Atalaya Mining Copper Sa · LSE:ATYM

Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (April 2016)

30 slides from Atalaya Mining Copper Sa's investor presentation, Apr 8, 2016

  1. Slide 1: Proyecto Riotinto: A new low risk copper producer in Europe

    PROYECTO RIOTINTO A new low risk copper producer in Europe April January 2016 2016 AIM:ATYM / TSX:AYM

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document (“Presentation”) has for or purchase any securities and neither this Presentation nor activities; conclusions of economic evaluations; changes in project been prepared by Atalaya Mining Plc (the “Company”). While the anything contained herein sha

  3. Slide 3: Investment highlights

    Atalaya Mining Investment highlights  Restart project already in commercial production  Delivered ahead of schedule  Under budget  One of the lowest capital intensity copper projects in the world  Commercial production achieved without recourse to senior debt  Located in a prolific mining juri

  4. Slide 4: Highly competitive cost structure

    Highly competitive cost structure Capital Intensity (US$ / t Annual Copper Production) * $51,434 $46,516 $43,958 $38,976 $31,013 $28,347 $28,759 $24,654 $19,269 $19,528 $20,572 $16,744 $17,494 $17,958 $18,042 $12,187 $12,531 $12,685 $12,774 $12,828 $13,611 $10,142 $10,141 $6,391 $4,100 C1 Copper Cas

  5. Slide 5: Atalaya positioning vs. copper peers

    Atalaya positioning vs. copper peers Enterprise Value (US$mm) (1,3) 2017e copper production (kt) (2) Total Resource grade (% Cu) (3) Atalaya $153 Atalaya 42 Atalaya 0.5% Imperial Metals $874 Capstone 98 Capstone 0.3% Thompson Creek $763 Imperial Metals 61 Imperial Metals 0.3% Capstone $542 Taseko 45

  6. Slide 6: Attractive valuation metrics

    Attractive valuation metrics Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA Atalaya nmf Atalaya $3,651 Atalaya 1.9x Central Asia Metals nmf Capstone $5,554 Thompson Creek 5.4x Capstone 63% Taseko $7,276 Central Asia Metals 5.7x Taseko 67% Copper Mountain $11,18

  7. Slide 7: Proyecto Riotinto

    Proyecto Riotinto Located in an established mining jurisdiction with infrastructure links RIOTINTO HUELVA SEVILLE Matsa 0 50 100 km (Trafigura & E-803 Mubadala) Las Cruces Proyecto Riotinto (First Quantum) N-435 A-4 E-1 A-49 Seville Huelva A-92 Atlantic Copper SPAIN Smelter (Freeport McMoRan) N-IV A

  8. Slide 8: Plan view

    Plan view AIM:ATYM / TSX:AYM 8

  9. Slide 9: Ramp-up results

    Ramp-up results  Commercial production declared from  Working towards improving historic plant February 1, 2016 performance  Ramp-up of expansion phase expected to  Implementation of new technology will lead to better take six months from July to December 2016 recoveries, improved grades and low

  10. Slide 10: Operating costs guidance

    Operating costs guidance  Guidance during H1-2016 ramp-up US$1.90-$2.00/lb (total cash cost)  Actual consumption units and costs are largely as expected  60-70% of costs incurred in Euros  Currency (€/US$) devalued from NI 43-101*  Actual costs to be reported in Q1 2016 financials * See slide 2

  11. Slide 11: Expansion Project progress

    Expansion Project progress Moving from 5.0Mtpa to 9.5Mtpa throughput  Original two-stage expansion now combined into one project  Engineering and procurement 100% completed  Construction 71% completed, targeting start of commissioning mid-2016  installation of new mills and flotation cells progr

  12. Slide 12: Capex reduction

    Capex reduction Phase 1 (5.0Mtpa) Phase 1 + Expansion (9.5Mtpa) Capex (incurred) US$82 M Capex (estimated)* US$164 M Cu production 25,000 tpa Cu production 40,000 tpa Capital intensity US$3,280 tpa Cu Capital intensity US$ 4,100 tpa Cu  NI 43-101 anticipated direct field capex for Phase 1 of US$199

  13. Slide 13: Ongoing drilling

    Ongoing drilling  Infill drilling to increase open pit reserves and extend LOM complete  31,276 metres drilled since 2014  Focus now on completion of assays and updating block model  Improved understanding of orebody = better modelling and mine planning to manage impurity levels  Certification

  14. Slide 14: Planned exploration

    Planned exploration  Limited exploration to date on lateral extensions to Cerro Colorado as main focus has been on confirmation of open pit potential  11,949 metres drilled (DDH) in 2015  Exploration programme will be increased once steady state production achieved AIM:ATYM / TSX:AYM 14

  15. Slide 15: Looking ahead

    Looking ahead A long term option on copper  Continue to focus on the optimisation of operating results  Complete the Expansion Project and achieve 9.5Mtpa steady state production  Reserves and Resources update  Actively looking for acquisition opportunities where the company can leverage its kno

  16. Slide 16: Our vision

    Our vision We maintain a positive view on base and precious metals  Short term – to maximise the efficiencies of our expanded project  Longer term – to actively build on our initial success at Riotinto through exploration and acquisition to focus on maximising returns for shareholders AIM:ATYM / T

  17. Slide 17: Investment case

    Investment case Production commenced well ahead of schedule and under budget Expansion to double initial NO SENIOR production DEBT well advanced A NEW COPPER COMPANY THAT DELIVERS Expansion will be Supportive realised one strategic year ahead of shareholders schedule Well positioned to survive low c

  18. Slide 18: Contact

    Contact Alberto Lavandeira CEO Telephone: +34 959 59 28 50 Email: info@atalayamining.com Investor Relations North America Investor Relations UK and Europe Michelle Roth Carina Corbett Roth Investor Relations 4C Communications Ltd Telephone: +1 732 792 2200 Telephone: +44 20 3170 7973 Email: michelle

  19. Slide 19: Appendix

    APPENDIX AIM:ATYM / TSX:AYM 19

  20. Slide 20: Corporate snapshot

    Corporate snapshot Overview¹ Research Coverage² Company Analyst Rec. Target price Exchanges AIM:ATYM / TSX:AYM Speculative Share price (GB pence) 98.5 Nick Hatch 155p Buy Share price (CAD) 2.00 Martin Potts Buy 195p Shares Outstanding 116,679,555 Options & warrants 1,291,384 Nikolas Buy 192p Fully d

  21. Slide 21: Share price comparison (1 year)

    Share price comparison (1 year) 160,0 Atalaya Mining Plc Central Asia Metals Plc Capstone Mining Corp Copper Mountain Mining Corp Taseko Mines Thompson Creek Imperial Metals 140,0 120,0 CAML 100,0 ATYM 80,0 TKO 60,0 CUM 40,0 CS III 20,0 TCM -- 04/2015 05/2015 06/2015 07/2015 08/2015 09/2015 10/2015

  22. Slide 22: Senior management

    Senior management Strong Technical & Financial Expertise Team with proven and lengthy experience in the start-up and operation of mines Alberto Lavandeira in Spain and internationally, supported by local and international consultants Chief Executive Officer Ángel López: Plant. 18 years´ experience i

  23. Slide 23: Board and management

    Board and management Strong Technical & Financial Expertise Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Roger Davey Rothschild & Sons; former Director, VP and GM, AngloGold (Argentina). Currently a Chairman director of Orosur Mining Inc., Central Asia Metals

  24. Slide 24: Board and management

    Board and management Strong Technical & Financial Expertise Senior Managing Director of Liberty Metals & Mining Holdings, LLC. Formerly held Damon Barber positions with mining companies and served as the Head of Deutsche Bank's Metals Mining investment banking practice in Asia-Pacific. Spent more th

  25. Slide 25: Reserves and Resources

    Reserves and Resources Based on a conservative long term copper price assumption of $2.00/lb for reserves and $3.00/lb for resources Ore (Mt) Copper (%) Copper (kt) RESERVES* Proven 39 0.38 148 Probable 84 0.54 458 TOTAL 123 0.49 606 RESOURCES (inclusive of reserves)* Measured 48 0.38 180 Indicated

  26. Slide 26: Cost Breakdown

    Cost Breakdown As per NI-43,101, February 2013 Current thinking:  Cost to be realised across LOM  Agency fees should be included in selling costs (US$66 million)  Current market TC/RCs higher than originally forecast  Non-cash costs  Should be included in LOM mining costs  Includes LOM provisi

  27. Slide 27: Key Investor Rights

    Key Investor Rights Company Agreement Terms XGC • Subscription Agreement *  Pre-emptive right over further issues of equity shares1 • Offtake Agreement  One board seat2  Offtake granted over 49.12% of life of mine reserves in the Technical Report Orion Mine • Subscription Agreement *  Pre-emptiv

  28. Slide 28: Mining Industry in Spain

    Mining Industry in Spain An established Mining-friendly jurisdiction 1 2 6 Proyecto Riotinto Aguas Teñidas Significant Mining Copper Copper, zinc Infrastructure 11 3 4 Substation located Power 5 10 1km from mine site 7 Supplied from Las Cruces 9 SPAIN Aguablanca Copper Nickel, copper Campofrio reser

  29. Slide 29: Riotinto Tailings Facilities

    Riotinto Tailings Facilities AIM:ATYM / TSX:AYM 29

  30. Slide 30: AIM:ATYM / TSX:AYM

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