Atalaya Mining Q2 Earnings Call Highlights

Atalaya Mining produced 13,500 tonnes of copper at all-in sustaining costs of $2.79 per pound, generating record quarterly EBITDA of €78 million, €58 million in free cash flow and nearly €319 million in net cash.

The company maintained its full-year production and cost guidance, while reducing 2026 capital-spending plans by about €20 million due to project delays at San Dionisio; the spending is largely deferred rather than eliminated.

Growth projects remain central to Atalaya’s strategy: Masa Valverde, a potential polymetallic processing circuit at Riotinto and the Touro project could eventually lift production to roughly 100,000 tonnes of copper equivalent, although Touro remains subject to environmental approval.

Atalaya Mining LON: ATYM reported a stronger second quarter and first half of 2026, supported by improved production following weather-related disruptions earlier in the year, higher copper prices, silver credits and lower treatment charges.

Chief Executive Officer Alberto Lavandeira said the company produced 13,500 tonnes of copper in the second quarter at all-in sustaining costs of $2.79 per pound.

The result followed unusually heavy rainfall in southern Spain during late January and most of February, which affected first-quarter operations.

During the second quarter, operations normalized, with mill performance improving, copper grades approaching 0.4% and recoveries reaching 84%.

“It was a good quarter,” Lavandeira said, adding that the company is maintaining its full-year production and cost guidance despite expecting production to finish toward the lower end of its target range.

Atalaya reported quarterly EBITDA of €78 million and first-half EBITDA of €126 million, both records according to management.

Quarterly operating cash flow was nearly €80 million, while free cash flow totaled €58 million.

Lavandeira attributed the financial performance to higher copper prices, stronger silver grades and lower offsite costs, including treatment charges.

He said that higher mining and processing costs related to diesel, explosives, inflation and currency movements were largely offset by silver credits and favorable treatment-charge conditions.

Cash costs were approximately $2.40 per pound in both the second quarter and first half, while all-in sustaining costs were about $2.80 per pound in the quarter and just under $3.00 per pound for the first half, management said.

The company ended the quarter with a net cash position of nearly €319 million, which Lavandeira described as a new record.

Atalaya’s board declared an interim dividend of €0.055 per share, around 25% higher than the prior-year interim dividend.

The payment is expected in September.

Atalaya’s dividend policy is to return between 35% and 50% of free cash flow to shareholders, although management said it also expects to fund a series of growth investments at its Spanish operations and at the Touro project.

Management lowered planned capital expenditures for 2026 by approximately €20 million, citing delays to work at San Dionisio, including stripping activity, road relocation and the start of a ramp.

Lavandeira said the reduction represents a deferral rather than a saving, with some spending shifting into later periods and 2027.

An electric line currently limits access to higher-grade material at San Dionisio.

The line’s owner, Endesa, has contracted its removal, and Atalaya expects it will be able to access the area shortly after that work is completed.

Lavandeira said a meaningful contribution from the higher-grade ma...