Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (February 2017)
32 slides from Atalaya Mining Copper Sa's investor presentation, February 2017
Slide 1: Proyecto Riotinto: A new low risk copper producer in Europe
PROYECTO RIOTINTO A new low risk copper producer in Europe February 2017 AIM:ATYM / TSX:AYM
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
Slide 3: 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
Slide 4: Plan view
Plan view AIM:ATYM / TSX:AYM 4
Slide 5: Ramp-up results
Ramp-up results Nameplate capacity (9.5Mtpa) achieved December 2016 nameplate capacity Start up of Expansion AIM:ATYM / TSX:AYM 5
Slide 6: Production
Production Nameplate capacity (9.5Mtpa) achieved December 2016 Capex fully financed without recourse to senior debt Further optimisation of the plant will focus on throughput, recoveries and cost efficiencies Production guidance for 2017 34,000 – 40,000 tonnes of copper AIM:ATYM / TSX:AYM
Slide 7: 2016 Operating Results
2016 Operating Results Highlights Q2 to Q3: 54% Process capacity increase; 97% Cu production increase Q4: production stabilized to nameplate capacity and specs Ore Mt Cu kt Recoveries Q1 1.1 4.0 82.93% Q2 1.3 ↑18% 4.4 ↑10% 80.46% ↓ Q3 2.0 ↑54% 8.8 ↑97% 83.60% ↑ Q4 2.0 ≈ 8.9 ≈ 84.47% ↑ FY 6.5* 26
Slide 8: 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 1st 9 months $2.36 $2.14 $2.16 2016 Further operating cost reductions anticipated as plant optimization efforts continue AIM:ATYM / TSX:AYM 8
Slide 9: 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 9
Slide 10: 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
Slide 11: 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
Slide 12: Touro Project
Touro Project Historical Riotinto Operation AIM:ATYM / TSX:AYM 12
Slide 13: Touro Copper Project
Touro Copper Project TOURO Convenient location vis-à-vis Proyecto Riotinto RIOTINTO Excellent Infrastructure Easy access to existing highways, rail and power Local skilled workforce Access to ports 80 km to port of Villagarcía de Arousa which was used by the previous operator, Riotinto P
Slide 14: Touro Copper Project: Highlights
Touro Copper Project Highlights Exclusivity option exercised Drilling and studies under way Straightforward metallurgy Permitting started Ongoing quarrying activities CAPEX ≈ Production €200 m level ≈ Open-pittable resource €250 m Cu 30,000 • Historical non compliant tpa estimates • ≈135 M
Slide 15: Touro Copper Project: Exploration
Touro Copper Project Exploration Previous mining combined with more recent exploration work gives us a good understanding of the deposit DD RC DD RC Dates Company DD/RC holes holes meters meters 2015-2016 Atalaya 4 124 24 2,048 12,230 2012 Lundin 169 - - 20,281 - 60´s-1985 Rio Tinto P. 660 - - 59,87
Slide 16: Touro Copper Project: The deposit
Touro Copper Project The deposit: considerable size and still open ARINTEIRO BAMA BRANDELOS ARCA VIEIRO MONTE DAS MINAS Typical sections AIM:ATYM / TSX:AYM 16
Slide 17: Touro Copper Project: Process engineering under way
Touro Copper Project Process engineering under way Metallurgical testworks completed Well known metallurgy with excellent recoveries and clean high grade concentrates AIM:ATYM / TSX:AYM 17
Slide 18: Touro Copper Project: Terms of the deal
Touro Copper Project Terms of the deal Option earn-in agreement up to 1,250 b lb of Cu an 80% interest in Touro Copper contained according to Project historical non-compliant for a maximum total consideration of resource estimates €18.5 million equivalent to less than US$0.02/lb Cu resources i
Slide 19: Atalaya positioning vs. copper peers
Atalaya positioning vs. copper peers Enterprise Value (US$mm) (1) 2017e copper production (kt) (2) Total Resource grade (% Cu) Atalaya $246 Atalaya 42 Atalaya 0.45% Imperial Metals $1,092 Capstone 86 Avanco 1.73% Capstone $795 Taseko 54 Capstone 0.34% Taseko $545 Imperial Metals 51 Imperial Metals 0
Slide 20: Attractive valuation metrics
Attractive valuation metrics Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA (1) Atalaya 14% Atalaya $5,873 Atalaya 4.2x Avanco nmf Capstone $9,227 Avanco 5.9x Central Asia Metals nmf Taseko $10,124 Capstone 6.0x Capstone 28% Avanco $12,900 Central Asia Metals 6
Slide 21: 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 21
Slide 22: Corporate snapshot
Corporate snapshot Overview¹ Research Coverage² Exchanges AIM:ATYM / TSX:AYM Company Analyst Rec. Target price Share price (GB pence) 146.5 Alexander BMO Capital Markets Outperform 180p Pearce Share price (CAD) 2.25 Canaccord Genuity Nick Hatch Buy 195p Shares Outstanding 116,679,555 Options & warra
Slide 23: Investment Case
Investment Case A long term option on copper To build on our initial success at Riotinto through acquisition and exploration Acquisition of Touro, our second asset, announced February 2017 Assets located in a prolific mining jurisdiction in Spain Benefits from established and modern infrastr
Slide 24: 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
Slide 25: Appendix
APPENDIX AIM:ATYM / TSX:AYM 25
Slide 26: Share performance
Share performance Price and Volumes AIM:ATYM / TSX:AYM 26
Slide 27: 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
Slide 28: 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
Slide 29: 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
Slide 30: 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
Slide 31: 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
Slide 32: AIM:ATYM / TSX:AYM
AIM:ATYM / TSX:AYM
Atalaya Mining — Investor Presentation (February 2017) on 6ix