Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (January 2022)
41 slides from Atalaya Mining Copper Sa's investor presentation, January 2022
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe January 2022
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 ‒ 2021 production guidance was increased to 54-56 kt VILLAGARCIA Port ‒ Riotinto reserves plus known orebodies support long LOM Health, Safety and ESG al
Slide 5: 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 6: 2021 Production Results
2021 Production Results New annual production record achieved thanks to strong throughput and recoveries Ore Throughput (Mt) Record annual Cu production 56,139 tonnes 55,890, 2020 Higher throughput & recoveries offset lower grades Copper Recovery 15.8 Mt ore processed 0.41% Cu ore grade 14.8, 2020 0
Slide 7: Q3 2021 Financial Results
Q3 2021 Financial Results Significant uplift in free cash flow generation vs. prior period Revenues (€m) Income statement highlights Revenue: €107.2m Op. costs: €(58.4)m €65.8m, Q3 2020 €(43.6)m, Q3 2020 EBITDA: €48.8m Profits: €38.2m €22.3m, Q3 2020 €12.2m, Q3 2020 Cash flow statement highlights EB
Slide 8: 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 9: 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$m)(1) 2021e Production (kt CuEq)(2) 2022e EBITDA (US$m)(3) 2022e Free Cash Flow (US$m)(4) Incl. Mantos Incl. MATSA Incl. Mantos Incl. MATSA 1. Fully dilu
Slide 10: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Net Debt / Enterprise Value EV / Prod’n 2021e (US$/t CuEq)(1) EV / EBITDA 2022e(2) 2022e Free Cash Flow Yield(3) Note: Net debt, EV, and production reflect announced acquisit
Slide 11: MATSA Transaction Benchmarking
MATSA Transaction Benchmarking Sandfire’s acquisition of MATSA highlights Atalaya’s strategic positioning Key Metrics ▪ Sandfire Resources (ASX: SFR) MATSA announced the acquisition of premium MATSA for ~US$1.9 billion in to ATYM cash in September 2021 Transaction metrics Current trading metrics ‒ M
Slide 12: 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 13: Key Priorities for 2021 and Beyond
Key Priorities for 2021 and Beyond Continued focus on operational excellence, sustainability and delivering growth ‒ Meet or exceed original annual production and cost guidance (on track – guidance improved) ‒ Continue to safely manage COVID situation (on track) 2021 ‒ Advance growth options – E-LIX
Slide 14: Riotinto District Vision
Riotinto District Vision
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, acquir
Slide 16: Current Operations at Riotinto
Current Operations at Riotinto History of delivering growth and currently 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$68m(1) Capex: ~US$
Slide 17: Potential Future Processing Hub
Potential Future Processing Hub Atalaya’s vision for the Riotinto District will leverage existing infrastructure and yield synergies 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 region
Slide 18: 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 19: 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 ‒ Exploration campaign underway with 2 rigs ‒ Current focu
Slide 20: Masa Valverde Exploration Update
Masa Valverde Exploration Update Approved extension of ongoing drilling programme following encouraging results Recent Drilling Highlights ▪ Recent drilling intersected broad intervals of massive and stockwork type polymetallic sulphide mineralization ‒ Including significant high grade intercepts at
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: Illustrative Production Potential
Illustrative Production Potential Potential to increase production and LOM by sourcing higher grade ore from the district Copper Production (kt) Illustrative Copper Production Uplift (kt)(1)(2) Ore feed from satellite deposits (Mt) 8.2 0.5 1.0 2.0 3.0 4.0 5.0 0.50% 1 1 2 3 4 5 0.55% 1 1 3 4 6 7 0.60
Slide 23: E-LIX System
E-LIX System Atalaya approved construction of an industrial-scale plant in January 2022 Semi-industrial pilot plant Overview ▪ Newly developed electrochemical extraction process developed and patented by Lain Technologies with the financial support of Atalaya ‒ Involves the application of singular c
Slide 24: E-LIX System
E-LIX System Demonstrated ability to produce clean metal precipitates and/or high purity metals Concentrate Warehouse at Pilot Plant Copper Electrolyte & Copper / Zinc Precipitate Copper Cathode, Zinc Cathode & Zinc Ingot 24
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 (06-Jan-22) GBp 429 Basic shares m 138.2 Fully-diluted shares m 142.1 Market capitalisation (basic) £m 593 Market capitalisation (basic) US$m 804 Cash (at 30-Sept, post inaugural dividend
Slide 31: Dividend Information
Dividend Information Atalaya announced its inaugural dividend and future dividend policy on 27 October 2021 Inaugural Dividend Future Dividends ▪ US$0.395 per ordinary share ▪ Atalaya’s Philosophy: ‒ Total payment of ~US$54.6 million ‒ Reward shareholders through a sustainable ‒ Represented a divide
Slide 32: YTD 2021 Financial Results
YTD 2021 Financial Results Robust free cash flow has increased net cash position to ~€90m Income statement highlights Revenue: €304.3m Op. costs: €(156.1)m €183.6m, YTD 2020 €(139.2)m, YTD 2020 EBITDA: €148.2m Profits: €104.2m €44.4m, YTD 2020 €18.2m, YTD 2020 Cash flow statement highlights Operatin
Slide 33: ESG Strategy Update
ESG Strategy Update Following strategy review, focus is on continued implementation & enhanced disclosure Highlights & Recent Achievements Continued Focus for 2021+ ‒ Adherence to UN Global Compact ‒ Provide continuity in the development of corporate policies ‒ Creation of Atalaya sustainability tea
Slide 34: ESG Strategy Update (continued)
ESG Strategy Update (continued) Following strategy review, focus is on continued implementation & enhanced disclosure Highlights & Recent Achievements Continued Focus for 2021+ ‒ Environmental impact monitoring and measurement program with 40 checkpoints ‒ Riotinto carbon footprint calculated (Scope
Slide 35: Historical Copper Prices
Historical Copper Prices Copper Price in US$ (US$/lb) Copper Price in EUR & Atalaya AISC (€/lb)(1) 1. Atalaya reported US$ AISC has been converted to EUR at average exchange rate over the respective periods 35
Slide 36: 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 37: AISC Benchmarking
AISC Benchmarking Atalaya is well-positioned despite its mining contractor model and low by-product credits Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 37
Slide 38: 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 kt kt w:o nameplate capacity of 15 Mtpa Prov
Slide 39: 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 40: 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 41: 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
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