Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q1 2022 Earnings Presentation
36 slides from Atalaya Mining Copper Sa's earnings presentation, May 19, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 Financial Results Premier pure-play copper producer in Europe 19 May 2022
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: Q1 2022 Financial Results
Q1 2022 Financial Results
Slide 4: Review of Q1 2022
Review of Q1 2022 ‒ Copper production of 11,461 tonnes, as a result of lower throughput following transport sector strike, bringing forward of maintenance and lower grades due to pit sequencing Operating ‒ AISC of $3.59/lb, due to reduced volumes, high electricity prices and input cost inflation & F
Slide 5: 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 6: Q1 2022 Production Results
Q1 2022 Production Results 2022 guidance maintained despite transport strike and grade impact on Q1 production Ore Throughput (Mt) Copper production 11,461 tonnes Cu 13,979 | Q1 2021 Throughput and recoveries 3.5 Mt ore processed 0.37% Cu ore grade Copper Recovery 4.0 | Q1 2021 0.41% | Q1 2021 86.07
Slide 7: Q1 2022 Financial Results
Q1 2022 Financial Results Good financial performance despite impact of energy prices, inflation & transport strike Revenues (€m) Income statement highlights Revenue: €86.3m Op. costs: €(54.8)m €97.4m | Q1 2021 €(48.0)m | Q1 2021 EBITDA: €26.7m Profits: €18.3m €47.4m | Q1 2021 €33.7m | Q1 2021 Cash f
Slide 8: Energy Market Update
Energy Market Update Pricing environment remains highly unusual but is expected to normalise Electricity Generation by Technology(1) ▪ Spain’s electricity generation capacity is dominated by carbon-free and renewable energy sources ‒ Natural gas (combined cycle) and coal represent ~10% of output 16.
Slide 9: 2022 Guidance
2022 Guidance Maintaining full year guidance despite lower Q1 throughput and grades Operational Guidance ▪ Production ‒ Q1 was lower than expectations, Ore mined Mt 15.5 due to lower grades (pit sequencing) and temporary plant shutdown following transport Waste mined Mt 23.4 sector strike ‒ Improvem
Slide 10: Electricity Procurement Strategy
Electricity Procurement Strategy Reducing energy costs and exposure to spot market, while lowering carbon footprint Location of 50MW Solar Plant ▪ Atalaya continues to execute on its strategy of reducing its carbon footprint, energy costs and exposure to the volatile spot market ‒ 50MW solar plant:
Slide 11: Update on Project Pipeline
Update on Project Pipeline
Slide 12: Project Pipeline
Project Pipeline Diverse portfolio of growth options that can leverage common or existing infrastructure Expertise to rapidly execute on capital projects, as demonstrated by Riotinto’s re-start and expansions to 15 Mtpa Exploration Resource Est. Resource Est. PEA / Permitting PFS / FS Producing Prod
Slide 13: San Dionisio and San Antonio Deposits
San Dionisio and San Antonio Deposits Significant potential from unmined deposits located adjacent to current open pit San Antonio Eastern extension of the historical Planes deposit San Dionisio West extension of Cerro Colorado pit 13
Slide 14: San Dionisio and San Antonio Deposits
San Dionisio and San Antonio Deposits Resource estimate grades are significantly higher than existing Cerro Colorado reserves Independent Mineral Resource Estimates(1)(2) ▪ New independent Mineral Tonnage Cu Grade Zn Pb Resource Estimates were Mt announced for the San Open Pit: Measured & Indicated
Slide 15: San Dionisio Conceptual Pit
San Dionisio Conceptual Pit West extension of Cerro Colorado pit Aerial Plan View of Pit Rim Vertical Section of Economic Shell 15
Slide 16: San Antonio Location
San Antonio Location Situated east of the Cerro Colorado pit 16
Slide 17: Conceptual Development Plans
Conceptual Development Plans San Dionisio San Antonio Open Pit Open Pit Underground Underground Copper Resource Polymetallic Resource Tonnage 29.0 Mt (M&I) 27.0 Mt (M&I) 12.4 Mt (Inf) 11.8 Mt (Inf) 0.78% Cu 1.06% Cu 1.01% Cu 1.32% Cu Grade 0.27% Zn 2.07% Zn 2.54% Zn 1.79% Zn 0.06% Pb 0.41% Pb 0.62%
Slide 18: PMV – New Mineral Resource Estimate
PMV – New Mineral Resource Estimate Significant increase in tonnage and contained copper, silver and gold vs. prior estimate 2022 Mineral Resource Estimate(1)(2) ▪ Announced a new Mineral Grade Resource Estimate for Proyecto Tonnage CuEq Cu Zn Pb Ag Au Mt g/t g/t Masa Valverde in April 2022 Masa Val
Slide 19: Masa Valverde and Majadales Deposits
Masa Valverde and Majadales Deposits Wireframes of Mineral Resource Estimate Planned Ramp Access Masa Valverde Ramp Majadales Majadales Masa Valverde 19
Slide 20: Masa Valverde – Grade Distribution
Masa Valverde – Grade Distribution 20
Slide 21: PMV – Conceptual Development Plan
PMV – Conceptual Development Plan Stockwork Polymetallic Copper Zone Copper-Zinc-Lead Zone Tonnage 18.1 Mt (Ind & Inf) 72.3 Mt (Ind & Inf) 0.87% Cu 0.56% Cu 0.56% Zn 1.48% Zn Grade 0.15% Pb 0.73% Pb 9 g/t Ag 35 g/t Ag 0.18 g/t Au 0.72 g/t Au Mining Method TBD (PEA to evaluate selective and bulk mini
Slide 22: Illustrative Production Potential
Illustrative Production Potential Potential to increase production and LOM by sourcing higher grade material from the district 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%
Slide 23: E-LIX System
E-LIX System Demonstrated ability to produce clean metal precipitates and/or high purity metals Concentrate Warehouse at Pilot Plant Copper Electrolyte & Copper / Zinc Precipitate Copper Cathode, Zinc Cathode & Zinc Ingot 23
Slide 24: Touro – Water Treatment Plant
Touro – Water Treatment Plant Atalaya has volunteered to address legacy water runoff issues from historical operations Before After 24
Slide 25: Key Activities for 2022
Key Activities for 2022 50MW solar plant: Construction under way Proyecto Masa Valverde: PEA, permitting, continued exploration San Dionisio / San Antonio: New Riotinto NI 43-101 technical report pending, PEA, permitting Touro: Permitting process continues, installation of water treatment plant to r
Slide 26: Appendix
Appendix
Slide 27: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Ticker - TSX AYM Share price (13-May-22) GBp 345 Basic shares m 139.9 Fully-diluted shares m 142.2 Market capitalisation (basic) £m 483 Market capitalisation (basic) US$m $589 Cash (at 31-Mar) €m 128 Debt (at 31-Mar)
Slide 28: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Undervalued producer with balance sheet strength and portfolio of organic growth options Enterprise Value (US$m)(1) 2022e Production (kt CuEq)(2) 2022e EBITDA (US$m)(3) 2022e Free Cash Flow (US$m)(4) Incl. Mantos Incl. MATSA Incl. MATSA Incl. Mantos 1. Fully dilu
Slide 29: 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 2022e (US$/t CuEq)(1) EV / EBITDA 2022e(2) 2022e Free Cash Flow Yield(3) Note: Net debt, EV, and production reflect recent acquisition
Slide 30: MATSA Transaction Benchmarking
MATSA Transaction Benchmarking Sandfire’s acquisition of MATSA highlights Atalaya’s strategic positioning Key Metrics ▪ Sandfire Resources (ASX: SFR) MATSA completed the acquisition of premium MATSA for ~US$1.9 billion in to ATYM cash in February 2022 Transaction metrics Current trading metrics ‒ MA
Slide 31: Dividend Information
Dividend Information In 2021, Atalaya paid its inaugural dividend and announced a future dividend policy Inaugural Dividend Future Dividends ▪ Announced on 27 October 2021 ▪ Atalaya’s Philosophy: ‒ Record date of 5 November 2021 ‒ Reward shareholders through a sustainable ‒ Paid on 1 December 2021 d
Slide 32: AISC Benchmarking
AISC Benchmarking Atalaya is well-positioned despite its mining contractor model and low by-product credits Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 32
Slide 33: 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 Riotinto 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 - - 0
Slide 34: Senior Management
Senior Management Decades of operations, project development and financial expertise Alberto César Enrique Lavandeira Sánchez Delgado Chief Executive Officer, Director Chief Financial Officer Operations – General Manager, Proyecto Riotinto Over 42 years’ experience operating Former CFO of companies
Slide 35: Board of Directors
Board of Directors Mining, capital markets, sustainability and finance expertise Non-Executive Over 45 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 36: 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