Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q3 2023 Earnings Presentation
37 slides from Atalaya Mining Copper Sa's earnings presentation, Nov 16, 2023
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain Q3 and H1 2023 Financial Results 16 November 2023
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: Disclaimer: Technical Disclosure
Disclaimer: Technical Disclosure Technical Disclosure – Proyecto Riotinto Unless otherwise noted, all scientific and technical information relating to Proyecto Riotinto is based on and derived from a technical report entitled “Technical Report On the Riotinto Copper Project” dated September 2022, pr
Slide 4: Q3 and YTD 2023 Financial Results
Q3 and YTD 2023 Financial Results
Slide 5: Review of YTD 2023
Review of YTD 2023 Projects continue to advance and significant cost improvement vs. 2022 ‒ Copper production of 12.5 kt in Q3 2023 and 38.9 kt in YTD 2023 ‒ Cash costs of $2.82/lb Cu in Q3 2023 and $2.76/lb in YTD 2023 Operating ‒ AISC of $3.24/lb Cu in Q3 2023 and $3.07/lb in YTD 2023 ‒ FY2023 out
Slide 6: Q3 2023 Production Results
Q3 2023 Production Results Good throughput and recoveries helped to offset lower grades Copper production Ore Throughput (Mt) 12,541 tonnes Cu 13,453 tonnes Cu | Q3 2022 Throughput & recoveries 3.9 Mt ore processed 0.38% Cu ore grade Copper Recovery 3.9 Mt | Q3 2022 0.41% | Q3 2022 87.00% Cu recover
Slide 7: Q3 2023 Financial Results
Q3 2023 Financial Results Lower costs supported higher cash flow generation Income statement highlights Revenues (€m) Revenue: €85.4m Op. costs: €(66.3)m €82.3m | Q3 2022 €(86.6)m | Q3 2022 EBITDA: €19.1m Profits: €11.1m €(4.3)m | Q3 2022 €(7.2)m | Q3 2022 Cash flow statement highlights EBITDA (€m)
Slide 8: YTD 2023 Financial Results
YTD 2023 Financial Results Continued balance sheet strength and cash flow generation Income statement highlights Revenue: €254.8m Op. costs: €(195.5)m €262.0m | YTD 2022 €(224.8)m | YTD 2022 EBITDA: €59.2m Profits: €31.4m €37.1m | YTD 2022 €22.9m | YTD 2022 Cash flow statement highlights Operating C
Slide 9: Electricity Prices in Spain
Electricity Prices in Spain Market prices have continued to moderate in 2023 vs. extreme levels in 2022 Spot Market + Adjustment in Spanish System (€/MWh)(1)(2) 1. Source: OMI, Polo Español S.A. (OMIE), day-ahead operations program 2. Since 15-Jun-2022, includes daily adjustment mechanism related to
Slide 10: Cash Costs & AISC Breakdown
Cash Costs & AISC Breakdown Improved operating costs vs. 2022 due to lower electricity prices and offsite costs $/lb Copper Payable Q3 2023 Q3 2022 YTD 2023 FY2022 ▪ In Q3 2023, significantly Mining 0.90 0.75 0.84 0.79 lower electricity Processing 0.93 1.53 0.90 1.31 prices and lower offsite costs O
Slide 11: AISC Benchmarking
AISC Benchmarking ATYM remains well-positioned vs. copper peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 11
Slide 12: 2023 Guidance
2023 Guidance Positive performance in YTD 2023 supports full year guidance Operational Guidance ▪ Production Ore mined Mt ~15 ‒ Full year production is expected to be at the lower Mt ~30 Waste mined end of the FY 2023 production guidance range Ore processed Mt 15.3 – 15.8 ▪ Costs ‒ Performance for Y
Slide 13: Recent Corporate Initiatives
Recent Corporate Initiatives
Slide 14: Intention to Move to Main Market
Intention to Move to Main Market Premium listing expected to broaden appeal to new institutional investors Overview ▪ On 13 November 2023, Atalaya announced its intention to apply for the Company's ordinary shares to be: ‒ Admitted to the premium listing segment of the Official List maintained by th
Slide 15: Proposed Re-domiciliation
Proposed Re-domiciliation Opens the possibility for inclusion in the FTSE UK Index Series(1) Overview EGM Information ▪ On 14 November 2023, Atalaya announced its intention to re-domicile the Company by 11:00 am GMT Date transferring its registered office from the Tuesday, 12 December 2023 Republic
Slide 16: Scarcity of Copper "Pure Plays"
Scarcity of Copper “Pure Plays” Atalaya is the 2nd largest copper “pure play” listed in London LSE Miners by Market Capitalisation (£bn) and Copper Contribution to Revenue Source: London Stock Exchange, company filings Note: Copper revenue contribution based on last reported financial or trading sta
Slide 17: Strong Outlook for Copper
Strong Outlook for Copper Copper demand is accelerating, but building new mines is increasingly difficult Growing Global Copper Consumption (Mt)(1) Falling Production from Legacy Mines(2) ▪ 5x CODELCO’s 2022 to 2030 ▪ 6.5x Escondida mines CODELCO Copper Production Outlook demand growth is ▪ 19x Cobr
Slide 18: Copper Outlook: Escondida
Copper Outlook: Escondida Falling grades at the world’s largest copper mine highlights industry challenges Annual Copper Production (kt)(1) ▪ Escondida is the world’s largest copper mine ‒ Owned by BHP (57.5%), Rio Tinto (30%) and Japanese consortiums ▪ Production could fall materially from FY2027,
Slide 19: Focus for 2023
ATALAYA MINING > Focus for 2023
Slide 20: E-LIX Phase I Plant
E-LIX Phase I Plant Construction progressing; expected to unlock significant value September 2023 20
Slide 21: E-LIX Phase I Plant
E-LIX Phase I Plant Construction progress September 2023 21
Slide 22: E-LIX Phase I Plant
E-LIX Phase I Plant Construction progress November 2023 22
Slide 23: 50 MW Solar Plant
50 MW Solar Plant Expected to lower Atalaya’s carbon footprint and deliver cost savings 23
Slide 24: Riotinto District & Touro
Riotinto District & Touro Diverse portfolio of low capital intensity growth projects 24
Slide 25: Appendix
ATALAYA MINING > Appendix
Slide 26: Investment Highlights
Investment Highlights ▪European MAP copper producer with scale, growth and consistency ‒ Copper production of >50 ktpa from Cerro Colorado alone ▪‒ ASSETS Potential to grow copper equivalent production to >100 ktpa via existing portfolio ‒ Riotinto reserves plus adjacent deposits support long life-o
Slide 27: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (10-Nov-23) GBp 286 Basic shares m 139.9 Fully-diluted shares m 144.7 Market capitalisation (basic) £m 400 Market capitalisation (basic) US$m $489 Cash (at 30-Sept) €m 119 Debt (at 30-Sept) €m 52 Enterpri
Slide 28: Electricity Price Impact on Unit Costs
Electricity Price Impact on Unit Costs Impact of PPA, solar plant and market price normalisation to reduce AISC AISC Breakdown ($/lb Copper Payable) ▪ Electricity prices were responsible for the vast majority of the AISC increase in 2022 compared to prior years ‒ Other costs have been impacted by in
Slide 29: Dividend History
Dividend History Policy seeks to balance capital returns, growth projects and financial strength Dividend Payments ▪ Inaugural dividend Dividend Announced US$ GBP EUR US$ GBP EUR declared in 2021 per sh per sh per sh m m m Inaugural 27-Oct-21 0.3950 0.294 0.345 54.6 40.6 47.3 ▪ Formal dividend polic
Slide 30: EU Critical Raw Materials Act
EU Critical Raw Materials Act Copper has been added to the EU’s list of Strategic Raw Materials Background of Act Focus on Building European Capacity ‒ Ensure a secure and sustainable supply of ‒ Identify “Strategic Projects” in the EU and critical raw materials for EU industry third countries that
Slide 31: U.S. Critical Materials Assessment
U.S. Critical Materials Assessment Copper is viewed as essential to clean energy technologies by the U.S. DOE DOE Vision & Strategy Importance of Copper ‒ Develop reliable, resilient, affordable, diverse, ▪ Copper has been moved from noncritical 29 sustainable, and secure domestic critical in the sh
Slide 32: 2022 Sustainability Report
2022 Sustainability Report Highlights Atalaya's commitment to enhancing its disclosure and performance 2022 Sustainability Report ▪ In May 2023, Atalaya published its second annual sustainability report ‒ Statistics and data are for the year ended 31 December 2022 ‒ Represents a core component of At
Slide 33: Safe Tailings Management
Safe Tailings Management Atalaya applies industry best practice standards to its tailings facility 2023 TSF Report ▪ In March 2023, Atalaya published a standalone document that summarises the Company’s approach to safe tailings management ▪ The report includes details on the history of the tailings
Slide 34: 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 Cerro Colorado 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
Slide 35: Senior Management
Senior Management Decades of operations, project development and financial expertise Alberto Lavandeira César Sánchez Enrique Delgado Chief Executive Officer, Director Chief Financial Officer Operations – General Manager, Proyecto Riotinto Over 40 years’ experience Former CFO of companies in Former
Slide 36: Board of Directors
Board of Directors Mining, capital markets, sustainability and finance expertise Non-Executive Chair of the Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; Roger Davey Board former Director, VP and GM, AngloGold (Argentina). Currently a direct
Slide 37: Atalaya Mining plc Investor Relations
Contacts: Atalaya Mining plc Alberto Lavandeira, CEO +34 959 59 28 50 info@atalayamining.com Investor Relations Carina Corbett, 4C Communications Ltd +44 20 3170 7973 corbett@4ccommunications.com