Slide 1: A low risk copper producer in Europe
A low risk copper producer in Europe May 2017 AIM:ATYM / TSX:AYM
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has commitment whatsoever. Each party to whom this Presentation is equipment or processes to operate as anticipated; accidents, been prepared by Atalaya Mining Plc (the “Company”). While the made available must make its own indep
Slide 3: Highlights
Highlights A low risk copper producer in Europe Assets located in Spain - a EL FERROL Port prolific mining jurisdiction A CORUÑA Port Established and modern VILAGARCIA Port TOURO infrastructure Low capital intensity Proven management team Mine builders and operators with considerable exper
Slide 4: Proyecto Riotinto
Proyecto Riotinto Located in an established mining jurisdiction with good infrastructure links RIOTINTO HUELVA SEVILLE Matsa 0 50 100 km (Trafigura & E-803 Mubadala) Las Cruces Proyecto Riotinto (First Quantum) N-435 A-4 Aznalcollar (Grupo México) E-1 A-49 Seville Huelva A-92 Atlantic Copper SPAIN S
Slide 5: Plan view
Plan view AIM:ATYM / TSX:AYM 5
Slide 6: Production
Production* Nameplate capacity (9.5 Mtpa) achieved December 2016** Production guidance for 2017: 34,000 – 40,000 tonnes of copper *Except for Cu production (t) figures represent quarters’ average results ** Q1 2016 started in February when commercial production was established. AIM:ATYM / TSX:AYM 6
Slide 7: Q1 2017 Operating Results
Q1 2017 Operating Results Highlights April production towards the high end of guidance for 2017 Ore Mt Cu kt Recoveries FY 2016 6.5* 26.1 83.29% Q1 2017 2.3 8.8 84.63% End of ramp up Dec Cu Concentrate Production Results 2016 within specs in line with targets Total +200% * Numbers do not total due
Slide 8: Operating Margins
Operating Margins Lower cash costs in Q1 owing to reduced penalties and lower TC/RCs Average Company Realised Total Cash Costs Market Cu Price per Cu Price per lb lb per lb FY 2016 $1.95 $2.21 $2.25 Q1 2017 $1.83 $2.65 $2.48 Further operating cost reductions anticipated as plant optimisation effor
Slide 9: Costs
Costs Guidance for 2017 - 2019 Source: Company records for 3 years guidance. LOM* (life-of-mine) costs based on NI 43-101, September 2016. AIM:ATYM / TSX:AYM 9
Slide 10: Reserves and Resources
Reserves and Resources The pit design and internal cut-off grade are based on a long term copper price of US$2.60/lb. Resources are pit-constrained at US$3.20/lb Cu Ore (Mt) Copper (%) RESERVES* Proven 78 0.45 Probable 75 0.44 TOTAL 153 0.45 RESOURCES (inclusive of reserves)* Measured 90 0.43 Indica
Slide 11: Planned exploration
Planned exploration Limited exploration to date on lateral extensions to Cerro Colorado as main focus has been on confirmation of open pit potential 11,949 metres drilled (DDH) in 2015 7,778 metres thus far in 2016 Exploration programme will be increased once steady state production achieved
Slide 12: Proyecto Touro
Proyecto Touro Historic Rio Tinto Operation Touro Mine, 2012 AIM:ATYM / TSX:AYM 12
Slide 13: Proyecto Touro
Proyecto Touro TOURO Convenient location vis-à-vis Proyecto Riotinto RIOTINTO Excellent Infrastructure Easy access to existing highways, rail and power Local skilled workforce El Ferrol Access to ports 80 km to port of Villagarcía de Arousa which was used by the previous operator, Riotin
Slide 14: Proyecto Touro Highlights
Proyecto Touro Highlights Exclusivity option exercised Drilling and studies ongoing Campaign of 7,900m planned Straightforward metallurgy Permitting started Ongoing quarrying activities CAPEX ≈ Production level ≈ Open-pittable resource €200/250 m Cu 30,000 • Historical non compliant tpa
Slide 15: Proyecto Touro Highlights (cont'd)
Proyecto Touro Highlights (cont´d) Next Steps Q2 - update resource and reserve model Q4 - NI 43-101 pre-feasibility study Development Timeline Permitting approximately 12 months Development 18 to 24 months Ramp-up 9 months 2017 budget • ≈$0.8M • For exploration and engineering studies
Slide 16: Proyecto Touro Exploration
Proyecto Touro Exploration Previous mining combined with more recent exploration work gives us a good understanding of the deposit Dates Company DD holes RC holes DD/RC DD meters RC meters 2016-2017 Atalaya 1 80 22 1.218 9,540 2015-2016 Atalaya 4 124 24 2,048 12,230 2012 Lundin 169 - - 20,281 - 60´s
Slide 17: The deposit: considerable size and still open
Proyecto Touro The deposit: considerable size and still open Legend Typical sections (m): AIM:ATYM / TSX:AYM 17
Slide 18: Process engineering under way
Proyecto Touro Process engineering under way Metallurgical test works completed Well known metallurgy with excellent recoveries and clean high grade concentrates AIM:ATYM / TSX:AYM 18
Slide 19: Process engineering under way
Proyecto Touro Process engineering under way Parallels with Riotinto expansion project Management confident with Capex projections and projected timeline Riotinto actual Touro projected AIM:ATYM / TSX:AYM 19
Slide 20: Terms of the deal
Proyecto Touro Terms of the deal 1.25B lb of Option earn-in agreement up to contained Cu an 80% interest in Touro Copper according to Project historic non- for a maximum total consideration compliant resource of €18.5 million estimates equivalent to less than US$0.02/lb Cu resources in the gro
Slide 21: Atalaya positioning vs. copper peers
Atalaya positioning vs. copper peers Enterprise Value (US$mm) (1) 2017e copper production (kt) (2) Total Resource grade (% Cu) Atalaya $230 Atalaya 42 Atalaya 0.45% Imperial Metals $1,008 Capstone 86 Avanco 1.73% Capstone $577 Imperial Metals 51 Capstone 0.33% Taseko $421 Taseko 45 Imperial Metals 0
Slide 22: Attractive valuation metrics
Attractive valuation metrics Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA (1) Atalaya 12% Atalaya $5,491 Atalaya 4.3x Avanco nmf Capstone $6,701 Taseko 4.2x Central Asia Metals nmf Taseko $9,436 Capstone 4.3x Taseko 40% Avanco $10,904 Avanco 4.9x Capstone 42%
Slide 23: Copper Developers & Producers
Copper Developers & Producers Capital Intensity* Proyecto Riotinto $4,000 Source: Wood Mackenzie *Capital expenditure to t Cu produced per year AIM:ATYM / TSX:AYM 23
Slide 24: Copper Price
Copper Price Global Scenario Copper price of $3.30/lb necessary to prompt investment, assuming minimum 15% IRR, well above the current price * Other than Cobre Panamá (FQM) and Oyu Tolgoi (Rio) no significant developments in pipeline Global Cu mining industry Capex vs. mined production and ind
Slide 25: Corporate snapshot
Corporate snapshot Major Shareholders Holder # shares % ISC Overview¹ Urion Mining International (Trafigura) 25,684,344 22.0 Exchanges AIM: ATYM / TSX: AYM Share price (GB pence) 134.5 Yanggu Xiangguang Copper (XGC) 25,588,527 21.9 Share price (CAD) 2.39 Orion Mine Finance 16,986,609 14.6 Shares Out
Slide 26: Investment Case
Atalaya Mining Investment Case A long term option on copper Growth by building on initial success at Riotinto through acquisition and exploration Geographic preferences: Europe, Central and South America Benefits of culture and language Management team with proven track record Supportive
Slide 27: Contact
Contact Alberto Lavandeira CEO Telephone: +34 959 59 28 50 Email: info@atalayamining.com Investor Relations North America Investor Relations UK and Europe Michelle Roth Carina Corbett Roth Investor Relations 4C Communications Ltd Telephone: +1 732 792 2200 Telephone: +44 20 3170 7973 Email: michelle
Slide 28: Appendix
APPENDIX AIM:ATYM / TSX:AYM 28
Slide 29: Share performance
Share performance Price and Volumes AIM:ATYM / TSX:AYM 29
Slide 30: Senior management
Senior management Strong Technical & Financial Expertise Team with proven and lengthy experience in the start-up and operation of Alberto Lavandeira mines in Spain and internationally, supported by local and international Chief Executive Officer, Director consultants Over 37 years’ experience operat
Slide 31: Board of Directors
Board of Directors Strong Technical & Financial Expertise Alberto Lavandeira CEO, Director Roger Davey Jesús Fernández Harry Liu Jonathan Lamb Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Over 40 years’ experience in the Head of the M&A team for Vice Pr
Slide 32: Capex reduction
Capex reduction No senior debt Phase 1 (5.0Mtpa) Phase 1 + Expansion (9.5Mtpa) Capex (incurred) US$82 Million Capex (approx.)* US$ 150 Million Cu production 25,000 tpa Cu production 40,000 tpa Capital intensity US$3,280 tpa Cu Capital intensity US$ 4,000 tpa Cu The 2013 NI 43-101 anticipated direc
Slide 33: Key Investor Rights
Key Investor Rights Company Agreement Terms XGC • Subscription Agreement * Pre-emptive right over further issues of equity shares1 • Offtake Agreement One board seat2 Offtake granted over 49.12% of life of mine reserves in the Technical Report Orion Mine • Subscription Agreement * Pre-emptiv
Slide 34: Summary of Astor case ruling
Summary of Astor case ruling Judgement handed down 6 March 2017 Company was correct in its interpretation of the law in respect of the Master Agreement and in its actions Company not in breach of its obligations. Deferred Consideration payment not triggered, hence first instalment has not fallen
Slide 35: Mining Industry in Spain
Mining Industry in Spain An established mining-friendly jurisdiction 1 2 6 Aguas Teñidas Significant Mining Proyecto Riotinto Copper Copper, zinc Infrastructure 11 3 4 Substation located Power 8 1km from mine site 10 7 Supplied from Las Cruces 9 SPAIN Aguablanca Campofrio reservoir Copper Nickel, co
Slide 36: AIM:ATYM / TSX:AYM
AIM:ATYM / TSX:AYM