Atalaya Mining Share Discussion Threads

[sithuk] 13/2/2018 07:15

Maybe the board want Rumbo 'on board' as equity holders for some reason?

[sithuk] 13/2/2018 07:08

RNS out. Rumbo being paid in shares for its quarterly royalty payment of $0.25m. How does the board justify saying the shares are undervalued to investors in presentations then decline to pay a relatively insignificant cash sum and instead issue more shares?

[mip55] 13/2/2018 07:06

Equity IssueIn accordance with the royalty agreement signed in July 2012 between the Company and Rumbo, the former owner of certain plots of land currently used by Proyecto Riotinto (the "Royalty Agreement"), and as disclosed in Atalaya's financial information, Rumbo is entitled to receive a royalty payment of up to US$250,000 per quarter if the average copper sales price or LME price for the period is equal to or above $2.60/lb. As such, and given the fact that the average copper price for the third and fourth quarter of 2017 was above $2.60/lb, the Company is obliged to pay US$500,000 to Rumbo (the "Royalty Payment"). After discussions with Rumbo, both parties have agreed to satisfy the Royalty Payment through the issuance of 192,540 new ordinary shares of 7.5p in the Company ("Rumbo Shares"). The Rumbo Shares have been issued at the volume weighted average price for the period between 5 February 2018 and 9 February 2018 (the "Calculation Period") of 186.7p per share and using the average US$ to GBP exchange rate for the Calculation Period of 1.3909.

[waterloo01] 12/2/2018 19:14

Slowly slowly, I think they might just be winning the case. The environmental lobby will always object, regardless, but the plan put forward will win hands down on jobs and economic revival of the area. The fact we are a well backed company (finally an advantage to Traf) and the best way to sort past issues on site is to invest in the mine.

Need to keep an eye on when the Junta meet.

[rougepierre] 12/2/2018 17:23

Hmm Husbod/Erric...£360m MCap...over 80 licences and just one of them has 1.08Bn tonnes of ore at 0.68% Cu giving 5.2Mt of Cu and 12.3M oz of Au...

Meanwhile they've already turned down a joint venture development with BLT and Newmont has a 14.5% stake...

Makes ATYM look like small beer in comparison...

[waterloo01] 12/2/2018 15:59

From the Blackrock world mining update today

Strategy and Outlook
After two strong years, investors that have not been exposed to mining may now be questioning if they have missed the opportunity. We are, however, still a long way below the peak in 2011 and the sector continues to trade at a valuation discount to broader equity markets. Meanwhile, the miners are trading on very attractive cash flow multiples with Glencore, BHP Billiton and Rio Tinto all currently trading at forward free cash flow yields of around 10% for example. For the mined commodities, in most cases, we believe they look reasonably fairly priced and so our base case is that they remain relatively range-bound at current levels which sees healthy profitability for the sector. Crucially, however, mining equities are still pricing in commodity prices well below current spot prices and, as such, we are constructive on the shares but neutral the commodities themselves. Many still distrust the miners, expecting them to make the same mistakes of the past in terms of poor capital discipline. Our view though is that the pain of the recent down-cycle is still too fresh in the minds of management teams for this to become a widespread issue in the near-term. We have begun to see moderate increases in sustaining capex announced, but we believe for the most part these have been necessary increases rather than indicative of a widespread return to poor capital discipline.
All data points are in US dollar terms unless stated otherwise.
12 February 2018

[cufes2] 12/2/2018 14:40

I think you're being a bit harsh on SBT Erric . . .

[cufes2] 12/2/2018 14:38

Prolifically . . . I've posted around 20 times in 3 months . . . Proved right . . . I've already admitted to being wrong about one thing today . . . I don't short but I'm happy to trade EMED as I've said many times . . . I'm just not a zealot . . .

[erric] 12/2/2018 14:30

Just feeling minty.

[husbod] 12/2/2018 14:21

You can mention SOLG as many times as you like rouge but a start up mine in Equador with an share price 20% below its last placing price isn't going to tempt anyone here.Good luck with it anyway.

[superbobtaylor] 12/2/2018 13:58

@CuFeS2

Please take this in the sprit in which is in intended. I am genuinely curious.

(Assuming that you are neither long (LOL) nor short ATYM) Why do you post here so prolifically? You have serious reservations about the ownership structure, strategy going forward and probably a lot more besides. You have had chances to buy at much lower prices and have not done so, I can't see any likely circumstances you will buy now, can you? What drives you to keep reading this board week after week, year after year?

Obviously you have every right to post here and your points are valid but still I ask myself, why bother? Do you just want to be proved right in the end?

SBT

[rougepierre] 12/2/2018 13:35

Reasons to be cheerful and stiffen the spine...

1 We're at a better than 3 year high...200p soon...?

2 Copper prices are going WAAAAAYYYY higher...Friedland is a hugely respected copper guru who has already made a fortune out of it...which is why I'm hugely into ATYM, SOLG and KCC....



3 It's only a matter of time before gold and silver fly...the US economy is right royally bust and when the next recession comes the only game in town will be MORE QE...but this time accompanied by booming dollar debt...a collapsing currency...and potentially hyperinflation....

Which is why I'm massively into gold and silver...

hxxps://usawatchdog.com/biggest-ever-debt-dollar-crisis-coming-peter-schiff/

Read and enjoy...meanwhile, still back into VILX and holding...another choppy week for markets...?

Goldman very bullish about commodities in general, copper in particular...the last time we had a 'crash', equity money was recycled into commodities...

GLA and AIMHO as usual...back from Lanzagrotty with the batteries recharged...

(PS CuFe you're still filtered...ah caint hearrr yew.... ;-)

[cufes2] 12/2/2018 13:18

Nope and that's not the point . . .

[superbobtaylor] 12/2/2018 12:30

"Looks like more cheap shares for the chaps"

If they were so cheap did you buy any in the weeks following the placing? You could have had some even cheaper. As far as a placing goes to get market price was not a bad result, I have frequently seen much worse.

SBT

[waterloo01] 12/2/2018 11:07

Look I and I think others have asked about the Zinc project and the article is wrong. The main concession was won by a small Canadian outfit and ATYM a smaller plot, although I think they are challenging that decision. What the article highlights is I suspect what was in the bid document in terms of what they might have spent, if they won the main concession.

They have enough to get on with anyhow with PRT expansion and Touro

[cufes2] 12/2/2018 10:53

Got to admit you were right Husbod . . . Rather than sticking to the knitting they've taken up crocheting and cross stitch too . . . Looks like more cheap shares for the chaps and more dilution for PIs with significant dividends moving even further out IMHO . . .

[waterloo01] 11/2/2018 09:59

I was surprised by the price collapse of Rangold but then again I shouldn't be. Miners (or any company) with high levels of debt in a rising rate environment and with mines in geographic regions where the rules keep changing, explains a lot.

[laurence llewelyn binliner] 11/2/2018 09:43

What a journey it's been as a LTH here since the early days of acquiring all the land, putting it together, through the full permitting process to get operational in 2016 @ 5.0 MTPA, then our first full year @ 9.0MTPA and 37,000 Tonnes of Copper in 2017..

10 years as a buyer now keeping sight of the bigger picture and the company this could evolve into over time, as it grows with an established revenue stream from PRT, a strong Copper price to sell into, a forward project pipeline, an established BOD and all the backers needed in place to make it happen..

Getting into a position where we can now unlock the earning potential of PRT as we scale up is quite an achievment for a start up, then to add Touro, and possibly a Zinc project too..

A $1-2BN MCAP company first mooted so long ago does now look achievable as we steam towards the 90-100,000 Tonne goal.. :o)

Dividends in 19/20 after the PRT expansion..?

#waterloo01 - we are a relatively high cost producer @ c$2.00/lb, BUT, when you consider the $1 producers are in such high risk places in the world, from floods/earthquakes/cyclones/union disruption/remote inaccessible locations with no power, and on top of all those risks are the local governments who through covert theft aka expropriation or just change the rules as you start to make money, and slap new permits on you with their newly created 'taxes'.. Freeport/Grasberg had to divest 50% of the company to the Gov to keep their permit.. Spain is just fine in comparison..!

[waterloo01] 10/2/2018 14:17

Well the share price has not only held but increased during the market turbulence and a falling copper price is a very strong signal. $100m EBUTDA this year, no debt beyond Astor and growth both in the existing resource but Touro (which looks a similar size to PRT or bigger) and other irons in the fire.

Edit: Also in CAML but to a lesser extent.

[napoleon 14th] 10/2/2018 14:11

This resembles CAML more & more, which can't be a bad thing...
I hold a few; used to have a lot more but got bored!
Tempted to buy back.

[saintb] 10/2/2018 13:13

With thanks to Dofmeister on LSE.

More info.on the Zinc Project for those who are interested.

hxxp://www.dgicc.cantabria.es/web/direccion-general-industria/detalle/-/journal_content/56_INSTANCE_DETALLE/16626/5674127