RBC Capital Markets has turned bullish on Atalaya Mining, upgrading the copper producer to 'outperform' from 'sector perform' as the regulatory outlook for its flagship Touro project in Spain improves. The Canadian bank's analysts highlighted that recent permitting developments reduce a key risk that has weighed on the stock for years.
Shares in Atalaya, which is listed on the London Stock Exchange's main market, rose by as much as 4.2% in early trading on Monday to 410p, before settling at around 405p by midday. The stock remains well below its five-year high of 520p, but the upgrade has injected fresh optimism among investors who have grown frustrated with repeated delays at Touro.
The Touro copper project, located in Galicia, has faced environmental opposition and regulatory hurdles since its acquisition by Atalaya in 2022. However, RBC noted that recent signals from Spanish authorities suggest a more constructive stance, potentially paving the way for final permits in the coming months. Copper prices have also firmed on global supply concerns, adding to the positive backdrop.
For UK investors and pension holders with exposure to mining equities, the upgrade underscores the potential for value recovery in mid-cap miners that have lagged the broader market. Atalaya's low-cost operations at its existing Proyecto Riotinto mine provide a solid earnings base, while Touro offers significant growth optionality if approved.
Analysts at RBC now see fair value for Atalaya at 500p per share, implying roughly 23% upside from current levels. They caution, however, that permitting remains the single biggest variable and any further delays could quickly reverse sentiment. The wider FTSE 350 mining sector was broadly flat on the day, with Glencore down 0.3% and Antofagasta up 0.1%.