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Atalaya achieves nameplate capacity

19th December 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Just as the copper price is set to improve, Aim-listed Atalaya Mining has achieved nameplate capacity of 9.5-million tonnes a year, at its 100%-owned Proyecto Riotinto, located in Andalucía, Spain.

The plant reached nameplate capacity during a single run of ten consecutive days during the early part of December, treating an average of 28 685 t/d and achieving design recoveries and concentrate grades.

After normal, scheduled maintenance and plant availability parameters are considered, the current treatment rates are enough "to give comfort" that the planned capacity will be achieved during 2017.

Production guidance for 2017 is forecast to be in the range of 34 000 t to 40 000 t of the reddish metal which, at current prices, is expected to generate positive operating cash flows for the company.

"We are pleased to report that Proyecto Riotinto has achieved its nameplate capacity in record time.  I would personally like to thank the entire Atalaya team for ensuring that we reached this milestone before the end of the year.  We look forward to sustained levels of production at the project in 2017 and beyond and we will continue to look for ways to optimise our operations,” CEO Alberto Lavandeira commented.

Meanwhile, in an effort to improve its working capital, Atalaya has reached an agreement with the mining contractor to defer certain payments totalling €8-million until 2018.

By then, the company expects to be generating stronger cash flows on a sustained basis, based on its operating budgets for 2017. This agreement covers a significant part of the company's current working capital needs and demonstrates the excellent working relationship the company enjoys with one of its key stakeholders.

Edited by Creamer Media Reporter

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