Atalaya produced 51,000 tonnes of copper in 2025 (near the top of guidance) with cash costs ~$2.40/lb and AISC ~$2.90/lb, delivering EBITDA of EUR 180 million and free cash flow >EUR 100 million, and ending the year with EUR 122 million net cash (pre-Jan 2026 equity raise).

The company reiterated 2026 guidance of 50,000–54,000 tonnes of copper, C1 costs $2.60–$2.90/lb and AISC $3.10–$3.14/lb, while flagging Q1 production may be slightly lower due to weather-related access issues and planning ~EUR 100 million cash CapEx (ex-Touro) as it pursues longer-term growth toward ~100,000 tonnes copper equivalent.

Corporate moves: the board proposed a final dividend of EUR 0.065 (total EUR 0.109 for 2025), Atalaya completed a GBP 130 million equity raise in Jan 2026 to strengthen the balance sheet, and recorded a EUR 24 million non-cash impairment related to loans to Lain/E‑LIX.

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Atalaya Mining (LON:ATYM) reported what CEO Alberto Lavandeira described as “a good year overall” in its 2025 annual results call, highlighting copper production at the top end of guidance, lower-than-expected costs, and a strengthened balance sheet.

Lavandeira said Atalaya produced 51,000 tonnes of copper in 2025, “just in the high range” of the company’s improved guidance. Cash cost was about $2.40 per pound and all-in sustaining cost (AISC) was $2.90 per pound, both better than management’s prior expectations.

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The operational performance translated into what management called strong financial results. The company reported EBITDA of EUR 180 million and free cash flow of over EUR 100 million for the year. Atalaya ended 2025 with EUR 122 million in net cash, a figure Lavandeira noted did not include funds raised in a late-January 2026 equity offering.

In the fourth quarter, Atalaya reported EBITDA of EUR 41 million and free cash flow of EUR 47 million (including working capital movements). Lavandeira said Q4 performance benefited from copper prices and cost control despite lower grades as the company mined only at Cerro Colorado while pre-stripping at San Dionisio.

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Lavandeira said the mill continued to outperform its design capacity. The plant, designed for 15 million tonnes per year, ran at 16.6 million tonnes in 2025, which he characterized as a new throughput record and about a 10% improvement over nameplate.

He said grades were lower sequentially in Q4 because the company was pre-stripping higher-grade areas at San Dionisio and processing cleaner, lower-grade ore from Cerro Colorado. While recoveries were “slightly lower” at times—particularly earlier in the year when treating oxidized material from San Dionisio—management said overall 2025 grades were better than the prior year.

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On the cost bridge, management attributed improved unit costs largely to higher production with relatively stable input costs in mining, processing, and general and administrative expenses. Lavandeira also pointed to by-product and market-related tailwinds, including higher silver prices and lower treatment charges (TCs). The company produced around 1 million ounces of silver, which supported by-product credits, and management said it was able to sell some spot lots with “very negative treatment charges,” contributing to what it described as effectively negative off-site costs.

Offsetting factors included higher capitalized stripping at Cerro Colorado and currency impacts from euro strength versus the U.S. dollar on U.S.-denominated costs.

Reflecting 2025 performance, the board proposed a final dividend of EUR 0.065 per share, subject to shareholder approval at the AGM in June. Together with the interim dividend paid in October, management said the total dividend for 2025 would be EUR 0.109 per share, up from EUR 0.064 in 2024. Lavandeira added that over the five years since initiating dividends, the company has paid more than EUR 94 million in dividends.

Lavandeira also noted leadership changes at the Riotinto operation, including a new general manager. He said the company’s re-domiciliation to Spain and subsequent inclusion in the FTSE 250 has improved liquidity.

On sustainability, Lavandeira said Atalaya maintained strong community relations and emphasized a continued focus on safety after a “slightly higher” injury frequency rate in 2025 versus the previous year, even if incidents were of low severity. He also cited initiatives to improve efficiency in water and electricity use, including a solar plant shown in the company’s materials.

The company recorded an impairment related to E-LIX, which Lavandeira described as a EUR 24 million non-cash impairment associated with loans to Lain, the entity that owns the intellectual property and operates the plant. He said the plant “works well” and continues to operate successfully, but the board opted for a partial impairment of the more than EUR 55 million in loans extended over roughly 10 years, citing prudence and concerns that the loan payback could take a long time given margin expectations at the current operating scale and market conditions.

In Q&A, Lavandeira explained that the original intent was to treat copper concentrates, but that became uneconomic given low treatment charges. The plant can be operated under different conditions, including removing zinc from copper-zinc concentrates, though he said the margin there is lower. He also said the technology can handle complex materials (including those with high antimony and arsenic) and may enable extraction of some silver and gold from complex concentrates, which the company is evaluating. He added that if additional financing is needed with Lain, Atalaya would evaluate alternatives rather than relying solely on loans.

Management reiterated 2026 guidance previously provided in January, while flagging weather-related disruption early in the year. Lavandeira said heavy rainfall and flooding in late January and early February limited access to the Cerro Colorado pit, leading the company to expect first-quarter production “slightly lower than planned” and processing of some marginal materials. He said grades should improve through 2026 and that guidance remains weighted to the second half as higher-grade ore from San Dionisio becomes available.

Atalaya maintained 2026 guidance of:

50,000–54,000 tonnes of copper production (management also reiterated expected silver output of around 1 million ounces)

C1 costs: $2.60–$2.90 per pound

AISC: $3.10–$3.14 per pound

On cost assumptions, management said the unhedged portion of electricity was modeled using a market price of around EUR 80, with about 20% supplied by a solar plant and roughly 40% hedged under a long-term PPA at 52–54 EUR, implying an estimated average around 60. Lavandeira said diesel was a key variable the company is monitoring, while electricity costs are relatively stable due to the solar plant and PPA.

Asked about diesel sensitivity, Lavandeira said contractors consumed roughly 30 million liters per year, and described a pricing formula that passes diesel price changes through with a benchmark. He offered an illustrative example: if diesel spend were about $30 million, a 30% increase would imply around $9 million higher cost over a year.

On capital spending, management said 2026 CapEx would be similar to 2025, driven largely by stripping at San Dionisio and moving a road to access better grades. The company also plans work to prepare a ramp to the Basin Alberdi deposit (subject to board approval), continued tailings dam expansion, and ongoing exploration in Spain and abroad. In response to a question on absolute cash outflow, management indicated expected cash CapEx for 2026 of around EUR 100 million excluding Touro.

Lavandeira highlighted a GBP 130 million equity offering completed in January 2026, saying it strengthened the balance sheet and would support advancing projects including Toro, potential small acquisitions, and other growth capital initiatives. He also discussed longer-term investments including a planned polymetallic circuit intended to provide flexibility to process higher-grade polymetallic ore; in Q&A he cited a current CapEx estimate around EUR 88 million and said the build would be “basically” during 2027.

On the Touro project, Lavandeira said the key delay is a water report needed before the environmental impact declaration is issued. He characterized discussions as positive and attributed timing largely to bureaucracy. He said the company expects the environmental impact statement during the early part of the second quarter and is targeting the ability to begin early works such as topsoil removal in June or July, with equipment orders (including the mill and gyratory crusher) following once the declaration is received. He also explained that due to the project’s strategic status, subsequent approvals are consolidated once the mines department signs off after the environmental declaration, a process he said typically takes up to about two months.

The call concluded with Lavandeira reiterating that Atalaya’s growth plans are intended to support production growth toward about 100,000 tonnes of copper equivalent, supported by what he described as a strengthened balance sheet and, for Touro, a funding package expected to include debt once final approvals are secured.

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.

The article "Atalaya Mining Q4 Earnings Call Highlights" was originally published by MarketBeat.