Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — EMED Mining Public — Investor Presentation (October 2014)
27 slides from Atalaya Mining Copper Sa's investor presentation, October 2014
Slide 1: Recent Progress at the Rio Tinto Copper Project
EMED Mining Recent Progress at the Rio Tinto Copper Project October 2014
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by EMED Mining Public Limited (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 a
Slide 3: Presentation Team
Presentation Team Alberto John Leach, Lavandeira Adán, Chief Financial Officer Chief Operating Officer ● Over 35 years’ experience operating and developing ● Over 25 years experience in senior financial and executive mining projects director positions within the mining industry internationally ● Gra
Slide 4: Investment Highlights
Investment Highlights Management team with proven track record and relevant skills to permit and develop Rio Tinto Copper Project in Spain Near term copper production from H2 2015 Local government support and sound regulatory environment Low capital intensity brownfield project, with signifi
Slide 5: Company Overview
Company Overview ● EMED Mining is an exploration and development Share Information company listed on the AIM market of the LSE and Share price (AIM: EMED)(1) 6.5p on the TSX Share price (TSX: EMD)(1) C$0.12 ● The Company’s strategy is to develop copper Basic shares 1,439.9mm projects Fully-diluted s
Slide 6: Key Management for Project Delivery
Key Management for Project Delivery Isaac Querub, ● Has previously run a number of successful businesses in Spain, including being the Managing Director Chief Executive Officer of Glencore Spain from 1990 to 2003 ● Graduate from Instituto Católico de Administración y Dirección de Empresas (ICADE)/Un
Slide 7: Mining Industry in Spain
Mining Industry in Spain 1 Significant Mining Infrastructure Rio Tinto 5 6 Copper Project Copper • Substation located Power 2 1km from mine site Aguas Teñidas Copper, zinc • To be supplied 3 from Campofrio Las Cruces reservoir 3km Copper 7 SPAIN Water away and Aguas Limpias water dam 4 2 km away Agu
Slide 8: Introduction to Rio Tinto Copper Project
Introduction to Rio Tinto Copper Project Project Highlights & Location (1) • EMED Mining owns 100% of the Rio Tinto Copper Project through its wholly-owned Spanish subsidiary Mining method: Open-pit EMED Tartessus SLU Ore throughput: 9 mmpta • Past-producing open-pit copper mine in the Iberian Pyrit
Slide 9: Infrastructure Advantage
Infrastructure Advantage • Significant existing infrastructure in place • Concentrate is expected to be trucked 75km to Huelva for smelting and export, via national roads that were recently upgraded • Power to be supplied by ENDESA via a substation 1km away • Water will be primarily from within the
Slide 10: Recent Developments
Recent Developments 20 March 2014 Appointment of CEO and COO 28 March 2014 Unified Environmental Authorisation (AAU) permit granted 11 April 2014 Administrative Standing (AS) permit granted 26 June 2014 Government of Andalucia awards a €8.3mm grant for development of Rio Tinto 31 July 2014 Trafigura
Slide 11: Refurbishment at Site Underway
Refurbishment at Site Underway Crushing area – clean-up of primary crusher feed hopper Crushing area – replacement of primary apron feeder Crushing area - works at coarse ore conveyor main transfer sections tower Milling area - removal of rod mill discharge launder Flotation area - cells agitators d
Slide 12: Capital Efficiency and Competitive Cash Costs
Capital Efficiency and Competitive Cash Costs Capital Intensity (US$/tonne annual cu production) C1 Cash Costs After By-Products (US$/lb) Kipoi $3,941/t Kolwezi Tailings $0.42 Tschudi $6,224/t Boleo $0.90 Sentinel $6,346/t Toromocho $1.03 Rio Tinto Copper Project $7,576/t Cobre Panama $1.05 Kapulo $
Slide 13: Funding Requirements
Funding Requirements • Initial funding of US$203mm will be required to Initial Funding Requirements US$mm bring Rio Tinto into production at an initial 5 Plant Refurbishment $129 mmtpa rate (Stage 1) Water Dams and Tailings $35 • This does not include potential capital Commissioning and Start Up $23
Slide 14: New Strategy for Restart
New Strategy for Restart • Initially conceived as a classical EPCM project, EMED now plans to maximize in-house construction management using specialized and small scale local sub contractors • Focused on refurbishment instead of replacement wherever possible • Management team continues to review ca
Slide 15: Critical Permits Have Been Granted
Critical Permits Have Been Granted Permit Granted Notes • Key permit required to obtain Administrative Standing and begin construction Unified Environmental Authorisation (AAU) 28 March 2014 • Consolidates all of the required environmental and land-use permits and applications into one document, i
Slide 16: Estimated Timeline to Completion
Estimated Timeline to Completion Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 J F M A M J J A S O N D J F M A M J J A S O N D J F M Milestones Administrative standing Mining contractor appointed Equipment pre-ordered Mining application Mining permit Finance in place Mining
Slide 17: District Potential
District Potential • The Rio Tinto Copper Project is located at the eastern end of the highly prospective Iberian pyrite belt, which extends about 230km between Seville in the east and the Atlantic coast near Lisbon in the west • Within the pyrite belt, there are 8 major mining areas • In total, som
Slide 18: Rio Tinto Copper Project Upside Potential (1/2)
Rio Tinto Copper Project Upside Potential (1/2) • There is significant potential to expand the mineable resource at Rio Tinto Copper Project, which could support a throughput expansion or extend the operation’s mine life • The region is highly-prospective, being part of the world’s largest VMS syste
Slide 19: Rio Tinto Copper Project Upside Potential (2/2)
Rio Tinto Copper Project Upside Potential (2/2) Cu Pb Zn Ag Au San Dionisio Section Copper Grades Historical Estimates Ore mmt % % % g/t g/t San Dionisio: 17.2 1.45 - - - - • Alfredo Stockwork San Dionisio: 45.0 0.88 - 2.20 26.0 0.4 • Massive Sulphide San Antonio 9.1 1.67 1.07 2.13 64.3 0.6 • Massiv
Slide 20: Gravimetric Anomalies at Rio Tinto
Gravimetric Anomalies at Rio Tinto NEW TARGET RIOTINTO MINE ● Gravimetric anomaly north of Rio Tinto, in an area with low density rocks, suggests the presence of deeper sulphide deposit, with similar size to the original RioTinto deposit ● Position of anomaly coincident with faults that limit the ea
Slide 21: Conclusion
Conclusion Management team with proven track record and relevant skills to permit and develop the Rio Tinto Copper Project Local government support and sound regulatory environment Low capital intensity re-start relative to greenfield projects Discussions with key shareholders continue to ex
Slide 22: Appendix
Appendix 22
Slide 23: Experienced Board and Management
Experienced Board and Management Executive Directors Isaac Querub • Former Managing Director of Glencore Spain from (1990-2003) CEO & MD, EMED Mining • Extensive business interests in Spain ED, EMED Tartessus Alberto Lavandeira • Over 35 years’ experience operating and developing mining projects ED
Slide 24: C1 Cash Cost Breakdown
C1 Cash Cost Breakdown US$mm US$/lb Cu Site Operating Costs Mining $613 $0.56 Milling $684 $0.63 Silver By-Product Credits ($103) ($0.09) Administration $129 $0.12 Costs Improvements (2015 and beyond) ($100) ($0.09) Subtotal $1,223 $1.13 Freight, Selling, Refining and Smelting Freight & Selling $190
Slide 25: Copper Market Forecasts
Copper Market Forecasts Copper Themes Spot Copper vs. Long-Term Analyst Consensus2 • Mining companies will continue to clamp down on their massive capital 5.0 spending programmes and focus on raising productivity from existing assets and cost cutting programmes that were started during 2013 • Global
Slide 26: Capital Structure
Capital Structure Shares Outstanding1 No. Convertible loan terms Value Basic shares 1,439.9mm XGC loan £7,026,800 Options and warrants2 43.9mm Orion Mine Finance loan £2,555,200 Convertible loan shares3 122.8mm Total loan £9,582,000 Fully-diluted shares 1,606.6mm Term 18 months Issue date 12 July 20
Slide 27: Ownership Summary
Ownership Summary Trafigura Key terms Shareholder structure 100% Company Agreement Terms Astor Orion Mine Urion Other XGC • Security package over EMED Management Finance Holdings Holdings UK Convertible • Pre-emptive rights XGC note with • Board seat on EMED Mining Public 51.0% 2.2% 14.3% (18.9%)1 1
EMED Mining Public — Investor Presentation (October 2014) on 6ix