Q2 2026 Operations Update

Atalaya Mining Copper, S.A.

14 July 2026

 

 

14 July 2026

Atalaya Mining Copper, S.A.

("Atalaya" or "the Company")

Q2 2026 Operations Update

Strong quarter of production and increase in net cash position

Atalaya Mining (LSE: ATYM) is pleased to announce its operations update for the second quarter of 2026 ("Q2 2026" or the "Period").

Proyecto Riotinto Operating Highlights

		Q2		Q1	Full Year
		2026(1)	2025	2026	2026 Guidance
Ore mined	M tonnes	4.0	3.5	3.4	15.5 - 16.0
Waste mined(2)	M tonnes	10.3	12.6	10.2	38 - 44(3)
Ore processed	M tonnes	4.1	4.0	4.1	15.5 - 16.0
Copper grade	%	0.39	0.43	0.30	0.38 - 0.41
Copper recovery	%	83.91	76.75	81.54	79 - 83
Copper production	tonnes	13,493	13,175	9,939	50,000 - 54,000(4)

(1)   Figures for Q2 2026 are preliminary and final figures will be released with Q2 2026 Financial Results.

(2)   Represents the Cerro Colorado pit only.

(3)   Waste guidance is 57 - 67 million tonnes when including the San Dionisio pit.

(4)   Low end.

Alberto Lavandeira, CEO, commented:

"We are pleased to have delivered a strong quarter of production, where grades improved compared to Q1 2026 and the mill performed well once again. Copper prices remain robust and we have seen only modest cost impacts from the conflicts in the Middle East, therefore our cash position increased materially during the quarter.

Various growth-related activities across our asset portfolio continue to advance, most notably in relation to Touro, where the permitting process is nearing completion according to senior officials in Galicia.

We are pleased to see the continued strength in the copper market, with robust demand coming from the global build-out of data centre infrastructure and supply challenges from major operations. As a result, we enter the second half of 2026 with strong optimism."

Q2 2026 Operating Results

Mining

Ore mined was 4.0 million tonnes in Q2 2026 (Q2 2025: 3.5 million tonnes), compared with 3.4 million tonnes in Q1 2026. As previously disclosed, mining in Q1 2026 was impacted by unusually high rainfall in late January and early February 2026.  

Waste mined was 10.3 million tonnes in Q2 2026 (Q2 2025: 12.6 million tonnes), compared with 10.2 million tonnes in Q1 2026. In addition, waste stripping activities continued at the San Dionisio area.

Processing

Ore processed was 4.1 million tonnes in Q2 2026 (Q2 2025: 4.0 million tonnes), compared with 4.1 million tonnes in Q1 2026.

Copper grade was 0.39% in Q2 2026 (Q2 2025: 0.43%), compared with 0.30% in Q1 2026. The grade improvement compared to Q1 2026 resulted from the mining of higher grades and reduced processing of low-grade ore stockpiles.

Copper recovery was 83.91% in Q2 2026 (Q2 2025: 76.75%), compared with 81.54% in Q1 2026.

Production

Copper production was 13,493 tonnes in Q2 2026 (Q2 2025: 13,175 tonnes), compared with 9,939 tonnes in Q1 2026. In addition, silver contained in copper concentrate was 0.25 million ounces in Q2 2026 (Q2 2025: 0.35 million ounces).

On-site copper concentrate inventories were 11,362 tonnes at 30 June 2026 (31 March 2026: 5,083 tonnes).

Copper contained in concentrates sold was 12,493 tonnes in Q2 2026 (Q2 2025: 14,024 tonnes), compared with 9,767 tonnes in Q1 2026.

Select Financial Highlights

Realised Copper Price

The average realised copper price (excluding QPs closed during the Period) was US$6.14/lb in Q2 2026 (Q2 2025: US$4.27/lb), compared with US$5.87/lb in Q1 2026. The average spot copper price was US$6.04/lb in Q2 2026.

Provisional Revenue Adjustments

For Q2 2026, settlement adjustments (for QPs closed during the Period) and fair value adjustments (for open QPs based on copper forward curve prices as of 30 June 2026) were negative €1.7 million.

Balance Sheet

Consolidated cash and cash equivalents were €351.2 million as of 30 June 2026 (31 December 2025: €166.3 million).

Current and non-current borrowings were €10.9 million, resulting in a net cash position of €340.2 million as of 30 June 2026 (31 December 2025: €122.0 million).

Outlook for 2026

Production

Atalaya continues to expect that production for FY2026 will be at the low end of the original FY2026 guidance ranges of 50,000 - 54,000 tonnes of copper and 0.9 - 1.1 million ounces of silver contained in copper concentrate.

Operating Costs

The recent conflicts in the Middle East have disrupted supply chains and impacted the prices of fossil fuels including diesel. For much of Q2 2026, a ceasefire remained in place between the United States and Iran, and as a result, the prices of impacted commodities began to decline. However, subsequent to the end of the Period, military activity restarted, potentially ending the ceasefire.

So far in 2026, Atalaya has experienced only a modest impact from the input price increases triggered by the Middle East conflicts. Atalaya continues to have fixed price agreements in place for certain consumables, and in relation to electricity, has benefitted from its solar plant, long-term PPA and grid power that relies on a diversified energy mix.

In the event that the prices of diesel and explosives were to remain at recent peak levels for the remainder of FY2026, the Company continues to see a potential increase of US$0.15 - 0.20/lb above the Company's previously stated FY2026 cost guidance ranges for Cash Costs and AISC of US$2.60 - 2.90/lb and US$3.10 - 3.40/lb copper payable, respectively.

Non-Sustaining Capital Investments

Atalaya continues to expect that total non-sustaining capital investments for FY2026 will not exceed the previous guidance range of €75 - 102 million, even if certain cost items are impacted by higher diesel and explosives costs.

Asset Portfolio Update

Proyecto Riotinto

Stripping activities at San Dionisio continued during the Period, with total waste mined of 3.2 million tonnes in Q2 2026. San Dionisio represents a key component of Atalaya's strategy to increase copper production by sourcing higher-grade material from deposits throughout the Riotinto District to be blended with ore from Cerro Colorado.

At San Antonio, the polymetallic deposit located immediately east of the Cerro Colorado pit, two rigs are drilling with the objective of increasing resource confidence and confirming deposit limits.

Atalaya continues to advance engineering works associated with processing plant modifications that would allow for the simultaneous treatment of polymetallic and copper ores at Riotinto. In conjunction, Atalaya is also studying the potential to produce a pyrite concentrate from its tailings streams, which could serve the sulphuric acid market.

E-LIX Phase I Plant

The E-LIX plant has been processing high-zinc, low-copper bulk concentrates to produce saleable copper concentrates and zinc precipitates, with the plant demonstrating highly stable performance during Q2 2026. For the remainder of FY2026, the core focus will be to achieve sustained periods of consistent plant and cost performance, as well as test applications on other types of concentrates.

Riotinto District - Proyecto Masa Valverde ("PMV")

Infill drilling continues at the Masa Valverde deposit, where the focus remains on copper-rich stockwork-style zones, which are expected to be amenable for processing at the existing Riotinto facilities. Results continue to confirm the continuity and expansion of the high-grade mineralisation. Preparatory surface works are ongoing ahead of a final Board decision regarding the access ramp.

PMV has been granted the two key permits required for development - the Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) and the exploitation permit.

Proyecto Touro

Atalaya's local entity Cobre San Rafael ("CSR") continues to receive positive feedback on the permitting process, which is being advanced under the Galician legislation that awarded Touro with the status of strategic industrial project (or in Spanish, Proyecto Industrial Estratégico ("PIE")) in 2024.

Following recent public comments by senior officials of the Galicia regional government that the environmental impact statement ("DIA") for Touro is well-advanced, the Company believes that the DIA is under preparation.

In addition, the Xunta de Galicia recently announced plans to launch a new tender of mining rights, and senior officials have also commented about the opportunity for Galicia to begin exploiting the many minerals found in the region that have been classified as critical by the EU.

While it awaits the conclusion of the permitting process, CSR continues to advance early works including detailed engineering and procurement, documentation, limited land purchases and exploration drilling.

Proyecto Ossa Morena

A drilling programme is ongoing at the Guijarro gold project, where seven holes were completed during Q2 2026 as part of a campaign that will total 17 holes.

Proyecto Riotinto East

Two holes were completed at the Cerro Negro permit, targeting a coincident gravity and magnetic anomaly.

Skellefte Belt and Rockliden (Sweden)

In November 2024, Atalaya announced that it had entered into two binding agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which Atalaya can earn an initial 75% interest in two separate land packages in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the Rockliden land package ("Rockliden Project") are located in two notable districts that host many large-scale volcanogenic massive sulphide ("VMS") deposits and mines owned by Boliden AB. Both regions are underexplored and could increase Atalaya's exposure to critical minerals in Europe.

Following the successful winter drilling campaign at both the Skellefte Belt and Rockliden projects, laboratory assays are now complete. These results confirm the extension of high-grade zones and underscore the strong potential of the drilled targets, all of which remain open in several directions. Some of the most significant new intercepts are summarised in the table below.

Table 1: Selected Rockliden Intercepts

Prospect	BHID	from	to	Interval	Cu	Zn	Pb	Ag	Au
				m	%	%	%	g/t	g/t
T1	26RCK021	52.25	52.80	0.55	4.98	1.03	0.25	51.00	0.06
		56.50	71.35	14.85	1.83	0.46	0.12	32.72	0.11
	(Incl.)	64.20	66.50	2.30	5.90	0.64	0.09	101.91	0.16
T1	26RCK023	71.25	75.25	4.00	1.10	0.12	0.02	11.95	0.05
		119.40	143.00	23.60	0.96	0.32	0.05	12.01	0.11
	Incl.	119.40	128.10	8.70	2.39	0.42	0.12	29.87	0.25
	((Incl.))	123.45	126.35	2.90	5.31	0.82	0.28	71.03	0.64

Note: Assays by ALS Laboratory (Methods: ME-ICP61, ME-ICPORE, Au-AA26)

Table 2: Selected Skellefte Belt Intercepts

Prospect	BHID	from	to	Interval	Cu	Zn	Pb	Ag	Au
				m	%	%	%	g/t	g/t
BJE	25BJE004	211.20	222.20	11.00	0.19	4.80	0.30	26.84	0.24
	Incl.	214.00	220.40	6.40	0.19	6.67	0.50	42.57	0.26
	(Incl.)	218.00	220.40	2.40	0.23	11.01	0.01	5.52	0.07
BJE	25BJE001	230.60	242.60	12.00	0.21	3.69	0.06	10.02	0.21
BJK	26SBJK025	301.50	326.55	25.05	0.08	2.67	0.01	2.00	0.20
	Inc.	301.50	303.95	2.45	0.05	23.77	0.00	3.00	0.05
BJK	26SBJK029	193.20	208.70	15.50	1.05	0.07	0.00	6.15	0.39
	Incl.	193.20	196.35	3.15	2.73	0.20	0.00	13.33	0.68
BJK	26SBJK032	309.35	333.45	24.10	0.62	3.29	1.15	14.37	0.11
	Inc.	309.35	318.95	9.60	0.68	8.10	0.38	24.33	0.05
	(Incl.)	309.35	312.30	2.95	1.56	17.09	1.17	62.51	0.05
	Inc.	332.05	333.45	1.40	3.17	0.21	0.00	33.36	0.39
		338.95	342.70	3.75	0.33	0.02	0.00	7.80	0.97
KED	26SKED005	200.70	220.50	19.80	0.12	2.89	0.13	9.16	0.21
	Incl.	202.45	214.50	12.05	0.12	4.26	0.17	10.74	0.22
	(Incl.)	202.45	204.90	2.45	0.16	5.81	0.30	12.82	0.47

Note: Assays by ALS Laboratory (Methods: ME-ICP61, ME-ICPORE, Au-AA26)

Since the commencement of the earn-in agreements, cumulative drilling totals 43 holes (12,617 metres) at the Skellefte Belt Project and 25 holes (4,593 metres) at the Rockliden Project.

Summer exploration activities are focused on modelling the newly acquired data, surveying new target areas using Fixed-Loop Electromagnetic (FLEM) geophysics, and vectoring extensions of the mineralised zones with Borehole Electromagnetic (BHEM) surveys. Concurrently, planning is underway for the next drilling campaign, which is expected to commence in late September.

Subsequent to the end of the Period, Atalaya completed its Stage 1 funding commitments for the Skellefte Belt Project and has thereby earned a 51% interest.

Corporate Activities Update

Investment in Lara Exploration Ltd.

On 2 April 2026, Atalaya announced that it had acquired 4,500,000 shares of Lara Exploration Ltd. (TSX-V: LRA) for C$13.5 million. The shares were acquired via private placement at a price of C$3.00 per share and represent approximately 7.3% of Lara's issued and outstanding shares following completion of the private placements as announced by Lara on 1 April 2026. Atalaya acquired the shares for investment purposes.

2026 Annual General Meeting ("AGM")

All resolutions put to the Company's 2026 AGM were passed by the requisite majorities, including the approval of the 2025 Final Dividend of €0.065 per share, which will be paid on 22 July 2026.

Technical Information

The technical information in this announcement that relates to the Rockliden and Skellefte Belt projects has been compiled by Juan Manuel Pons Pérez, senior geologist and employee of the Company. Juan Manuel Pons Pérez has over 35 years' experience, is a member of good standing with the College of Geologists of Andalucía and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person. Juan Manuel Pons Pérez consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

The person responsible for arranging release of this announcement on behalf of the Company is César Sánchez (CFO).

This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

SEC Newgate UK	Elisabeth Cowell / George Esmond  / Gwen Samuel	[phone]
Atalaya Mining	Michael Rechsteiner	[phone]

About Atalaya Mining Copper, S.A.

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" and Atalaya is a FTSE 250 Index constituent.

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. For further information, please visit www.atalayamining.com

 

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