts and have pushed up stockpiles. But, however much short-term negative sentiment copper attracts, a lack of investment in major supply is pushing the market towards a crunch point, and with it the possibility of higher prices. That should be good for Atalaya. Buy. AN

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