Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Value Investing FM (March 2024)
50 slides from Atalaya Mining Copper Sa's conference presentation, Mar 16, 2024
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain Value Investing FM 16 March 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 technical report entitled “Technical Report On the Riotinto Copper Project” dated September 2022, pr
Slide 4: Copper Market
ATALAYA MINING ~~ Copper Market
Slide 5: Strong Outlook for Copper
Strong Outlook for Copper Copper demand is accelerating, but building new mines is increasingly difficult Global Consumption of Refined Copper 1900-2023 Growing Global Copper Consumption (Mt)(1) 5x CODELCO’s 2022 to 2030 6.5x Escondida mines demand growth is 19x Cobre Panama mines equivalent t
Slide 6: Copper Outlook: Escondida & CODELCO
Copper Outlook: Escondida & CODELCO Escondida: Falling grades at the world’s largest copper mine highlights industry challenges Escondida is the world’s largest copper mine Annual Copper Production (kt)(1) Copper Grade ‒ Owned by BHP (57.5%), Rio Tinto (30%) and Japanese consortiums Production c
Slide 7: Atalaya Overview
ATALAYA MINING ~~ Atalaya Overview
Slide 8: Atalaya Snapshot
Atalaya Snapshot European copper producer with assets in Spain . Ticker Operations Asset locations ATYM Riotinto District TOURO AIM (LSE) 15 Mtpa processing plant SPAIN Cerro Colorado mine MADRID San Dionisio deposit Capitalisation San Antonio deposit OSSA MORENA Proyecto Masa Valverde RIOTINTO $597
Slide 9: Our Journey
ATALAYA MINING ~~ Our Journey
Slide 10: Riotinto District
Riotinto District World class regional infrastructure 10
Slide 11: Regional Infrastructure
Regional Infrastructure Access to the critical inputs required for modern and sustainable operations $/t Copper Production Villages Fresh water reservoirs Current TSF Transmission line Planned future TSF NOT REQUIRED: Fresh water reservoir • Labour camps • Fly-in fly-out Villages • Desalination • Pi
Slide 12: 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$82m Incremental Capex:
Slide 13: Riotinto District
ATALAYA MINING ~~ Riotinto District
Slide 14: Riotinto Deposits
Riotinto Deposits PEA contemplates that the adjacent deposits are mined concurrently Long Section San Dionisio Cerro Colorado San Antonio CuSW Mineralised material PolyMS CuSW PolyMS Open pit Mining method Underground Open pit Underground Legend Copper grade 0.00 – 0.139% 0.14 – 0.199% 0.20 – 0.499%
Slide 15: 2023 Riotinto PEA
2023 Riotinto PEA Contemplates an integrated mine plan that leverages Riotinto’s 15 Mtpa plant Cerro Colorado San Antonio Open pit: 200.7 Mt Underground: 11.8 Mt Riotinto Processing Plant (M&I) 0.37% Cu (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu, 1.
Slide 16: San Dionisio Deposit
San Dionisio Deposit Initial stripping is underway to prepare the area for future mining phases February January 2024 2024 Copper Resource Grade (M&I) 16
Slide 17: 2023 Riotinto PEA: Mining & Processing
2023 Riotinto PEA: Mining & Processing Mine plan prioritises higher grade material from San Dionisio and San Antonio Mining Schedule by Mineralised Material Source (Mt) Processing Schedule by Mineralised Material Type and Grade 17
Slide 18: 2023 Riotinto PEA: Production & NPV
2023 Riotinto PEA: Production & NPV Demonstrates the potential for strong economics and production growth Production Profile(1)(2) NPV After-Tax ($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 2,15
Slide 19: 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 MATSA Riotinto East (Sandfire) Sotiel Riotinto District Masa Valverde / Majadales Atala
Slide 20: 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 21: E-LIX Phase I Plant
ATALAYA MINING ~~ E-LIX Phase | Plant
Slide 22: E-LIX Phase I Plant
E-LIX Phase I Plant Commissioning in progress; expected to unlock significant value February 2024 Recoveries 22
Slide 23: Proyecto Touro
ATALAYA MINING ~~ Proyecto Touro
Slide 24: Proyecto Touro Location
Proyecto Touro Location World class infrastructure 24
Slide 25: Proyecto Touro
Proyecto Touro Ongoing river restoration August 2021 – Lañas River May 2023 – Lañas River 25
Slide 26: Conclusion
ATALAYA MINING ~~ Conclusion
Slide 27: 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, $1.20/lb Z
Slide 28: AISC Benchmarking
AISC Benchmarking ATYM remains well-positioned vs. copper peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 28
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: 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 31: Peer Valuations
Peer Valuations Atalaya’s trades at a multiple well below its copper producer peers Copper Producer Trading Comparables Source: Jefferies 31
Slide 32: Value Proposition
Value Proposition Atalaya is trading at a significant discount to NAV at consensus long term prices Net Asset Value (NAV) at $3.85/lb Cu (US$m) Source: 2023 Riotinto PEA and Touro PFS 32
Slide 33: Appendix
ATALAYA MINING ~~ Appendix
Slide 34: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (11-Mar-24) GBp 332 Basic shares m 139.9 Fully-diluted shares m 144.7 Market capitalisation (basic) £m 464 Market capitalisation (basic) US$m $597 Cash (at 31-Dec) €m 120 Debt (at 31-Dec) €m 65 Enterprise
Slide 35: Operating Performance
Operating Performance Stable copper producer following the delivery of multiple expansions Throughput (Mt) Copper Production (kt) 35
Slide 36: 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 2023 Throughput & recoveries 4.1 Mt ore processed 0.36% Cu ore grade Copper Recovery 4.0 Mt | Q4 2023 0.41% | Q4 2023 85.39% Cu recovery 86.24% | Q4 2
Slide 37: 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 38: 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 in the short term to near critical in the Cu sustai
Slide 39: Intention to Move to Main Market
Intention to Move to Main Market Premium listing expected to broaden appeal to new institutional investors Overview Atalaya has 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 the Financial Condu
Slide 40: 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) 40
Slide 41: 50 MW Solar Plant
50 MW Solar Plant Expected to lower Atalaya’s carbon footprint and deliver cost savings February 2024 Electricity Sources 41
Slide 42: Iberian Pyrite Belt
Iberian Pyrite Belt World class minerals district Riotinto Masa Valverde 42
Slide 43: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 43
Slide 44: Proyecto Touro
Proyecto Touro Water treatment plant is addressing legacy water runoff issues 44
Slide 45: Proyecto Touro
Proyecto Touro Increasing support from the local communities 45
Slide 46: 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 47: 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 48: 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 49: 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 50: Atalaya Mining plc
Contacts: Atalaya Mining plc Cesar Sanchez, CFO +34 959 59 28 50 info@atalayamining.com