Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (January 2023)
47 slides from Atalaya Mining Copper Sa's investor presentation, January 2023
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe January 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 the Proyecto Riotinto is based on and derived from a technical report entitled “Technical Report On the Riotinto Copper Project” dated September 202
Slide 4: Company Overview
ATALAYA MINING Company Overview
Slide 5: Atalaya Overview
Atalaya Overview Premier pure-play copper producer in Europe EL FERROL Port A CORUÑA Port Copper producer with scale, growth and consistency TOURO ‒ Achieved 56 kt in 2021, with 52-54 kt guided for 2022 VILLAGARCIA Port ‒ Riotinto reserves plus known orebodies support long LOM Health, Safety and ESG
Slide 6: Strategic Asset Portfolio
Strategic Asset Portfolio Total land package covers >1,100 km2 in three prolific mining districts in Spain Proyecto Alconchel Ossa Morena Proyecto Touro Riotinto Riotinto East Proyecto Masa Riotinto Valverde District 6
Slide 7: World Class Mining District
World Class Mining District Supported by world class infrastructure 7
Slide 8: Regional Infrastructure
Regional Infrastructure Allows for rapid project development and low capital intensity Villages Fresh water reservoirs Current TSF Transmission line Planned future TSF Villages Road to Huelva port 8
Slide 9: Regional Infrastructure Advantages
Regional Infrastructure Advantages Other Mining Regions Riotinto District ▪ Increasing scarcity of water necessitates the ▪ TSF is the main source of process water development of expensive solutions: ▪ Fresh water supplied by three reservoirs Water ‒ Desalination: Escondida, Los Pelambres, QB2, Code
Slide 10: Significant Resource Base
Significant Resource Base Provides optionality to expand production in regions with long mining histories 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. Ma
Slide 11: Potential Future Processing Hub
Potential Future Processing Hub Atalaya’s 15 Mtpa mill could become a future processing hub – similar to MATSA model Key Operations in the Iberian Pyrite Belt Aguas Teñidas Magdalena Cerro Colorado MATSA San Dionisio San Antonio (Sandfire) Riotinto East Sotiel Riotinto Masa Valverde / Majadales Dist
Slide 12: Illustrative Production Potential
Illustrative Production Potential Potential to increase production and lower cash costs by processing higher grade material Copper Production (kt) Illustrative Copper Production Uplift (kt)(1)(2) Ore feed from satellite deposits (Mt) 15.6 0.5 1.0 2.5 5.0 6.0 0.50% 0 1 2 4 5 0.60% 1 2 4 8 10 0.70% 1
Slide 13: Q3 and YTD 2022 Financial Results
Q3 and YTD 2022 Financial Results
Slide 14: Review of YTD 2022
Review of YTD 2022 ‒ Copper production of 38,300 tonnes, following consistent Q3 performance ‒ AISC of $3.47/lb, due to extremely high electricity prices, input cost inflation and soft Q1 production ‒ Reaffirmed full year guidance of 52,000 – 54,000 tonnes and AISC of $3.25 – 3.45/lb ‒ Positive outl
Slide 15: Q3 2022 Production Results
Q3 2022 Production Results Consistent quarter, with good throughput and improved grades vs. H1 2022 Ore Throughput (Mt) Copper production 13,453 tonnes Cu 13,893 tonnes Cu | Q3 2021 Throughput & recoveries 3.9 Mt ore processed 0.41% Cu ore grade Copper Recovery 3.9 Mt | Q3 2021 0.40% | Q3 2021 84.62
Slide 16: Q3 2022 Financial Results
Q3 2022 Financial Results Impacted by extremely high electricity prices, input cost inflation & lower copper prices Revenues (€m) Income statement highlights Revenue: €82.3m(1) Op. costs: €(84.8)m €107.2m | Q3 2021 €(55.4)m | Q3 2021 EBITDA: €(4.3)m Profits: €(7.2)m €48.8m | Q3 2021 €38.2m | Q3 2021
Slide 17: YTD 2022 Financial Results
YTD 2022 Financial Results Balance sheet strength maintained despite investments and very high electricity prices Income statement highlights Revenue: €262.0m Op. costs: €(224.8)m €304.3m | YTD 2021 €(156.1)m | YTD 2021 EBITDA: €37.1m Profits: €22.9m €148.2m | YTD 2021 €104.2m | YTD 2021 Cash flow s
Slide 18: Input Cost Inflation
Input Cost Inflation Prices of key consumables remain high, especially those linked to gas prices Indexed Prices (Dec-2020 = 100) Explosives Diesel Tyres Electricity Steel Balls Lime = direct link to gas prices 18
Slide 19: 2022 Guidance
2022 Guidance Full year guidance reaffirmed and positive outlook for Q4 and beyond Operational Guidance ▪ Production ‒ Reaffirming prior guidance Ore mined Mt 15.5 ‒ Copper grade for Q4 2022 is expected to be higher than the YTD 2022 average Waste mined Mt 23.4 ▪ Costs ‒ Reaffirming prior guidance O
Slide 20: Electricity Market Update
ATALAYA MINING Electricity Market Update
Slide 21: Electricity Prices in Spain
Electricity Prices in Spain Electricity prices were very high in Q3 2022, although prices moderated thereafter Monthly Arithmetic Average Electricity Price (€/MWh)(1)(2)(3) ▪ Spot market electricity prices in Spain High remain well above historical prices and Average long-term futures contracts (~€5
Slide 22: Natural Gas Prices in Europe
Natural Gas Prices in Europe Gas prices have fallen significantly from their peaks in late August / early September Natural Gas Prices – 1 Month Ahead (€/MWh)(1) ▪ In late August / early September, gas prices in Europe reached new records ‒ Severe spikes were the result of Nord Stream 1 curtailment
Slide 23: Electricity Market Trends in Spain
Electricity Market Trends in Spain Renewables are a major contributor, with rapid growth in solar & wind to continue Generation Structure by Technology(1) ▪ Renewables contributed 47% of Spain’s electricity generation in 2021, up from 35% in 2015 ‒ 2022 has seen a slight reduction from 2021 due to l
Slide 24: Electricity Price Impact on Unit Costs
Electricity Price Impact on Unit Costs Reduction in AISC expected as PPA / solar plant come online & market prices normalise AISC Breakdown ($/lb Payable) ▪ Change in electricity costs is responsible for the vast majority of the AISC increase compared to prior years ‒ Other have been impacted by inf
Slide 25: Strategic Focus
ATALAYA MINING Strategic Focus
Slide 26: Strategic Focus
Strategic Focus Advance Expected Deliver Project Pipeline Benefits Future Re-Rating ▪ 50 MW solar plant ▪ Reduced cost structure ▪ Reduced cash costs & AISC ‒ Plus: evaluate further ‒ Lower electricity prices renewable energy ‒ Realise synergies & options economies of scale ▪ Increased production ▪
Slide 27: 50 MW Solar Plant
50 MW Solar Plant Expected to provide stable, low cost and carbon-free energy beginning in 2023 50 MW of combined capacity 27
Slide 28: Additional Renewable Energy Options
Additional Renewable Energy Options Other renewable energy options, including wind and pumped hydro, are being explored Potential Location of Wind Turbines Evaluation Tower – Testing Wind Characteristics Illustration of Potential Wind Turbines Based on preliminary measurements, it is estimated that
Slide 29: E-LIX Phase I Plant
E-LIX Phase I Plant Construction is underway; expected to reduce costs and unlock value 29
Slide 30: San Dionisio Deposit
San Dionisio Deposit West extension of Cerro Colorado pit expected to deliver higher grades to the plant Tailings Management Facility 15 Mtpa plant Cerro Colorado pit San Dionisio orebody 30
Slide 31: Proyecto Masa Valverde
Proyecto Masa Valverde Exploration, PEA and permitting process continue 31
Slide 32: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 32
Slide 33: Proyecto Touro
Proyecto Touro Water treatment plant is operational and will address legacy water runoff issues 33
Slide 34: Proyecto Touro
Proyecto Touro Water treatment plant aerial view 34
Slide 35: Proyecto Touro
Proyecto Touro Community engagement initiatives continue 35
Slide 36: Appendix
ATALAYA MINING Appendix
Slide 37: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (13-Jan-23) GBp 375 Basic shares m 139.9 Fully-diluted shares m 143.4 Market capitalisation (basic) £m 525 Market capitalisation (basic) US$m $641 Cash (at 30-Sept) €m 108 Debt (at 30-Sep
Slide 38: Proyecto Riotinto Overview
Proyecto Riotinto Overview Large-scale, long-life operation located in a prolific mining district Overview ‒ Historical mining activity dates back to at least 1000 BC ‒ In recent history, operated by the Rio Tinto Company, RTZ, History Freeport-McMoRan and MRT (workers’ co-operative) ‒ In 2008, acqu
Slide 39: Current Operations at Riotinto
Current Operations at Riotinto History of delivering growth and operating above nameplate capacity Riotinto Growth Trajectory 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: US$68m(1) Capex: ~US$92m(2) Cap
Slide 40: E-LIX System
E-LIX System Phase I Plant development underway and expected to reduce costs & unlock value Concentrate Warehouse at Pilot Plant Copper Electrolyte & Copper / Zinc Precipitate Copper Cathode, Zinc Cathode & Zinc Ingot 40
Slide 41: Proyecto Touro Overview
Proyecto Touro Overview Past producing mine with well understood orebodies and excellent infrastructure Overview ‒ Past-producing open-pit mine, which was operated by Riotinto Patiño from 1973-1986 using conventional flotation History ‒ In 2017, Atalaya Mining entered into a phased earn-in agreement
Slide 42: Inaugural Sustainability Report
Inaugural Sustainability Report Atalaya has demonstrated its firm commitment to enhancing its disclosure and reporting 2021 Atalaya Mining plc Sustainability Report ▪ In April 2022, Atalaya published its inaugural sustainability report ‒ Statistics and data were for the year ended 31 December 2021 ‒
Slide 43: AISC Benchmarking
AISC Benchmarking Despite the extreme electricity prices in Europe, Atalaya is well-positioned vs. peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 43
Slide 44: 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 45: 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 operating Former CFO of companies
Slide 46: 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; former Roger Chair of the Director, VP and GM, AngloGold (Argentina). Currently a director of Centra
Slide 47: Contacts
Contacts Atalaya Mining plc Investor Relations Alberto Lavandeira, CEO Carina Corbett, 4C Communications Ltd +34 959 59 28 50 +44 20 3170 7973 info@atalayamining.com corbett@4ccommunications.com Restricted & confidential
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