Atalaya Mining Copper Sa · LSE:ATYM

Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (March 2018)

31 slides from Atalaya Mining Copper Sa's investor presentation, March 2018

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

   A low risk copper producer in Europe Investor Presentation Investor Presentation February December2018 2017 AIM:ATYM / TSX:AYM

2. Slide 2: Disclaimer

   Disclaimer The information contained in this confidential document ("Presentation") is based on public information and confidential information of Atalaya Mining plc (the "Company"). The Presentation has been prepared solely for use at a presentation to relevant persons (as set out below) in connect

3. Slide 3: Disclaimer: Forward Looking Statements

   Disclaimer Forward Looking Statements This Presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities laws. All statements other than statements of historical f

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. Further expansion to 15 Mtpa approved  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 c

6. Slide 6: 2017 Production Results

   2017 Production Results Consistent operational 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  Approved second expansion to -- -- 15Mtpa Q1 '16 Q2 '16 Q3 '

7. Slide 7: Financial and Operational Results

   Financial and Operational Results  Revenue Revenues (€m) €53.4  Q4 copper production of 8.6kt (prior quarter of €115 10.7kt) €35.7  Concentrate sales of 41.0kt, down from 55.6kt in €25.7 €50 prior quarter ̵ Concentrate inventory build of 6.3kt vs. prior quarter  EBITDA Q1 2017 Q2 2017 Q3 2017 YT

8. Slide 8: Operating Margins & 2018 Guidance

   Operating Margins & 2018 Guidance  Higher quarterly Total Cash Costs Average Company realised Market Cu price Cu price cash costs due to per lb per lb per lb expensing a higher Q3 2017 $2.14 $2.88 $2.66 proportion of stripping costs, one- Q4 2017 TBD $3.09 $2.87 off maintenance Further operating co

9. Slide 9: 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

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 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 AIM:ATYM / TSX:AYM 12

13. Slide 13: Illustrative 15M Highlights

    Illustrative 15M Highlights Increased scale and reduced cost structure  Increased production Select project statistics (2018+, 10yr Averages)  Nameplate capacity increased ~60% 15 Mtpa (1) 9.5 Mtpa Variation  43% increase over next five years Operating Metrics Total Ore Mined Mt 163 150 +8.5%  O

14. Slide 14: Illustrative 15M Financial Summary

    Illustrative 15M Financial Summary Capital & operating cost breakdown Financial highlights (2018+) 15M – Capital Cost Estimate NPV Sensitivities – 15M Expansion vs. 9.5 Mtpa Case (US$ m) US$18.00/oz silver, 1.15 USD:EUR, 8% Discount Rate Cost (€m) $1,250 Direct Field Costs €51.8 9.5 Mtpa Case NPV 15

15. Slide 15: Proyecto Riotinto

    Proyecto Riotinto From mid 2014 to end 2017  Atalaya team continues to drive production growth  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  Expans

16. Slide 16: Proyecto Touro

    Proyecto Touro Low risk, advanced stage project in north-west Spain  Previously operated by Riotinto Patiño TOURO from 1973 to 1986  Well understood orebody, straightforward metallurgy with test work suggesting high Cu recovery and clean concentrates RIOTINTO  Excellent infrastructure and locatio

17. Slide 17: Proyecto Touro

    Proyecto Touro  Near term milestones  Q1 2018: NI 43-101 pre-feasibility study  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

18. Slide 18: Proyecto Touro

    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

    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) 297 176 126 93 74 – 79 74 73 59 50 – 55 45 37 – 40 29 27 14 14 (2) (2) (2) KAZ Lundin HudBay OZMinerals Atalaya Capstone Sandfire Imperial Atalaya Taseko Atalaya Copper Mtn. Ero Copper CAML Avanco Minerals

22. Slide 22: Atalaya Positioning vs. Copper Peers

    Atalaya Positioning vs. Copper Peers Attractive valuation metrics(1) Enterprise Value (US$m) EV / 2018e CuEq prod’n (US$/t)(2) EV / 2018e EBITDA(3) Net debt / Enterprise Value (4) Atalaya $369 Atalaya $9,218 Atalaya 4.7x Atalaya 0% (4) Central Asia Avanco nmf $1,008 Capstone $7,747 Capstone 4.1x Met

23. Slide 23: 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

24. Slide 24: APPENDIX

    APPENDIX AIM:ATYM / TSX:AYM 24

25. Slide 25: 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 16 February 2018) Overview (as at 16 February 2018) Holder # shares % I

26. Slide 26: 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

27. Slide 27: Existing Riotinto Plan View

    Existing Riotinto Plan View AIM:ATYM / TSX:AYM 27

28. Slide 28: 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

29. Slide 29: 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

30. Slide 30: 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

31. Slide 31: 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

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