Atalaya Mining Copper S.A. is a European mining company listed on LSE’s Main Market and has been part of the FTSE 250 index since May. It is focused on the extraction of copper, and all of its assets are located in Spain (EU). Atalaya owns a portfolio of assets across multiple world-class mineral districts, one already in production with potential upside projects under development (Riotinto District), a second in the permitting phase (Touro) and various interests at the exploration stage. The current production of the operating mine is around 50,000 tons of copper contained in concentrate, and Atalaya expects to more than double its production by 2030 (copper and copper equivalent – lead & zinc).
Once the company achieves its production target (100,000 tonnes) of copper and copper equivalent within the next five years, assuming the market consensus copper price of USD 4.25 per pound and an all-in sustaining cost of USD 2.75 per pound, the company is projected to generate an EBITDA of €330M. Even with a terminal value not exceeding 6x EBITDA and excluding the future capital expenditures needed to reach that capacity (€2,000M – €400M = €1,600M), the company’s valuation would be around three times its current market capitalisation (€580M – May 2025).
It is worth noting that this sector has clear barriers to entry due to a shortage of projects within a desirable and accessible proximity to infrastructure and suppliers. It is very capital-intensive, and therefore, the development of new projects is very sensitive to the price of copper. Resources are limited, and the implementation of a mining project can take between 6 and 20 years, depending on whether the deposit has a feasibility study.
