Atalaya Mining PLC on Wednesday said it continues to believe in the fundamentals of copper, as it announced a fall in profit due lower the production of the metal.

The Spain-focused miner said pretax profit dived to €2.4 million in the third quarter of 2024 from €10.7 million a year ago.

Revenue rose 1.7% to €86.8 million from €85.4 million, but operating costs increased 5.3% to €69.8 million from €66.3 million.

Atalaya produced 11,901 tonnes of copper in the third quarter, a 5.1% decline from 12,541 tonnes a year ago. The output of copper concentrate, however, rose 17% to 69,307 tonnes from 59,306 tonnes.

Atalaya’s average realised copper price climbed 9.5% to $4.13 per pound from $3.77.

Mine site depreciation and amortisation increased 37% to €12.4 million from €9.0 million.

Notably, Atalaya incurred a loss of €1.7 million on foreign exchange differences in the third quarter, compared to a gain of €705,000 a year ago.

Chief Executive Officer Alberto Lavandeira said: ‘With our strong balance sheet and skilled development team, we believe we are well-positioned to execute on our growth pipeline. We also continue to believe in the fundamentals for copper, given the challenges associated with building large new mines in remote regions around the world.’

Looking ahead, the company expects copper output for 2024 to be at the lower end of its previous guidance of 45,000 to 50,000 tonnes. For 2023 it had reported contained copper production of 51,667 tonnes.

Cash costs are anticipated to be at the high end of its guidance range of $2.80 to $3.00 per pound, up from $2.79 in 2023.

All-sustaining costs are expected at the high end of its guidance range of $3.00 to $3.20 per pound of copper payable, compared to $3.09 in 2023.

Atalaya shares fell 7.8% to 329.50 pence each on Wednesday morning in London.

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