Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q3 2021 Earnings Presentation
32 slides from Atalaya Mining Copper Sa's earnings presentation, Nov 18, 2021
Slide 1: Q3 and YTD 2021 Financial Results
Q3 and YTD 2021 Financial Results Premier pure-play copper producer in Europe 18 November 2021
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: Q3 and YTD 2021 Financial Results
Q3 and YTD 2021 Financial Results
Slide 4: Review of Q3 2021
Review of Q3 2021 ‒ Mill continued to operate above nameplate capacity of 15 Mtpa ‒ Increased 2021 production guidance to 54,000 – 56,000 tonnes Operating ‒ 2021 AISC expected to be at the low end of the previous guidance range & Financial ‒ Robust cash flow generation due to strong operational perf
Slide 5: Q3 2021 Production Results
Q3 2021 Production Results Steady operating performance has delivered another good quarter of production Ore Throughput (Mt) Strong Cu production 13,893 tonnes 14,695, Q3 2020 Higher recoveries helped to offset lower grades 3.9 Mt ore processed 0.40% Cu ore grade Copper Recovery 4.0, Q3 2020 0.44%,
Slide 6: Q3 2021 Financial Results
Q3 2021 Financial Results Significant uplift in free cash flow generation vs. prior period Revenues (€m) Income statement highlights Revenue: €107.2m Op. costs: €(58.4)m €65.8m, Q3 2020 €(43.6)m, Q3 2020 EBITDA: €48.8m Profits: €38.2m €22.3m, Q3 2020 €12.2m, Q3 2020 Cash flow statement highlights EB
Slide 7: YTD 2021 Financial Results
YTD 2021 Financial Results Robust free cash flow has increased net cash position to ~€90m Income statement highlights Revenue: €304.3m Op. costs: €(156.1)m €183.6m, YTD 2020 €(139.2)m, YTD 2020 EBITDA: €148.2m Profits: €104.2m €44.4m, YTD 2020 €18.2m, YTD 2020 Cash flow statement highlights Operatin
Slide 8: Dividend Information
Dividend Information Atalaya announced its inaugural dividend and future dividend policy on 27 October 2021 Inaugural Dividend Future Dividends ▪ US$0.395 per ordinary share ▪ Atalaya’s Philosophy: ‒ Total payment of ~US$54.6 million ‒ Reward shareholders through a sustainable ‒ Represented a divide
Slide 9: Riotinto District Vision
Riotinto District Vision
Slide 10: Potential Future Processing Hub
Potential Future Processing Hub Atalaya’s vision for the Riotinto District will leverage existing infrastructure and yield synergies Key Operations in the Iberian Pyrite Belt ▪ Riotinto’s 15 Mtpa mill could Aguas Teñidas become a central processing hub Magdalena for ore sourced from Atalaya’s region
Slide 11: Existing Orebodies at Riotinto
Existing Orebodies at Riotinto Significant potential from unmined orebodies located adjacent to current open pit 11
Slide 12: San Dionisio Deposit
San Dionisio Deposit Orebody sits in close proximity to existing infrastructure and current open pit operations Location Riotinto 15 Mtpa processing plant San Dionisio deposit Cerro Colorado pit 12
Slide 13: Proyecto Masa Valverde
Proyecto Masa Valverde Among the largest undeveloped VMS deposits in the prolific Iberian Pyrite Belt Location in Riotinto District ▪ Background: ‒ Acquired in October 2020 ‒ Project area includes two exploration permits that cover an area of ~4,000 hectares ▪ Current activities: ‒ Exploration campa
Slide 14: Masa Valverde Exploration Update
Masa Valverde Exploration Update Approved extension of ongoing drilling programme following encouraging results Recent Drilling Highlights ▪ Recent drilling intersected broad intervals of massive and stockwork type polymetallic sulphide mineralization ‒ Including significant high grade intercepts at
Slide 15: Masa Valverde Deposit
Masa Valverde Deposit Mineralized system still open in several directions 15
Slide 16: Illustrative Production Potential
Illustrative Production Potential Potential to increase production and LOM by sourcing higher grade ore from the district Copper Production (kt) Illustrative Copper Production Uplift (kt)(1)(2) Ore feed from satellite deposits (Mt) 8.2 0.5 1.0 2.0 3.0 4.0 5.0 0.50% 1 1 2 3 4 5 0.55% 1 1 3 4 6 7 0.60
Slide 17: MATSA Transaction Benchmarking
MATSA Transaction Benchmarking Sandfire’s acquisition of MATSA highlights Atalaya’s strategic positioning Key Metrics ▪ Sandfire Resources (ASX: SFR) MATSA recently announced the premium acquisition of MATSA for to ATYM ~US$1.9 billion in cash Transaction metrics Current trading metrics ‒ MATSA is A
Slide 18: ESG Strategy Update
ESG Strategy Update
Slide 19: ESG Strategy Update
ESG Strategy Update Following strategy review, focus is on continued implementation & enhanced disclosure Highlights & Recent Achievements Continued Focus for 2021+ ‒ Adherence to UN Global Compact ‒ Provide continuity in the development of corporate policies ‒ Creation of Atalaya sustainability tea
Slide 20: ESG Strategy Update (continued)
ESG Strategy Update (continued) Following strategy review, focus is on continued implementation & enhanced disclosure Highlights & Recent Achievements Continued Focus for 2021+ ‒ Environmental impact monitoring and measurement program with 40 checkpoints ‒ Riotinto carbon footprint calculated (Scope
Slide 21: Conclusion
@ Atataya Conclusion
Slide 22: Key Priorities for 2021 and Beyond
Key Priorities for 2021 and Beyond Continued focus on operational excellence, sustainability and delivering growth ‒ Meet or exceed original annual production and cost guidance (on track – guidance improved) ‒ Continue to safely manage COVID situation (on track) 2021 ‒ Advance growth options – E-LIX
Slide 23: Appendix
Appendix
Slide 24: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (12-Nov-21) GBp 399 Basic shares m 138.2 Fully-diluted shares m 142.1 Market capitalisation (basic) £m 551 Market capitalisation (basic) US$m 737 Cash (at 30-Sept) €m 141 Debt & leases (a
Slide 25: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Enterprise Value (US$m)(1) 2021e Production (kt CuEq)(2) 2021e EBITDA (US$m)(3) 2021e Free Cash Flow (US$m)(4) 1. Fully diluted in-the-money basis; as at 12-Nov-2021 3. FactS
Slide 26: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Net Debt / Enterprise Value EV / Prod’n 2021e (US$/t CuEq)(1) EV / EBITDA 2021e(2) 2021e Free Cash Flow Yield(3) 1. Attributable production; based on midpoint of guidance by
Slide 27: AISC Benchmarking
AISC Benchmarking Atalaya is well-positioned despite its mining contractor model and low by-product credits Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 27
Slide 28: Cerro Colorado Reserve Update
Cerro Colorado Reserve Update New independent reserve estimate confirms status as a long-life copper mine Reserves as at Dec-2020 ▪ New reserve estimate supports Total Strip mine life of over 12 years at Classification Ore Cu Grade Waste Material Ratio kt kt kt w:o nameplate capacity of 15 Mtpa Prov
Slide 29: E-LIX System
E-LIX System Potential to unlock additional value from Atalaya’s existing orebodies and beyond Pilot plant Overview ▪ Newly developed electrochemical extraction process developed and patented by Lain Technologies ‒ Involves the application of singular catalysts and physicochemical conditions ‒ Atala
Slide 30: 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 31: Proyecto Touro Update
Proyecto Touro Update Permitting Process Ongoing Engagement ▪ Following receipt of formal communications from the ▪ Regular meetings with local stakeholders Xunta de Galicia in relation to the Environmental Impact Statement, Atalaya continues to evaluate its options to ▪ Information office open to t
Slide 32: 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