Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (October 2018)
30 slides from Atalaya Mining Copper Sa's investor presentation, October 2018
Slide 1: A low risk copper producer in Europe
A low risk copper producer in Europe Investor Presentation October 2018
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: 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 Update on the Mineral Resources and Reserves of the Riotinto Copper Project” dated July 2018,
Slide 4: Introduction
Introduction A low risk copper producer in Europe ▪ Assets located in established and stable mining jurisdictions ✓ Excellent infrastructure EL FERROL Port ✓ Low capital intensity, no debt A CORUÑA Port ▪ Achieved 2 expansion phases under VILLAGARCIA Port budget and ahead of schedule TOURO ✓ Third e
Slide 5: Proyecto Riotinto
Proyecto Riotinto Brownfields refurbishment in south-west Spain ▪ Successful restart and expansion to 9.5Mtpa ▪ Further expansion to 15Mtpa RIOTINTO HUELVA SEVILLE ✓ Mechanical completion targeted end Q2 2019 ▪ Steady production progress since 2017 Matsa 0 50 100 km with record quarter in Q3 2018 (T
Slide 6: Q3 Production Results
Q3 Production Results Another record quarter ▪ Q3 2018 production of 11,055 tonnes Ore throughput (Mtpa) 3 12 ✓ Q2 2018: 10,446 tonnes Annualised (Mt) Quarterly (Mt) 2 8 ✓ Q3 2017: 10,679 tonnes ✓ YTD: 30,942 tonnes 1 4 ▪ Consistent throughput and improving -- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -- rec
Slide 7: H1 2018 Financial Results
H1 2018 Financial Results ▪ Revenue Revenue (€m) ✓ H1 revenue of €101.5m (H1 2017: €79.1m) €53.4 €52.7 €45.7 €48.9 ✓ Q2 realised copper price per lb – US$3.12 €35.7 (Q2 2017: US$2.61; Q1 2018: US$3.03) €25.7 ▪ EBITDA ✓ H1 2018 EBITDA of €34.4m (H1 2017: €24.5m) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 201
Slide 8: Operating Margins & 2018 Guidance
Operating Margins & 2018 Guidance Total Cash Costs Average Market Company realised ▪ Q2 2018 cash costs per lb Cu price per lb Cu Price per lb better than guidance owing to Q1 2018 $2.27 $3.16 $3.03 lower strip ratio, Q2 2018 $1.88 $3.12 $3.12 thus increase in amount of Published Nov. Q3 2018 $2.77
Slide 9: Reserves and Resources
Reserves and Resources • Update in July 2018 reported 29% increase in P&P reserves, 21% increase in contained Cu to 822,000t and reduction in strip ratio from 1.95:1 to 1.43:1 • 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
Slide 10: Exploration
Exploration ▪ Exploration budget for 2018 - €2.7 million ▪ At Atalaya/San Dionisio pit, massive sulphides and stockwork mineralisation are being targeted ▪ 1,500 metres of a 19,000 metre programme have been drilled with positive preliminary results ▪ Drilling around high grade underground workings a
Slide 11: 15M Expansion Plan
15M Expansion Plan ▪ A single 15Mtpa processing circuit was approved for development ✓ 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
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
Slide 13: Proyecto Riotinto: Track record of expanding on time & under budget
Proyecto Riotinto Track record of expanding on time & under budget ✓ 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: basi
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
Slide 15: Proyecto Touro
Proyecto Touro ▪ Development timeline ✓ Development: 18 to 24 months from receipt of permits ✓ Ramp-up: 9 months ▪ Synergies with Proyecto Riotinto ✓ CAPEX: development plan to replicate Proyecto Riotinto success ✓ OPEX: by sharing services and support ✓ Marketing: clean premium concentrates ▪ PFS e
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 ✓
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
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
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
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
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)
Slide 22: Investment Case
Investment Case ▪ Strong financial position ✓ Nil financial debt(1) ✓ H2 2018 EBITDA of €34.4m (€24.5m in H1 2017) ✓ Working capital position improved as a result of cash generated from operations and equity placement ✓ Production guidance ahead of expectations ▪ Riotinto expansion expected to unloc
Slide 23: Appendix
APPENDIX AIM:ATYM / TSX:AYM 23
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 5 October 2018) Overview (as at 5 October 2018) Holder # shares % ISC E
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 Nearly 40 years’ experience Formerly CFO of various companies Over 20 years´ international mining operating and developin
Slide 26: Riotinto Plan View
Riotinto Plan View AIM:ATYM / TSX:AYM 26
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
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
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
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
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