Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q1 2023 Earnings Presentation
38 slides from Atalaya Mining Copper Sa's earnings presentation, May 15, 2023
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain Q1 2023 Results 15 May 2023
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 Technical Disclosure – Proyecto Riotinto Unless otherwise noted, all scientific and technical information relating to Proyecto Riotinto is based on and derived from a technical report entitled “Technical Report On the Riotinto Copper Project” dated September 2022, p
Slide 4: Q1 2023 Results
Q1 2023 Results
Slide 5: Review of Q1 2023
Review of Q1 2023 Positive start to 2023 supports optimism for full year performance ‒ Copper production of 12,139 tonnes ‒ Production previously anticipated for Q1 2023 is now expected in Q2 2023, as a result of the Operating rescheduling of plant maintenance activities ‒ Cash costs of $2.88/lb and
Slide 6: Q1 2023 Production Results
Q1 2023 Production Results On track to meet production guidance following positive operational start Copper production Ore Throughput (Mt) 12,139 tonnes Cu 11,461 tonnes Cu | Q1 2022 Throughput & recoveries 3.7 Mt ore processed 0.38% Cu ore grade 3.5 Mt | Q1 2022 0.37% | Q1 2022 Copper Recovery 86.8
Slide 7: Q1 2023 Financial Results
Q1 2023 Financial Results Positive financial performance and continued balance sheet strength Income statement highlights Revenues (€m) Revenue: €91.2m Op. costs: €(66.8)m €86.3m | Q1 2022 €(59.5)m | Q1 2022 EBITDA: €24.4m Profits: €11.1m €26.7m | Q1 2022 €18.3m | Q1 2022 Cash flow statement highlig
Slide 8: Cash Costs & AISC Breakdown
Cash Costs & AISC Breakdown Lower electricity prices have resulted in reduced costs vs. 2022 $/lb Copper Payable Q1 2023 Q1 2022 FY2022 ▪ Lower electricity prices are the Mining 0.83 0.86 0.79 primary driver of Processing 0.97 1.42 1.31 the reduction in cash costs and Other site operating costs 0.52
Slide 9: Electricity Prices in Spain
Electricity Prices in Spain Prices in Q1 have fallen by around 50% from 2022 levels Monthly Arithmetic Average Electricity Price (€/MWh) (1)(2)(3) ▪ Following the start of conflict in High Ukraine, spot market electricity Average prices in Spain spiked well above Low historical prices and long-term
Slide 10: 2023 Guidance – Unchanged
2023 Guidance – Unchanged On track to meet FY2023 outlook Operational Guidance ▪ Production Ore mined Mt 17.1 ‒ Positive operational performance in Q1 2023 Mt 24.1 Waste mined ‒ Rescheduling of plant maintenance expected to Ore processed Mt 15.3 – 15.8 support Q2 2023 production ▪ Costs Copper ore g
Slide 11: Strategic Focus
ATALAYA MINING > Strategic Focus
Slide 12: Key Activities for 2023
Key Activities for 2023 50MW solar plant: Construction progressing; start-up in late 2023 E-LIX: Construction of Phase I plant progressing; commissioning in H2 2023 San Dionisio / San Antonio: San Dionisio permitting; optimisation of key PEA elements Touro: Permitting process continues Proyecto Masa
Slide 13: 50 MW Solar Plant
50 MW Solar Plant Expected to provide stable, low cost and carbon-free energy 50 MW of combined capacity 13
Slide 14: E-LIX Phase I Plant
E-LIX Phase I Plant Construction progressing; expected to unlock significant value 14
Slide 15: Exploration Programme
Exploration Programme €10 million budget will focus on Masa Valverde, Riotinto East and Ossa Morena 15
Slide 16: Potential Future Processing Hub
Potential Future Processing Hub ATYM’s 15 Mtpa mill could become a processing hub – similar to MATSA model Key Operations in the Iberian Pyrite Belt Magdalena Aguas Teñidas Cerro Colorado San Dionisio San Antonio Riotinto East MATSA (Sandfire) Sotiel Riotinto District Masa Valverde / Majadales Atala
Slide 17: Atalaya's Significant Resource Base
Atalaya’s Significant Resource Base Including higher grade deposits located near existing processing plant CuEq Resources (Mt)(1)(2)(3) Riotinto District Deposit Grades(2)(3) Producing Growth Pipeline Producing Growth Pipeline 1. Alconchel historical 43-101 resource per 21-Dec-2021 announcement 3. M
Slide 18: New Riotinto PEA
New Riotinto PEA Contemplates an integrated mine plan that leverages Riotinto’s 15 Mtpa plant San Antonio Underground: 11.8 Mt Riotinto Processing Plant (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa Cerro Colorado Open pit: 200.7 Mt (M&I) 0.37% Cu San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu, 1.1
Slide 19: Riotinto Deposits
Riotinto Deposits PEA contemplates that the adjacent deposits are mined concurrently Long Section San Dionisio Cerro Colorado San Antonio CuSW Mineralised material PolyMS CuSW PolyMS Open pit Mining method Underground Open pit Underground Legend Copper grade (%) 0.00 – 0.139% 0.14 – 0.199% 0.20 – 0.
Slide 20: New Riotinto PEA: Mining & Processing
New Riotinto PEA: Mining & Processing Mine plan prioritises higher grade material from San Dionisio and San Antonio Mining Schedule by Mineralised Material Source (Mt) Processing Schedule by Mineralised Material Type and Grade 20
Slide 21: New Riotinto PEA: Production & NPV
New Riotinto PEA: Production & NPV Demonstrates the potential for strong economics and production growth Production Profile(1)(2) NPV After-Tax ($m) Sensitivity to Copper Price ($/lb) and Discount Rate (3) Copper Price ($/lb) 2.80 2.98 3.15 3.33 3.50 3.68 3.85 4.03 4.20 0% 928 1,240 1,545 1,848 2,15
Slide 22: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 22
Slide 23: Proyecto Touro
Proyecto Touro Addressing legacy water runoff issues 23
Slide 24: Proyecto Touro
Proyecto Touro Increasing support from the local communities 24
Slide 25: Illustrative Production Potential
Illustrative Production Potential Growth driven by higher grades at Riotinto and potential Touro development Copper Equivalent Production (kt)(1)(2) 1. Recovered metal in concentrate. 2. Copper Equivalent production is calculated from results presented in the PEA and based on $3.50/lb Cu, $1.20/lb Z
Slide 26: Appendix
ATALAYA MINING > Appendix
Slide 27: Atalaya Snapshot
Atalaya Snapshot European copper producer with operations in Spain . Ticker Operations Asset locations ATYM Riotinto District TOURO AIM (LSE) 15 Mtpa processing plant SPAIN Cerro Colorado mine MADRID San Dionisio deposit Capitalisation San Antonio deposit OSSA MORENA Proyecto Masa Valverde RIOTINTO
Slide 28: Investment Highlights
Investment Highlights MAP ▪European copper producer with scale, growth and consistency ‒ Achieved 52.3 kt in 2022, with 53-55 kt guided for 2023 ▪‒ ASSETS Riotinto reserves plus adjacent deposits support long life-of-mine Sustainability approach aligned with best practices ‒ Strong relationships wit
Slide 29: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (05-May-23) GBp 340 Basic shares m 139.9 Fully-diluted shares m 143.4 Market capitalisation (basic) £m 476 Market capitalisation (basic) US$m $598 Cash (at 31-Mar) €m 119 Debt (at 31-Mar) €m 64 Enterprise
Slide 30: EU Critical Raw Materials Act
EU Critical Raw Materials Act Copper has been added to the EU’s list of Strategic Raw Materials Background of Act Focus on Building European Capacity ‒ Ensure a secure and sustainable supply of ‒ Identify “Strategic Projects” in the EU and critical raw materials for EU industry third countries that
Slide 31: AISC Benchmarking
AISC Benchmarking Despite high electricity prices, ATYM is well-positioned vs. copper peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 31
Slide 32: Electricity Price Impact on Unit Costs
Electricity Price Impact on Unit Costs Impact of PPA, solar plant and market price normalisation to reduce AISC AISC Breakdown ($/lb Copper Payable) ▪ Electricity prices are responsible for the vast majority of the AISC increase in 2022 compared to prior years ‒ Other costs have been impacted by inf
Slide 33: Riotinto Operating & Funding History
Riotinto Operating & Funding History Re-start & expansions delivered with low capex intensity & limited equity dilution Expansion History and Throughput (Mt) Re-start – 5.0 Mtpa Expansion to 9.5 Mtpa Expansion to 15.0 Mtpa Executed: 2015 Executed: 2016 Executed: 2019 Capex: US$82m Incremental Capex:
Slide 34: Regional Infrastructure
Regional Infrastructure Access to the critical inputs required for modern and sustainable operations Villages Fresh water reservoirs Current TSF Transmission line Planned future TSF NOT REQUIRED: Fresh water • Labour camps reservoir • Fly-in fly-out • Desalination Villages • Pipelines • Own smelter
Slide 35: Reserves and Resources
Reserves and Resources Attributable Grade Contained Metal Contained Metal Asset Ownership Tonnage Cu Zn Pb Au Ag Cu Zn Pb Au Ag CuEq Cu CuEq Notes Mt g/t g/t Mt Mt Mt Moz Moz Mt Mt Mt Cerro Colorado 100% Reserves 185.7 0.38% - - - - 0.7 - - - - 0.7 0.7 0.7 M&I 200.7 0.37% 0.15% 0.03% - - 0.7 0.3 0.1
Slide 36: Senior Management
Senior Management Decades of operations, project development and financial expertise Alberto Lavandeira César Sánchez Enrique Delgado Chief Executive Officer, Director Chief Financial Officer Operations – General Manager, Proyecto Riotinto Over 40 years’ experience Former CFO of companies in Former
Slide 37: Board of Directors
Board of Directors Mining, capital markets, sustainability and finance expertise Non-Executive Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; Roger Chair of the former Director, VP and GM, AngloGold (Argentina). Currently a director of Centra
Slide 38: Atalaya Mining plc Investor Relations
Contacts: Atalaya Mining plc Alberto Lavandeira, CEO +34 959 59 28 50 info@atalayamining.com Investor Relations Carina Corbett, 4C Communications Ltd +44 20 3170 7973 corbett@4ccommunications.com