Slide 1: Proyecto Riotinto
PROYECTO RIOTINTO A new low risk copper producer in Europe June January 2016 2016 AIM:ATYM / TSX:AYM
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has projections or opinions contained herein necessarily involve Although the Company has attempted to identify important been prepared by Atalaya Mining Plc (the “Company”). While the significant elements of subjective judgment,
Slide 3: Investment highlights
Atalaya Mining Investment highlights Phase 1 of plant reconstruction achieved Delivered ahead of schedule Under budget Commercial production declared 1 February 2016 Phase 1 plant throughput 5.0Mtpa Fully financed without recourse to senior debt Construction of Expansion Project comple
Slide 4: Results for Q1
Results for Q1 Operating Highlights Commercial production declared 1 February 2016 Q1 Cu production: 4,048 tonnes March - first month of normalised production 1,465 tonnes of Cu produced Recoveries of 82.5% April - plant availability of 94.7% Process rate of 571t/hr (≈ 4.7Mtpa) Recov
Slide 5: Highly competitive cost structure
Highly competitive cost structure Capital Intensity (US$ / t Annual Copper Production) * $51,434 $46,516 $43,958 $38,976 $31,013 $28,347 $28,759 $24,654 $19,269 $19,528 $20,572 $16,744 $17,494 $17,958 $18,042 $12,187 $12,531 $12,685 $12,774 $12,828 $13,611 $10,142 $10,141 $4,000 $4,100 $6,391 C1 Cop
Slide 6: Atalaya positioning vs. copper peers
Atalaya positioning vs. copper peers Enterprise Value (US$M) (1) 2017e copper production (kt) (2) Total Resource grade (% Cu) (3) Atalaya $201 Atalaya 42 Atalaya 0.5% Imperial Metals $963 Capstone 98 Capstone 0.3% Thompson Creek $808 Imperial Metals 61 Imperial Metals 0.3% Capstone $583 Taseko 45 Co
Slide 7: Attractive valuation metrics
Attractive valuation metrics Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA Atalaya 11% Atalaya $4,787 Atalaya 2.2x Central Asia Metals nmf Capstone $5,978 Capstone 5.1x Capstone 53% Taseko $6,730 Thompson Creek 5.1x Taseko 62% Copper Mountain $11,001 Central A
Slide 8: The Case for Copper
The Case for Copper Producers significantly undervalued Recent copper asset acquisitions Tenke, Zaldivar, Kevitsa well above the spot price - in some cases >50% Copper producers appear significantly undervalued EVs not aligned with transaction prices for asset sales - this disconnect not sus
Slide 9: 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 E-1 A-49 Seville Huelva A-92 Atlantic Copper SPAIN Smelter (Freeport McMoRan) N
Slide 10: Plan view
Plan view AIM:ATYM / TSX:AYM 10
Slide 11: Ramp-up results
Ramp-up results Commercial production declared from 1 February 2016 Ramp-up of Expansion well ahead of previous estimate of Implementation of new technology will lead to better December 2016 recoveries, improved grades and lower penalties Anticipate operating at nameplate capacity (9.5Mtpa) fr
Slide 12: Operating costs guidance
Operating costs guidance Guidance during H1-2016 ramp-up US$1.90-$2.00/lb (total cash cost) Actual consumption units and costs are largely as expected 60-70% of costs incurred in Euros Currency (€/US$) devalued from NI 43-101* Q2 ramp-up of Expansion phase - costs will stabilize as plant n
Slide 13: Expansion Project progress
Expansion Project progress Moving from 5.0Mtpa to 9.5Mtpa throughput Engineering and procurement 100% completed Construction 100% completed installation of new mills and flotation cells completed commissioning started full production throughput of 9.5Mtpa to be achieved during Q3 2016 Fa
Slide 14: Expansion Project progress
Expansion Project progress 4 months earlier than anticipated AIM:ATYM / TSX:AYM 14
Slide 15: Capex reduction
Capex reduction Phase 1 (5.0Mtpa) Phase 1 + Expansion (9.5Mtpa) Capex (incurred) US$82 Million Capex (estimated)* US$145-150 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 NI 43-101 anticipated direct field capex for P
Slide 16: Ongoing drilling
Ongoing drilling Infill drilling to increase open pit reserves and extend LOM complete 31,701 metres drilled since 2014 Focus now on completion of assays, updating block model and expansion of mineralized zones Improved understanding of orebody = better modelling and mine planning to manage
Slide 17: 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 Exploration programme will be increased once steady state production achieved Current focus on potential of
Slide 18: Looking ahead
Looking ahead Continue to focus on the optimisation of operating results Having completed the Expansion Project, we expect to achieve 9.5Mtpa steady state production by end of Q3 2016 Reserves and Resources update Actively looking for acquisition opportunities where the company can leverage
Slide 19: Our vision
Our vision We maintain a positive view on base and precious metals Short term - to maximise the efficiencies of our expanded project Longer term - to actively build on our initial success at Riotinto through exploration and acquisition to focus on maximising returns for shareholders AIM:ATYM / T
Slide 20: Investment case
Investment case A long term option on copper Production commenced well ahead of schedule and under budget Expansion to NO SENIOR double initial DEBT production completed A NEW COPPER COMPANY THAT DELIVERS Expansion achieved 18 Supportive months strategic ahead of shareholders schedule Well positione
Slide 21: 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
Slide 22: Appendix
APPENDIX AIM:ATYM / TSX:AYM 22
Slide 23: Corporate snapshot
Corporate snapshot Overview¹ Research Coverage² Company Analyst Rec. Target price Exchanges AIM:ATYM / TSX:AYM Speculative Share price (GB pence) 107 Nick Hatch 155p Buy Share price (CAD) 1.96 Martin Potts Buy 195p Shares Outstanding 116,679,555 Options & warrants 1,291,384 Nikolas Buy 192p Fully di
Slide 24: Share price comparison (1 year)
Share price comparison (1 year) 140,0 Atalaya Mining Plc Central Asia Metals Plc Capstone Mining Corp Copper Mountain Mining Corp Taseko Mines Thompson Creek Imperial Metals 120,0 100,0 CAML TKO 80,0 ATYM 60,0 III CS 40,0 CUM TCM 20,0 -- The share is highly leveraged to copper prices recovering from
Slide 25: Senior management
Senior management Strong Technical & Financial Expertise Team with proven and lengthy experience in the start-up and operation of mines Alberto Lavandeira in Spain and internationally, supported by local and international consultants Chief Executive Officer Ángel López: Plant. 18 years in minerals p
Slide 26: Board and management
Board and management Strong Technical & Financial Expertise Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Roger Davey Rothschild & Sons; former Director, VP and GM, AngloGold (Argentina). Currently a Chairman director of Orosur Mining Inc., Central Asia Metals
Slide 27: Board and management
Board and management Strong Technical & Financial Expertise Senior Managing Director of Liberty Metals & Mining Holdings, LLC. Formerly held Damon Barber positions with mining companies and served as the Head of Deutsche Bank's Metals Mining investment banking practice in Asia-Pacific. Spent more th
Slide 28: Reserves and Resources
Reserves and Resources Based on a conservative long term copper price assumption of $2.00/lb for reserves and $3.00/lb for resources Ore (Mt) Copper (%) Copper (kt) RESERVES* Proven 39 0.38 148 Probable 84 0.54 458 TOTAL 123 0.49 606 RESOURCES (inclusive of reserves)* Measured 48 0.38 180 Indicated
Slide 29: Cost Breakdown
Cost Breakdown As per NI-43,101, February 2013 Current thinking: Cost to be realised across LOM Agency fees should be included in selling costs (US$66 million) Current market TC/RCs higher than originally forecast Non-cash costs Should be included in LOM mining costs Includes LOM provisi
Slide 30: 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
Slide 31: Mining Industry in Spain
Mining Industry in Spain An established Mining-friendly jurisdiction 1 2 6 Proyecto Riotinto Aguas Teñidas Significant Mining Copper Copper, zinc Infrastructure 11 3 4 Substation located Power 5 1km from mine site 10 7 Las Cruces 9 SPAIN Aguablanca Supplied from Copper Nickel, copper Campofrio reser
Slide 32: AIM:ATYM / TSX:AYM
AIM:ATYM / TSX:AYM 32