Atalaya Mining Share Discussion Threads

[mronions] 29/3/2021 12:43

I'm still here ... the news is great that we paid Astor.

We were never going to agree with Astor ... the courts will now settle question of interest or not. That's back to interpreting the original agreement again.

What next, shareholder dividends ... that will underpin this company's valuation.

If we can get a 5% yield with growth potential, what a start.

[estienne] 29/3/2021 11:20

Good to see you back MrOnions

[mronions] 29/3/2021 09:33

we are going to get a dividend

[thufirhawat] 28/3/2021 13:20

Really good point. One can feel insulated from forex by the London listing... but the reality is far more complex.

[brockwl2] 28/3/2021 11:09

Also euro/dollar exchange rate was about 6% better in 2019. Given a significant amount of costs (e.g. Labour) are in Euros, I'd guess that you could add at least another 3% for that.
It's one of the reasons you need to be careful when getting excited about the copper price increasing. It's fine if forex doesn't move, but if it does then you haven't gained much.
E.g copper has risen about 80% from recent lows, but forex has also moved at least 15% the other way. So gains are not as big as they seem.

[mip55] 27/3/2021 14:27

If you look at the ore processed in the respective yearsProcessing-- 14.8Mtpa of ore processed (FY2019: 10.5 Mtpa)That gives an increase of 41%. Granted that is not 50% but would go some way to explaining the increase in processing costs.

[chrisscarles] 27/3/2021 10:53

Processing Costs rose by 50% on the back of production up 25%. The increase in Processing Costs totally trashed a potential good year. Yet the company has offered no explaination as to what caused this Marked increase in what should be a variable cost. Anyone with any ideas why these costs soared, and a view on the direction of these in 2021?

[chrisscarles] 27/3/2021 10:53

Processing Costs rose by 50% on the back of production up 25%. The increase in Processing Costs totally trashed a potential good year. Yet the company has offered no explaination as to what caused this Marked increase in what should be a variable cost. Anyone with any ideas why these costs soared, and a view on the direction of these in 2021?

[gekks] 26/3/2021 10:47

Timing of yesterdays RNS was unfortunate - everything tanked.

[qs99] 26/3/2021 10:17

buyers returning...it seems

[qs99] 26/3/2021 08:45

think 2021 may then be an average year before grades improve thereafter? Copper holding up well and unless new resource comes on tap, IMO should stay above $4 DYOR

Touro is the obvious game changer

[sirmoori] 25/3/2021 17:02

hTtps://www.ig.com/uk/news-and-trade-ideas/biden-infrastructure-plans-could-see-miners-surge-once-more-210325

[vish65] 25/3/2021 16:44

Costs may reduce but from 2022 so does the grade. Initiatives are in part to maintain margins. Pending of course what the drilling and resource update throws up to alter things

[qs99] 25/3/2021 16:00

Agreed. Just need Touro to get going now.....

[laurence llewelyn binliner] 25/3/2021 14:41

The best way to view the FY2020 numbers is that our profits compared to 2019 were not compromised despite the additional CAPEX to modernise and improve the plant and site facilities, new dome, tailings works, and we are well on the way to a state of the art mine, huge improvements and progress made all for free, the Astor deferred consideration now dealt with too, everything is coming together nicely and now we have USD4 copper on top for 2021...

The ELIX/Solar project CAPEX and new debt repayments could do the same again to 2021 profits pending timings and approvals, but when it is all finished it will be something to be very proud of and profitable as we run out of parts to modernise and costs finally reduce... :o)

[qs99] 25/3/2021 14:14

Was that tactical in relation to their "excess cash" definition debate then? So hopefully Q1 will see improvements LLB?

[tommyttrades1] 25/3/2021 14:06

ÀISC costs increased but look at the upgrading at Rio Tinto..
New emissions control dome, largest structure of it's kind built in Spain last year..105m dia x 36 m high
Also uograded/ expanded tailings
Link below show the dome structure..650 ton's of steel

hxxps://www.elcorreogallego.es/galicia/metaldeza-ejecuta-una-espectacular-cupula-de-105-metros-de-diametro-y-36-de-alto-en-la-mina-de-riotinto-DL6827151

[qs99] 25/3/2021 12:38

agreed but their AISC forecast for this year is also materially higher, taking away some of those gains DYOR

[estienne] 25/3/2021 12:26

the results quibble about the difference between the price of Cu in 2019 ($2.73/lb) and 2020 ($2.72/lb). The 2020 results were based on an average Cu price of $2.72/lb whereas the price since 1st Dec 2020 has been above $3.5/lb and for the last 4 weeks above $4/lb. That's an increase of between 29% and 47%.

[qs99] 25/3/2021 12:22

thanks Tommy, any further details gratefully received!

[tommyttrades1] 25/3/2021 11:20

Tailings project could give a quick option...pretty sure Rumbo were bought out completely.

There has been an updated note today...still on BUY with 351p target..
6pgs..edited

Atalaya has released FY20 financial results which were broadly in line with our expectations. EBITDA of €67.4m was ~6% ahead of our forecast of ~€64m (with the delta appearing to be higher payable copper volumes). Realised

[keisersoze] 25/3/2021 10:20

I used to have a large position here, but sold out when Trump declared his trade war on China. I bought back modestly last year, but two things hold me back from investing more.

1. The AISC seems to be a moveable feast. It's unclear to me what the real cost of mining is and it has never remotely been close to what was stated back in the day!

2. Strategy. Where is Atalaya going? Toure has been stuck in the long grass for years and shows no signs of progress. There is a huge opportunity in copper that is likely to last through the 2020s, it would be a shame if ATYM wasted it banging their heads against Spanish bureaucracy.

From memory, Rio Tinto had a range of other exploitable assets including a load of tailings. Tailings projects seem to be very profitable, quick to set up and capital lite, so might be a good option here. I would like to see ATYM's management putting out a serious growth roadmap before I'm prepared to invest further here.

[robmcelf2] 25/3/2021 10:09

Although the cost guidance for 2021 is disappointing the fall seems overdone given copper prices. A pity Atalaya doesn't give firmer dates to help investors anticipate news flow - e.g on resources & reserves update and Elix feasibility study..