Altaley keen to put difficult Q2 in the past

Canada-based Mexico-focused Altaley Mining recorded a C$0.01 loss per share in the second quarter as its Campo Morado operations saw a fall in profitability because of the El Largo zone nearing depletion.

Campo Morado

Campo Morado

This resulted in the delivery of lower grade or to the mill, which negatively affecting recoveries and concentrate grades, the company's CEO Ralph Shearing said.

"In addition, the mine installed a copper recovery flotation circuit to begin producing copper concentrate, foregoing lead concentrate production to take advantage of the significantly higher price of copper over lead," he said.

"These factors along with downtime due to equipment failure and regular maintenance plus some inflationary cost increase resulted in decreased Campo Morado profit during the first half of 2022," he said.

He added that management is "confident" that these difficulties are behind them.

Red Cloud Securities said it had been expecting Altaley to record a profit of C$0.03.

It noted that Campo Morado produced 8,603 tonnes of Zn concentrate, 951tof Pb concentrate, and 1,870t of Cu concentrate, which compares to Red Cloud's estimates of 9,542t, 1,469t, and 5,684t, respectively.

"We anticipate steady improvements as the company ramps up Tahuehueto to 1,000tpd and continues to produce a Cu concentrate at Campo Morado, which has added another revenue source at the mine," Red Cloud said.

Altaley's share price fell 6% day on day to C$0.15 on 31 August. Red Cloud has a C$1.00 target for the company. It has a market capitalisation of C$41.84 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.


Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.


Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.


Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.


Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.