Slide 1: Riotinto Copper Project
RIOTINTO COPPER PROJECT A new European-based copper company October 2015
Slide 2: Disclaimer
Disclaimer The information contained in this document invitation to subscribe for or purchase any securities and of economic evaluations; changes in project parameters as (“Presentation”) has been prepared by Atalaya Mining Public neither this Presentation nor anything contained herein shall plans c
Slide 3: Name Change
Name Change The Company is proposing to change its name to: “Atalaya Mining plc” Why Atalaya? • Corta Atalaya, once Europe’s largest open-pit mine, is part of the Company's flagship Riotinto Copper Project • The village of La Atalaya, meaning lookout or vantage point, was founded in 1883 to accommod
Slide 4: New Identity
New Identity • Logo: In-keeping with the Spanish Proyecto Riotinto branding • Design: Employee participation in its creation • Image: Depicting a rising sun behind the silhouette of the open cut • Branding: Representation of the dawn of a new era and a bright future for the Company 4
Slide 5: Share Consolidation
Share Consolidation The Company has initiated a 30:1 share consolidation in an effort to reinvigorate its presence in the global capital markets by reducing the number of Ordinary Shares in issue to a level more in line with comparable AIM and TSX listed companies The directors believe the Consolida
Slide 6: Why Invest?
Why Invest? ASSETS MANAGEMENT CAPITAL • Low capital intensity • Experienced new team • June 2015 financing brownfields project in with proven US$95m fully safe political development and subscribed jurisdiction operating track record • Fully financed to • New copper producer • Important in-country 7.
Slide 7: Project Overview
Project Overview Existing infrastructure refurbished ahead of schedule Commissioning currently under way Ramping to 7.5Mtpa ROM for 37,500tpa Cu in concentrate (Phase 1 Expansion) Potential increase to 9.0-10.0Mtpa for 45,000tpa Cu in concentrate (Phase 2) LOM C3 costs US$1.90/lb Proven &
Slide 8: What's Changed?
What’s Changed? NEW EXPERIENCED MANAGEMENT TEAM HAS DELIVERED A producing copper mine Significant reduction in ahead of schedule during total Capex and increased difficult market conditions production profile ahead of FS plans US$95m equity financing covering Capex for Phase1 Environmental and Socia
Slide 9: Strong Technical & Financial Expertise
Strong Technical & Financial Expertise Over 36 years’ experience operating and developing mining projects. Former President, CEO and COO of Rio Narcea Alberto Lavandeira Gold Mines (1995-2007), which built three mines including Chief Executive Officer Aguablanca. Director of Samref Overseas S.A (200
Slide 10: US$95m equity financing completed
US$95m equity financing completed Capital costs revised Reconciliation of Current Capital Cost Estimate to Behre Dolbear NI 43-101 Report Revised estimate from US$50m targeted capital expenditure reductions announced in Sept 2014 Note: Numbers may not add due to rounding 1. Behre Dolbear NI 43-101 R
Slide 11: Phase 1 Progress
Phase 1 Progress Under budget and ahead of schedule Timeline to Completion 11
Slide 12: Current Operating Plan Overview
Current Operating Plan Overview Q2 2015 milestones Blasting Studying First recommenced expansion and concentrate Started wet optimization of produced commissioning existing tailings storage within August 2015 Ore delivered to current footprint crusher and pre- to minimize stripping started costs 12
Slide 13: Infrastructure and Site Layout
Infrastructure and Site Layout Power BADAJOZ Initial connection to the grid at 24MW HV – HUELVA SEVILLA expanding to 31MW in September Water 5 million m³ of clean water available. Water in pits to be treated and re-used, minimizing use of external water and discharge Tailings Capacity of ~4 ye
Slide 14: Phase 1 Low Capital Intensity
Phase 1 Low Capital Intensity Existing infrastructure CRUSHING AND SCREENING SECONDARY & TERTIARY PRIMARY CRUSHER AREAS CRUSHER BELT FEEDER NO.4 TESTING CONCENTRATE FLOTATION TESTS TAILINGS FACILITIES THICKENER 14
Slide 15: Phase 1 US$62m Capex Savings
Phase 1 US$62m Capex Savings Through refurbishment program FINE STORAGE FEEDERS FLOTATION AREA FLOTATION – FIRST AGITATORS CLEANER DISTRIBUTOR FINE ORE STOCKPILE SECONDARY AND GRINDING AREA BUILDING TERTIARY CRUSHING AREA 15
Slide 16: Phase 1
Phase 1 SUBSTATION REAGENTS PLANT CONTROL ROOM CONCENTRATE PRESS FILTER LABORATORY NEW THICKENERS 16
Slide 17: Phase 1 Expansion and Phase 2
Phase 1 Expansion and Phase 2 PHASE 1 EXPANSION – 7.5MTPA PHASE 2 – 9.5MTPA Phase 1 Expansion construction work well advanced Phase 2 modelling under way to expand production to 9.5Mtpa with new milling and flotation capacity 17
Slide 18: Expansion to 9.5Mtpa
Expansion to 9.5Mtpa Timeline to Completion 18
Slide 19: Exploration
Exploration Riotinto Copper Project sits in world’s largest VMS system Prior to 2014, no exploration drilling for 25 years Since 2014 >17,000 metres of RC drilling within the pit to increase reserves Priority exploration targets include existing mineralisation at Cerro Colorado and neighbourin
Slide 20: Organic Growth Potential
Organic Growth Potential Minimal exploration conducted at depth where high grade potential exists around historical underground workings Compilation of all existing drilling data based on detailed geological reinterpretation resulted in a better understanding of higher grade deposits outsi
Slide 21: Organic Growth Potential (cont'd)
Organic Growth Potential (cont’d) Work in progress by QP to classify historical estimates as mineral reserves and resources On completion, an independent consultant will evaluate the results in order to produce an NI 43-101 compliant resource estimate Conceptual studies on treatment of mixed P
Slide 22: District Potential
District Potential Licences are located at eastern end of the highly prospective Iberian pyrite belt, which extends ~230km between Seville in the east and Atlantic coast near Lisbon in the west 140mt copper ore have been produced from Project Riotinto since Roman times Within the pyrite belt,
Slide 23: Corporate Snapshot
Corporate Snapshot Overview² Major Shareholders Atalaya Mining Public Limited Tickers to change to AIM:ATYM / Holder # shares % ISC TSX:AYM Exchanges AIM :EMED / TSX:EMD Share price (GB pence) 3.97p Urion Mining International (Trafigura) 770,530,339 22.0 Share price (CAD) 0.08 CAD Shares Outstanding
Slide 24: Market Positioning
Market Positioning P/NAV (x) Producers Pre-production/Feasibility Reserves development/Exploration Source: Thomson Reuters as at COB 04/09/2015 24
Slide 25: Share Price Comparison
Share Price Comparison Compared with other producers, Atalaya ’s share price has held up well at a time of depressed copper prices 25
Slide 26: Copper Market Outlook
Copper Market Outlook Short term - supply expected to Copper Supply / Demand Outlook1 exceed demand. Market expected 250 170 188 4.5 200 4.0 to shift to deficit in 2016 150 3.81 3.76 3.5 3.72 Surplus/Deficit (kt) 100 74 3.0 Price (US$/lb) 3.33 3.35 50 3.1 2.91 2.5 - 2.0 (50) Decrease in refined
Slide 27: Investment Case
Investment Case Project de-risked Well positioned to survive low copper price environment Production commencement Fully financed ahead of through Phase schedule and 1 Expansion under budget (7.5Mtpa) A NEW COPPER COMPANY THAT DELIVERS Infrastructure refurbished – Supportive low capital strategic int
Slide 28: Contact
Contact Alberto Lavandeira Adán CEO Telephone: +34 959 59 28 50 Email: info@emed-mining.com Investor Relations North America Michelle Roth Roth Investor Relations Telephone: +1 732 792 2200 Email: michelleroth@rothir.com Investor Relations UK and Europe Carina Corbett 4C Communications Ltd Telephone
Slide 29: Strong Technical & Financial Expertise
Strong Technical & Financial Expertise Roger Davey Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; former Director, VP and GM, AngloGold (Argentina). Currently a Chairman director of Orosur Mining Inc. and Condor Gold Plc. Non-Executive Over 3
Slide 30: Strong Technical & Financial Expertise
Strong Technical & Financial Expertise Damon Barber Senior Managing Director of Liberty Metals & Mining Holdings, LLC. Formerly held positions with mining companies and served as the Head of Deutsche Bank's Metals Non-Executive Director Mining investment banking practice in Asia-Pacific. Spent more
Slide 31: Cost Breakdown from NI 43-101
Cost Breakdown from NI 43-101 (*) Possible savings identified by Behre Dolbear from possible reductions in mining and maintenance contractor charges, lower lime costs and a steepening of pit wall angles to reduce waste mining none of which are assured at this time. (**) Excludes Non operating costs
Slide 32: Reserves and Resources
Reserves and Resources Open Pit Mineral Reserves and Resources¹ Ore (Mt) Copper (%) Copper (kt) Reserves Proven 39 0.38 148 Probable 84 0.54 458 Total Reserves 123 0.49 606 Resources Measured 48 0.38 180 Indicated 155 0.49 760 Total Measured & 203 0.46 930 Indicated Inferred 2 0.50 10 1. Behre Dolbe
Slide 33: Transaction Impact
Transaction Impact Shareholder Structure (Post Transaction) Trafigura 100% Liberty Orion Mine Urion Other XGC Minerals Finance Holdings 27.52% 13.98% 21.93% 14.56% 22.01% 4% KEFI Investor Description % ISC Atalaya Minerals Mining Plc Plc One of the world’s leading independent commodity 22.01% 100% t
Slide 34: Transaction Impact (cont'd)
Transaction Impact (cont’d) Key Investor Rights (post transaction) Company Agreement Terms • Subscription Pre-emptive right over further issues of equity shares1 XGC Agreement One board seat2 • Offtake Agreement Offtake granted over 49.12% of life of mine reserves in the Technical Report Orion
Slide 35: Transaction Impact (cont'd)
Transaction Impact (cont’d) Key Investor Rights (post transaction) Company Agreement Terms Exclusive agreement to provide agency services to Company on all concentrate sold Agency Agreement For the first 932,000 dmt concentrate sales a base marketing fee of EUR11.25/dmt of concentrate sold is pa
Slide 36: Mining Industry in Spain
Mining Industry in Spain 1 2 6 Significant Mining Rio Tinto Copper Project Aguas Teñidas Infrastructure Copper Copper, zinc Substation located 3 4 Power 1km from mine site 5 10 7 Supplied from Las Cruces 9 SPAIN Aguablanca Copper Nickel, copper Campofrio reservoir 3km away Water 5 6 and Aguas Limpia