Atalaya Mining hits record EBITDA as copper prices lift H1 2026 results

Atalaya Mining Copper, S.A. has reported record quarterly and half-year earnings, helped by strong copper prices, improved Q2 production and solid cost control.

Q2 EBITDA rose to €78.2 million, while profit for the quarter reached €55.7 million. The copper producer also generated more than €58 million of free cash flow and ended June with net cash of €318.3 million.

Those are impressive financial figures. However, investors should note that H1 copper production remained below last year's level after unusually heavy rainfall disrupted mining during Q1.

The full financial statements and operational update are available in the original company announcement.

Atalaya Mining's key figures

Metric	Q2 2026	Q2 2025	H1 2026	H1 2025
Revenue	€147.4 million	€124.1 million	€264.7 million	€254.8 million
EBITDA	€78.2 million	€55.1 million	€126.2 million	€107.6 million
Profit after tax	€55.7 million	€29.6 million	€84.0 million	€60.1 million
Copper production	13,493 tonnes	13,175 tonnes	23,432 tonnes	27,466 tonnes
Cash Costs	US$2.36/lb	US$2.21/lb	US$2.43/lb	US$2.23/lb
AISC	US$2.79/lb	US$2.81/lb	US$2.97/lb	US$2.78/lb
Realised copper price	US$6.14/lb	US$4.27/lb	US$6.02/lb	US$4.27/lb

EBITDA means earnings before interest, tax, depreciation and amortisation. It is commonly used to assess the underlying operating performance of a mining business before financing and non-cash accounting charges.

Strong copper prices did the heavy lifting

Q2 revenue increased by 18.8% year on year, while EBITDA climbed by 41.9%. Quarterly profit after tax was 88.1% higher at €55.7 million.

The main driver was pricing. Atalaya's average realised copper price, excluding quotation period adjustments, rose by 43.8% to US$6.14/lb.

That stronger price more than compensated for lower sales volumes. Copper contained in concentrates sold fell to 12,493 tonnes in Q2, compared with 14,024 tonnes a year earlier.

The same pattern is visible across the half year. H1 revenue increased by only 3.9% because lower concentrate sales offset much of the benefit from higher copper prices. Even so, H1 EBITDA increased by 17.3% to a record €126.2 million, while profit rose by 39.9% to €84.0 million.

This demonstrates Atalaya's sensitivity to the copper price. It can be highly beneficial when prices are strong, but the relationship works in both directions.

Q2 production recovered after a difficult start

The operational improvement from Atalaya Mining's Q1 2026 results is important.

Q2 copper production reached 13,493 tonnes, up from 9,939 tonnes in Q1 and slightly ahead of the 13,175 tonnes produced in Q2 2025.

Ore grade improved from 0.30% in Q1 to 0.39% in Q2, while copper recovery reached 83.91%. Recovery measures the proportion of copper in the processed ore that is successfully captured in concentrate.

Despite the Q2 rebound, H1 production fell by 14.7% to 23,432 tonnes. Atalaya attributed this mainly to adverse weather during Q1, when heavy rainfall restricted access to parts of the Cerro Colorado pit.

The processing plant continued to perform strongly, treating 4.1 million tonnes in Q2. However, the next scheduled SAG mill liner change is expected during Q3. A SAG mill is a large grinding machine used to prepare ore for mineral recovery, so planned maintenance can affect quarterly throughput.

Costs remain controlled, but pressure has not disappeared

Cash Costs increased to US$2.36/lb in Q2, from US$2.21/lb a year earlier. Higher mining and processing costs and a stronger euro against the US dollar were partly offset by improved by-product credits and lower treatment charges.

All-in sustaining costs, or AISC, were slightly lower at US$2.79/lb. AISC adds corporate costs, sustaining investment and other recurring expenditure to the basic cost of producing copper.

For H1, AISC increased to US$2.97/lb from US$2.78/lb. Even so, both Cash Costs and AISC remained below Atalaya's full-year guidance ranges.

Management has not reduced that guidance because conflicts in the Middle East are increasing diesel and explosives prices and disrupting supply chains. Fixed-price agreements have protected the company from some inflation, but this remains a genuine risk for the second half.

Cash generation supports the dividend and project pipeline

Operating cash flow reached €78.7 million in Q2. After €20.5 million of investing outflows, Atalaya generated quarterly free cash flow of more than €58 million, which management described as a company record.

Cash and cash equivalents ended June at €350.3 million, with net cash of €318.3 million after borrowings. That compares with net cash of €122.0 million at the end of 2025.

Investors should remember that the January 2026 equity offering contributed net proceeds of €145.0 million. The stronger balance sheet therefore reflects both operational cash generation and new shareholder capital.

The board declared an interim dividend of €0.055 per share, equivalent to approximately 4.7p. This is 25% higher than the €0.044 interim dividend declared for H1 2025.

The shares are expected to trade ex-dividend on 10 September 2026, with payment estimated for 30 September 2026.

Full-year guidance is unchanged

FY2026 measure	Guidance
Copper production	50,000-54,000 tonnes, expected at low end
Cash Costs	US$2.60-2.90/lb
AISC	US$3.10-3.40/lb
Non-sustaining investment	€52-80 million
Exploration and project expenses	€5-7 million

Atalaya needs to produce around 26,568 tonnes during H2 to reach the bottom of its copper guidance range. That equates to roughly 13,284 tonnes per quarter, close to the Q2 result of 13,493 tonnes.

The target therefore looks operationally achievable based on Q2 performance, although mine grades, maintenance and weather can all affect production.

Non-sustaining capital guidance has been reduced from €75-102 million to €52-80 million. This is mainly a timing change, with certain expenditure moving into the next financial year, rather than a cancellation of planned investment.

Touro progress is encouraging, while E-LIX remains uncertain

At Proyecto Touro, Atalaya said the environmental impact statement is well advanced and under preparation. No completion date was disclosed, so permitting remains an important uncertainty.

Masa Valverde already has its two key development permits, while preparatory surface works are continuing ahead of a final board decision on the access ramp. Work also progressed at San Dionisio and on processing plant modifications for polymetallic ores.

In Sweden, drilling results confirmed extensions to high-grade zones. Atalaya has completed its first-stage funding commitment at the Skellefte Belt Project and earned a 51% interest.

The weaker point is E-LIX. Although operating stability improved, throughput remained below design capacity and sustainable operating and cost performance at scale has not been established. Atalaya said uncertainty remains over the recoverability of the related assets.

What investors should watch in the second half

The main positives are record profitability, strong free cash flow, a larger dividend and a well-funded balance sheet. Q2 production also suggests the operational disruption experienced earlier in the year has eased.

The main concerns are lower H1 production, rising consumable costs, the reliance on elevated copper prices and continued uncertainty around E-LIX. Touro could become an important growth project, but its key environmental approval has not yet been completed.

Overall, this is a financially strong set of results. The next test is whether Atalaya can repeat its Q2 operating performance, reach the low end of production guidance and convert its substantial cash position into disciplined growth without weakening shareholder returns.