Atalaya Mining Copper Sa · LSE:ATYM

Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (March 2017)

34 slides from Atalaya Mining Copper Sa's investor presentation, March 2017

  1. Slide 1: Proyecto Riotinto

    PROYECTO RIOTINTO A new low risk copper producer in Europe March 2017 AIM:ATYM / TSX:AYM

  2. 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

  3. 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

  4. Slide 4: Plan view

    Plan view AIM:ATYM / TSX:AYM 4

  5. Slide 5: 2016 Production

    2016 Production* Nameplate capacity (9.5 Mtpa) achieved December 2016 Production guidance for 2017: 34,000 – 40,000 tonnes of copper *Except for Cu production (t) figures represent quarters’ average results AIM:ATYM / TSX:AYM 5

  6. Slide 6: 2016 Operating Results

    2016 Operating Results Highlights  Q2 to Q3: 54% Process capacity increase; 97% Cu production increase  Q4: production stabilised 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

  7. Slide 7: 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 optimisation efforts continue AIM:ATYM / TSX:AYM 7

  8. Slide 8: 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 8

  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 (DDH) in 2015  7,778 metres thus far in 2016  Exploration programme will be increased once steady state production achieved

  11. Slide 11: Proyecto Touro

    Proyecto Touro Historic Rio Tinto Operation AIM:ATYM / TSX:AYM 11

  12. Slide 12: Proyecto Touro

    Proyecto Touro 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 Patiño

  13. Slide 13: Proyecto Touro Highlights

    Proyecto Touro 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 Mt @ 0.

  14. Slide 14: Proyecto Touro Highlights (cont'd)

    Proyecto Touro Highlights (cont´d)  Next Steps  Q2 - update resource and reserve model  Q4 - NI 43-101 pre-feasibility study  Development Timeline  Permitting approximately 12 months  Development 18 to 24 months  Ramp-up 9 months 2017 budget • ≈$0.8M • For exploration and engineering studies

  15. Slide 15: Proyecto Touro Exploration

    Proyecto Touro 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 2016-2017 Atalaya 1 80 22 1.218 9,540 2015-2016 Atalaya 4 124 24 2,048 12,230 2012 Lundin 169 - - 20,281 - 60´s

  16. Slide 16: The deposit: considerable size and still open

    Proyecto Touro The deposit: considerable size and still open Typical sections AIM:ATYM / TSX:AYM 16

  17. Slide 17: Process engineering under way

    Proyecto Touro Process engineering under way  Metallurgical test works completed  Well known metallurgy with excellent recoveries and clean high grade concentrates AIM:ATYM / TSX:AYM 17

  18. Slide 18: Terms of the deal

    Proyecto Touro Terms of the deal  Option earn-in agreement up 1.25 B lb of contained to an 80% interest in Touro Cu according to historic Copper Project non-compliant resource  for a maximum total estimates consideration of €18.5 million  equivalent to less than US$0.02/lb Cu resources in the gro

  19. 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 $239 Atalaya 42 Atalaya 0.45% Imperial Metals $1,010 Capstone 86 Avanco 1.73% Capstone $722 Imperial Metals 51 Capstone 0.34% Taseko $469 Taseko 45 Imperial Metals 0

  20. 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 $5,698 Atalaya 4.4x Avanco nmf Capstone $8,377 Capstone 5.5x Central Asia Metals nmf Taseko $10,516 Central Asia Metals 5.9x Capstone 32% Avanco $11,956 Taseko 5

  21. 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

  22. Slide 22: Copper Price

    Copper Price Global Scenario  Copper price of $3.30/lb necessary to prompt investment, assuming minimum 15% IRR, well above the current price *  Other than Cobre Panamá (FQM) and Oyu Tolgoi (Rio) no significant developments in pipeline  Global Cu mining industry Capex vs. mined production and ind

  23. Slide 23: Corporate snapshot

    Corporate snapshot Major Shareholders Holder # shares % ISC Overview¹ Urion Mining International (Trafigura) 25,684,344 22.0 Exchanges AIM: ATYM / TSX: AYM Share price (GB pence) 144.5 Yanggu Xiangguang Copper (XGC) 25,588,527 21.9 Share price (CAD) 2.1 Orion Mine Finance 16,986,609 14.6 Shares Outs

  24. Slide 24: Summary of Astor case ruling

    Summary of Astor case ruling Judgement handed down 6 March 2017  Company was correct in its interpretation of the law in respect of the Master Agreement and in its actions  Company not in breach of its obligations. Deferred Consideration payment not triggered, hence first instalment has not fallen

  25. Slide 25: 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, the Company´s second asset, announced February 2017  Assets located in a prolific mining jurisdiction in Spain  Benefits from established and moder

  26. Slide 26: 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

  27. Slide 27: Appendix

    APPENDIX AIM:ATYM / TSX:AYM 27

  28. Slide 28: Share performance

    Share performance Price and Volumes AIM:ATYM / TSX:AYM 28

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Capex reduction

    Capex reduction No senior debt 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 direc

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: AIM:ATYM / TSX:AYM

    AIM:ATYM / TSX:AYM

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