Atalaya Mining Share Discussion Threads

[cufes2] 24/2/2017 09:54

OT . . . AAU could be breaking out today . . .

[husbod] 24/2/2017 09:40

Morning rouge. I reckon you might as well just give me that crate of top class Rioja now.

[superbobtaylor] 24/2/2017 09:27

I could be completely wrong on this one but this new ore body is a sulphide whereas I don't think that PRT is. Sulphides are processed completely differently by acid leaching which is much quicker and cheaper to get going.

Anyone want to shoot this down / verify?

SBT

[mip55] 24/2/2017 09:10

FYI Interesting 6 section article on market realist.comYou Should Know What's Driving Copper Prices in 2017http://marketrealist.com/2017/02/copper-producers-and-freeport-mcmorans-indonesia-woes/

[rougepierre] 24/2/2017 08:37

Good lord CuFe...we actually agree on dividends! Together we could be unbeatable...

I was reflecting on the massive significance of this deal last night.

AsLLB points out. Were only paying about £10m for 80% of a mine where known reserves are about the same as ours when you multiply grade by tonnage.

But the fact that the Board belueves we canvgo ahead with these upfront cost commitments now, validates the net casflow we must be throwing off.

And that is despite not knowing the Astor judgement. So they must either believe we can manage the consequences if it goes against us AS WELL AS these new commitments or that they are confident of a positive judgement putting control of the payments in our hands.

Either way, this is very bullish.

But the clincher for me is this.

On my last calculations, at an average price of $2.75 the NPV of RT was upped to c350p per share. If the mineable copper at Touro is on a commensurate scale, we are buying 80% of 350p i.e. 280p. Less the upfront cost of c £10m, which is c9p, leaves 271p which, when added to 350p gives 621p.

Now the only caveat is the assumption that the capital costs spread over the LOM are commensurate with ours, whereas there was of course there was some reusable kit on site at RT. But as LLB said. AL did a stonking job here and can put the lessons learned into practice at Touro.

But even if they are higher and our share of NPV is lower than 271p, this still puts the value of ATYM at several multiples of 152p...and THATS assuming copper stays at an average of only $2.75 going forward...

Tremendous vote of confidence...are we building another RTZ in the making, here on mainland Europe...?!!

AIMHO as usual...

[acamas] 24/2/2017 08:36

Good Morning,

Can anyone tell me where I can find the RS% 1 year for ATYM. I am curious to see how it compares with AIM or even The mining sector

[cufes2] 24/2/2017 06:47

Long term probably yes . . . but that's not what your first sentence intimated . . . Mr Market hasn't overlooked anything yet . . . EMED already have a model for funding the project if it comes to fruition that will potentially mitigate the impact on a dividend policy . . . once again I will make the point that dividends act as a discounting mechanism for the major shareholders with off take agreements . . . plus Liberty will want a regular income stream in order to strengthen their balance sheet . . . if the project was going to have a significant impact on the dividend policy then I don't believe the board would have sanctioned the deal . . . all IMHO of course . . .

[gcpinc] 24/2/2017 00:00

TSE:AYM closed 2.64 CAD up 22.79% !

[iankn73] 23/2/2017 23:55

So you don't believe that this could add significant value to Atalaya share price in the future, assuming everything goes according to plan that is. Cufe, I did state long term although for some, long term means investing in a stock for a few days or weeks then selling onto the next trending stock. Depends on ones perspective.

I believe this will have a significant impact on divi policy as its only €12 million in total over four phases as I read it. We still have to find the additional funds further on down the line to construct the plant I believe. I hope I'm wrong and a divi policy will not be impacted by this venture. IMHO...

[cufes2] 23/2/2017 22:09

It's not a bad deal as I said this morning . . . Just pointing out the obvious flaws in Ian's post . . .

[laurence llewelyn binliner] 23/2/2017 21:33

A €12.5M price for 80% of a deposit the size of PRT + 0.75% royalty, is a better price than the €53M (+€25M) that we got with Astor isn't it...? The new project will still need $150M worth of plant built to get it up and running, but once you've done it once, there are always lessons learnt and economies to be made 2nd time around..Early days, the next mine is 3-5 years away.., but we've got 1 on the board..!

[rougepierre] 23/2/2017 21:33

Well done CuFe...don't change mate...put a downer on everything...!

Personally I think it's a cracking deal which AL can deliver much faster than Harry did with EMED...

Yeesh!

AIMHO as usual...

[cufes2] 23/2/2017 21:22

This is not a significant value enhancing deal yet and won't be for some time . . . Otherwise it wouldn't have been so cheap . . . And the deal will not have a significant impact on the dividend policy because it is so cheap . . . All IMHO of course . . .

[iankn73] 23/2/2017 20:11

Lango - I wouldn't look too much into that article as it also states that they are increasing production from 5mpt to 9.5mpt which has already been achieved and they also state that Trafigura own Atalaya which @ 22% is also inaccurate.

Either that or Google hasn't done a very good job of translating the article.

[langostino] 23/2/2017 19:14

Interesting that Expansion see it as a Trafigura deal, otherwise known as 'The Contractor'

[iankn73] 23/2/2017 18:10

Personally, think its an excellent piece of news which the market seems to have overlooked. They have clearly carried out their due diligence from 2015 and with what looks like "favourable terms" with an earn in agreement over four phases, considering the current copper price this looks like a shrewd move from Alberto and team.

This should add significantly more value to an already undervalued asset. I'm very comfortable with my personal investment in Atalaya mining in the long term.

I very much doubt that we will see a dividend announcement for a wee while now as funds will need to be focused elsewhere. I can live with that as long as the share price move in the right direction.

If I had a choice between investing in Weatherly Int (WTI) or (ATYM) I know where my money would go, every time!!

Maybe some of the ADVFN gamblers out there cough RP cough :-) will start shifting money into and leaving it parked with copper miners that are actually producing at profit at these prices.

The market will move in our favour eventually.

[gcpinc] 23/2/2017 17:42

hxxp://www.expansion.com/empresas/industria/2017/02/23/58aecdb8e5fdea8c7f8b467b.html

[waterloo01] 23/2/2017 17:24

Sirmoori, spot on. This is not 'wildcatting'. The fact they have been at this since 2015, I'd be very surprised if they had not already had detailed discussions with the local govt and hence the "relatively straightforward process' comment.

Galicia is 'next' door and similar landscape from memory.

[sirmoori] 23/2/2017 17:16

AL does have substantial, successful experience of development and operation of mines in northern Spain, albeit in Galicia: he is "Former Chief Executive Officer, President and COO of Rio Narcea Gold Mines (1995-2007), which built three mines including Aguablanca." Tuoro is in La Coruña province of the Galicia region, just to the west of the Rio Narcea gold mine.

From documentation lodged by Lundin Mining, it looks like AL was already familiar with Tuoro's previous, parent company because of his work with Rio Narcea and so may well have known details of the resource there.

All the signs are that this was a very carefully considered acquisition prompted by detailed knowledge of the area and its potential.

Looking through the documentation of Rio Narcea's exploration, development and funding, AL has clearly been there and done that in Galicia. I'm very confident that he will be able to handle the bureaucracy and the diplomacy needed to get Tuoro working.

[husbod] 23/2/2017 17:13

Those concerned about interminable delays on permitting etc for the new venture should bear in mind that we now have a very experienced Spanish ceo as opposed to a very inexperienced Flash Harry.

[gcpinc] 23/2/2017 17:11

TSE:AYM currently up 20% !

[mip55] 23/2/2017 16:51

LIVE FUTURES REPORT 23/02: Comex copper price drops again; Fed minutes indicate upcoming hikeComex copper prices declined for the fourth consecutive session amid technical selling and a lack of updates from supply issues in Chile or Indonesia.

[shortarm] 23/2/2017 16:08

Has the strike been cancelled? Copper down 2.5%

[waterloo01] 23/2/2017 14:53

In an analyst rating update on Thursday shares of Atalaya Mining Plc (LON:ATYM) had their rating reiterated by analysts at Cantor Fitzgerald.

The broker said it has now set a ‘Buy’ rating on shares of Atalaya Mining Plc with a price target of 217. The price target according to the broker shows a possible increase of 43.71% from the current stock price of 151.