Atalaya Mining

Copper mine in Spain

Atalaya Mining Plc (ATYM.L), together with its subsidiaries, engages in the mineral exploration and development in Spain. The company holds interest in the Proyecto Rio Tinto project, an open-pit copper mine located in the Andalusia region of Spain. It produces copper concentrates, including silver by-products. The company also holds interest in Proyecto Touro, a brownfield copper project located in the northwest Spain. Atalaya Mining Plc has an agreement to acquire 100% of the Masa Valverde polymetallic project located in Huelva, Spain. The company was formerly known as EMED Mining Public Limited and changed its name to Atalaya Mining Plc in October 2015. Atalaya Mining Plc was incorporated in 2004 and is based in Nicosia, Cyprus.

At the start of February 2022, Atalaya Mining announced the results of five additional drill holes from its ongoing resource definition drilling program at Proyecto Masa Valverde (PMV) in southern Spain on Thursday. The AIM-traded firm said PMV is located 28 kilometers south of its 15 million tons-per-annum mill at Proyecto Rio Tinto.

The trading update said the new drill results included the best continuous copper intercept at PMV to date of 125 meters at 1.19% copper, including high grade intervals of 12 meters at 2.29% copper, 19 meters at 2.56% copper, and 15 meters at 2.27% copper.

The results are expected to increase the copper grade in the upcoming resource estimate for PMV, which is planned for release by the end of March 2022.

 

The chart of Atalaya Mining (ATYM.L) is shown below over the past two years in my normal format using a weekly candlestick format.

Atalaya Mining
Click or tap here to enlarge

VectorVest values ATYM.L at 602p while the share closes at 440p on the 9th of February 2022. The share by the VectorVest calculation is much undervalued by the market. The VectorVest valuation is shown by the green line study above the price plot.

In the bottom window below the price, the blue study shows that forecast Earnings per share (EPS) is rising and this is the engine that’s been driving the share price upwards. Over the two years, forecast EPS has risen from approximately 32p to 68p.

On VectorVest, the Relative Safety (known as RS) of the earnings stream is ranked as very good. This share would fit into the VectorVest Worry Free trading system with a RS of 1.43 on a scale graduated between o and 2.

ATYM.L is in a growth phase and does not pay a dividend.

The metric measuring long-term share price appreciation potential in relation to a AAA rated corporate bond (known as RV) is rated as excellent by VectorVest. ATYM.L has a forecast Earnings Growth Rate (GRT) of 31% which VectorVest considers to be excellent.

The overall rating of ATYM.L using the VectorVest Master Indicator VST (Value, Safety and Trend) is rated as very good.

Technically, ATYM.L is trending strongly as measured by the proprietary VectorVest Comfort Index. The Comfort Index (CI) is an indicator which reflects a stocks ability to resist severe and or lengthy price declines. The Comfort Index is unique in investment research and a secret weapon. VectorVest rates the CI of ATYM.L at 1.36 which is very good on a scale measured between 0 and 2.

ATYM.L traded within a consolidation pattern from February 2021 to October 2021. In October 2021 the share broke out of this pattern above 400p. Since October 2021 the share has tested the 400p level on several occasions and now looks set to move much higher soon. The technical share price pattern from February 2021 to the present is known by chartists as a “cup and handle”. This pattern, especially on a weekly chart, is bullish for the share price.

 

In summary, ATYM.L displays excellent mixture of growth and safety of the underlying earnings fundamentals. The share is presently on a VectorVest Buy recommendation.

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