Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (January 2021)
33 slides from Atalaya Mining Copper Sa's investor presentation, January 2021
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe Investor Meetings January 2021
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: Review of YTD 2020
Review of YTD 2020 Successfully delivered on growth strategy Navigated COVID-19 safely Delivery of the 15M Project at Riotinto Delivered within 18 months of breaking ground Currently running at full capacity Confirmed permits at Riotinto Validation of Permits ends legal uncertainty Goo
Slide 4: COVID-19 Update
COVID-19 Update Activities at Proyecto Riotinto halted for only five days Measures implemented Non-critical site visits and employee and contractor meetings cancelled Staff worked remotely where possible Temporary shutdown as mandated by government (only 5 days) Ramped up to full productio
Slide 5: Consistent Growth Trajectory
Consistent Growth Trajectory Creation of a stable and leading mid-tier copper producer Restart: 5.0Mtpa Expansion to 9.5Mtpa Expansion to 15.0Mtpa Executed in 2015 Executed in 2016 Executed in 2019 Capex: US$82m Incremental Capex: US$68m(1) Incremental Capex: ~US$92m(2) Capex Intensity: US$3
Slide 6: Atalaya Benchmarking vs. Copper Peers
Atalaya Benchmarking vs. Copper Peers Highly competitive cost positioning and leading project capex intensity Capex Intensity (US$ 000/t Cu Eq) 2019A All-in-Sustaining-Costs (AISC) (US$/lb Cu)(1) Comparison of Riotinto against Upcoming Projects Atalaya Senior Diversifieds Copper Miners Others $20.0
Slide 7: 2020 Production Results
2020 Production Results Q4 – another strong quarter Ore throughput (Mtpa) 4 16 3 12 Annualised (Mt) Quarterly (Mt) Q4 2020 Cu production: 14,332 tonnes 2 8 FY 2020 Cu production: 55,890 tonnes 1 4 -- -- Consistent throughput and recovery Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 201
Slide 8: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Valued at a discount despite attractive underlying metrics(1) Net debt / Enterprise Value EV / 2021e CuEq prod’n (US$/t)(3) EV / 2021e EBITDA(2) 2021e FCF Yield(4) (2) Atalaya 6% Atalaya $10,481 Atalaya 3.6x Atalaya 15% Taseko 37% Ero Copper $33,582 Ero Copper 6.
Slide 9: Strategic Focus for Growth
Strategic Focus for Growth Ambition to become a multi-asset, mid-tier base metals producer Organic External RIOTINTO : Continue to evaluate external Value-added products: opportunities that leverage core Evaluation of technologies (E-LIX) to capabilities: maximise value of complex New prospe
Slide 10: Proyecto Riotinto
Proyecto Riotinto Established mine in a stable jurisdiction, with further optimisation and growth potential 15Mtpa expansion completed on schedule RIOTINTO Cu production guidance for 2021 of 52,000- HUELVA SEVILLE 54,000 tonnes Significant open pit copper reserves Matsa (Trafigura 0 E-803 50 1
Slide 11: 15M Expansion
15M Expansion 9.5Mtpa and 15Mtpa Expansion areas AIM:ATYM / TSX:AYM 11
Slide 12: 15M Expansion: SAG Mill
15M Expansion SAG Mill AIM:ATYM / TSX:AYM 12
Slide 13: 15M Expansion: SAG pebble crushing
15M Expansion SAG pebble crushing New Pebble Crusher, belts and SAG Mill AIM:ATYM / TSX:AYM 13
Slide 14: 15M Expansion: New primary crusher
15M Expansion New primary crusher AIM:ATYM / TSX:AYM 14
Slide 15: 15M Expansion: New flotation area
15M Expansion New flotation area AIM:ATYM / TSX:AYM 15
Slide 16: Riotinto: Brownfield Orebodies
Riotinto: Brownfield Orebodies Exploration expertise potentially a key value driver Exploration focused on proximate orebodies with potential to provide material copper, lead and zinc upside The region is highly prospective with several attractive options Material targets on a grade and scale
Slide 17: Riotinto: Brownfield Orebodies
Riotinto: Brownfield Orebodies Additional underground potential with copper/zinc/lead in adjacent orebodies Highly prospective region with several attractive options. Targets include: • Corta Atalaya/San Dionisio pit – massive sulphides and stockwork mineralisation • Filón Sur – 7,300 m of 17,400 m
Slide 18: Riotinto: Brownfield Orebodies
Riotinto: Brownfield Orebodies Corta Atalaya/San Dionisio Target Stockwork Massive Sulphides Significant unmined resources being evaluated A total of 1,441 historic drill holes Over 29,830 historic drill samples Digitized all drawings of historical underground works 31 new drill hole
Slide 19: Acquisition of Masa Valverde
Acquisition of Masa Valverde High potential deposit offering strong growth opportunity One of the largest undeveloped Riotinto volcanogenic massive sulphide 20 km (“VMS”) deposits in the prolific Iberian Pyrite Belt Strong synergies: located 28 km SW of Proyecto Riotinto Two exploration permit
Slide 20: New E-LIX System
New E-LIX System Feasibility study to evaluate production of cathodes at Riotinto Newly developed electrochemical extraction process Proven efficiency at pilot plant scale with continuous feed Copper cathodes produced Optimal results proven for global concentrates including Cu/Zn Feasibili
Slide 21: Riotinto: ESG/Efficiency Initiatives
Riotinto: ESG/Efficiency Initiatives Focus on cost reduction and best industry practice Permitting process commenced and study under way to approve/sanction investment in 50MW solar power plant Expected to reduce electricity costs by 20% Potentially attractive economics in addition to reduced
Slide 22: Riotinto: ESG/Efficiency Initiatives
Riotinto: ESG/Efficiency Initiatives Focus on cost reduction and best industry practice New water treatment plant for the recycling of processed water and reduced use of new water Provides cost savings and reduces demand for local sources New thickener to reduce lime consumption New dust con
Slide 23: Touro: Update
Touro: Update Management remains confident and committed to the development of Proyecto Touro Ruling (January 2020) Current site Negative Environmental Impact Statement by General Directorate Challenged the ability to guarantee no environmental impact to downstream ecosystems Management’s po
Slide 24: 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 25: 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 26: Copper Market Update
Copper Market Update Strong market conditions for long life producers Strong demand in China underpins Copper supply deficit in 2021 should keep prices elevated demand while rest of world catches up Inventories expected to remain low and support higher pricing Green infrastructure spending sup
Slide 27: Investment Highlights
Investment Highlights Ambition to become a multi-asset, mid-tier base metals producer Premier Pure-play Copper Producer in Europe Cash Flow Generative with Strong Liquidity Strong Organic Growth Options Operational and ESG Improvement Initiatives Proven Team with Project Development and Op
Slide 28: Appendix
Appendix AIM:ATYM / TSX:AYM 28
Slide 29: 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$3.20
Slide 30: Ownership Structure & Corporate Overview
Ownership Structure & Corporate Overview Supportive strategic shareholders Major shareholders (as at 19 January 2021) Overview (as at 19 January 2021) Holder # shares % ISC Exchanges AIM: ATYM / TSX: AYM Urion Mining International (Trafigura) 30,821,213 22.3 Share price (GB pence) 270.0 Yanggu Xiang
Slide 31: Copper Price in EUR
Copper Price in EUR Operating excellence has resulted in robust margins Copper Price (€/lb) 2019 AISC (€/lb) Q1-Q3 2020 AISC (€/lb) 3.10 2.90 2.70 2.50 2.30 2.10 Q1-Q3 2020 AISC: 1.90 €2.02/lb(2) 2019 AISC: €1.90/lb(1) 1.70 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21
Slide 32: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Attractive underlying metrics(1) Enterprise Value (US$m) 2021e EBITDA (US$m)(3) 2021e FCF (US$m)(4) 2021e CuEq prod’n (kt)(5) (2) Atalaya $552 Atalaya $155 Atalaya $80 Atalaya 53.0 Ero Copper $1,638 Central Asia Central Asia $112 Taseko $48 31 Metals Metals Capst
Slide 33: 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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