Atalaya Mining Copper Sa · LSE:ATYM

Atalaya Mining Copper Sa — Atalaya Mining — Shareholder Meeting (June 2018)

30 slides from Atalaya Mining Copper Sa's shareholder meeting presentation, Jun 27, 2018

  1. Slide 1: A low risk copper producer in Europe

    A low risk copper producer in Europe AGM Presentation 27th June 2018

  2. 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

  3. Slide 3: Disclaimer: Technical Disclosure

    Disclaimer Technical Disclosure Unless otherwise noted, all scientific and technical information relating to the Proyecto Riotinto is based on and derived from a technical report entitled “Technical Report on the Mineral Resources and Reserves of the Riotinto Copper Project” dated September 2016, pr

  4. Slide 4: Introduction

    Introduction A low risk copper producer in Europe  Assets located in established and stable mining jurisdictions  Access to modern infrastructure EL FERROL Port  Low capital intensity, no debt A CORUÑA Port  Achieved 2 expansion phases under budget VILLAGARCIA Port and ahead of schedule TOURO 

  5. Slide 5: Proyecto Riotinto

    Proyecto Riotinto Brownfields refurbishment in south-west Spain  Successful restart and expansion to 9.5Mtpa  Delivered at 50% lower cost & 30% faster timeline than anticipated in 2013 NI 43-101  9.5Mtpa expansion delivered in 10 months from declaration of commercial production at 5Mtpa RIOTINTO

  6. Slide 6: Production Results

    Production Results Consistent operating performance  9.5Mtpa nameplate capacity Ore throughput (Mtpa) achieved in December 2016 3 12 Annualised (Mt) Quarterly (Mt)  Expansion delivered at capital intensity 2 8 of $4,000/t Cu 1 4  Full Year 2017 production of 37.1kt -- --  2016 production: 26.2kt

  7. Slide 7: Financial Results

    Financial Results  Revenues  Q1 2018 revenues of €52.7m (€25.7m in Q1 Revenues (€m) 2017; FY 2017 - €161.0m)  Q1 2018 concentrate sales of 9,016t, up from €53.4 €52.7 €45.7 8,235t in prior quarter; FY 2017 – 35.5kt €35.7  Realised copper price per lb – US$3.03 (US$2.48 €25.7 in Q1 2017; FY 2017

  8. Slide 8: Operating Margins & 2018 Guidance

    Operating Margins & 2018 Guidance Average Company realised Total Cash Costs  Q1 2018 cash costs per lb Market Cu price Cu price per lb per lb in line with guidance  Impacted by weak Q1 2017 $1.64 $2.64 $2.48 dollar rate Q1 2018 $2.27 $3.16 $3.03 Further operating cost reductions will be implemente

  9. Slide 9: Reserves and Resources

    Reserves and Resources • Pit design and internal cut-off grade based on long term Cu price of US$2.60/lb • Resources are pit-constrained at US$3.20/lb Cu • Update to reserves and resources scheduled for release before end Q2 Ore (Mt) Copper (%) RESERVES* Proven 78 0.45 Probable 75 0.44 TOTAL 153 0.4

  10. Slide 10: 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 (RC+DDH) in 2015  10,792 (RC+DDH) metres in 2016  20.768 (RC+DDH) metres in 2017  Increased Exploration programme  €2.7m

  11. Slide 11: 15M Expansion Plan

    15M Expansion Plan  Following a board review, single 15Mtpa option recommended  Lower opex to offset slightly higher capex  Higher execution risks associated with 10+5M, particularly debottlenecking 9.5Mtpa current capacity to 10Mtpa SAG Mill construction AIM:ATYM / TSX:AYM 11

  12. Slide 12: 15M Expansion Plan

    15M Expansion Plan  Expansion project to be delivered by team of well recognised international mining consultants in conjunction with Atalaya Construction of new flotation area AIM:ATYM / TSX:AYM 12

  13. Slide 13: Proyecto Riotinto

    Proyecto Riotinto From mid 2014 to end 2017  Delivered initial restart of Riotinto at ~50% lower cost and 30% faster timeline than anticipated in 2013 NI 43-101  Nearly doubled throughput capacity within 1st year of commercial production  Expansion totalling 18 months: Basic & detailed design (4

  14. Slide 14: Proyecto Touro

    Proyecto Touro Low risk, advanced stage project in north-west Spain TOURO  Previously operated by Riotinto Patiño from 1973 to 1986  Well understood orebody with straightforward metallurgy RIOTINTO  Excellent infrastructure and location  Access to power, water and highways  Local skilled workfo

  15. Slide 15: Proyecto Touro

    Proyecto Touro  Development timeline  Permitting: ~12 months (expected mid- 2018)  Development: 18 to 24 months  Ramp-up: 9 months  Synergies with Proyecto Riotinto  CAPEX: development plan to replicate Proyecto Riotinto success  OPEX: by sharing services and support  Marketing: clean premiu

  16. Slide 16: Proyecto Touro: Results of pre-feasibility study

    Proyecto Touro Results of pre-feasibility study Over 40km of exploration and in-fill drilling completed to provide basis of NI 43-101 PFS  Strong project economics  Project parameters  Project NPV: $180m at 8% discount rate using long-term Cu price of $3.00/lb  Contained copper: 392,000 tonnes 

  17. Slide 17: Proyecto Touro: Resource and Reserve Statements

    Proyecto Touro Resource and Reserve Statements Resource Summary-Constrained by the $3.20/lb Cu Pit Resource >= 8.14 NSR $/t (Internal Cutoff) >= 9.71 NSR $/t (Breakeven Cutoff) Class kt NSR $/t Cu% RCu% kt NSR $/t Cu% RCu% Measured 69,258 22.55 0.42 0.37 67,886 22.82 0.42 0.37 Indicated 60,592 19.24

  18. Slide 18: Proyecto Touro: Process engineering under way

    Proyecto Touro Process engineering under way  Parallels with Riotinto expansion project  Management confident with Capex projections and projected timeline  Metallurgical test works completed  Well-known metallurgy with excellent recoveries and clean high grade concentrates Riotinto actual Touro

  19. Slide 19: Proyecto Touro: Exploration

    Proyecto Touro Exploration  Previous mining combined with more recent exploration work gives us a good understanding of the deposit  Mineralisation remains open to the north, west and south Dates Company DD RC DD/RC DD m RC m 2017-2018 ATYM 4 104 17 636 13,254 2016-2017 ATYM 1 93 26 1,443 10,838 2

  20. Slide 20: Proyecto Touro: Additional exploration ground

    Proyecto Touro Additional exploration ground signed in 2017  Option to acquire 100% of the adjacent exploration concessions covering 122.7km² giving full control over the known prospective belt  Financial terms similar to existing Touro deal (mining concession)  Option over 2.5 years with 75% pay

  21. Slide 21: Future Positioning

    Future Positioning Low-risk growth pipeline and competitive costs 2018E copper production (kt) 297 163 130 93 89 74 – 79 73 59 50 – 55 45 37 – 40 30 29 27 (2) (2) KAZ Minerals Lundin HudBay OZMinerals Capstone Atalaya Sandfire Imperial Atalaya Taseko Atalaya CAML Copper Mtn. Ero Copper 15 Mtpa + (1)

  22. Slide 22: Investment Case

    Investment Case  Well understood deposits with low operational and country risk  Access to developed and modern infrastructure  Low capital intensity  Strong pipeline of low-risk growth projects  Riotinto expansion expected by management to unlock value  Additional ~€290m EBITDA over the LOM(1

  23. Slide 23: Appendix

    APPENDIX AIM:ATYM / TSX:AYM 23

  24. Slide 24: Ownership Structure & Corporate Overview

    Ownership Structure & Corporate Overview  Supportive strategic shareholders  Have participated in prior equity raises for restart of Proyecto Riotinto  Indicative of continued support for the company Major shareholders (as at 22 June 2018) Overview (as at 22 June 2018) Holder # shares % ISC Excha

  25. Slide 25: Senior Management & Board of Directors

    Senior Management & Board of Directors Strong Technical & Financial Expertise Alberto Lavandeira César Sánchez Julian Sánchez CEO, Director Chief Financial Officer GM, Operations Over 38 years’ experience operating CFO of various companies mining Over 20 years´ of international and developing mining

  26. Slide 26: Riotinto Plan View

    Riotinto Plan View AIM:ATYM / TSX:AYM 26

  27. Slide 27: 15M Flowsheet

    15M Flowsheet ROM ORE ROM ORE TO FLOTATION PRIMARY CRUSHING PRIMARY CRUSHING SAG MILLING GYRATORY JAW (NEW) (EXISTING) (NEW) O/F O/F O/F COARSE ORE PRIMARY SECONDARY SECONDARY STOCKPILE CYCLONING CYCLONING CYCLONING (EXISTING) (NEW) (EXISTING) (EXISTING) U/F U/F U/F PRIMARY SECONDARY SECONDARY PRIMA

  28. Slide 28: Key Investor Rights / Other Key Agreements

    Key Investor Rights Company Agreement Terms XGC • Subscription Agreement *  Pre-emptive right over further issues of equity shares1  One board seat2 Orion Mine • Subscription Finance Agreement *  Pre-emptive right over further issues of equity shares1  One board seat2 Liberty Metals • Subscripti

  29. Slide 29: Summary of Astor Case Ruling

    Summary of Astor Case Ruling Judgement handed down 6 March 2017  Deferred Consideration payment not triggered, hence first instalment has not fallen due  No breach of obligation to use all reasonable endeavours to obtain a senior debt facility or duty of good faith  No lump sum or fixed payment s

  30. Slide 30: Contact Information

    Contact Information: Investor Relations CEO Carina Corbett Alberto Lavandeira 4C Communications Ltd Telephone: +34 959 59 28 50 Telephone: +44 20 3170 7973 Email: info@atalayamining.com Email: corbett@4ccommunications.com AIM:ATYM / TSX:AYM

Atalaya Mining — Shareholder Meeting (June 2018) on 6ix