Atalaya Mining Copper SA · LSE:ATYM

Atalaya Mining Copper SA — Atalaya Mining — Investor Presentation (November 2016)

31 slides from Atalaya Mining Copper SA's investor presentation, November 2016

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

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

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document (“Presentation”) has commitment whatsoever. Each party to whom this Presentation is equipment or processes to operate as anticipated; accidents, been prepared by Atalaya Mining Plc (the “Company”). While the made available must make its own indep

  3. Slide 3: Results for Q3 2016

    Results for Q3 2016 Operating Highlights  54% Process capacity increase from Q2 to Q3  97% Cu production increase from Q2 to Q3 Ore Mt Cu kt Recoveries Q1 1.1 4.0 82.93% Q2 1.3 ↑18% 4.4 ↑10% 80.46% ↓ Q3 2.1 ↑54% 8.8 ↑97% 83.60% ↑ YTD 4.5 17.2 82.60% Back to design End of ramp up Cu Concentrate rat

  4. Slide 4: Ramp-up results

    Ramp-up results Commercial production declared from 1 February 2016  Ramp-up of Expansion progressing well*  Implementation of new technology will lead to better  Anticipate operating at nameplate capacity (9.5Mtpa) by end recoveries, improved grades and lower penalties of 2016  Silver credits c

  5. Slide 5: Production Ramp-up

    Production Ramp-up Q3 reported an increase of ±4,300t over Q2 * Q4 To Date: up to 24 Nov 6,043 t Cu produced AIM:ATYM / TSX:AYM 5

  6. Slide 6: Results for Q3: Financial Highlights

    Results for Q3 Financial Highlights*  Working capital position improvement of €4.2 million from Q2 2016  Revenues of €27.2 million and €49.9 million for the 3 and 9 month periods respectively  Significant improvement in EBITDA compared with H1 2016 as a result of increase in volume of copper conc

  7. Slide 7: Operating Margins

    Operating Margins Average Company Realised Total Cash Costs Market Cu Price Cu Price per lb per lb per lb Q3 $1.97 $2.17 $2.18 YTD $2.36 $2.14 $2.16 Further operating cost reductions expected as production levels approach nominal plant capacity of 9.5Mtpa AIM:ATYM / TSX:AYM 7

  8. Slide 8: Costs

    Costs Guidance for 2017 - 2019 Source: Company records for 3 years guidance. LOM* (life-of-mine) costs based on NI 43-101, September 2016. AIM:ATYM / TSX:AYM 8

  9. Slide 9: Recent Events

    Recent Events  Reduction of Working Capital deficit: US$14 million copper concentrate prepayment agreement announced with Transamine Trading S.A. on 5 September 2016  Option to extend the contract, with the same terms, for an additional US$14 million, provided certain production conditions have be

  10. Slide 10: Operating Outlook

    Operating Outlook  Nameplate capacity expected by end of 2016  Guidance for 2016: Full Year Progress to First 9 months (estimated) completion* Ore processed / Mt 6.7 - 7.1 4.4 66-62% Concentrate production / dmt 115,000 - 130,000 82,703 72-64% Contained copper / t 23,500 - 27,000 17,241 73-64% * A

  11. Slide 11: Atalaya positioning vs. copper peers

    Atalaya positioning vs. copper peers Enterprise Value (US$mm) (1) 2017e copper production (kt) (2) Total Resource grade (% Cu) Atalaya $235 Atalaya 42 Atalaya 0.45% Imperial Metals $988 Capstone 98 Avanco 1.28% Capstone $702 Imperial Metals 61 Capstone 0.34% Copper Mountain $402 Taseko 54 Imperial M

  12. Slide 12: Attractive valuation metrics

    Attractive valuation metrics (1) (1) Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA(1) (2) Atalaya 14% Atalaya $5,601 Atalaya 7.6x Avanco nmf Taseko $6,846 Avanco 3.3x Central Asia Metals nmf Capstone $7,201 Capstone 6.5x Capstone 42% Avanco $7,368 Central Asia

  13. Slide 13: Copper Developers & Producers

    Copper Developers & Producers Capital Intensity* Proyecto Riotinto $4,000 Source: Wood Mackenzie *Capital expenditure to t Cu produced per year AIM:ATYM / TSX:AYM 13

  14. Slide 14: The Case for Copper

    The Case for Copper Producers significantly undervalued  Recent copper asset acquisitions  Tenke, Zaldivar, Kevitsa well above the spot price - in some cases >50%  Copper producers appear significantly undervalued  EVs not aligned with transaction prices for asset sales - this disconnect not sus

  15. Slide 15: Proyecto Riotinto

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

  16. Slide 16: Plan view

    Plan view AIM:ATYM / TSX:AYM 16

  17. Slide 17: Updated Reserves and Resources

    Updated Reserves and Resources  Mineral Reserves & Resources estimate for Proyecto Riotinto as per revised Technical Report dated September 2016  NI 43-101 compliant  153 million tonnes Reserves  Averaging 0.45% Cu  representing over a 12% increase  216 million tonnes Resources  Measured + In

  18. Slide 18: Reserves and Resources

    Reserves and Resources The pit design and internal cut-off grade are based on a long term copper price of US$2.60/lb. Resources are pit-constrained at US$3.20/lb Cu Ore (Mt) Copper (%) RESERVES* Proven 78 0.45 Probable 75 0.44 TOTAL 153 0.45 RESOURCES (inclusive of reserves)* Measured 90 0.43 Indica

  19. Slide 19: 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  7,778 metres thus far in 2016  Exploration programme will be increased once steady state production achieved

  20. Slide 20: 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

  21. Slide 21: Investment Case

    Investment Case A long term option on copper  Construction of plant including Expansion Project completed  Delivered ahead of schedule and under budget  Nameplate capacity of 9.5Mtpa projected for end 2016  Capex fully financed without recourse to senior debt  Located in a prolific mining juris

  22. Slide 22: 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

  23. Slide 23: Appendix

    APPENDIX AIM:ATYM / TSX:AYM 23

  24. Slide 24: Corporate snapshot

    Corporate snapshot Overview¹ Research Coverage² Exchanges AIM:ATYM / TSX:AYM Company Analyst Rec. Target price Share price (GB pence) 153.5 Alexander BMO Capital Markets Outperform (S) 170p Pearce Share price (CAD) 2.60 Speculative Shares Outstanding 116,679,555 Canaccord Genuity Nick Hatch 195p Buy

  25. Slide 25: Share performance

    Share performance Price and Volumes AIM:ATYM / TSX:AYM 25

  26. Slide 26: Senior management

    Senior management Strong Technical & Financial Expertise Team with proven and lengthy experience in the start-up and operation of Alberto Lavandeira mines in Spain and internationally, supported by local and international Chief Executive Officer, Director consultants Over 37 years’ experience operat

  27. Slide 27: Board of Directors

    Board of Directors Strong Technical & Financial Expertise Alberto Lavandeira CEO, Director Roger Davey Jesús Fernández Harry Liu Jonathan Lamb Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Over 40 years’ experience in the Head of the M&A team for Vice Pr

  28. Slide 28: Capex reduction

    Capex reduction Phase 1 (5.0Mtpa) Phase 1 + Expansion (9.5Mtpa) Capex (incurred) US$82 Million Capex (approx.)* US$ 150 Million Cu production 25,000 tpa Cu production 40,000 tpa Capital intensity US$3,280 tpa Cu Capital intensity US$ 4,000 tpa Cu  The 2013 NI 43-101 anticipated direct field capex f

  29. Slide 29: 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

  30. Slide 30: Mining Industry in Spain

    Mining Industry in Spain An established mining-friendly jurisdiction 1 2 6 Aguas Teñidas Significant Mining Proyecto Riotinto Copper Copper, zinc Infrastructure 11 3 4 Substation located Power 8 1km from mine site 10 7 Supplied from Las Cruces 9 SPAIN Aguablanca Campofrio reservoir Copper Nickel, co

  31. Slide 31: AIM:ATYM / TSX:AYM

    AIM:ATYM / TSX:AYM

Atalaya Mining — Investor Presentation (November 2016) on 6ix