Atalaya Mining announced a “good” financial performance in the first quarter on Thursday, including cash flow from operating activities of 28.3 million euros (£23.98 million), down 23.1% from one year to the next.
The AIM-listed company said it achieved the cash flow despite “unprecedented” energy costs, inflationary pressures and a strike in the transport sector.
It said its balance sheet further strengthened in the three months to March 31, with its net cash position rising 720.1% year-on-year to 86.8 million euros.
The company maintained its full year operating outlook, including copper production of 54,000 to 56,000 tonnes.
Operationally, the board also noted the progress of its growth pipeline, following the announcement of new mineral resource estimates for the higher-grade deposits in the Riotinto District at San Dionisio, San Antonio and Project Masa Valverde.
“We are pleased to have generated more than 20 million euros of free cash flow during the quarter, despite the many external challenges we faced,” said chief executive Alberto Lavandeira.
“The transport sector strike in March forced the temporary shutdown of our processing plant, electricity prices in Spain remain extremely high compared to historical and expected future rates, and cost inflation is affecting prices many key consumables.
“However, our team managed to reduce the impact of these external factors.”
Lavandeira said that during the transportation strike, the company advanced maintenance activities that should enable higher throughput in the second quarter, as it also advanced the construction of our 50 MW solar power plant and entered into a new contract for long-term power purchase, and began implementing efficiency measures to help offset cost inflation.
“We are also looking forward to the new regulations proposed by Spain, which would cap the price of gas and significantly reduce spot electricity prices.
“During this time, we continue to focus on advancing our pipeline of projects in the Riotinto district, which we believe can drive significant capital-intensive production growth due to grades and synergies. expected associated with using our existing plant as a central processing center.
“In addition, the stakeholder dialogue and licensing process continues at Proyecto Touro, which could become a new source of safe and responsible copper production in Europe.”
At 1157 BST, shares of Atalaya Mining were down 1.37% at 360.01p.
Reporting by Josh White on Sharecast.com.