Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Mines & Money Online Connect 2020
27 slides from Atalaya Mining Copper Sa's conference presentation, September 2020
Slide 1: Premier pure-play copper producer in Europe
Premier pure-play copper producer in Europe Mines & Money Online Connect September 1 – 3, 2020
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: Review of H1 2020
Review of H1 2020 Successfully delivered on growth strategy Navigated COVID-19 safely Nil cases. Shut down for only 5 days Strong record of safety Delivery of the 15M Project at Riotinto Delivered within 18 months of breaking ground Currently running at full capacity Confirmed permits
Slide 4: COVID-19 Update
COVID-19 Update Activities at Proyecto Riotinto halted for only five days Measures implemented Non-critical site visits and employee and contractor meetings cancelled Staff worked remotely where possible Temporary shutdown as mandated by government (only 5 days) Ramped up to full productio
Slide 5: Consistent Growth Trajectory
Consistent Growth Trajectory Creation of a stable and leading mid-tier copper producer Restart: 5.0Mtpa Expansion to 9.5Mtpa Expansion to 15.0Mtpa Executed in 2015 Executed in 2016 Executed in 2019 Capex: US$82m Incremental Capex: US$68m(1) Incremental Capex: ~US$92m(2) Capex Intensity: US$3
Slide 6: Atalaya Benchmarking vs. Copper Peers
Atalaya Benchmarking vs. Copper Peers Highly competitive cost positioning and leading project capex intensity Capex Intensity (US$ 000/t Cu Eq) 2019A All-in-Sustaining-Costs (AISC) (US$/lb Cu)(1) Comparison of Riotinto against Upcoming Projects Atalaya Senior Diversifieds Copper Miners Others $20.0
Slide 7: 2019 and H1 2020 Performance
2019 and H1 2020 Performance Consistent performance over the period 2019 operating results Copper production (kt) Throughput: 10.5Mt 60 55 - 58 50 42 45 Recovery: 87.09% Production (kt) 37 40 Production: 45.0kt Cu 30 26 27 20 2019 financial results 10 Cash costs: US$1.80/lb -- 2016 2017
Slide 8: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Valued at a discount despite attractive underlying metrics(1) Net debt / Enterprise Value EV / 2020e CuEq prod’n (US$/t)(3) EV / 2020e EBITDA(2) 2020e FCF Yield(4) Atalaya 12% (2) Atalaya $6,789 Atalaya 5.2x Atalaya 12% Copper Ero Copper $31,800 Copper 59% 9.6x C
Slide 9: Strategic Focus for Growth
Strategic Focus for Growth Ambition to become a multi-asset, mid-tier base metals producer Organic External RIOTINTO : Continue to evaluate external Value-added products: opportunities that leverage core Evaluation of technologies to capabilities maximise value of complex New prospects in Py
Slide 10: Proyecto Riotinto
Proyecto Riotinto Established mine in a stable jurisdiction, with further optimisation and growth potential 15Mtpa expansion completed on schedule RIOTINTO Cu production guidance for 2020 of 55,000- HUELVA SEVILLE 58,000 tonnes Significant open pit copper reserves Matsa (Trafigura 0 E-803 50 1
Slide 11: 15M Expansion
15M Expansion 9.5Mtpa and 15Mtpa Expansion areas AIM:ATYM / TSX:AYM 11
Slide 12: 15M Expansion
15M Expansion SAG Mill AIM:ATYM / TSX:AYM 12
Slide 13: 15M Expansion
15M Expansion SAG pebble crushing New Pebble Crusher, belts and SAG Mill AIM:ATYM / TSX:AYM 13
Slide 14: 15M Expansion
15M Expansion New primary crusher AIM:ATYM / TSX:AYM 14
Slide 15: 15M Expansion
15M Expansion New flotation area AIM:ATYM / TSX:AYM 15
Slide 16: Riotinto: Brownfield Orebodies
Riotinto: Brownfield Orebodies Exploration focused on proximate orebodies with potential to provide material copper, lead and zinc upside Exploration expertise potentially a key value driver The region is highly prospective with several attractive options. Targets include: Corta Atalaya/San Di
Slide 17: Riotinto: Brownfield Orebodies
Riotinto: Brownfield Orebodies San Dionisio Target Stockwork Massive Sulphides Significant unmined resources being evaluated A total of 1,441 historic drill holes Over 29,830 historic drill samples Digitized all drawings of historical underground works 31 new drill holes added to dat
Slide 18: Riotinto: ESG/Efficiency Initiatives
Riotinto: ESG/Efficiency Initiatives Focus on cost reduction and best industry practice Study into use of solar power under way Expected to reduce electricity costs by 20% Study under way to approve/sanction investment Potentially attractive economics in addition to reduced carbon footprint
Slide 19: Touro: Update
Touro: Update Management remains confident and committed to the development of Proyecto Touro Ruling (January 2020) Current site Negative Environmental Impact Statement by General Directorate Challenged the ability to guarantee no environmental impact to downstream ecosystems Management’s po
Slide 20: Copper Market Update
Copper Market Update Strong market conditions for long life producers Copper supply deficit expected by 2021 Structural constraints in the supply and 250 6,500 demand dynamics in the copper market 182 Copper Surplus / Shortage (000 t) 6,005 6,291 150 6,000 are expected to lead to a supply deficit
Slide 21: Investment Highlights
Investment Highlights Ambition to become a multi-asset, mid-tier base metals producer Premier Pure-play Copper Producer in Europe Cash Flow Generative with Strong Liquidity Strong Organic Growth Options Operational and ESG Improvement Initiatives Proven Team with Project Development and Op
Slide 22: Appendix
Appendix AIM:ATYM / TSX:AYM 22
Slide 23: Reserves and Resources
Reserves and Resources • Update in July 2018 reported 29% increase in P&P reserves, 21% increase in contained Cu to 822,000t and reduction in strip ratio from 1.95:1 to 1.43:1 • Pit design and internal cut-off grade based on long term Cu price of US$2.60/lb • Resources are pit-constrained at US$3.20
Slide 24: Ownership Structure & Corporate Overview
Ownership Structure & Corporate Overview Supportive strategic shareholders Shareholders have: Participated in prior equity raises for restart and expansions of Proyecto Riotinto Indicative of continued support for the company Major shareholders (as at 25 August 2020) Overview (as at 25 August
Slide 25: Copper Price in EUR
Copper Price in EUR Operating excellence has resulted in robust margins Copper Price (€/lb) 2019 AISC (€/lb) H1 2020 AISC (€/lb) 2.90 2.70 2.50 2.30 2.10 H1 2020 AISC: 1.90 €2.04/lb(2) 2019 AISC: €1.90/lb(1) 1.70 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Source: FactSet.
Slide 26: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Attractive underlying metrics(1) Enterprise Value (US$m) 2020e EBITDA (US$m)(2) 2020e FCF (US$m)(3) 2020e CuEq prod’n (kt)(4) (2) Atalaya $384 Atalaya $73 Atalaya $44 Atalaya 56.5 Ero Copper $1,433 Copper Capstone Central Asia $48 ($7) 34 Mountain Metals Capstone
Slide 27: Contact Information
Contact Information: Investor Relations CEO Carina Corbett Alberto Lavandeira 4C Communications Ltd Telephone: +34 959 59 28 50 Telephone: +44 20 3170 7973 Email: info@atalayamining.com Email: corbett@4ccommunications.com AIM:ATYM / TSX:AYM