Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (July 2021)
34 slides from Atalaya Mining Copper Sa's investor presentation, July 2021
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe July 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: Company Highlights
Company Highlights
Slide 4: 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 ‒ New Riotinto reserve estimate confirms long-life status 1. Existing operation MADR
Slide 5: 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 6: 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 7: Q2 2021 Production Results
Q2 2021 Production Results 15M Expansion is processing above nameplate capacity Ore Throughput (Mt) Strong Cu production 14,353 tonnes 13,635, Q2 2020 Strong throughput and recoveries 4.0 Mt throughput 0.42% Cu head grade Copper Recovery 3.6, Q2 2020 0.44%, Q2 2020 84.83% Cu recovery 85.89%, Q2 2020
Slide 8: 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 9: 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 10: 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 11: 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$m)(4) 1. Fully diluted in-the-money basis; as at 15-Jul-2021 3. FactS
Slide 12: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Net Debt / Enterprise Value EV / Prod’n 2021e (US$/t CuEq)(1) EV / EBITDA 2021e(2) 2021e Free Cash Flow Yield(3) 1. Attributable production; based on midpoint of guidance by
Slide 13: 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 inte
Slide 14: Proyecto Riotinto District
Proyecto Riotinto District
Slide 15: 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 16: 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 17: Cerro Colorado Reserve Update
Cerro Colorado Reserve Update New independent reserve estimate confirms status as a long-life copper mine Reserves as at Dec-2020 ▪ New reserve estimate supports Total Strip mine life of over 12 years at Classification Ore Cu Grade Waste Material Ratio kt nameplate capacity of 15 Mtpa Proven 138,929
Slide 18: Potential Future Processing Hub
Potential Future Processing Hub Key Operations in the Iberian Pyrite Belt ▪ Riotinto’s 15 Mtpa mill could Aguas Teñidas become a central processing hub Magdalena for ore sourced from Atalaya’s regional deposits Proyecto Riotinto ▪ Would be a similar operating Planes-San Antonio model to Trafigura an
Slide 19: Riotinto Copper-Zinc Deposits
Riotinto Copper-Zinc Deposits Significant potential from unmined orebodies located adjacent to current open pit Riotinto District Deposits ▪ Atalaya continues to evaluate the large Cu-Zn deposits located next to the Cerro Colorado open pit ‒ Offer potential to expand ore inventory, extend mine life
Slide 20: Proyecto Masa Valverde
Proyecto Masa Valverde 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 Valve
Slide 21: Proyecto Riotinto East
Proyecto Riotinto East Atalaya continues to expand its regional footprint in the highly prospective Iberian Pyrite Belt Peñas Blancas / Cerro Negro Investigation Permits Overview Herreros Investigation Permit ▪ Atalaya has entered into an agreement to acquire 100% interests in the Peñas Blancas, Cer
Slide 22: 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 23: 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 24: 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 25: Proyecto Touro
@ Atataya Proyecto Touro
Slide 26: 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 27: 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 28: 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 29: Appendix
Appendix
Slide 30: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (15-Jul-21) GBp 290 Basic shares m 138.2 Fully-diluted shares m 142.1 Market capitalisation (basic) £m 401 Market capitalisation (basic) US$m 555 Cash (at 31-Mar) €m 64 Debt & leases (at
Slide 31: Historical Copper Prices
Historical Copper Prices Copper Price in EUR & Atalaya AISC (€/lb)(1) 1. Atalaya reported US$ AISC has been converted to EUR at average exchange rate over the respective periods 31
Slide 32: 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 33: 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 34: 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