Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q1 2021 Earnings Presentation
32 slides from Atalaya Mining Copper Sa's earnings presentation, May 14, 2021
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe May 2021
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Atalaya Mining Plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers
Slide 3: Q1 2021 Production & Financial Results
Q1 2021 Production & Financial Results
Slide 4: Q1 2021 Production Results
Q1 2021 Production Results 15M Expansion is processing above nameplate capacity Ore Throughput (Mt) Strong Cu production 13,979 tonnes 13,229, Q1 2020 Strong throughput and recoveries 4.0 Mt throughput 0.41% Cu head grade Copper Recovery 3.4, Q1 2020 0.47%, Q1 2020 84.90% Cu recovery 20.78% con. gra
Slide 5: Q1 2021 Financial Results
Q1 2021 Financial Results Strong cash generation has moved Atalaya into a net cash position Revenues (€m) Income statement highlights Revenue: €97.4m Op. costs: €(48.0)m €61.2m, Q1 2020 €(49.2)m, Q1 2020 EBITDA: €47.4m Profits: €33.7m €9.3m, Q1 2020 €2.9m, Q1 2020 Cash flow statement highlights EBIT
Slide 6: Company Highlights
Company Highlights
Slide 7: Atalaya Overview
Atalaya Overview Premier pure-play copper producer in Europe EL FERROL Port A CORUÑA Port Copper producer with scale, growth, and consistency TOURO ‒ 15 Mtpa mill continues to operate above nameplate VILLAGARCIA Port ‒ Reserves support long mine life 1. Existing operation MADRID Health, Safety and E
Slide 8: Approach to Health, Safety and ESG
Approach to Health, Safety and ESG Safety and sustainability initiatives are aligned with industry best practices ‒ Continue to navigate COVID-19 safely ‒ Occupational accident rates have significantly improved Health & compared with previous years ‒ “Zero damage” policy, with focus on employee trai
Slide 9: Asset Overview
Asset Overview Robust portfolio of growth options that benefit from developed infrastructure Riotinto District Proyecto Touro Cerro San Dionisio / Masa Colorado Planes-San Antonio Valverde (current open pit) (adjacent deposits) (satellite project) Location Andalucía, Spain Galicia, Spain Ownership 1
Slide 10: Project Pipeline
Project Pipeline Diverse portfolio of growth options can leverage common or existing infrastructure Expertise to rapidly execute on capital projects, as demonstrated by Riotinto’s re-start and expansions to 15 Mtpa Exploration Resource Est. Resource Est. PEA / Permitting PFS / FS Producing Producing
Slide 11: Copper Market Perspectives
Copper Market Perspectives Strong fundamentals driven by growing demand and the many barriers to adding new supply Supply Demand ▪ Decreasing asset quality across the sector ▪ Copper is critical to global decarbonisation efforts ‒ Falling grades at existing mines and new projects ‒ Renewable energy
Slide 12: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Enterprise Value (US$m)(1) 2021e Production (kt CuEq)(2) 2021e EBITDA (US$m)(3) 2021e Free Cash Flow (US$m)(4) 1. Fully diluted in-the-money basis; as at 11-May-2021 3. FactS
Slide 13: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Net Debt / Enterprise Value EV / Prod’n 2021e (US$/t CuEq)(1) EV / EBITDA 2021e(2) 2021e Free Cash Flow Yield(3) 1. Attributable production; based on midpoint of guidance by
Slide 14: Key Priorities for 2021 and Beyond
Key Priorities for 2021 and Beyond Continued focus on operational excellence, sustainability, and shareholder returns ‒ Meet or exceed annual production and cost guidance ‒ Continue to safely manage COVID situation 2021 ‒ Advance growth options – E-LIX, Riotinto Cu-Zn, Touro Objectives ‒ Enhance int
Slide 15: Proyecto Riotinto District
Proyecto Riotinto District
Slide 16: Proyecto Riotinto Overview
Proyecto Riotinto Overview Large-scale, long-life operation located in a prolific mining district Overview ‒ Historic mining activity dates back to at least 1000 BC ‒ In recent history, operated by the Rio Tinto Company, RTZ, History Freeport-McMoRan, and MRT (workers’ co-operative) ‒ In 2008, acqui
Slide 17: Current Operations at Riotinto
Current Operations at Riotinto 15M Expansion Project has delivered growth and is operating above nameplate capacity Riotinto Growth Trajectory Re-start – 5.0 Mtpa Expansion to 9.5 Mtpa Expansion to 15.0 Mtpa Executed: 2015 Executed: 2016 Executed: 2019 Capex: US$82m Incremental Capex: US$68m(1) Cape
Slide 18: Unlocking the Riotinto District
Unlocking the Riotinto District Significant potential from copper-zinc orebodies located adjacent to current open pits Riotinto District Deposits ▪ Atalaya continues to evaluate the large copper-zinc orebodies located next to its current open-pit ATALAYA operations HISTORICAL PIT ▪ Historic (non-43-
Slide 19: Masa Valverde Project
Masa Valverde Project High potential satellite deposits within trucking distance of Riotinto’s 15 Mtpa mill Overview ‒ Acquired in October 2020 Background ‒ Project area includes two exploration permits that cover an area of ~4,000 hectares ‒ Atalaya has filed for environmental permits ‒ Masa Valver
Slide 20: E-LIX System
E-LIX System Potential to unlock additional value from Atalaya’s existing orebodies and beyond Pilot plant Overview ▪ Newly developed electrochemical extraction process developed and patented by Lain Technologies ‒ Involves the application of singular catalysts and physicochemical conditions ‒ Atala
Slide 21: ESG / Efficiency Initiatives
ESG / Efficiency Initiatives Focus on reducing environmental impact, cost reductions and industry best practice Solar Power Plant Project Tailings Management Facility (TMF) ▪ Evaluating the construction of a 50MW solar power ▪ Riotinto’s TMF is designed and operated inline with plant at Riotinto int
Slide 22: ESG / Efficiency Initiatives (continued)
ESG / Efficiency Initiatives (continued) Focus on reducing environmental impact, cost reductions and industry best practice New Water Treatment Plant & New Thickener New Dust Control Structure ▪ New water treatment plant recycles processed water ▪ Provides enhanced environmental protection for nearb
Slide 23: Proyecto Touro
@ Atalaya Proyecto Touro
Slide 24: Proyecto Touro Overview
Proyecto Touro Overview Past producing mine with well understood orebodies and excellent infrastructure Overview ‒ Past-producing open-pit mine, which was operated by Riotinto Patiño from 1973-1986 using conventional flotation History ‒ In 2017, Atalaya Mining entered into a phased earn-in agreement
Slide 25: Proyecto Touro Update
Proyecto Touro Update Permitting Process Ongoing Engagement ▪ Following receipt of formal communications from the ▪ Regular meetings with local stakeholders Xunta de Galicia in relation to the Environmental Impact Statement, Atalaya continues to evaluate its options to ▪ Information office open to t
Slide 26: Proyecto Touro Exploration
Proyecto Touro Exploration Historical Drilling ▪ Previous mining combined with more recent exploration work provides Atalaya with a good understanding of the deposit ‒ Mineralisation is found in shallow, sub-horizonal sheets ▪ Mineralisation remains open to the north, west and south Dates Company DD
Slide 27: Appendix
Appendix
Slide 28: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (11-May-21) GBp 350 Basic shares m 138.2 Fully-diluted shares m 140.9 Market capitalisation (basic) £m £484 Market capitalisation (basic) US$m $683 Cash (at 31-Mar) €m 64 Debt & leases (a
Slide 29: Historical Copper Prices
Historical Copper Prices Copper Price (US$/lb) & Exchange Stocks (Mt)(1) Copper Price in EUR & Atalaya AISC (€/lb)(2) 1. Based on Bloomberg data 2. Atalaya reported US$ AISC has been converted to EUR at average exchange rate over the respective periods 29
Slide 30: Senior Management
Senior Management Decades of operations, project development and financial expertise Alberto César Enrique Lavandeira Sánchez Delgado Chief Executive Officer, Director Chief Financial Officer Operations – General Manager, Proyecto Riotinto Over 42 years’ experience operating Former CFO of companies
Slide 31: Board of Directors
Board of Directors Mining, capital markets and finance expertise Non-Executive Over 45 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; Roger Chair of the former Director, VP and GM, AngloGold (Argentina). Currently a director of Central Asia Metals, H
Slide 32: Contacts
Contacts Atalaya Mining plc Investor Relations Alberto Lavandeira, CEO Carina Corbett, 4C Communications Ltd +34 959 59 28 50 +44 20 3170 7973 info@atalayamining.com corbett@4ccommunications.com Restricted & confidential