Atalaya Mining Copper SA · LSE:ATYM
Atalaya Mining Copper SA — Atalaya Mining — Investor Presentation (November 2015)
31 slides from Atalaya Mining Copper SA's investor presentation, November 2015
Slide 1: Riotinto Copper Project
RIOTINTO COPPER PROJECT An established operating copper company in Europe November/December 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 Plc neither this Presentation nor anything contained herein shall plans cont
Slide 3: Uses and Attributes of Copper
Uses and Attributes of Copper Copper has been in use for 7,000 years • Electricity (wiring, power generators) • Heating (pipes, radiators) Old tech • Household utensils Largest use of • Industrial machinery and equipment copper in • Jewellery a single structure • Electronics (cars, mobile phones, TV
Slide 4: The Case for Copper
The Case for Copper Copper supply/demand balance Global copper supply is forecast to be in deficit in 2016 following production cuts and mine disruptions Production cuts in 2015 resulted from 16% fall in LME prices Short term demand negligible; medium and longer term much more robust Source: C
Slide 5: Short Term Copper Supply
Short Term Copper Supply LME inventories trending down from both scrap supply reductions and mine production curtailments Recent supply has continued to weaken with decreasing grades and disruptions impacting production Many new projects behind schedule owing to technical complexities, slow ramp
Slide 6: Long Term Copper Supply
Long Term Copper Supply Supply: growth will continue to be challenged A growing number of new projects are located in riskier jurisdictions with lack of infrastructure, hence greater capital intensity Power and water availability increasingly an issue Declining grades, resulting in higher cost
Slide 7: Short Term Demand for Copper
Short Term Demand for Copper China offers plenty of growth potential despite slowdown in GDP growth China China is in transition from an investment- led to a consumer-based economy – lower growth off a higher base Chinese interest rate cuts are now geared towards stimulating consumer spending Ot
Slide 8: Long Term Demand for Copper
Long Term Demand for Copper Infrastructure projects for G20 nations will total US$60 trillion by 2030 China and India will account for 50% of global demand by 2020 Estimated that ⅔ of world’s population will live in cities, up from ~ 54% today Global growth anticipated at 4% YoY between 2013 a
Slide 9: Atalaya – highly leveraged to the copper price
Atalaya – highly leveraged to the copper price There are no associated discounts. Here’s why: Operates in politically safe jurisdiction Low capital intensity project Low grade but consistent orebody which is well understood Profitable at current copper prices Fully financed - no debt Exp
Slide 10: Project Overview
Project Overview existing infrastructure refurbished ahead of schedule Commissioning currently under way – first concentrate produced in Aug 2015 Nominal capacity at 5 Mtpa – expected from Jan 2016 Ramping up to 7.5Mtpa for 37,500tpa Cu in concentrate (Phase 1 Expansion) ahead of schedule and
Slide 11: Existing Infrastructure = low capex
Existing Infrastructure = low capex Power Connection to the grid at 31MW HV – site is fully energized 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 years with minimal work required –
Slide 12: Significant capex savings
Significant capex savings $62m direct cost savings $24m currency related savings $31m deferred costs (may PRIMARY CRUSHER BEFORE & AFTER be unnecessary) CONSTRUCTION TIME REDUCED from 36 months FINE ORE STOCKPILE BEFORE & AFTER to < 2 yrs FIRST PRODUCTION Achieved in < 1 year instead of 18 mon
Slide 13: Operating Plan Overview
Operating Plan Overview Q4 and looking ahead to 2016 Ramp-up started in Key components for 1st Phase 2 expansion to October - over 90% of expansion received on 9.5Mtpa to be financed production target site from cash flow and/or achieved working capital Advancing start-up of Commercial prod
Slide 14: Phase 1 Expansion – 7.5Mtpa
Phase 1 Expansion – 7.5Mtpa Engineering and design completed Mill civil works nearly finished Mill parts delivered in late November Expected completion date (mid-2016) Budget likely to be improved June August November 14
Slide 15: Phase 2 Expansion – 9.5Mtpa
Phase 2 Expansion – 9.5Mtpa Anticipate an earlier Phase 2 completion date at lower under way cost to expand production to Installation will coincide 9.5Mtpa with with production reaching new milling and flotation 7.5 Mtpa capacity Secondary mill almost complete Estimated arrival of main comp
Slide 16: Exploration
Exploration Organic growth potential Priority exploration targets include existing mineralisation at Cerro Colorado and neighbouring deposits Minimal exploration conducted at depth where high grade potential exists around historical underground workings Conceptual studies ongoing on treatment
Slide 17: District Potential
District Potential World’s largest VMS system 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
Slide 18: Corporate Snapshot
Corporate Snapshot Overview¹ Major Shareholders Atalaya Mining Plc Holder # shares % ISC Exchanges AIM:ATYM / TSX:AYM Urion Mining International (Trafigura) 25,684,344 22.0 Share price (GB pence) 70.0 Share price (CAD) 1.30 Hong Kong Xiangguang International Shares Outstanding 116,679,555 25,588,527
Slide 19: 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 20: Contact
Contact Alberto Lavandeira Adán CEO Telephone: +34 959 59 28 50 Email: info@atalayamining.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 Telepho
Slide 21: Appendix
APPENDIX 21 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: Astor Management
Astor Management 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 payable plus with EMED Marketing additional escalati
Slide 30: 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
Slide 31: eee -ereeeseneagses
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Atalaya Mining — Investor Presentation (November 2015) on 6ix