ATYM
⛏️ Cobas invested significantly in Atalaya Mining during the COVID dip, buying shares at ‘ridiculous’ prices when the mine was barely profitable, anticipating a normalization.
💡 The investment thesis was strengthened by swapping out less certain assets (like banks during COVID) for Atalaya, achieving similar or better returns with perceived lower risk.
➕ Ongoing value creation comes from discoveries like the Masa Valverde deposit, potential new extraction technologies, and progress on the Touro project in Galicia, justifying holding the stock as its value increases.
@CobasAssetManagement:
“Regarding Atalaya, well, we had a small investment before COVID. With COVID, our opinion was that those COVID conditions would not last perpetually. So you could buy it very cheaply. It was at a time when that mine was barely profitable. So, of course, you could buy from people who were very scared at ridiculous prices, and there we increased the weight a lot. What did we do? Well, sell things that, although they could do well in normalized circumstances, we were less clear about, or we could have some deterioration in the value of the companies, for example, banks. One of the ones we sold was banks. Why? Because we didn’t know how they would behave during COVID and after COVID, whether certain credits would default or not. Fortunately, they were not defaulted on for the banks, and it turned out well for them, but at that moment, we didn’t have visibility like we did for other companies, including Atalaya. So what we did was invest in Atalaya, and more or less, we have had an equal or superior return to that of the banks but with much less risk, I believe. Then, well, companies also do things and discover things. For example, the Masa Valverde deposit very close to Rio Tinto, well, that’s an extra value. Then new technologies are being developed that may allow you, we’ll see how well, but may allow you to extract value where there wasn’t before, well, that’s another extra. You have new advances in Touro, a mine project in Galicia, well, all those things add value even if initially you didn’t have it. So you also sell more slowly as it goes up, right? That’s why we still have it.”
Watch the exact part of the video where @CobasAssetManagement talks about Atalaya Mining PLC here:
Watch the video on YouTube
Read more articles analyzing Atalaya Mining PLC (ATYM) at the following link. ATYM stock.
