Regency View:

TAKE PROFITS Atalaya Mining (ATYM)

Close Atalaya Mining (ATYM) at market (1,057p)

Atalaya Mining has been an outstanding performer for us, with the shares now up around 103% since our original recommendation, excluding dividends. The underlying business continues to perform well and earnings expectations have been moving higher, but the recent rally has carried the shares back into the major resistance area around 1,100p created by the highs at the beginning of the year. An attempt to break through that level has so far been rejected, following a particularly strong run over the past few months.

With the shares having more than doubled and now meeting significant technical resistance, our house view is that the balance of risk and reward has shifted sufficiently to justify taking profits. This isn’t a reflection of any deterioration in Atalaya’s underlying prospects, but rather an opportunity to crystallise an excellent return after the investment case has delivered substantially for us.

Profit = 103% (excluding dividends)

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