What Atalaya Mining (ATYM) Said on Its Q3 Earnings Call

Key Points

• Record results: Atalaya reported Q3 revenue of €187.9 million, EBITDA of €90.1 million and profit of €62.9 million as copper production rebounded after rain-affected operations. It maintained 2026 guidance, with production expected at the low end of the range, potentially slightly above 50,000 tons.
• Strong cash position and acquisition: The company generated €95.8 million in free cash flow during the first nine months and had €342.1 million in net cash at quarter-end. It completed the €125 million acquisition of Tharsis Mining, retaining about €260 million in net cash after the upfront payment.
• Growth pipeline: Atalaya’s existing projects aim to raise copper production to around 100,000 tons, while Tharsis and La Zarza could eventually lift it to about 130,000 tons. Masa Valverde work is underway, and the company is awaiting a key environmental permit for Touro.

Atalaya Mining LON: ATYM reported record third-quarter revenue and earnings before interest, taxes, depreciation and amortization, as copper production recovered from a rain-affected start to 2026. The company also outlined growth plans following its acquisition of Tharsis Mining.

Third-quarter revenue was €187.9 million, EBITDA was €90.1 million and profit was €62.9 million, Chief Financial Officer César Sánchez said on the earnings call. The company produced almost 14,000 tons of copper during the quarter and remained on track to meet its full-year production guidance, he said.

Production and Costs

Atalaya processed 4.1 million tons of ore in the third quarter at an average copper grade of 0.4%, with a recovery rate of 84.26%. Sánchez said throughput and recovery were slightly better than expected. The quarter’s output helped make up for lower production in the first quarter, when heavy rains affected operations.

The company maintained its 2026 guidance for ore throughput of 15.8 million to 16.2 million tons, a copper grade of 0.36% to 0.39% and recovery of 80% to 83%. Sánchez said copper production was expected to be at the low end of the guidance range, potentially slightly above 50,000 tons.

Third-quarter cash costs rose to $2.89 per pound, partly because of higher diesel, explosives and electricity prices. Year-to-date cash costs were $2.60 per pound, while all-in sustaining costs were $3.11 per pound. Sánchez said both year-to-date figures were at the bottom end of their guidance ranges.

Atalaya raised its forecast for exploration and other project expenses to €7 million to €9 million from €5 million to €7 million, citing spending on exploration and other assets. Sánchez expected full-year non-sustaining capital investment of about €60 million to €65 million, within the unchanged €52 million to €80 million range.

Cash Generation and Tharsis Acquisition

For the first nine months of 2026, Atalaya reported record EBITDA of €216.3 million and operating cash flow of €165.6 million. Free cash flow, calculated by the company as operating cash flow less investing cash flow, was €95.8 million.

At Sept. 30, the company held €354.1 million in cash and reported €11.9 million in borrowings, leaving net cash of €342.1 million. Sánchez said approximately €35 million in receivables from two concentrate shipments was collected in the days after the quarter ended.

Atalaya completed its acquisition of privately held Tharsis Mining for €125 million in cash, paying €75 million upfront and committing to pay the remaining €50 million within 12 months. Sánchez said the company retained approximately €260 million in net cash after the initial payment.

Tharsis owns the past-producing Tharsis and La Zarza deposits. Sánchez said Atalaya could draw on its Riotinto infrastructure and regional experience as it works to return the assets to production. He said the acquired mineral resources contain 1.5 million tons of copper, as well as zinc, lead, gold and silver.

The company’s existing growth plan envisions increasing copper production from around 50,000 tons to 100,000 tons through projects including San Dionisio, Masa Valverde and Touro. Sánchez said Tharsis and La Zarza could eventually lift that figure to around 130,000 tons, once both assets are operating.

Project and Permitting Updates

At San Dionisio, Sánchez said a delay related to moving an electricity line was minor and did not significantly change the company’s 2027 copper-grade expectation of 0.4%. At Masa Valverde, surface and portal work had started, with production expected in approximately 18 to 24 months.

Atalaya is also awaiting an environmental permit, known as the DIA, for its Touro project. Sánchez said he did not know exactly when it would arrive but expected it in the coming weeks. Approval of the industrial strategic project would still be required before construction could begin, although Atalaya plans to order long-lead items and continue land acquisition and engineering after receiving the DIA.

Sánchez said the company continued to expect an approximately 18-month construction period to bring the Touro plant into operation.

About Atalaya Mining (LON:ATYM)

Atalaya is a European copper producer that owns and operates the Proyecto Riotinto complex in southwest Spain. Atalaya's shares trade on the London Stock Exchange's Main Market under the symbol "ATYM". Atalaya's operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a central processing hub for ore sourced from its wholly owned regional projects around Riotinto, such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition, Atalaya has a phased earn-in agreement for up to 80% ownership of Cobre San Rafael S.L., which fully owns the Proyecto Touro brownfield copper project in the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.