Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Canaccord Genuity Global Metals & Mining Conference 2024
60 slides from Atalaya Mining Copper Sa's conference presentation, May 2024
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain Canaccord Genuity Global Metals & Mining Conference May 2024
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 Competent Persons Report (CPR) entitled “An Independent Competent Persons Report on the Mineral Asse
Slide 4: Atalaya Overview
ATALAYA MINING > Atalaya Overview
Slide 5: Atalaya Snapshot
Atalaya Snapshot European copper producer with operations in Spain . Ticker Operations Asset locations ATYM Riotinto District TOURO LSE Main Market 15 Mtpa processing plant Premium Segment SPAIN Cerro Colorado mine MADRID San Dionisio deposit San Antonio deposit OSSA MORENA Capitalisation Proyecto M
Slide 6: Operating Performance
Operating Performance Stable copper producer following the delivery of multiple expansions Throughput (Mt) Copper Production (kt) 6
Slide 7: Illustrative Production Potential
Illustrative Production Potential Growth driven by higher grades at Riotinto and potential Touro development Copper Equivalent Production (kt)(1)(2) 1. Recovered metal in concentrate. 2. Copper Equivalent production is calculated from results presented in the PEA and based on $3.50/lb Cu, $1.20/lb Z
Slide 8: 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 9: 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 10: Move to LSE Main Market
Move to LSE Main Market Admission to Premium listing segment marks major milestone for Atalaya Admission: 29 April 2024 10
Slide 11: 2024 Outlook
ATALAYA MINING > 2024 Outlook
Slide 12: Q1 2024 Production Results
Q1 2024 Production Results Lower production due to lower grades and recoveries Copper production Ore Throughput (Mt) 10,666 tonnes Cu 12,139 tonnes Cu | Q1 2023 Throughput & recoveries 3.7 Mt ore processed 0.34% Cu ore grade Copper Recovery 3.7 Mt | Q1 2023 0.38% | Q1 2023 84.74% Cu recovery 86.88%
Slide 13: 2024 Guidance
2024 Guidance Steady operations expected, with key investments focused on growth Operational Guidance ▪ Production Ore mined Mt ~19 ‒ Consistent with FY2023 levels ‒ Weighted towards H2 2024 due Waste mined(1) Mt ~25 to grade profile Ore processed Mt 15.3 – 15.8 ▪ Costs ‒ Consistent with FY2023 Copp
Slide 14: San Dionisio Deposit
San Dionisio Deposit Initial stripping is underway to prepare the area for future mining phases April 2024 January 2024 Copper Resource Grade (M&I) 14
Slide 15: E-LIX Phase I Plant
E-LIX Phase I Plant Commissioning in progress; expected to unlock significant value April 2024 Recoveries 15
Slide 16: E-LIX Phase I Plant
E-LIX Phase I Plant Capable of producing high purity copper and zinc at mine site January 2024 16
Slide 17: 50 MW Solar Plant
50 MW Solar Plant Expected to lower Atalaya’s carbon footprint and deliver cost savings April 2024 Electricity Sources 17
Slide 18: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 18
Slide 19: Key Activities for 2024
Key Activities for 2024 Main Market: Admitted to trading on 29 April 2024 Re-domiciliation: Advance process according to new Cyprus legislation E-LIX: Commissioning and ramp-up continues 50MW solar plant: Start-up is expected in late 2024 San Dionisio: Continuation of stripping activities and permit
Slide 20: Our Journey
ATALAYA MINING > Our Journey
Slide 21: Atalaya Team Track Record
Atalaya Team Track Record Strong experience in permitting, financing and constructing major projects Aguablanca (Ni, Cu) El Valle-Boinás (Au, Cu) Mutanda (Cu, Co) Tasiast (Au) 21
Slide 22: Iberian Pyrite Belt
Iberian Pyrite Belt World class minerals district Riotinto Masa Valverde 22
Slide 23: Riotinto District
Riotinto District World class regional infrastructure 23
Slide 24: Regional Infrastructure
Regional Infrastructure Access to the critical inputs required for modern and sustainable operations Villages Fresh water reservoirs Current TSF Transmission line Planned future TSF NOT REQUIRED: Fresh water • Labour camps reservoir • Fly-in fly-out • Desalination Villages • Pipelines • Own smelter
Slide 25: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Gyratory Crusher – 2014 New Jaw Crusher – Today 25
Slide 26: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Mills – 2014 New Mills – Today 26
Slide 27: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Flotation Circuit – 2014 New Flotation Circuit – Today 27
Slide 28: Riotinto Today
Riotinto Today Modern and large-scale operation well-positioned for future growth 28
Slide 29: Riotinto Operating & Funding History
Riotinto Operating & Funding History Re-start & expansions delivered with low capex intensity & limited equity dilution Expansion History and Throughput (Mt) Re-start – 5.0 Mtpa Expansion to 9.5 Mtpa Expansion to 15.0 Mtpa Executed: 2015 Executed: 2016 Executed: 2019 Capex: US$82m Incremental Capex:
Slide 30: Riotinto District Vision
ATALAYA MINING > Riotinto District Vision
Slide 31: Atalaya's Significant Resource Base
Atalaya’s Significant Resource Base Including higher grade deposits located near existing processing plant CuEq Resources (Mt)(1)(2)(3) Riotinto District Deposit Grades(2)(3) Producing Growth Pipeline Producing Growth Pipeline 1. Alconchel historical 43-101 resource per 21-Dec-2021 announcement 3. M
Slide 32: Potential Future Processing Hub
Potential Future Processing Hub ATYM’s 15 Mtpa mill could become a processing hub – similar to MATSA model Key Operations in the Iberian Pyrite Belt Magdalena Aguas Teñidas Cerro Colorado San Dionisio San Antonio Riotinto East MATSA (Sandfire) Sotiel 29 km Riotinto District Masa Valverde / Majadales
Slide 33: 2023 Riotinto PEA
2023 Riotinto PEA Contemplates an integrated mine plan that leverages Riotinto’s 15 Mtpa plant Cerro Colorado San Antonio Open pit: 156.6 Mt Underground: 11.8 Mt Riotinto Processing Plant (M&I) 0.37% Cu (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu, 1.
Slide 34: Riotinto Deposits
Riotinto Deposits PEA contemplates that the adjacent deposits are mined concurrently Long Section San Dionisio Cerro Colorado San Antonio CuSW Mineralised material PolyMS CuSW PolyMS Open pit Mining method Underground Open pit Underground Legend Copper grade 0.00 – 0.139% 0.14 – 0.199% 0.20 – 0.499%
Slide 35: 2023 Riotinto PEA: Mining & Processing
2023 Riotinto PEA: Mining & Processing Mine plan prioritises higher grade material from San Dionisio and San Antonio Mining Schedule by Mineralised Material Source (Mt) Processing Schedule by Mineralised Material Type and Grade 35
Slide 36: 2023 Riotinto PEA: Production & NPV
2023 Riotinto PEA: Production & NPV Demonstrates the potential for strong economics and production growth Production Profile(1)(2) NPV After-Tax ($m) Sensitivity to Copper Price ($/lb) and Discount Rate (3) Copper Price ($/lb) 2.80 2.98 3.15 3.33 3.50 3.68 3.85 4.03 4.20 0% 928 1,240 1,545 1,848 2,1
Slide 37: Capital Cost Summary
Capital Cost Summary Much of phased capex linked to polymetallic material and underground mines Unit 2023-2026 2027-2036 LOM By Mineralised Material Type Related to CuSW Material $m 44 - 44 Related to PolyMS Material $m 98 154 252 Related to Overall Operations $m 20 142 196 Subtotal $m 162 297 492 C
Slide 38: Proyecto Touro
ATALAYA MINING > Proyecto Touro
Slide 39: Proyecto Touro Location
Proyecto Touro Location World class infrastructure 39
Slide 40: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 40
Slide 41: Proyecto Touro
Proyecto Touro Water treatment plant is addressing legacy water runoff issues 41
Slide 42: Proyecto Touro
Proyecto Touro Ongoing river restoration August 2021 – Lañas River May 2023 – Lañas River 42
Slide 43: Proyecto Touro
Proyecto Touro Increasing support from the local communities 43
Slide 44: 2023 Annual Financial Results
2023 Annual Financial Results
Slide 45: Review of FY2023
Review of FY2023 Lower costs and balance sheet strength position Atalaya for next growth phase ‒ Copper production of 51.7 kt in FY2023 (vs. 52.3 kt in FY2022) ‒ Strong plant throughput of 15.8 Mt and recoveries of 86.62%, partly offsetting lower grades Operating ‒ Cash cost of $2.79/lb Cu and AISC
Slide 46: Q4 2023 Production Results
Q4 2023 Production Results Good throughput helped to offset lower grades Copper production Ore Throughput (Mt) 12,775 tonnes Cu 13,969 tonnes Cu | Q4 2022 Throughput & recoveries 4.1 Mt ore processed 0.36% Cu ore grade Copper Recovery 4.0 Mt | Q4 2022 0.41% | Q4 2022 85.47% Cu recovery 19.83% con. g
Slide 47: Q4 2023 Financial Results
Q4 2023 Financial Results Lower concentrate sales resulted in lower EBITDA Income statement highlights Revenues (€m) Revenue: €85.6m Op. costs: €(71.7)m €99.9m | Q4 2022 €(81.7)m | Q4 2022 EBITDA: €13.9m Profits: €5.2m €18.2m | Q4 2022 €8.0m | Q4 2022 Cash flow statement highlights EBITDA (€m) Opera
Slide 48: FY2023 Financial Results
FY2023 Financial Results Higher EBITDA and operating cash flow due to lower operating costs Income statement highlights Revenue: €340.3m Op. costs: €(267.2)m €361.8m | FY2022 €(306.5)m | FY2022 EBITDA: €73.1m Profits: €36.7m €55.3m | FY2022 €30.9m | FY2022 Cash flow statement highlights Operating CF
Slide 49: Cash Costs & AISC Breakdown
Cash Costs & AISC Breakdown Achieved lower costs in FY2023, consistent with guidance $/lb Copper Payable Q4 2023 Q4 2022 FY2023 FY2022 ▪ Reduction in cash costs and Mining 0.92 0.70 0.86 0.79 AISC mainly due Processing 0.84 1.11 0.89 1.31 to substantially lower electricity Other site operating costs
Slide 50: Dividend History
Dividend History Policy seeks to balance capital returns, growth projects and financial strength Dividend Payments ▪ Inaugural dividend Dividend Announced US$ 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 51: Appendix
ATALAYA MINING > Appendix
Slide 52: Investment Highlights
Investment Highlights ▪European MAP copper producer with scale, growth and consistency ‒ Copper production of >50 ktpa from Cerro Colorado alone Potential to grow copper equivalent production to >100 ktpa via existing portfolio ▪‒ ASSETS ‒ Riotinto reserves plus adjacent deposits support long life-o
Slide 53: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (01-May-24) GBp 439 Basic shares m 139.9 Fully-diluted shares m 144.7 Market capitalisation (basic) £m 613 Market capitalisation (basic) US$m $766 Cash (at 31-Mar) €m 86 Debt (at 31-Mar) €m 50 Enterprise
Slide 54: Electricity Prices in Spain
Electricity Prices in Spain FY2023 realised prices were 60% below FY2022 and have fallen further in 2024 Spot Market + Adjustment in Spanish System (€/MWh)(1)(2) 1. Source: OMI, Polo Español S.A. (OMIE), day-ahead operations program 2. Since 15-Jun-2022, includes daily adjustment mechanism related t
Slide 55: AISC Benchmarking
AISC Benchmarking ATYM cost positioning is competitive vs. notable copper producer peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 55
Slide 56: 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 132.0 0.37% - - - - 0.5 - - - - 0.5 0.5 0.5 M&I 156.6 0.37% 0.15% 0.03% - - 0.6 0.2 0.0
Slide 57: 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 58: 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 59: 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 60: Atalaya Mining plc
Contacts: Atalaya Mining plc Alberto Lavandeira, CEO +34 959 59 28 50 info@atalayamining.com
Atalaya Mining — Canaccord Genuity Global Metals & Mining Conference 2024 on 6ix