Atalaya Mining Copper SA · LSE:ATYM
Atalaya Mining Copper SA — Atalaya Mining — 2023 BMO Global Metals, Mining & Critical Minerals Conference
48 slides from Atalaya Mining Copper SA's conference presentation, February 2023
Slide 1: Premier pure-play copper producer in Europe
2023 BMO Global Metals, Mining & Critical Minerals Conference Premier pure-play copper producer in Europe 26 February – 1 March 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: 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 52.3 kt in 2022, with 53-55 kt guided for 2023 VILLAGARCIA Port ‒ Riotinto reserves plus known orebodies support long LOM Health, Safety and E
Slide 6: Strategic Asset Portfolio
Strategic Asset Portfolio Total land package covers >1,200 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: Regional Infrastructure
Regional Infrastructure Allows for rapid project development and low capital intensity Villages Fresh water reservoirs Current TSF NOT REQUIRED: Transmission line • Labour camps • Fly-in fly-out Planned future TSF Fresh water • Desalination reservoir • Pipelines • Own smelter • Own port Villages Roa
Slide 8: 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 9: 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 10: 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 11: Illustrative Production Potential
Illustrative Production Potential Growth driven by higher grades at Riotinto and the potential development of Touro Copper Equivalent Production (kt)(1) 1. Recovered metal in concentrate. 2. Copper Equivalent production is calculated from results presented in the PEA and based on 11 $3.50/lb Cu, $1.
Slide 12: New Riotinto PEA
ATALAYA MINING New Riotinto PEA
Slide 13: New Riotinto PEA
New Riotinto PEA Contemplates a new integrated mine plan that leverages Riotinto’s 15 Mtpa plant San Antonio Underground: 11.8 Mt Riotinto Processing Plant (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa Cerro Colorado Open pit: 200.7 Mt (M&I) 0.37% Cu San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu,
Slide 14: New Riotinto PEA: Mining & Processing
New Riotinto PEA: Mining & Processing Mine plan prioritises higher grade material from San Dionisio and San Antonio Mining Schedule by Mineralised Material Source (Mt) Processing Schedule by Mineralised Material Type and Grade 14
Slide 15: New Riotinto PEA: Production & NPV
New Riotinto PEA: Production & NPV Demonstrates the potential for strong economics and production growth Production Profile(1)(2) NPV After-Tax ($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 2,152
Slide 16: Capital Cost Summary
Capital Cost Summary Much of phased capital spending linked to polymetallic material and underground mines Unit 2023-2026 2027-2036 LOM By Mineralised Material Type Related to CuSW Material $m 44 - 44 Related to PolyMS Material $m 98 154 252 Related to Overall Operations $m 20 142 196 Subtotal $m 16
Slide 17: Operating Cost Summary
Operating Cost Summary Potential reduction in cash costs due to higher grades and by-product credits Unit 2023-2026 2027-2036 LOM Site Operating Costs Mining $m 435 1,371 1,875 Processing $m 492 1,275 1,962 G&A $m 71 177 275 Subtotal $m 998 2,822 4,112 Contingency of 5% $m 50 141 206 Total $m 1,048
Slide 18: Economic Summary: Base Case
Economic Summary: Base Case $3.50/lb Cu, $1.20/lb Zn, $0.95/lb Pb Unit 2023-2026 2027-2036 LOM Gross Revenues $m 1,735 6,549 8,855 Offsite Costs $m (223) (1,064) (1,361) Net Smelter Return $m 1,512 5,486 7,494 Site Operating Costs $m (1,048) (2,963) (4,318) EBITDA $m 464 2,522 3,176 Change in Workin
Slide 19: Economic Summary: Sensitivity Case
Economic Summary: Sensitivity Case $4.03/lb Cu, $1.20/lb Zn, $0.95/lb Pb Unit 2023-2026 2027-2036 LOM Gross Revenues $m 1,995 7,316 9,967 Offsite Costs $m (223) (1,064) (1,361) Net Smelter Return $m 1,772 6,252 8,606 Site Operating Costs $m (1,048) (2,963) (4,318) EBITDA $m 724 3,289 4,288 Change in
Slide 20: Q4 2022 Operations Update
ATALAYA MINING Q4 2022 Operations Update
Slide 21: Q4 2022 Production Results
Q4 2022 Production Results Strong final quarter of production provides momentum into 2023 Ore Throughput (Mt) Copper production 13,969 tonnes Cu 13,872 tonnes Cu | Q4 2021 Throughput & recoveries 4.0 Mt ore processed 0.41% Cu ore grade Copper Recovery 3.8 Mt | Q4 2021 0.41% | Q4 2021 86.24% Cu recov
Slide 22: Electricity Market Update
ATALAYA MINING Electricity Market Update
Slide 23: Electricity Prices in Spain
Electricity Prices in Spain Electricity prices in 2022 were unprecedented, although 2023 has improved so far Monthly Arithmetic Average Electricity Price (€/MWh)(1)(2)(3) ▪ In 2022, spot market electricity prices in High Spain were well above historical prices Average and long-term futures contracts
Slide 24: Natural Gas Prices in Europe
Natural Gas Prices in Europe Gas prices have fallen significantly from their peaks in late August / early September Natural Gas Prices – 1 Month Ahead (€/MWh)(1) ▪ In late August / early September, gas prices in Europe reached new records ‒ Severe spikes were the result of Nord Stream 1 curtailment
Slide 25: Electricity Market Trends in Spain
Electricity Market Trends in Spain Renewables are a major contributor, with rapid growth in solar & wind to continue Generation Structure by Technology(1) ▪ Renewables contributed 47% of Spain’s electricity generation in 2021, up from 35% in 2015 ‒ 2022 has seen a slight reduction from 2021 due to l
Slide 26: Electricity Price Impact on Unit Costs
Electricity Price Impact on Unit Costs Reduction in AISC expected as PPA / solar plant come online & market prices normalise AISC Breakdown ($/lb Payable) ▪ Change in electricity costs is responsible for the vast majority of the AISC increase in 2022 compared to prior years ‒ Other have been impacte
Slide 27: Input Cost Inflation
Input Cost Inflation Prices of key consumables remain high compared to historical levels Indexed Prices (Dec-2020 = 100) Explosives Diesel Tyres Electricity Steel Balls Lime = direct link to gas prices 27
Slide 28: Strategic Focus
ATALAYA MINING Strategic Focus
Slide 29: 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 30: 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 30
Slide 31: 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 32: E-LIX Phase I Plant
E-LIX Phase I Plant Construction is underway; expected to reduce costs and unlock value 32
Slide 33: Proyecto Masa Valverde
Proyecto Masa Valverde Exploration, PEA and permitting process continue 33
Slide 34: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 34
Slide 35: Proyecto Touro
Proyecto Touro Water treatment plant is operational and will address legacy water runoff issues 35
Slide 36: Proyecto Touro
Proyecto Touro Water treatment plant aerial view 36
Slide 37: Proyecto Touro
Proyecto Touro Community engagement initiatives continue 37
Slide 38: Appendix
ATALAYA MINING Appendix
Slide 39: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (22-Feb-23) GBp 349 Basic shares m 139.9 Fully-diluted shares m 143.4 Market capitalisation (basic) £m 488 Market capitalisation (basic) US$m $591 Cash (at 31-Dec) €m 126 Debt (at 31-Dec)
Slide 40: Proyecto Riotinto Overview
Proyecto Riotinto Overview Large-scale, long-life operation located in a prolific mining district Overview ‒ Historical mining activity dates back to at least 1000 BC ‒ In recent history, operated by the Rio Tinto Company, RTZ, History Freeport-McMoRan and MRT (workers’ co-operative) ‒ In 2008, acqu
Slide 41: E-LIX System
E-LIX System Phase I Plant development underway and expected to reduce costs & unlock value Concentrate Warehouse at Pilot Plant Copper Electrolyte & Copper / Zinc Precipitate Copper Cathode, Zinc Cathode & Zinc Ingot 41
Slide 42: Proyecto Touro Overview
Proyecto Touro Overview Past producing mine with well understood orebodies and excellent infrastructure Overview ‒ Past-producing open-pit mine, which was operated by Riotinto Patiño from 1973-1986 using conventional flotation History ‒ In 2017, Atalaya Mining entered into a phased earn-in agreement
Slide 43: Inaugural Sustainability Report
Inaugural Sustainability Report Atalaya has demonstrated its firm commitment to enhancing its disclosure and reporting 2021 Atalaya Mining plc Sustainability Report ▪ In April 2022, Atalaya published its inaugural sustainability report ‒ Statistics and data were for the year ended 31 December 2021 ‒
Slide 44: AISC Benchmarking
AISC Benchmarking Despite the extreme electricity prices in Europe, Atalaya is well-positioned vs. peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 44
Slide 45: 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 46: 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 47: 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 48: 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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