Atalaya Mining Plc. (AIM: ATYM, TSX: AYM) is pleased to announce its operations update for the fourth quarter of 2020 ('Q4 2020' or the 'Period') and to provide guidance for 2021.

Copper production in Q4 2020 exceeded budget with 14,332 tonnes, an 8.5% increase on Q4 2019.

This is the second highest quarterly copper production and represents the fourth consecutive quarter where copper production exceeded 13,000 tonnes.

A new annual production record of 55,890 tonnes of copper was achieved in 2020, with the 2020 guidance met notwithstanding the operating challenges and the mandatory stoppage in April 2020 as a result of COVID-19 restrictions.

9 million tonnes of ore milled were processed in Q4 2020, reporting a consistent quarterly throughput.

The increase in copper production, when compared with Q4 2019, is mainly attributable to higher ore milled and better metallurgical recoveries

Despite COVID-19, mining operations have continued normally with enough equipment on site to maintain the higher production levels required for the full operation of the expanded plant.

On-site concentrate inventories at the end of Q4 2020 were approximately 12,180 tonnes. All concentrate in stock at the beginning of the Period and produced during the Period was delivered to the port at Huelva.

Copper prices increased during Q4 2020 compared with Q3 2020, with an average realised price per pound of copper payable, including the QPs closed in the Period, of $2.99/lb compared with $2.72/lb in the previous quarter. The average copper spot price during the quarter was $3.25/lb. The realised price during Q4 2020 excluding QPs was approximately $3.24/lb.

Cash operating costs for the Period are expected to be towards the upper end or slightly above the 2020 cost guidance provided owing mainly to the Euro strengthening against the U.S. dollar. Further details on costs will be provided with the 2020 Financial Statements to be reported in early April.

Local exploration at Proyecto Riotinto has focused on results from core drilling confirming the presence of unmined sulphides around Filon Sur, and around San Dionisio which is under the old Atalaya pit located west of the current operating pit.

At San Dionisio, mapping of old workings and full geological interpretation has been completed. A mining consultant is finalising the evaluation of the existing resource to incorporate into future mine plans. Mineralisation at San Dionisio consists of copper stockwork and polymetallic massive sulphides.

Alberto Lavandeira, CEO commented: 'Despite the challenges of COVID-19, Atalaya Mining achieved a new annual production record of 55,890 tonnes of copper in 2020. This record production level was within our 2020 provided guidance and is testament to our growth and ability to deliver value for shareholders.

'The year ahead will see the progression of optimisation and exploration initiatives designed to drive our future growth. A key priority continues to be to protect our workforce and the local communities surrounding our projects and we would like to thank our entire team for their contribution and adherence to our exceptional requirements, designed to prevent the spread of COVID-19, over the past 12 months.'

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no 596/2014.

Contact:

Elisabeth Cowell

Tel: + 44 20 3757 6880

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. In addition, the Group has a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain.

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